KBS Real Estate Investment Trust III (KBSR) 10-Q 13 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 07, 2015
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Entity Registrant Name	KBS Real Estate Investment Trust III, Inc.
Entity Central Index Key	1,482,430
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		176,508,529

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Real estate:
Land	$ 312,764	$ 292,228
Buildings and improvements	2,074,865	1,794,464
Tenant origination and absorption costs	246,665	221,169
Total real estate, cost	2,634,294	2,307,861
Less accumulated depreciation and amortization	(162,647)	(110,781)
Total real estate, net	2,471,647	2,197,080
Real estate loan receivable, net	21,655	20,010
Cash and cash equivalents	168,761	99,135
Rents and other receivables, net	31,868	20,763
Due from affiliate	0	1,173
Above-market leases, net	12,110	13,744
Deferred financing costs, prepaid expenses and other assets	39,237	34,530
Total assets	2,745,278	2,386,435
Liabilities and stockholders' equity
Notes payable	1,235,990	1,322,898
Accounts payable and accrued liabilities	43,281	35,167
Due to affiliates	9,675	3,554
Distributions payable	9,249	6,613
Below-market leases, net	34,688	32,745
Other liabilities	30,649	23,033
Total liabilities	$ 1,363,532	$ 1,424,010
Commitments and contingencies (Note 11)
Redeemable common stock	$ 50,059	$ 29,329
Stockholders’ equity:
Preferred stock, $.01 par value; 10,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $.01 par value; 1,000,000,000 shares authorized, 174,318,617 and 123,426,546 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively	1,743	1,234
Additional paid-in capital	1,541,449	1,080,673
Accumulated other comprehensive loss	(5,176)	(2,190)
Cumulative distributions and net losses	(206,329)	(146,621)
Total stockholders' equity	1,331,687	933,096
Total liabilities and stockholders' equity	$ 2,745,278	$ 2,386,435

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	174,318,617	123,426,546
Common stock, shares outstanding	174,318,617	123,426,546

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Rental income	$ 55,945	$ 33,591	$ 109,445	$ 64,585
Tenant reimbursements	12,485	9,936	24,020	19,419
Interest income from real estate loan receivable	402	327	783	648
Other operating income	3,335	1,329	6,169	2,267
Total revenues	72,167	45,183	140,417	86,919
Expenses:
Operating, maintenance and management	16,531	10,154	31,751	20,639
Real estate taxes and insurance	11,885	8,413	23,047	16,068
Asset management fees to affiliate	4,497	2,725	8,814	5,184
Real estate acquisition fees to affiliate	3,019	853	3,019	2,558
Real estate acquisition fees and expenses	1,048	167	1,164	470
General and administrative expenses	1,286	891	2,284	1,626
Depreciation and amortization	32,279	19,293	61,947	36,562
Interest expense	7,636	6,269	20,050	11,566
Total expenses	78,181	48,765	152,076	94,673
Other income:
Other interest income	71	21	141	24
Gain on sale of real estate, net	0	0	0	10,895
Total other income	71	21	141	10,919
Net (loss) income	$ (5,943)	$ (3,561)	$ (11,518)	$ 3,165
Net (loss) income per common share, basic and diluted (in dollars per share)	$ (0.04)	$ (0.04)	$ (0.08)	$ 0.04
Weighted-average number of common shares outstanding, basic and diluted	164,166,681	87,278,000	149,484,191	80,055,877

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (5,943)	$ (3,561)	$ (11,518)	$ 3,165
Other comprehensive income (loss):
Unrealized losses on derivative instruments	(44)	(5,139)	(6,353)	(7,332)
Reclassification adjustment realized in net income (effective portion)	1,716	1,481	3,367	2,443
Total other comprehensive income (loss)	1,672	(3,658)	(2,986)	(4,889)
Total comprehensive loss	$ (4,271)	$ (7,219)	$ (14,504)	$ (1,724)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Cumulative Distributions and Net Losses [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance, shares at Dec. 31, 2013		66,430,888
Balance, value at Dec. 31, 2013	$ 502,817	$ 664	$ 574,762	$ (74,788)	$ 2,179
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(12,352)			(12,352)
Other comprehensive loss	(4,369)				(4,369)
Issuance of common stock, shares		57,372,731
Issuance of common stock, value	583,858	$ 574	583,284
Transfers to redeemable common stock	(16,915)		(16,915)
Redemptions of common stock, shares		(377,073)
Redemptions of common stock, value	(3,637)	$ (4)	(3,633)
Distributions declared	(59,481)			(59,481)
Commissions on stock sales and related dealer manager fees to affiliate	(50,808)		(50,808)
Other offering costs	$ (6,017)		(6,017)
Balance, shares at Dec. 31, 2014	123,426,546	123,426,546
Balance, value at Dec. 31, 2014	$ 933,096	$ 1,234	1,080,673	(146,621)	(2,190)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(11,518)			(11,518)
Other comprehensive loss	(2,986)				(2,986)
Issuance of common stock, shares		51,259,476
Issuance of common stock, value	536,238	$ 513	535,725
Transfers to redeemable common stock	(20,730)		(20,730)
Redemptions of common stock, shares		(367,405)
Redemptions of common stock, value	(3,588)	$ (4)	(3,584)
Distributions declared	(48,190)			(48,190)
Commissions on stock sales and related dealer manager fees to affiliate	(47,772)		(47,772)
Other offering costs	$ (2,863)		(2,863)
Balance, shares at Jun. 30, 2015	174,318,617	174,318,617
Balance, value at Jun. 30, 2015	$ 1,331,687	$ 1,743	$ 1,541,449	$ (206,329)	$ (5,176)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows from Operating Activities:
Net (loss) income	$ (11,518)	$ 3,165
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	61,947	36,562
Noncash interest income on real estate-related investment	13	12
Deferred rents	(8,998)	(4,452)
Allowance for doubtful accounts	338	446
Amortization of above- and below-market leases, net	(2,915)	(2,237)
Amortization of deferred financing costs	1,675	929
Unrealized losses on derivative instruments	1,996	0
Gain on sale of real estate	0	(10,895)
Changes in operating assets and liabilities:
Rents and other receivables	(2,427)	(1,823)
Deferred financing costs, prepaid expenses and other assets	(5,371)	(4,119)
Accounts payable and accrued liabilities	824	(2,316)
Other liabilities	1,563	4,033
Due to affiliates	5,956	2,410
Net cash provided by operating activities	43,083	21,715
Cash Flows from Investing Activities:
Acquisitions of real estate	(290,678)	(253,835)
Improvements to real estate	(29,347)	(7,689)
Proceeds from sale of real estate, net	0	42,740
Advances on real estate loan receivable	(1,738)	(1,019)
Purchase of interest rate cap	(175)	0
Principal repayments on real estate loan receivable	80	77
Escrow deposits for future real estate purchase	(1,350)	0
Net cash used in investing activities	(323,208)	(219,726)
Cash Flows from Financing Activities:
Proceeds from notes payable	19,052	152,700
Principal payments on notes payable	(105,960)	(40,000)
Payments of deferred financing costs	(981)	(1,911)
Proceeds from issuance of common stock	511,920	223,156
Payments to redeem common stock	(3,588)	(1,603)
Payments of commissions on stock sales and related dealer manager fees	(47,772)	(20,476)
Payments of other offering costs	(2,857)	(2,712)
Reimbursement of other offering costs from affiliate	1,173	0
Distributions paid to common stockholders	(21,236)	(11,970)
Net cash provided by financing activities	349,751	297,184
Net increase in cash and cash equivalents	69,626	99,173
Cash and cash equivalents, beginning of period	99,135	33,189
Cash and cash equivalents, end of period	168,761	132,362
Supplemental Disclosure of Cash Flow Information:
Interest paid	16,109	10,590
Supplemental Disclosure of Noncash Investing and Financing Activities:
Distributions paid to common stockholders through common stock issuances pursuant to the dividend reinvestment plan	24,318	12,639
Increase in other offering costs due to affiliates	189	198
Increase in other offering costs payable	0	45
Increase in distributions payable	2,636	1,194
Increase in capital expenses payable	8,030	498
Liabilities assumed in connection with real estate acquisitions	$ 124	$ 967

ORGANIZATION

ORGANIZATION	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	ORGANIZATION KBS Real Estate Investment Trust III, Inc. (the “Company”) was formed on December 22, 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, 2011 and it intends to continue to operate in such manner. Substantially all of the Company’s business is expected to be conducted through KBS Limited Partnership III (the “Operating Partnership”), a Delaware limited partnership. The Company is the sole general partner of and owns a 0.1% partnership interest in the Operating Partnership. KBS REIT Holdings III LLC (“REIT Holdings III”), the limited partner of the Operating Partnership, 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 III. 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 entered into with the Advisor (the “Advisory Agreement”). On January 26, 2010, the Company issued 20,000 shares of its common stock to the Advisor at a purchase price of $10.00 per share. As of June 30, 2015 , the Advisor owned 20,000 shares of the Company’s common stock. The Company has invested in and intends to invest in a diverse portfolio of real estate investments. The Company’s primary investment focus is core office properties located throughout the United States, though the Company may also invest in industrial and retail properties. The Company’s core property focus in the U.S. office sector has reflected a more value-creating core strategy, and based on the current market outlook, it expects to continue this strategy. In many cases, these properties have slightly higher ( 10% to 15% ) vacancy rates and/or higher near-term lease rollover at acquisition than more conservative value-maintaining core properties. All such real estate assets may be acquired directly by the Company or the Operating Partnership, though the Company may invest in other entities that make similar investments. The Company also currently expects to allocate between 0 and 20% of its portfolio to real estate-related investments such as mortgage loans. As of June 30, 2015 , the Company owned 22 office properties, one mixed-use office/retail property and one first mortgage loan secured by a deed of trust. On February 4, 2010, the Company filed a registration statement on Form S-11 with the Securities and Exchange Commission (the “SEC”) to offer a minimum of 250,000 shares and a maximum of up to 280,000,000 shares, or up to $2,760,000,000 of shares, of common stock for sale to the public (the “Offering”), of which up to 80,000,000 shares, or up to $760,000,000 of shares, are being offered pursuant to the Company’s dividend reinvestment plan. The SEC declared the Company’s registration statement effective on October 26, 2010, and the Company retained KBS Capital Markets Group LLC (the “Dealer Manager”), an affiliate of the Company, to serve as the dealer manager of the Offering pursuant to a dealer manager agreement, as amended and restated (the “Dealer Manager Agreement”). As described above, the Company intends to use substantially all of the net proceeds from the Offering to invest in a diverse portfolio of real estate investments. On March 24, 2011, the Company broke escrow in the Offering and through June 30, 2015 , the Company had sold 175,151,056 shares of common stock for gross offering proceeds of $ 1.8 billion , including 7,379,846 shares of common stock under its dividend reinvestment plan for gross offering proceeds of $ 72.0 million . The Company ceased offering shares of common stock in the primary Offering on May 29, 2015 and terminated the primary Offering on July 28, 2015. Additionally, on October 3, 2014, the Company issued 258,462 shares of common stock for $2.4 million in private transactions exempt from the registration requirements pursuant to Section 4(2) of the Securities Act of 1933. The Company continues to offer shares of common stock under its dividend reinvestment plan. In some states, the Company will need to renew the registration statement annually or file a new registration statement to continue the dividend reinvestment plan offering. The Company may terminate its dividend reinvestment plan offering at any time. As of June 30, 2015 , the Company had redeemed 1,110,901 shares sold in the Offering for $ 10.7 million .

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES There have been no significant changes to the Company’s accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2014 . For further information about the Company’s accounting policies, refer to the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC. Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The consolidated financial statements include the accounts of the Company, REIT Holdings III, the Operating Partnership and their direct and indirect wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements and condensed notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. Reclassifications Certain amounts in the Company’s prior period consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications have not changed the results of operations of prior periods. Per Share Data Basic net income (loss) per share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock equals basic net income (loss) per share of common stock as there were no potentially dilutive securities outstanding during the three and six months ended June 30, 2015 and 2014, respectively. Distributions declared per common share were $0.162 and $ 0.322 for the three and six months ended June 30, 2015 , respectively. Distributions declared per common share were $0.162 and $0.322 for the three and six months ended June 30, 2014 , respectively. Distributions declared per common share assumes each share was issued and outstanding each day during the three and six months ended June 30, 2015 and 2014, respectively. For each day that was a record date for distributions during the three and six months ended June 30, 2015 and 2014, distributions were calculated at a rate of $0.00178082 per share per day. Each day during the periods from January 1, 2014 through June 30, 2014 and January 1, 2015 through June 30, 2015 was a record date for distributions. Segments The Company invests in core real estate properties and real estate-related investments with the goal of acquiring a portfolio of income-producing investments. The Company’s real estate properties exhibit similar long-term financial performance and have similar economic characteristics to each other. As of June 30, 2015 , the Company aggregated its investments in real estate properties into one reportable business segment. The Company considered both quantitative and qualitative thresholds and determined that its investment in a real estate loan receivable does not constitute a reportable segment. Recently Issued Accounting Standards Update In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”). ASU No. 2014-09 requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU No. 2014-09 supersedes the revenue requirements in Revenue Recognition (Topic 605) and most industry-specific guidance throughout the Industry Topics of the Codification. ASU No. 2014-09 does not apply to lease contracts within the scope of Leases (Topic 840). ASU No. 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. On July 9, 2015, the FASB voted to defer the effective date of ASU No. 2014-09 by one year. Early adoption is permitted but not before the original effective date. The Company is still evaluating the impact of adopting ASU No. 2014-09 on its financial statements, but does not expect the adoption of ASU No. 2014-09 to have a material impact on its financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements (Subtopic 205-40) , Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU No. 2014-15”). The amendments in ASU No. 2014-15 require management to evaluate, for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or are available to be issued when applicable) and, if so, provide related disclosures. ASU No. 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not expect the adoption of ASU No. 2014-15 to have a significant impact on its financial statements. In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU No. 2015-01”). The amendments in ASU No. 2015-01 eliminate from GAAP the concept of extraordinary items. Although the amendments will eliminate the requirements in Subtopic 225-20 for reporting entities to consider whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ASU No. 2015-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of ASU No. 2015-01 to have a significant impact on its financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs (“ASU No. 2015-03”). The amendments in ASU No. 2015-03 require debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. ASU No. 2015-03 is limited to the presentation of debt issuance costs and does not affect the recognition and measurement of debt issuance costs. ASU No. 2015-03 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and is to be applied retrospectively. Early adoption is permitted for financial statements that have not been previously issued. The adoption of ASU No. 2015-03 would change the presentation of debt issuance costs, as the Company presents debt issuance costs as deferred financing costs, prepaid expenses and other assets on the accompanying consolidated balance sheets.

RECENT ACQUISITIONS

RECENT ACQUISITIONS	6 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
RECENT ACQUISITIONS	RECENT ACQUISITIONS During the six months ended June 30, 2015 , the Company acquired the following properties (in thousands): Intangibles Property Name City State Acquisition Date Land Building and Improvements Tenant Origination and Absorption Costs Above-Market Lease Assets Below- Market Lease Liabilities Other Liabilities Total Purchase Price Village Center Station Greenwood Village CO 05/20/2015 $ 4,250 $ 68,061 $ 5,570 $ 370 $ (1,721 ) $ — $ 76,530 Park Place Village Leawood KS 06/18/2015 11,009 103,788 13,282 10 (31 ) (1,575 ) 126,483 201 17th Street Atlanta GA 06/23/2015 5,277 75,362 11,497 98 (5,218 ) — 87,016 $ 20,536 $ 247,211 $ 30,349 $ 478 $ (6,970 ) $ (1,575 ) $ 290,029 The intangible assets and liabilities acquired in connection with these acquisitions have weighted-average amortization periods as of the date of acquisition as follows (in years): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Village Center Station 5.3 5.3 3.8 Park Place Village 8.5 1.8 4.1 201 17th Street 8.9 7.5 8.5 During the six months ended June 30, 2015 , the Company recorded each real estate acquisition as a business combination and expensed $4.1 million of acquisition costs. For the six months ended June 30, 2015 , the Company recognized an aggregate of $1.7 million of total revenues and an aggregate of $0.7 million of operating expenses from these properties.

REAL ESTATE

REAL ESTATE	6 Months Ended
	Jun. 30, 2015
Real Estate [Abstract]
REAL ESTATE	REAL ESTATE As of June 30, 2015 , the Company’s real estate portfolio was composed of 22 office properties and one mixed-use office/retail property encompassing in the aggregate approximately 9.3 million rentable square feet. As of June 30, 2015 , the Company’s real estate portfolio was collectively 89% occupied. The following table summarizes the Company’s investments in real estate as of June 30, 2015 (in thousands): Property Date Acquired City State Property Type Total Real Estate at Cost Accumulated Depreciation and Amortization Total Real Estate, Net Domain Gateway 09/29/2011 Austin TX Office $ 47,373 $ (8,158 ) $ 39,215 Town Center 03/27/2012 Plano TX Office 117,657 (17,290 ) 100,367 McEwen Building 04/30/2012 Franklin TN Office 40,275 (6,480 ) 33,795 Gateway Tech Center 05/09/2012 Salt Lake City UT Office 29,050 (3,604 ) 25,446 Tower on Lake Carolyn 12/21/2012 Irving TX Office 49,893 (7,658 ) 42,235 RBC Plaza 01/31/2013 Minneapolis MN Office 146,700 (14,745 ) 131,955 One Washingtonian Center 06/19/2013 Gaithersburg MD Office 90,974 (8,428 ) 82,546 Preston Commons 06/19/2013 Dallas TX Office 116,323 (10,750 ) 105,573 Sterling Plaza 06/19/2013 Dallas TX Office 79,403 (8,129 ) 71,274 201 Spear Street 12/03/2013 San Francisco CA Office 133,938 (6,510 ) 127,428 500 West Madison 12/16/2013 Chicago IL Office 434,735 (33,087 ) 401,648 222 Main 02/27/2014 Salt Lake City UT Office 164,885 (8,598 ) 156,287 Anchor Centre 05/22/2014 Phoenix AZ Office 91,378 (4,595 ) 86,783 171 17th Street 08/25/2014 Atlanta GA Office 132,031 (6,830 ) 125,201 Rocklin Corporate Center 11/06/2014 Rocklin CA Office 32,917 (1,709 ) 31,208 Reston Square 12/03/2014 Reston VA Office 45,613 (1,252 ) 44,361 Ten Almaden 12/05/2014 San Jose CA Office 116,952 (2,935 ) 114,017 Towers at Emeryville 12/23/2014 Emeryville CA Office 250,380 (6,608 ) 243,772 101 South Hanley 12/24/2014 St. Louis MO Office 63,828 (2,046 ) 61,782 3003 Washington Boulevard 12/30/2014 Arlington VA Office 150,256 (2,355 ) 147,901 Village Center Station 05/20/2015 Greenwood Village CO Office 78,014 (451 ) 77,563 Park Place Village 06/18/2015 Leawood KS Office/Retail 128,084 (264 ) 127,820 201 17th Street 06/23/2015 Atlanta GA Office 93,635 (165 ) 93,470 $ 2,634,294 $ (162,647 ) $ 2,471,647 As of June 30, 2015 , the following property represented more than 10% of the Company’s total assets: Property Location Rentable Total Percentage Annualized Base Rent (1) Average Annualized Base Rent per sq. ft. Occupancy 500 West Madison Chicago, IL 1,457,724 $ 401,648 14.6 % $ 34,525 $ 25.05 94.6 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2015 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term. Operating Leases The Company’s real estate properties are leased to tenants under operating leases for which the terms and expirations vary. As of June 30, 2015 , the leases had remaining terms, excluding options to extend, of up to 13.9 years with a weighted-average remaining term of 5.3 years. Some of the leases have provisions to extend the term of the leases, options for early termination for all or a part of the leased premises after paying a specified penalty, rights of first refusal to purchase the property at competitive market rates, and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires a security deposit from the tenant in the form of a cash deposit and/or a letter of credit. The amount required as a security deposit varies depending upon the terms of the respective lease and the creditworthiness of the tenant, but generally is not a significant amount. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in other liabilities in the accompanying consolidated balance sheets and totaled $8.9 million and $7.9 million as of June 30, 2015 and December 31, 2014 , respectively. During the six months ended June 30, 2015 and 2014, the Company recognized deferred rent from tenants of $9.0 million and $4.5 million , respectively. As of June 30, 2015 and December 31, 2014 , the cumulative deferred rent balance was $27.8 million and $18.4 million , respectively, and is included in rents and other receivables on the accompanying balance sheets. The cumulative deferred rent balance included $1.4 million and $1.1 million of unamortized lease incentives as of June 30, 2015 and December 31, 2014 , respectively. As of June 30, 2015 , the future minimum rental income from the Company’s properties under its non-cancelable operating leases was as follows (in thousands): July 1, 2015 through December 31, 2015 $ 109,833 2016 221,069 2017 207,046 2018 187,413 2019 162,044 Thereafter 545,773 $ 1,433,178 As of June 30, 2015 , the Company’s real estate properties were leased to approximately 700 tenants over a diverse range of industries and geographic areas. The Company’s highest tenant industry concentration (greater than 10% of annualized base rent) was as follows: Industry Number of Tenants Annualized Base Rent (1) (in thousands) Percentage of Annualized Base Rent Finance 130 $ 49,522 21.2 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2015 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term. As of June 30, 2015 , no other tenant industries accounted for more than 10% of annualized base rent and no tenant accounted for more than 10% of annualized base rent. No material tenant credit issues have been identified at this time. Geographic Concentration Risk As of June 30, 2015 , the Company’s net investments in real estate in California, Illinois, and Texas represented 19% , 15% and 13% of the Company’s total assets, respectively. As a result, the geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the California, Illinois, and Texas real estate markets. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, industry slowdowns, relocations of businesses, changing demographics and other factors, or any decrease in demand for office space resulting from the local business climate, could adversely affect the Company’s operating results and its ability to make distributions to stockholders.

TENANT ORIGINATION AND ABSORPTI

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES	6 Months Ended
	Jun. 30, 2015
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES	TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES As of June 30, 2015 and December 31, 2014, the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities (excluding fully amortized assets and liabilities and accumulated amortization) were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities June 30, December 31, June 30, December 31, June 30, December 31, Cost $ 246,665 $ 221,169 $ 15,780 $ 16,113 $ (46,460 ) $ (41,175 ) Accumulated Amortization (54,888 ) (38,645 ) (3,670 ) (2,369 ) 11,772 8,430 Net Amount $ 191,777 $ 182,524 $ 12,110 $ 13,744 $ (34,688 ) $ (32,745 ) Increases (decreases) in net income as a result of amortization of the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities for the three and six months ended June 30, 2015 and 2014 were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Three Months Ended June 30, For the Three Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 2015 2014 Amortization $ (10,985 ) $ (6,890 ) $ (1,049 ) $ (534 ) $ 2,532 $ 1,717 Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Six Months Ended June 30, For the Six Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 2015 2014 Amortization $ (21,095 ) $ (13,142 ) $ (2,112 ) $ (1,003 ) $ 5,027 $ 3,240

REAL ESTATE LOAN RECEIVABLE

REAL ESTATE LOAN RECEIVABLE	6 Months Ended
	Jun. 30, 2015
Receivables [Abstract]
REAL ESTATE LOAN RECEIVABLE	REAL ESTATE LOAN RECEIVABLE As of June 30, 2015 and December 31, 2014, the Company, through an indirect wholly owned subsidiary, had originated one real estate loan receivable as follows (dollars in thousands): Loan Name Location of Related Property or Collateral Date Originated Property Type Loan Type Outstanding Principal Balance as of June 30, 2015 (1) Book Value as of June 30, 2015 (2) Book Value as of December 31, 2014 (2) Contractual Interest Rate (3) Annualized Effective Interest Rate (3) Maturity Date Aberdeen First Mortgage Origination Dallas, Texas 06/24/2011 Office Mortgage $ 21,626 $ 21,655 $ 20,010 7.5% 7.5% 07/01/2016 _____________________ (1) Outstanding principal balance as of June 30, 2015 represents original principal balance outstanding under the loan, increased for any subsequent fundings and reduced for any principal paydowns. (2) Book value represents outstanding principal balance, adjusted for unamortized origination fees and direct origination and acquisition costs. (3) Contractual interest rate is the stated interest rate on the face of the loan. Annualized effective interest rate is calculated as the actual interest income recognized in 2015, using the interest method, divided by the average amortized cost basis of the investment. The contractual interest rate and annualized effective interest rate presented are as of June 30, 2015 . The following summarizes the activity related to the real estate loan receivable for the six months ended June 30, 2015 (in thousands): Real estate loan receivable - December 31, 2014 $ 20,010 Advances on real estate loan receivable 1,738 Principal repayments received on real estate loan receivable (80 ) Amortization of closing costs and origination fees on originated real estate loan receivable (13 ) Real estate loan receivable - June 30, 2015 $ 21,655 For the three and six months ended June 30, 2015 and 2014, interest income from the real estate loan receivable consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Contractual interest income $ 408 $ 333 $ 796 $ 660 Amortization of closing costs and origination fees (6 ) (6 ) (13 ) (12 ) Interest income from real estate loan receivable $ 402 $ 327 $ 783 $ 648 As of June 30, 2015 , the borrower under the Aberdeen First Mortgage Origination was current on its payments.

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Jun. 30, 2015
Notes Payable [Abstract]
NOTES PAYABLE	NOTES PAYABLE As of June 30, 2015 and December 31, 2014 , the Company’s notes payable consisted of the following (dollars in thousands): Principal as of June 30, 2015 Principal as of December 31, 2014 Contractual Interest Rate as of June 30, 2015 (1) Effective Interest Rate as of June 30, 2015 (1) Payment Type Maturity Date (2) Town Center Mortgage Loan $ 75,000 $ 75,000 One-month LIBOR + 1.85% 2.87% Interest Only 03/27/2018 Portfolio Loan (4) 100,000 160,000 One-month LIBOR + 1.90% 2.08% Interest Only 06/01/2019 RBC Plaza Mortgage Loan 74,465 74,465 One-month LIBOR + 1.80% 2.54% Interest Only 02/01/2017 National Office Portfolio Mortgage Loan (5) 166,893 166,893 One-month LIBOR + 1.50% 2.77% Interest Only 07/01/2017 500 West Madison Mortgage Loan (6) 215,000 255,000 One-month LIBOR + 1.65% 3.16% Interest Only 12/16/2018 222 Main Mortgage Loan 102,700 102,700 3.97% 3.97% Interest Only (3) 03/01/2021 Anchor Centre Mortgage Loan 50,000 50,000 One-month LIBOR + 1.50% 3.18% Interest Only 06/01/2017 171 17th Street Mortgage Loan (7) 79,500 79,500 One-month LIBOR + 1.45% 2.69% Interest Only (3) 09/01/2018 Reston Square Mortgage Loan 23,840 29,800 One-month LIBOR + 1.50% 1.68% Interest Only 02/01/2018 Ten Almaden Mortgage Loan (8) 63,540 63,540 One-month LIBOR + 1.65% 1.83% Interest Only 01/01/2018 Towers at Emeryville Mortgage Loan (9) 142,500 142,500 One-month LIBOR + 1.75% 1.93% Interest Only 01/15/2018 101 South Hanley Mortgage Loan (10) 34,500 34,500 One-month LIBOR + 1.55% 1.73% Interest Only (3) 01/01/2020 3003 Washington Boulevard Mortgage Loan 89,000 89,000 One-month LIBOR + 1.55% 1.73% Interest Only 02/01/2020 Rocklin Corporate Center Mortgage Loan 19,052 — One-month LIBOR + 1.50% 1.68% Interest Only 06/05/2018 Total Notes Payable $ 1,235,990 $ 1,322,898 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of June 30, 2015 . Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2015 (consisting of the contractual interest rate and the effect of interest rate swaps, if applicable), using interest rate indices as of June 30, 2015 , where applicable. For further information regarding the Company's derivative instruments, see Note 8, “Derivative Instruments.” (2) Represents the maturity date as of June 30, 2015 ; subject to certain conditions, the maturity dates of certain loans may be extended beyond the dates shown. (3) Represents the payment type required under the loan as of June 30, 2015. Certain future monthly payments due under these loans also include amortizing principal payments. For more information of the Company’s contractual obligations under its notes payable, see five-year maturity table below. (4) As of June 30, 2015 , the Portfolio Loan was secured by Domain Gateway, the McEwen Building, Gateway Tech Center, the Tower on Lake Carolyn and Park Place Village. The face amount of the Portfolio Loan is $ 200.0 million , of which $ 100.0 million is term debt and $ 100.0 million is revolving debt. As of June 30, 2015 , the outstanding balance under the loan was $ 100.0 million of term debt. As of June 30, 2015 , an additional $100.0 million of revolving debt remained available for immediate future disbursements, subject to certain conditions set forth in the loan agreement. During the term of the Portfolio Loan, the Company has an option, which may be exercised up to three times, to increase the loan amount to a maximum of $350.0 million , of which 50% would be term debt and 50% would be revolving debt, with the addition of one or more properties to secure the Portfolio Loan, subject to certain conditions contained in the loan documents. For information regarding the June 22, 2015 Portfolio Loan modification, see “– Recent Financing Transactions – Portfolio Loan Modification.” (5) The National Office Portfolio Mortgage Loan is secured by One Washingtonian Center, Preston Commons and Sterling Plaza. (6) As of June 30, 2015 , $215.0 million of term debt was outstanding and $40.0 million remained available for future disbursements, subject to certain terms and conditions contained in the loan documents. (7) As of June 30, 2015 , $79.5 million had been disbursed to the Company and $6.0 million remained available to be used for future disbursements, subject to certain conditions set forth in the loan documents. Monthly payments are initially interest-only. Beginning October 1, 2017 and continuing on the first day of each month thereafter through the maturity date of the loan, the committed amount of $85.5 million (the “Committed Amount”) will be reduced by $69,300 per month. To the extent that, following any such reduction in the Committed Amount, the outstanding principal balance of the loan exceeds the then Committed Amount, the 171 17th Street owner will pay to the lender a principal payment in an amount sufficient to reduce the outstanding principal balance of the loan to an amount less than the then reduced Committed Amount. The remaining principal balance, all accrued and unpaid interest and any other amounts will be due at maturity. (8) As of June 30, 2015 , $63.5 million had been disbursed to the Company and $13.1 million remained available for future disbursements, subject to certain conditions set forth in the loan documents. (9) As of June 30, 2015 , $142.5 million had been disbursed to the Company and $32.5 million remained available for future disbursements, subject to certain conditions set forth in the loan documents. (10) As of June 30, 2015 , $34.5 million had been disbursed to the Company and $12.7 million remained available to be used for future disbursements, subject to certain conditions set forth in the loan documents. As of June 30, 2015 and December 31, 2014 , the Company’s deferred financing costs were $10.6 million and $11.2 million , respectively, net of amortization, and are included in deferred financing costs, prepaid expenses and other assets on the accompanying consolidated balance sheets. During the three and six months ended June 30, 2015 , the Company incurred $7.6 million and $20.1 million of interest expense, respectively. During the three and six months ended June 30, 2014 , the Company incurred $6.3 million and $11.6 million of interest expense, respectively. As of June 30, 2015 and December 31, 2014, $2.7 million and $2.4 million of interest expense were payable, respectively. Included in interest expense for the three and six months ended June 30, 2015 was $0.8 million and $1.7 million of amortization of deferred financing costs, respectively. Included in interest expense for the three and six months ended June 30, 2014 was $0.4 million and $0.9 million of amortization of deferred financing costs, respectively. Interest expense incurred as a result of the Company’s derivative instruments for the three and six months ended June 30, 2015 was $0.2 million and $5.4 million , respectively. Interest expense incurred as a result of the Company’s derivative instruments for the three and six months ended June 30, 2014 was $1.5 million and $2.4 million , respectively. The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of June 30, 2015 (in thousands): July 1, 2015 through December 31, 2015 $ — 2016 1,357 2017 293,231 2018 620,860 2019 102,581 Thereafter 217,961 $ 1,235,990 The Company’s notes payable contain financial debt covenants. As of June 30, 2015 , the Company was in compliance with these debt covenants. Recent Financing Transactions Rocklin Corporate Center Mortgage Loan On May 6, 2015, the Company, through an indirect wholly owned subsidiary (the “Rocklin Corporate Center Borrower”), entered into a mortgage loan with an unaffiliated lender for borrowings of up to $22.9 million secured by Rocklin Corporate Center (the “Rocklin Corporate Center Mortgage Loan”). At closing, $19.1 million of the loan was funded and the remaining $3.8 million was available for future disbursements to be used for tenant improvements and leasing commissions, subject to certain terms and conditions contained in the loan documents. The Rocklin Corporate Center Mortgage Loan matures on June 5, 2018, with two one -year extension options, subject to certain terms and conditions contained in the loan documents. The Rocklin Corporate Center Mortgage Loan bears interest at a floating rate of 150 basis points over one-month LIBOR. Monthly payments are interest-only during the initial term. The Rocklin Corporate Center Borrower has the right to repay the loan in part and in whole at any time subject to certain conditions and fees as described in the loan documents. KBS REIT Properties III, LLC (“REIT Properties III”) is providing a guaranty of an amount not greater than 25% of the outstanding balance of the Rocklin Corporate Center Mortgage Loan on the date the loan becomes due and payable in full. REIT Properties III is also providing, in certain circumstances as described in the guaranty, a guaranty with respect to any cost, loss or damage suffered by the lender under the Rocklin Corporate Center Mortgage Loan as a result of certain intentional actions committed by the Rocklin Corporate Center Borrower and/or REIT Properties III in violation of the loan documents. REIT Properties III is also providing a guaranty of the principal balance and any interest or other sums outstanding under the Rocklin Corporate Center Mortgage Loan in the event of certain transfer, encumbrance, bankruptcy or insolvency proceedings involving the Rocklin Corporate Center Borrower or REIT Properties III and/or any of their affiliates. Portfolio Loan Modification On June 22, 2015, the Company entered into a modified loan agreement to extend the initial maturity date of the Portfolio Loan to June 1, 2019, with a one -year extension option, subject to certain conditions contained in the loan agreement, and to modify the interest rate under the loan. The Portfolio Loan, as modified, bears interest at a floating rate of 190 basis points over one-month LIBOR and monthly payments are interest only with the entire balance due at maturity, assuming no prior prepayment. The Company has the right to prepay all or a portion of the Portfolio Loan, subject to certain fees and conditions contained in the loan agreement. The $200.0 million Portfolio Loan is composed of $100.0 million of term debt and $100.0 million of revolving debt. The availability of the revolving debt is subject to certain conditions contained in the loan documents. As of June 30, 2015, the outstanding balance under the loan was $100.0 million of term debt. During the term of the Portfolio Loan, the Company has an option, which may be exercised up to three times, to increase the loan amount to a maximum of $350.0 million , of which 50% would be term debt and 50% would be revolving debt, with the addition of one or more properties to secure the Portfolio Loan, subject to certain conditions contained in the loan documents. In connection with the modified loan agreement, the Company released 201 Spear Street as collateral under the Portfolio Loan and added Park Place Village as collateral to the Portfolio Loan. As such, as of June 30, 2015, the Portfolio Loan is secured by Domain Gateway, the McEwen Building, Gateway Tech Center, the Tower on Lake Carolyn and Park Place Village. REIT Properties III is providing a guaranty of up to 25% of the outstanding principal balance under the Portfolio Loan, as such amount may be adjusted from time to time pursuant to the terms of the loan documents. Additionally, REIT Properties III is providing a guaranty of any deficiency, loss or damage suffered by the lender under the Portfolio Loan that may result from certain intentional acts committed by the borrowers under the loan, their affiliates, or REIT Properties III, or that may result from certain bankruptcy or insolvency proceedings involving the borrowers, pursuant to the terms of the repayment guaranty.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	6 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS	DERIVATIVE INSTRUMENTS The Company enters into derivative instruments for risk management purposes to hedge its exposure to cash flow variability caused by changing interest rates. The primary goal of the Company’s risk management practices related to interest rate risk is to prevent changes in interest rates from adversely impacting the Company’s ability to achieve its investment return objectives. The Company does not enter into derivatives for speculative purposes. The Company enters into interest rate swaps as a fixed rate payer to mitigate its exposure to rising interest rates on its variable rate notes payable. The value of interest rate swaps is primarily impacted by interest rates, market expectations about interest rates, and the remaining life of the instrument. In general, increases in interest rates, or anticipated increases in interest rates, will increase the value of the fixed rate payer position and decrease the value of the variable rate payer position. As the remaining life of the interest rate swap decreases, the value of both positions will generally move towards zero. The Company enters into interest rate caps to mitigate its exposure to rising interest rates on its variable rate notes payable. The values of interest rate caps are primarily impacted by interest rates, market expectations about interest rates, and the remaining life of the instrument. In general, increases in interest rates, or anticipated increases in interest rates, will increase the value of interest rate caps. As the remaining life of an interest rate cap decreases, the value of the instrument will generally decrease towards zero. The following table summarizes the notional amount and other information related to the Company’s interest rate swaps and cap as of June 30, 2015 and December 31, 2014. The notional amount is an indication of the extent of the Company’s involvement in each instrument at that time, but does not represent exposure to credit, interest rate or market risks (dollars in thousands): June 30, 2015 December 31, 2014 Weighted-Average Fix Pay Rate Weighted-Average Remaining Term in Years Derivative Instruments Number of Instruments Notional Amount Number of Instruments Notional Amount Reference Rate as of June 30, 2015 Derivative instruments designated as hedging instruments Interest Rate Swaps 7 $ 625,130 7 $ 625,130 One-month LIBOR/ Fixed at 0.79% - 1.68% 1.35% 3.0 Derivative instruments not designated as hedging instruments Interest Rate Swaps (1) 6 $ 353,380 4 $ 264,680 One-month LIBOR/ 2.14% 2.9 Interest Rate Cap (2) 1 $ 353,380 — $ — One-month LIBOR 2.46% 1.5 _____________________ (1) Included in these amounts are six forward interest rate swaps with an aggregate notional amount of $353.4 million that were not yet in effect as of June 30, 2015. These six interest rate swaps will become effective at various times during 2016 and 2017. (2) On January 7, 2015, the Company entered into an interest rate cap with an unaffiliated LIBOR cap provider, for a notional amount of $353.4 million , effective from January 7, 2015 to June 30, 2016. The notional amount on the interest rate cap is reduced to $147.3 million from July 1, 2016 to January 1, 2017. The following table sets forth the fair value of the Company’s derivative instruments as well as their classification on the consolidated balance sheets as of June 30, 2015 and December 31, 2014 (dollars in thousands): June 30, 2015 December 31, 2014 Derivative Instruments Balance Sheet Location Number of Instruments Fair Value Number of Fair Value Derivative instruments designated as hedging instruments Interest Rate Swaps Deferred financing costs, prepaid expenses and other assets, at fair value 1 $ 80 2 $ 431 Interest Rate Swaps Other liabilities, at fair value 6 $ (5,256 ) 5 $ (2,621 ) Derivative instruments not designated as hedging instruments Interest Rate Swaps Other liabilities, at fair value 6 $ (3,337 ) 4 $ (1,494 ) Interest Rate Cap Deferred financing costs, prepaid expenses and other assets, at fair value 1 $ 22 — $ — The change in fair value of the effective portion of a derivative instrument that is designated as a cash flow hedge is recorded as other comprehensive income (loss) on the accompanying consolidated statements of comprehensive income (loss) and as other comprehensive income on the accompanying consolidated statements of stockholders’ equity. Amounts in other comprehensive income (loss) will be reclassified into earnings in the periods in which earnings are affected by the hedged cash flow. The change in fair value of the ineffective portion is recognized directly in earnings. With respect to swap agreements that were terminated for which it remains probable that the original hedged forecasted transactions (i.e., LIBOR-based debt service payments) will occur, the loss related to the termination of these swap agreements is included in accumulated other comprehensive income (loss) and is reclassified into earnings over the period of the original forecasted hedged transaction. The change in fair value of a derivative instrument that is not designated as a cash flow hedge is recorded as interest expense in the accompanying consolidated statements of operations. The following table summarizes the effects of derivative instruments on the Company’s consolidated statements of operations (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 Income statement related Derivatives designated as hedging instruments Amount of expense recognized on interest rate swaps (effective portion) $ 1,716 $ 1,481 $ 3,367 $ 2,443 1,716 1,481 3,367 2,443 Derivatives not designated as hedging instruments Unrealized (gain) loss on interest rate swaps (1,534 ) — 1,843 — Unrealized loss on interest rate cap 29 — 153 — (1,505 ) — 1,996 — Increase in interest expense as a result of derivatives $ 211 $ 1,481 $ 5,363 $ 2,443 Other comprehensive income related Unrealized losses on derivative instruments $ 44 $ 5,139 $ 6,353 $ 7,332 During the three and six months ended June 30, 2015 and 2014, there was no ineffective portion related to the change in fair value of the derivative instruments designated as cash flow hedges. During the next 12 months, the Company expects to recognize additional interest expense related to derivative instruments designated as cash flow hedges. The present value of the additional interest expense expected to be recognized over the next 12 months related to derivative instruments designated as cash flow hedges totaled $6.0 million as of June 30, 2015 and was included in accumulated other comprehensive income (loss).

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE DISCLOSURES	FAIR VALUE DISCLOSURES Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other financial instruments and balances at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. The fair value for certain financial instruments is derived using a combination of market quotes, pricing models and other 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 assets and liabilities for which it is practicable to estimate the fair value: Cash and cash equivalents, rent and other receivables, and accounts payable and accrued liabilities: These balances approximate their fair values due to the short maturities of these items. Real estate loan receivable: The Company’s real estate loan receivable is presented in the accompanying consolidated balance sheets at its amortized cost net of recorded loan loss reserves and not at fair value. The fair value of the real estate loan receivable was estimated using an internal valuation model that considered the expected cash flows for the loan, underlying collateral value and estimated yield requirements of institutional investors for loans with similar characteristics, including remaining loan term, loan-to-value, type of collateral and other credit enhancements. The Company classifies these inputs as Level 3 inputs. Derivative instruments: The Company’s derivative instruments are presented at fair value on the accompanying consolidated balance sheets. The valuation of these instruments is determined using a proprietary model that utilizes observable inputs. As such, the Company classifies these inputs as Level 2 inputs. The proprietary model uses the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves and volatility. The fair values of interest rate swaps are estimated using the market standard methodology of netting the discounted fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of interest rates (forward curves) derived from observable market interest rate curves. In addition, credit valuation adjustments, which consider the impact of any credit risks to the contracts, are incorporated in the fair values to account for potential nonperformance risk. Notes payable: The fair values of the Company’s notes payable are 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 a liability in circumstances in which a quoted price in an active market for an identical liability is not available, the Company measures fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. The Company classifies these inputs as Level 3 inputs. The following were the face values, carrying amounts and fair values of the Company’s real estate loan receivable and notes payable as of June 30, 2015 and December 31, 2014 , which carrying amounts generally do not approximate the fair values (in thousands): June 30, 2015 December 31, 2014 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial assets: Real estate loan receivable $ 21,626 $ 21,655 $ 21,498 $ 19,968 $ 20,010 $ 19,914 Financial liabilities: Notes payable $ 1,235,990 $ 1,235,990 $ 1,237,041 $ 1,322,898 $ 1,322,898 $ 1,324,139 Disclosure of the fair values of financial instruments is based on pertinent information available to the Company as of the period end and requires a significant amount of judgment. Despite increased capital market and credit market activity, transaction volume for certain financial instruments remains relatively low. This has made the estimation of fair values difficult and, therefore, both the actual results and the Company’s estimate of value at a future date could be materially different. As of June 30, 2015 , the Company measured the following assets and liabilities at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets Significant Other Observable Significant Unobservable Recurring Basis: Asset derivatives - interest rate swap $ 80 $ — $ 80 $ — Asset derivatives - interest rate cap 22 — 22 — Liability derivatives - interest rate swaps (8,593 ) — (8,593 ) —

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS The Company has entered into the Advisory Agreement with the Advisor and the Dealer Manager Agreement with the Dealer Manager. These agreements entitle the Advisor and/or entitled the Dealer Manager to specified fees upon the provision of certain services with regard to the Offering and entitle the Advisor to specified fees upon the provision of certain services with regard to the investment of funds in real estate investments, the management of those investments, among other services, and 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 Offering and dividend reinvestment plan, and certain costs incurred by the Advisor in providing services to the Company. In addition, the Advisor is entitled to certain other fees, including an incentive fee upon achieving certain performance goals, as detailed in the Advisory Agreement. The Company has also entered into a fee reimbursement agreement with the Dealer Manager pursuant to which the Company agreed to reimburse the Dealer Manager for certain fees and expenses it incurs for administering the Company’s participation in the DTCC Alternative Investment Product Platform with respect to certain accounts of the Company’s investors serviced through the platform. The Advisor and Dealer Manager also serve as the advisor and dealer manager, respectively, for KBS Real Estate Investment Trust, Inc., KBS Real Estate Investment Trust II, Inc., KBS Strategic Opportunity REIT, Inc., KBS Legacy Partners Apartment REIT, Inc., KBS Strategic Opportunity REIT II, Inc. and KBS Growth & Income REIT, Inc. On January 6, 2014, the Company, together with KBS Real Estate Investment Trust, Inc., KBS Real Estate Investment Trust II, Inc., KBS Strategic Opportunity REIT, Inc., KBS Legacy Partners Apartment REIT, Inc., KBS Strategic Opportunity REIT II, Inc., the Dealer Manager, the Advisor and other KBS-affiliated entities, entered into an errors and omissions and directors and officers liability insurance program where the lower tiers of such insurance coverage are shared. The cost of these lower tiers is allocated by the Advisor and its insurance broker among each of the various entities covered by the program, and is billed directly to each entity. The allocation of these shared coverage costs is proportionate to the pricing by the insurance marketplace for the first tiers of directors and officers liability coverage purchased individually by each REIT. The Advisor’s and the Dealer Manager’s portion of the shared lower tiers’ cost is proportionate to the respective entities’ prior cost for the errors and omissions insurance. In June 2015, KBS Growth & Income REIT, Inc. was added to the insurance program at terms similar to those described above. During the three and six months ended June 30, 2015 and 2014 , no other business transactions occurred between the Company and KBS Real Estate Investment Trust, Inc., KBS Real Estate Investment Trust II, Inc., KBS Strategic Opportunity REIT, Inc., KBS Legacy Partners Apartment REIT, Inc., KBS Strategic Opportunity REIT II, Inc. and KBS Growth & Income REIT, Inc. Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the three and six months ended June 30, 2015 and 2014, respectively, and any related amounts payable as of June 30, 2015 and December 31, 2014 (in thousands): Incurred Incurred Payable as of Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2015 2014 2015 2014 2015 2014 Expensed Asset management fees (1) $ 4,497 $ 2,725 $ 8,814 $ 5,184 $ 8,394 $ 3,465 Reimbursement of operating expenses (2) 40 36 79 63 83 36 Real estate acquisition fees 3,019 853 3,019 2,558 980 — Additional Paid-in Capital Selling commissions 15,329 5,579 32,413 13,781 — — Dealer manager fees 7,284 2,740 15,359 6,695 — — Reimbursable other offering costs (3) 934 565 1,837 1,687 218 53 $ 31,103 $ 12,498 $ 61,521 $ 29,968 $ 9,675 $ 3,554 _____________________ (1) As of June 30, 2015 , the Company had accrued and deferred payment of $8.4 million of asset management fees. See “Deferral of Asset Management Fees” below. (2) The Advisor may seek reimbursement for certain employee costs under the Advisory Agreement. 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 $35,000 and $69,000 for the three and six months ended June 30, 2015 , respectively, and $36,000 and $63,000 for the three and six months ended June 30, 2014 , respectively, and were the only employee costs reimbursed under the Advisory Agreement for the three and six months ended June 30, 2015 and 2014, respectively. The Company will not reimburse for employee costs in connection with services for which the Advisor earns acquisition or origination fees or disposition fees (other than reimbursement of travel and communication expenses) or for the salaries or benefits the Advisor or its affiliates may pay to the Company’s executive officers. (3) Also see “Other Offering Costs” below. In connection with the Offering, the Company’s sponsors agreed to provide additional indemnification to one of the participating broker dealers. The Company agreed to add supplemental coverage to its directors’ and officers’ insurance coverage to insure the sponsors’ obligations under this indemnification agreement in exchange for reimbursement by the sponsors to the Company for all costs, expenses and premiums related to this supplemental coverage. During the six months ended June 30, 2015 , the Advisor incurred $0.1 million of the costs of the supplemental coverage obtained by the Company. Other Offering Costs Pursuant to the Advisory Agreement, the Advisor would be obligated to reimburse the Company to the extent organization and offering costs incurred by the Company in each of the Offering and its proposed follow-on offering (the “Follow-on Offering”) exceed 15% of the gross offering proceeds of the respective offering. As of June 30, 2015 , organizational and offering costs in the Offering did not exceed 15% of the gross offering proceeds. From inception through June 30, 2015 , the Company had recorded $1.2 million of offering costs related to the Follow-on Offering. As of June 30, 2015 , the Company had not commenced the Follow-on Offering and does not intend to commence the Follow-on Offering. As such, during the three months ended June 30, 2015 , the Advisor reimbursed the Company for the $ 1.2 million of offering costs related to the Follow-on Offering previously incurred by the Company. Such costs were included in deferred financing costs, prepaid expenses and other assets as of December 31, 2014. During the three months ended March 31, 2015, such costs were reclassified to due from affiliate for all periods presented due to management's expectations that significant proceeds would not be raised in the Follow-on Offering and that such costs would be reimbursed from the Advisor. Deferral of Asset Management Fees Pursuant to the Advisory Agreement, with respect to asset management fees accruing from March 1, 2014, the Advisor has agreed to defer, without interest, the Company’s obligation to pay asset management fees 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 will also be 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 be applied to pay any asset management fee amounts previously deferred in accordance with the Advisory Agreement. However, notwithstanding the foregoing, any and all deferred asset management fees that are unpaid will become immediately due and payable at such time as the Company's stockholders have received, together as a collective group, aggregate distributions (including distributions that may constitute a return of capital for federal income tax purposes) sufficient to provide (i) an 8.0% per year cumulative, noncompounded return on such net invested capital (the “Stockholders’ 8% Return”) and (ii) a return of their net invested capital, or the amount calculated by multiplying the total number of shares purchased by stockholders by the issue price, reduced by any amounts to repurchase shares pursuant to the Company's share redemption program. The Stockholders’ 8% Return is not based on the return provided to any individual stockholder. Accordingly, it is not necessary for each of the Company's stockholders to have received any minimum return in order for the Advisor to receive deferred asset management fees. As of June 30, 2015 , the Company had accrued and deferred payment of $8.4 million of asset management fees under the Advisory Agreement, as the Company believes the payment of this amount to the Advisor is probable. These fees will be reimbursed in accordance with the terms noted above. Lease to Affiliate On May 29, 2015, the indirect wholly owned subsidiary of the Company that owns 3003 Washington Boulevard entered into a lease with an affiliate of the Advisor for 5,046 rentable square feet, or approximately 2.3% of the total rentable square feet, at 3003 Washington Boulevard. The lease commences on March 1, 2016 and terminates on August 31, 2019. Upon commencement, the annualized base rent (net of rental abatements) for this tenant will be approximately $0.3 million , and the average annual rental rate (net of rental abatements) over the lease term will be $51.90 per square foot. No rental income related to this lease was recognized during the three and six months ended June 30, 2015. Prior to their approval of the lease, the Company’s conflicts committee and board of directors determined the lease to be fair and reasonable to the Company.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Economic Dependency The Company is dependent on the Advisor for certain services that are essential to the Company, including the identification, evaluation, negotiation, origination, acquisition and disposition of investments; management of the daily operations of the Company’s investment portfolio; and other general and administrative responsibilities. In the event that the Advisor is unable to provide the respective services, the Company will be required to obtain such services from other sources. Legal Matters From time to time, the Company may be party to legal proceedings that arise in the ordinary course of its business. Management is not aware of any legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on the Company’s results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss. Additionally, the Company has not recorded any loss contingencies related to legal proceedings in which the potential loss is deemed to be remote. Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. Compliance with existing environmental laws is not expected to have a material adverse effect on the Company’s financial condition and results of operations as of June 30, 2015 .

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS The Company evaluates subsequent events up until the date the consolidated financial statements are issued. Status of the Offering The Company commenced the Offering on October 26, 2010. The Company ceased offering shares of common stock in the primary Offering on May 29, 2015 and terminated the primary Offering on July 28, 2015. The Company sold 169,009,930 shares of common stock in the now-terminated primary Offering for gross offering proceeds of $ 1.7 billion , and as of August 7, 2015 , the Company had sold 8,407,637 shares of common stock under its dividend reinvestment plan for gross offering proceeds of $ 82.3 million . Also as of August 7, 2015 , the Company had redeemed 1,187,500 of the shares sold in the Offering for $ 11.5 million . Distributions Paid On July 1, 2015, the Company paid distributions of $9.2 million , which related to distributions declared for daily record dates for each day in the period from June 1, 2015 through June 30, 2015. On August 3, 2015, the Company paid distributions of $9.7 million , which related to distributions declared for daily record dates for each day in the period from July 1, 2015 through July 31, 2015. Distributions Declared On July 7, 2015, the Company’s board of directors declared distributions based on daily record dates for the period from August 1, 2015 through August 31, 2015, which the Company expects to pay in September 2015. On August 11, 2015, the Company's board of directors declared distributions based on daily record dates for the period September, 1 2015 through September 30, 2015, which the Company expects to pay in October 2015, and distributions based on daily record dates for the period from October 1, 2015 through October 31, 2015, which the Company expects to pay in November 2015. Investors may choose to receive cash distributions or purchase additional shares through the Company’s dividend reinvestment plan. Distributions for these periods will be calculated based on stockholders of record each day during these periods at a rate of $0.00178082 per share per day and equal a daily amount that, if paid each day for a 365-day period, would equal a 6.5% annualized rate based on the initial primary Offering purchase price of $10.00 per share or a 6.18% annualized rate based on the most recent primary Offering purchase price of $10.51 per share. Real Estate Acquisition and Probable Acquisition Subsequent to June 30, 2015 Acquisition of Promenade I & II at Eilan On July 14, 2015, the Company, through an indirect wholly owned subsidiary, acquired 100% of the common stock (the “Common Stock”) of two single asset corporations that are treated as real estate investment trusts for federal income tax purposes (collectively, the “Promenade I & II at Eilan REITs”) from a seller that is not affiliated with the Company or the Advisor. Indirect wholly owned subsidiaries of the Promenade I & II at Eilan REITs are fee owners of two office buildings encompassing an aggregate of 200,072 rentable square feet located on approximately 6.3 acres of land in San Antonio, Texas (“Promenade I & II at Eilan”). The Promenade I & II at Eilan REITs each have 125 shares of Series A non-voting preferred stock outstanding that will be redeemable at a price per share of $1,000 plus accrued and unpaid dividends as of the redemption date. The Company intends to redeem all of the outstanding 125 shares of Series A non-voting preferred stock by December 2015. The purchase price of the Common Stock was $61.6 million plus closing costs. The Company funded the purchase of the Common Stock with proceeds from its now-terminated primary Offering, but may later place mortgage debt on the property. Promenade I & II at Eilan consists of two buildings that were built in 2011. At acquisition, Promenade I & II at Eilan collectively was 100% leased to 15 tenants with a weighted-average remaining lease term of 6.1 years. Probable Acquisition of CrossPoint at Valley Forge On July 15, 2015, the Company, through an indirect wholly owned subsidiary, entered into a purchase agreement to acquire an office property containing 272,360 rentable square feet located on approximately 25.3 acres of land in Wayne, Pennsylvania (“CrossPoint at Valley Forge”). The seller is not affiliated with the Company or the Advisor. The contractual purchase price of CrossPoint at Valley Forge is approximately $89.5 million plus closing costs. Pursuant to the purchase agreement, the Company would be obligated to purchase the property only after satisfaction of agreed upon closing conditions. There can be no assurance that the Company will complete the acquisition. In some circumstances, if the Company fails to complete the acquisition, it may forfeit up to $3.0 million of earnest money. CrossPoint at Valley Forge was constructed in 1974 and renovated in 2014. As of July 15, 2015, CrossPoint at Valley Forge was 95% leased to 11 tenants with a weighted-average remaining lease term of 8.7 years. Financing Subsequent to June 30, 2015 Related Financing of 201 17th Street On July 28, 2015, the Company, through an indirect wholly owned subsidiary (the “201 17th Street Borrower”), entered into a mortgage loan with an unaffiliated lender for borrowings of up to $64.8 million , of which $48.6 million is term debt and $16.2 million is revolving debt, secured by 201 17th Street (the “201 17th Street Mortgage Loan”). At closing, $48.6 million of term debt was funded and the remaining $16.2 million of revolving debt was available for future disbursements to be used for tenant improvements, lease commissions and other purposes related to the property, subject to certain terms and conditions contained in the loan documents. The 201 17th Street Mortgage Loan matures on August 1, 2018, with three one -year extension options, subject to certain terms and conditions contained in the loan documents. The 201 17th Street Mortgage Loan bears interest at a floating rate of 140 basis points over one-month LIBOR. Monthly payments are interest-only during the initial term. The 201 17th Street Borrower has the right to repay the loan in part and in whole subject to certain fees, expenses and conditions, all as described in the loan documents. REIT Properties III is providing a guaranty of 20% of the principal outstanding under the 201 17th Street Mortgage Loan on the date the loan becomes due and payable in full. REIT Properties III is also providing a guaranty with respect to any deficiency, loss or damage suffered by the lender under the 201 17th Street Mortgage Loan as a result of: certain intentional actions committed by the 201 17th Street Borrower in violation of the guaranty; certain intentional actions committed by the 201 17th Street Borrower and/or REIT Properties III in violation of the loan documents; or certain bankruptcy or insolvency proceedings involving the 201 17th Street Borrower. Dividend Reinvestment Plan On August 11, 2015, the Company’s board of directors approved a fourth amended and restated dividend reinvestment plan. For more information, see Part II, Item 5, “Other Information - Dividend Reinvestment Plan.”

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.
Principles of Consolidation	The consolidated financial statements include the accounts of the Company, REIT Holdings III, the Operating Partnership and their direct and indirect wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation.
Use of Estimates	The preparation of the consolidated financial statements and condensed notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates.
Reclassifications	Certain amounts in the Company’s prior period consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications have not changed the results of operations of prior periods.
Per Share Data	Basic net income (loss) per share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock equals basic net income (loss) per share of common stock as there were no potentially dilutive securities outstanding during the three and six months ended June 30, 2015 and 2014, respectively. Distributions declared per common share were $0.162 and $ 0.322 for the three and six months ended June 30, 2015 , respectively. Distributions declared per common share were $0.162 and $0.322 for the three and six months ended June 30, 2014 , respectively. Distributions declared per common share assumes each share was issued and outstanding each day during the three and six months ended June 30, 2015 and 2014, respectively. For each day that was a record date for distributions during the three and six months ended June 30, 2015 and 2014, distributions were calculated at a rate of $0.00178082 per share per day. Each day during the periods from January 1, 2014 through June 30, 2014 and January 1, 2015 through June 30, 2015 was a record date for distributions.
Segments	The Company invests in core real estate properties and real estate-related investments with the goal of acquiring a portfolio of income-producing investments. The Company’s real estate properties exhibit similar long-term financial performance and have similar economic characteristics to each other. As of June 30, 2015 , the Company aggregated its investments in real estate properties into one reportable business segment. The Company considered both quantitative and qualitative thresholds and determined that its investment in a real estate loan receivable does not constitute a reportable segment.
Recently Issued Accounting Standards Update	In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”). ASU No. 2014-09 requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU No. 2014-09 supersedes the revenue requirements in Revenue Recognition (Topic 605) and most industry-specific guidance throughout the Industry Topics of the Codification. ASU No. 2014-09 does not apply to lease contracts within the scope of Leases (Topic 840). ASU No. 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. On July 9, 2015, the FASB voted to defer the effective date of ASU No. 2014-09 by one year. Early adoption is permitted but not before the original effective date. The Company is still evaluating the impact of adopting ASU No. 2014-09 on its financial statements, but does not expect the adoption of ASU No. 2014-09 to have a material impact on its financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements (Subtopic 205-40) , Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU No. 2014-15”). The amendments in ASU No. 2014-15 require management to evaluate, for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or are available to be issued when applicable) and, if so, provide related disclosures. ASU No. 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not expect the adoption of ASU No. 2014-15 to have a significant impact on its financial statements. In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU No. 2015-01”). The amendments in ASU No. 2015-01 eliminate from GAAP the concept of extraordinary items. Although the amendments will eliminate the requirements in Subtopic 225-20 for reporting entities to consider whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ASU No. 2015-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of ASU No. 2015-01 to have a significant impact on its financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs (“ASU No. 2015-03”). The amendments in ASU No. 2015-03 require debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. ASU No. 2015-03 is limited to the presentation of debt issuance costs and does not affect the recognition and measurement of debt issuance costs. ASU No. 2015-03 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and is to be applied retrospectively. Early adoption is permitted for financial statements that have not been previously issued. The adoption of ASU No. 2015-03 would change the presentation of debt issuance costs, as the Company presents debt issuance costs as deferred financing costs, prepaid expenses and other assets on the accompanying consolidated balance sheets.

RECENT ACQUISITIONS (Tables)

RECENT ACQUISITIONS (Tables)	6 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
Schedule of Business Acquisitions, Properties Acquired	During the six months ended June 30, 2015 , the Company acquired the following properties (in thousands): Intangibles Property Name City State Acquisition Date Land Building and Improvements Tenant Origination and Absorption Costs Above-Market Lease Assets Below- Market Lease Liabilities Other Liabilities Total Purchase Price Village Center Station Greenwood Village CO 05/20/2015 $ 4,250 $ 68,061 $ 5,570 $ 370 $ (1,721 ) $ — $ 76,530 Park Place Village Leawood KS 06/18/2015 11,009 103,788 13,282 10 (31 ) (1,575 ) 126,483 201 17th Street Atlanta GA 06/23/2015 5,277 75,362 11,497 98 (5,218 ) — 87,016 $ 20,536 $ 247,211 $ 30,349 $ 478 $ (6,970 ) $ (1,575 ) $ 290,029
Schedule of Intangible Assets and Liabilities Acquired, Weighted-Average Amortization Periods	The intangible assets and liabilities acquired in connection with these acquisitions have weighted-average amortization periods as of the date of acquisition as follows (in years): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Village Center Station 5.3 5.3 3.8 Park Place Village 8.5 1.8 4.1 201 17th Street 8.9 7.5 8.5

REAL ESTATE (Tables)

REAL ESTATE (Tables)	6 Months Ended
	Jun. 30, 2015
Real Estate [Abstract]
Schedule of Real Estate Investments	The following table summarizes the Company’s investments in real estate as of June 30, 2015 (in thousands): Property Date Acquired City State Property Type Total Real Estate at Cost Accumulated Depreciation and Amortization Total Real Estate, Net Domain Gateway 09/29/2011 Austin TX Office $ 47,373 $ (8,158 ) $ 39,215 Town Center 03/27/2012 Plano TX Office 117,657 (17,290 ) 100,367 McEwen Building 04/30/2012 Franklin TN Office 40,275 (6,480 ) 33,795 Gateway Tech Center 05/09/2012 Salt Lake City UT Office 29,050 (3,604 ) 25,446 Tower on Lake Carolyn 12/21/2012 Irving TX Office 49,893 (7,658 ) 42,235 RBC Plaza 01/31/2013 Minneapolis MN Office 146,700 (14,745 ) 131,955 One Washingtonian Center 06/19/2013 Gaithersburg MD Office 90,974 (8,428 ) 82,546 Preston Commons 06/19/2013 Dallas TX Office 116,323 (10,750 ) 105,573 Sterling Plaza 06/19/2013 Dallas TX Office 79,403 (8,129 ) 71,274 201 Spear Street 12/03/2013 San Francisco CA Office 133,938 (6,510 ) 127,428 500 West Madison 12/16/2013 Chicago IL Office 434,735 (33,087 ) 401,648 222 Main 02/27/2014 Salt Lake City UT Office 164,885 (8,598 ) 156,287 Anchor Centre 05/22/2014 Phoenix AZ Office 91,378 (4,595 ) 86,783 171 17th Street 08/25/2014 Atlanta GA Office 132,031 (6,830 ) 125,201 Rocklin Corporate Center 11/06/2014 Rocklin CA Office 32,917 (1,709 ) 31,208 Reston Square 12/03/2014 Reston VA Office 45,613 (1,252 ) 44,361 Ten Almaden 12/05/2014 San Jose CA Office 116,952 (2,935 ) 114,017 Towers at Emeryville 12/23/2014 Emeryville CA Office 250,380 (6,608 ) 243,772 101 South Hanley 12/24/2014 St. Louis MO Office 63,828 (2,046 ) 61,782 3003 Washington Boulevard 12/30/2014 Arlington VA Office 150,256 (2,355 ) 147,901 Village Center Station 05/20/2015 Greenwood Village CO Office 78,014 (451 ) 77,563 Park Place Village 06/18/2015 Leawood KS Office/Retail 128,084 (264 ) 127,820 201 17th Street 06/23/2015 Atlanta GA Office 93,635 (165 ) 93,470 $ 2,634,294 $ (162,647 ) $ 2,471,647
Schedule of Future Minimum Rental Income for Company's Properties	As of June 30, 2015 , the future minimum rental income from the Company’s properties under its non-cancelable operating leases was as follows (in thousands): July 1, 2015 through December 31, 2015 $ 109,833 2016 221,069 2017 207,046 2018 187,413 2019 162,044 Thereafter 545,773 $ 1,433,178
Schedules of Concentration of Risk, by Risk Factor	As of June 30, 2015 , the following property represented more than 10% of the Company’s total assets: Property Location Rentable Total Percentage Annualized Base Rent (1) Average Annualized Base Rent per sq. ft. Occupancy 500 West Madison Chicago, IL 1,457,724 $ 401,648 14.6 % $ 34,525 $ 25.05 94.6 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2015 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term. As of June 30, 2015 , the Company’s real estate properties were leased to approximately 700 tenants over a diverse range of industries and geographic areas. The Company’s highest tenant industry concentration (greater than 10% of annualized base rent) was as follows: Industry Number of Tenants Annualized Base Rent (1) (in thousands) Percentage of Annualized Base Rent Finance 130 $ 49,522 21.2 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2015 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term.

TENANT ORIGINATION AND ABSORP23

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2015
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities	As of June 30, 2015 and December 31, 2014, the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities (excluding fully amortized assets and liabilities and accumulated amortization) were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities June 30, December 31, June 30, December 31, June 30, December 31, Cost $ 246,665 $ 221,169 $ 15,780 $ 16,113 $ (46,460 ) $ (41,175 ) Accumulated Amortization (54,888 ) (38,645 ) (3,670 ) (2,369 ) 11,772 8,430 Net Amount $ 191,777 $ 182,524 $ 12,110 $ 13,744 $ (34,688 ) $ (32,745 )
Amortization of Tenant Origination and Absorption Costs, Above-Market Leases and Below-Market Lease Liabilities	Increases (decreases) in net income as a result of amortization of the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities for the three and six months ended June 30, 2015 and 2014 were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Three Months Ended June 30, For the Three Months Ended June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 2015 2014 Amortization $ (10,985 ) $ (6,890 ) $ (1,049 ) $ (534 ) $ 2,532 $ 1,717 Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Six Months Ended June 30, For the Six Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 2015 2014 Amortization $ (21,095 ) $ (13,142 ) $ (2,112 ) $ (1,003 ) $ 5,027 $ 3,240

REAL ESTATE LOAN RECEIVABLE (Ta

REAL ESTATE LOAN RECEIVABLE (Tables)	6 Months Ended
	Jun. 30, 2015
Receivables [Abstract]
Schedule of Real Estate Loans Receivable	As of June 30, 2015 and December 31, 2014, the Company, through an indirect wholly owned subsidiary, had originated one real estate loan receivable as follows (dollars in thousands): Loan Name Location of Related Property or Collateral Date Originated Property Type Loan Type Outstanding Principal Balance as of June 30, 2015 (1) Book Value as of June 30, 2015 (2) Book Value as of December 31, 2014 (2) Contractual Interest Rate (3) Annualized Effective Interest Rate (3) Maturity Date Aberdeen First Mortgage Origination Dallas, Texas 06/24/2011 Office Mortgage $ 21,626 $ 21,655 $ 20,010 7.5% 7.5% 07/01/2016 _____________________ (1) Outstanding principal balance as of June 30, 2015 represents original principal balance outstanding under the loan, increased for any subsequent fundings and reduced for any principal paydowns. (2) Book value represents outstanding principal balance, adjusted for unamortized origination fees and direct origination and acquisition costs. (3) Contractual interest rate is the stated interest rate on the face of the loan. Annualized effective interest rate is calculated as the actual interest income recognized in 2015, using the interest method, divided by the average amortized cost basis of the investment. The contractual interest rate and annualized effective interest rate presented are as of June 30, 2015 .
Schedule of Activity Related to Real Estate Loans Receivable	The following summarizes the activity related to the real estate loan receivable for the six months ended June 30, 2015 (in thousands): Real estate loan receivable - December 31, 2014 $ 20,010 Advances on real estate loan receivable 1,738 Principal repayments received on real estate loan receivable (80 ) Amortization of closing costs and origination fees on originated real estate loan receivable (13 ) Real estate loan receivable - June 30, 2015 $ 21,655
Schedule of Interest Income from Real Estate Loans Receivable	For the three and six months ended June 30, 2015 and 2014, interest income from the real estate loan receivable consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Contractual interest income $ 408 $ 333 $ 796 $ 660 Amortization of closing costs and origination fees (6 ) (6 ) (13 ) (12 ) Interest income from real estate loan receivable $ 402 $ 327 $ 783 $ 648

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Payable [Abstract]
Schedule of Long-term Debt Instruments	As of June 30, 2015 and December 31, 2014 , the Company’s notes payable consisted of the following (dollars in thousands): Principal as of June 30, 2015 Principal as of December 31, 2014 Contractual Interest Rate as of June 30, 2015 (1) Effective Interest Rate as of June 30, 2015 (1) Payment Type Maturity Date (2) Town Center Mortgage Loan $ 75,000 $ 75,000 One-month LIBOR + 1.85% 2.87% Interest Only 03/27/2018 Portfolio Loan (4) 100,000 160,000 One-month LIBOR + 1.90% 2.08% Interest Only 06/01/2019 RBC Plaza Mortgage Loan 74,465 74,465 One-month LIBOR + 1.80% 2.54% Interest Only 02/01/2017 National Office Portfolio Mortgage Loan (5) 166,893 166,893 One-month LIBOR + 1.50% 2.77% Interest Only 07/01/2017 500 West Madison Mortgage Loan (6) 215,000 255,000 One-month LIBOR + 1.65% 3.16% Interest Only 12/16/2018 222 Main Mortgage Loan 102,700 102,700 3.97% 3.97% Interest Only (3) 03/01/2021 Anchor Centre Mortgage Loan 50,000 50,000 One-month LIBOR + 1.50% 3.18% Interest Only 06/01/2017 171 17th Street Mortgage Loan (7) 79,500 79,500 One-month LIBOR + 1.45% 2.69% Interest Only (3) 09/01/2018 Reston Square Mortgage Loan 23,840 29,800 One-month LIBOR + 1.50% 1.68% Interest Only 02/01/2018 Ten Almaden Mortgage Loan (8) 63,540 63,540 One-month LIBOR + 1.65% 1.83% Interest Only 01/01/2018 Towers at Emeryville Mortgage Loan (9) 142,500 142,500 One-month LIBOR + 1.75% 1.93% Interest Only 01/15/2018 101 South Hanley Mortgage Loan (10) 34,500 34,500 One-month LIBOR + 1.55% 1.73% Interest Only (3) 01/01/2020 3003 Washington Boulevard Mortgage Loan 89,000 89,000 One-month LIBOR + 1.55% 1.73% Interest Only 02/01/2020 Rocklin Corporate Center Mortgage Loan 19,052 — One-month LIBOR + 1.50% 1.68% Interest Only 06/05/2018 Total Notes Payable $ 1,235,990 $ 1,322,898 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of June 30, 2015 . Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2015 (consisting of the contractual interest rate and the effect of interest rate swaps, if applicable), using interest rate indices as of June 30, 2015 , where applicable. For further information regarding the Company's derivative instruments, see Note 8, “Derivative Instruments.” (2) Represents the maturity date as of June 30, 2015 ; subject to certain conditions, the maturity dates of certain loans may be extended beyond the dates shown. (3) Represents the payment type required under the loan as of June 30, 2015. Certain future monthly payments due under these loans also include amortizing principal payments. For more information of the Company’s contractual obligations under its notes payable, see five-year maturity table below. (4) As of June 30, 2015 , the Portfolio Loan was secured by Domain Gateway, the McEwen Building, Gateway Tech Center, the Tower on Lake Carolyn and Park Place Village. The face amount of the Portfolio Loan is $ 200.0 million , of which $ 100.0 million is term debt and $ 100.0 million is revolving debt. As of June 30, 2015 , the outstanding balance under the loan was $ 100.0 million of term debt. As of June 30, 2015 , an additional $100.0 million of revolving debt remained available for immediate future disbursements, subject to certain conditions set forth in the loan agreement. During the term of the Portfolio Loan, the Company has an option, which may be exercised up to three times, to increase the loan amount to a maximum of $350.0 million , of which 50% would be term debt and 50% would be revolving debt, with the addition of one or more properties to secure the Portfolio Loan, subject to certain conditions contained in the loan documents. For information regarding the June 22, 2015 Portfolio Loan modification, see “– Recent Financing Transactions – Portfolio Loan Modification.” (5) The National Office Portfolio Mortgage Loan is secured by One Washingtonian Center, Preston Commons and Sterling Plaza. (6) As of June 30, 2015 , $215.0 million of term debt was outstanding and $40.0 million remained available for future disbursements, subject to certain terms and conditions contained in the loan documents. (7) As of June 30, 2015 , $79.5 million had been disbursed to the Company and $6.0 million remained available to be used for future disbursements, subject to certain conditions set forth in the loan documents. Monthly payments are initially interest-only. Beginning October 1, 2017 and continuing on the first day of each month thereafter through the maturity date of the loan, the committed amount of $85.5 million (the “Committed Amount”) will be reduced by $69,300 per month. To the extent that, following any such reduction in the Committed Amount, the outstanding principal balance of the loan exceeds the then Committed Amount, the 171 17th Street owner will pay to the lender a principal payment in an amount sufficient to reduce the outstanding principal balance of the loan to an amount less than the then reduced Committed Amount. The remaining principal balance, all accrued and unpaid interest and any other amounts will be due at maturity. (8) As of June 30, 2015 , $63.5 million had been disbursed to the Company and $13.1 million remained available for future disbursements, subject to certain conditions set forth in the loan documents. (9) As of June 30, 2015 , $142.5 million had been disbursed to the Company and $32.5 million remained available for future disbursements, subject to certain conditions set forth in the loan documents. (10) As of June 30, 2015 , $34.5 million had been disbursed to the Company and $12.7 million remained available to be used for future disbursements, subject to certain conditions set forth in the loan documents.
Schedule of Maturities of Long-term Debt	The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of June 30, 2015 (in thousands): July 1, 2015 through December 31, 2015 $ — 2016 1,357 2017 293,231 2018 620,860 2019 102,581 Thereafter 217,961 $ 1,235,990

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Notional and Fair Value of Interest Rate Swaps Designated as Cash Flow Hedges	The following table summarizes the notional amount and other information related to the Company’s interest rate swaps and cap as of June 30, 2015 and December 31, 2014. The notional amount is an indication of the extent of the Company’s involvement in each instrument at that time, but does not represent exposure to credit, interest rate or market risks (dollars in thousands): June 30, 2015 December 31, 2014 Weighted-Average Fix Pay Rate Weighted-Average Remaining Term in Years Derivative Instruments Number of Instruments Notional Amount Number of Instruments Notional Amount Reference Rate as of June 30, 2015 Derivative instruments designated as hedging instruments Interest Rate Swaps 7 $ 625,130 7 $ 625,130 One-month LIBOR/ Fixed at 0.79% - 1.68% 1.35% 3.0 Derivative instruments not designated as hedging instruments Interest Rate Swaps (1) 6 $ 353,380 4 $ 264,680 One-month LIBOR/ 2.14% 2.9 Interest Rate Cap (2) 1 $ 353,380 — $ — One-month LIBOR 2.46% 1.5 _____________________ (1) Included in these amounts are six forward interest rate swaps with an aggregate notional amount of $353.4 million that were not yet in effect as of June 30, 2015. These six interest rate swaps will become effective at various times during 2016 and 2017. (2) On January 7, 2015, the Company entered into an interest rate cap with an unaffiliated LIBOR cap provider, for a notional amount of $353.4 million , effective from January 7, 2015 to June 30, 2016. The notional amount on the interest rate cap is reduced to $147.3 million from July 1, 2016 to January 1, 2017.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The following table sets forth the fair value of the Company’s derivative instruments as well as their classification on the consolidated balance sheets as of June 30, 2015 and December 31, 2014 (dollars in thousands): June 30, 2015 December 31, 2014 Derivative Instruments Balance Sheet Location Number of Instruments Fair Value Number of Fair Value Derivative instruments designated as hedging instruments Interest Rate Swaps Deferred financing costs, prepaid expenses and other assets, at fair value 1 $ 80 2 $ 431 Interest Rate Swaps Other liabilities, at fair value 6 $ (5,256 ) 5 $ (2,621 ) Derivative instruments not designated as hedging instruments Interest Rate Swaps Other liabilities, at fair value 6 $ (3,337 ) 4 $ (1,494 ) Interest Rate Cap Deferred financing costs, prepaid expenses and other assets, at fair value 1 $ 22 — $ —
Schedule of Derivative Instruments in Statement of Operations	The following table summarizes the effects of derivative instruments on the Company’s consolidated statements of operations (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 Income statement related Derivatives designated as hedging instruments Amount of expense recognized on interest rate swaps (effective portion) $ 1,716 $ 1,481 $ 3,367 $ 2,443 1,716 1,481 3,367 2,443 Derivatives not designated as hedging instruments Unrealized (gain) loss on interest rate swaps (1,534 ) — 1,843 — Unrealized loss on interest rate cap 29 — 153 — (1,505 ) — 1,996 — Increase in interest expense as a result of derivatives $ 211 $ 1,481 $ 5,363 $ 2,443 Other comprehensive income related Unrealized losses on derivative instruments $ 44 $ 5,139 $ 6,353 $ 7,332

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Schedule of Face Value, Carrying Amounts and Fair Value	The following were the face values, carrying amounts and fair values of the Company’s real estate loan receivable and notes payable as of June 30, 2015 and December 31, 2014 , which carrying amounts generally do not approximate the fair values (in thousands): June 30, 2015 December 31, 2014 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial assets: Real estate loan receivable $ 21,626 $ 21,655 $ 21,498 $ 19,968 $ 20,010 $ 19,914 Financial liabilities: Notes payable $ 1,235,990 $ 1,235,990 $ 1,237,041 $ 1,322,898 $ 1,322,898 $ 1,324,139
Schedule of Assets and Liabilities at Fair Value	As of June 30, 2015 , the Company measured the following assets and liabilities at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets Significant Other Observable Significant Unobservable Recurring Basis: Asset derivatives - interest rate swap $ 80 $ — $ 80 $ — Asset derivatives - interest rate cap 22 — 22 — Liability derivatives - interest rate swaps (8,593 ) — (8,593 ) —

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Schedule of Related Party Costs	Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the three and six months ended June 30, 2015 and 2014, respectively, and any related amounts payable as of June 30, 2015 and December 31, 2014 (in thousands): Incurred Incurred Payable as of Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2015 2014 2015 2014 2015 2014 Expensed Asset management fees (1) $ 4,497 $ 2,725 $ 8,814 $ 5,184 $ 8,394 $ 3,465 Reimbursement of operating expenses (2) 40 36 79 63 83 36 Real estate acquisition fees 3,019 853 3,019 2,558 980 — Additional Paid-in Capital Selling commissions 15,329 5,579 32,413 13,781 — — Dealer manager fees 7,284 2,740 15,359 6,695 — — Reimbursable other offering costs (3) 934 565 1,837 1,687 218 53 $ 31,103 $ 12,498 $ 61,521 $ 29,968 $ 9,675 $ 3,554 _____________________ (1) As of June 30, 2015 , the Company had accrued and deferred payment of $8.4 million of asset management fees. See “Deferral of Asset Management Fees” below. (2) The Advisor may seek reimbursement for certain employee costs under the Advisory Agreement. 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 $35,000 and $69,000 for the three and six months ended June 30, 2015 , respectively, and $36,000 and $63,000 for the three and six months ended June 30, 2014 , respectively, and were the only employee costs reimbursed under the Advisory Agreement for the three and six months ended June 30, 2015 and 2014, respectively. The Company will not reimburse for employee costs in connection with services for which the Advisor earns acquisition or origination fees or disposition fees (other than reimbursement of travel and communication expenses) or for the salaries or benefits the Advisor or its affiliates may pay to the Company’s executive officers. (3) Also see “Other Offering Costs” below.

ORGANIZATION (Details)

ORGANIZATION (Details)	Oct. 03, 2014USD ($)shares	Jun. 30, 2015USD ($)MortgageLoanspropertyshares	Dec. 31, 2014USD ($)shares	Jun. 30, 2015USD ($)MortgageLoanspropertyshares	Feb. 04, 2010USD ($)shares	Jan. 26, 2010$ / 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		174,318,617	123,426,546	174,318,617
Number of first mortgage loan secured by a deed of trust | MortgageLoans		1		1
Issuance of common stock, value | $		$ 536,238,000	$ 583,858,000	$ 1,800,000,000
Shares of common stock sold under dividend reinvestment plan, value | $				$ 72,000,000
Redemptions of common stock, value | $		$ 3,588,000	$ 3,637,000
Private Transactions [Member]
Organizational Structure [Line Items]
Issuance of common stock, shares	258,462
Issuance of common stock, value | $	$ 2,400,000
Office Properties [Member]
Organizational Structure [Line Items]
Number of real estate properties | property		22		22
Mixed-use Office/Retail Property [Member]
Organizational Structure [Line Items]
Number of real estate properties | property		1		1
Minimum [Member]
Organizational Structure [Line Items]
Vacancy rate for core properties		10.00%		10.00%
Percent of portfolio allocated to real estate related investments		0.00%		0.00%
Maximum [Member]
Organizational Structure [Line Items]
Vacancy rate for core properties		15.00%		15.00%
Percent of portfolio allocated to real estate related investments		20.00%		20.00%
Common Stock [Member]
Organizational Structure [Line Items]
Shares held by affiliate		20,000		20,000
Shares of common stock authorized under dividend reinvestment plan, shares					80,000,000
Issuance of common stock, shares		51,259,476	57,372,731	175,151,056
Issuance of common stock, value | $		$ 513,000	$ 574,000
Shares of common stock sold under dividend reinvestment plan, shares				7,379,846
Redemptions of common stock, shares		367,405	377,073	1,110,901
Redemptions of common stock, value | $		$ 4,000	$ 4,000	$ 10,700,000
Common Stock [Member] | Minimum [Member]
Organizational Structure [Line Items]
Stock offering, shares authorized for issuance					250,000
Common Stock [Member] | Maximum [Member]
Organizational Structure [Line Items]
Stock offering, shares authorized for issuance					280,000,000
Stock offering, shares authorized for issuance, value | $					$ 2,760,000,000
Common Stock [Member] | Maximum [Member] | Dividend Reinvestment Plan [Member]
Organizational Structure [Line Items]
Stock offering, shares authorized for dividend reinvestment plan, value | $					$ 760,000,000
Advisor [Member]
Organizational Structure [Line Items]
Common stock, shares issued						20,000
Common stock, purchase price per share | $ / shares						$ 10

SUMMARY OF SIGNIFICANT ACCOUN30

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accounting Policies [Abstract]
Distributions declared per share	$ 0.162	$ 0.162	$ 0.322	$ 0.322
Distribution rate per share per day, declared	$ 0.00178082	$ 0.00178082	$ 0.00178082	$ 0.00178082

RECENT ACQUISITIONS (Narrative)

RECENT ACQUISITIONS (Narrative) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2015USD ($)
Business Combinations [Abstract]
Business combination and acquisition cost expensed	$ 4.1
Total revenues recognized from business combination	1.7
Operating expense recognized from business combination	$ 0.7

RECENT ACQUISITIONS (Schedule o

RECENT ACQUISITIONS (Schedule of Business Acquisitions, Properties Acquired) (Details) - Jun. 30, 2015 - USD ($) $ in Thousands	Total
Business Acquisition [Line Items]
Land	$ 20,536
Building and Improvements	247,211
Tenant Origination and Absorption Costs	30,349
Above-Market Lease Assets	478
Below-Market Lease Liabilities	(6,970)
Other Liabilities	(1,575)
Total Purchase Price	$ 290,029
Village Center Station [Member]
Business Acquisition [Line Items]
Acquisition Date	May 20, 2015
Land	$ 4,250
Building and Improvements	68,061
Tenant Origination and Absorption Costs	5,570
Above-Market Lease Assets	370
Below-Market Lease Liabilities	(1,721)
Other Liabilities	0
Total Purchase Price	$ 76,530
Park Place Village [Member]
Business Acquisition [Line Items]
Acquisition Date	Jun. 18, 2015
Land	$ 11,009
Building and Improvements	103,788
Tenant Origination and Absorption Costs	13,282
Above-Market Lease Assets	10
Below-Market Lease Liabilities	(31)
Other Liabilities	(1,575)
Total Purchase Price	$ 126,483
201 17th Street [Member]
Business Acquisition [Line Items]
Acquisition Date	Jun. 23, 2015
Land	$ 5,277
Building and Improvements	75,362
Tenant Origination and Absorption Costs	11,497
Above-Market Lease Assets	98
Below-Market Lease Liabilities	(5,218)
Other Liabilities	0
Total Purchase Price	$ 87,016

RECENT ACQUISITIONS (Schedule33

RECENT ACQUISITIONS (Schedule of Intangible Assets and Liabilities Acquired, Weighted-Average Amortization Periods) (Details)	6 Months Ended
	Jun. 30, 2015
Village Center Station [Member] | Tenant Origination and Absorption Costs [Member]
Business Acquisition [Line Items]
Weighted-average amortization periods	5 years 3 months 18 days
Village Center Station [Member] | Above-Market Lease Assets [Member]
Business Acquisition [Line Items]
Weighted-average amortization periods	5 years 3 months 18 days
Village Center Station [Member] | Below-Market Lease Liabilities [Member]
Business Acquisition [Line Items]
Weighted-average amortization periods	3 years 9 months 18 days
Park Place Village [Member] | Tenant Origination and Absorption Costs [Member]
Business Acquisition [Line Items]
Weighted-average amortization periods	8 years 6 months
Park Place Village [Member] | Above-Market Lease Assets [Member]
Business Acquisition [Line Items]
Weighted-average amortization periods	1 year 9 months 18 days
Park Place Village [Member] | Below-Market Lease Liabilities [Member]
Business Acquisition [Line Items]
Weighted-average amortization periods	4 years 1 month 6 days
201 17th Street [Member] | Tenant Origination and Absorption Costs [Member]
Business Acquisition [Line Items]
Weighted-average amortization periods	8 years 10 months 24 days
201 17th Street [Member] | Above-Market Lease Assets [Member]
Business Acquisition [Line Items]
Weighted-average amortization periods	7 years 6 months
201 17th Street [Member] | Below-Market Lease Liabilities [Member]
Business Acquisition [Line Items]
Weighted-average amortization periods	8 years 6 months

REAL ESTATE (Narrative) (Detail

REAL ESTATE (Narrative) (Details) - Jun. 30, 2015 ft² in Millions	ft²property
Real Estate Properties [Line Items]
Rentable square feet | ft²	9.3
Percentage of portfolio occupied	89.00%
Office Properties [Member]
Real Estate Properties [Line Items]
Number of real estate properties	22
Mixed-use Office/Retail Property [Member]
Real Estate Properties [Line Items]
Number of real estate properties	1

REAL ESTATE (Schedule of Real E

REAL ESTATE (Schedule of Real Estate Investments) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Real Estate Properties [Line Items]
Total Real Estate at Cost	$ 2,634,294	$ 2,307,861
Accumulated Depreciation and Amortization	(162,647)	(110,781)
Total real estate, net	$ 2,471,647	$ 2,197,080
Domain Gateway [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Sep. 29, 2011
Total Real Estate at Cost	$ 47,373
Accumulated Depreciation and Amortization	(8,158)
Total real estate, net	$ 39,215
Town Center [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Mar. 27, 2012
Total Real Estate at Cost	$ 117,657
Accumulated Depreciation and Amortization	(17,290)
Total real estate, net	$ 100,367
McEwen Building [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Apr. 30, 2012
Total Real Estate at Cost	$ 40,275
Accumulated Depreciation and Amortization	(6,480)
Total real estate, net	$ 33,795
Gateway Tech Center [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	May 9, 2012
Total Real Estate at Cost	$ 29,050
Accumulated Depreciation and Amortization	(3,604)
Total real estate, net	$ 25,446
Tower on Lake Carolyn [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Dec. 21, 2012
Total Real Estate at Cost	$ 49,893
Accumulated Depreciation and Amortization	(7,658)
Total real estate, net	$ 42,235
RBC Plaza [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Jan. 31, 2013
Total Real Estate at Cost	$ 146,700
Accumulated Depreciation and Amortization	(14,745)
Total real estate, net	$ 131,955
One Washingtonian Center [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Jun. 19, 2013
Total Real Estate at Cost	$ 90,974
Accumulated Depreciation and Amortization	(8,428)
Total real estate, net	$ 82,546
Preston Commons [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Jun. 19, 2013
Total Real Estate at Cost	$ 116,323
Accumulated Depreciation and Amortization	(10,750)
Total real estate, net	$ 105,573
Sterling Plaza [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Jun. 19, 2013
Total Real Estate at Cost	$ 79,403
Accumulated Depreciation and Amortization	(8,129)
Total real estate, net	$ 71,274
201 Spear Street [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Dec. 3, 2013
Total Real Estate at Cost	$ 133,938
Accumulated Depreciation and Amortization	(6,510)
Total real estate, net	$ 127,428
500 West Madison [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Dec. 16, 2013
Total Real Estate at Cost	$ 434,735
Accumulated Depreciation and Amortization	(33,087)
Total real estate, net	$ 401,648
222 Main [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Feb. 27, 2014
Total Real Estate at Cost	$ 164,885
Accumulated Depreciation and Amortization	(8,598)
Total real estate, net	$ 156,287
Anchor Centre [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	May 22, 2014
Total Real Estate at Cost	$ 91,378
Accumulated Depreciation and Amortization	(4,595)
Total real estate, net	$ 86,783
171 17th Street [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Aug. 25, 2014
Total Real Estate at Cost	$ 132,031
Accumulated Depreciation and Amortization	(6,830)
Total real estate, net	$ 125,201
Rocklin Corporate Center [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Nov. 6, 2014
Total Real Estate at Cost	$ 32,917
Accumulated Depreciation and Amortization	(1,709)
Total real estate, net	$ 31,208
Reston Square [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Dec. 3, 2014
Total Real Estate at Cost	$ 45,613
Accumulated Depreciation and Amortization	(1,252)
Total real estate, net	$ 44,361
Ten Almaden [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Dec. 5, 2014
Total Real Estate at Cost	$ 116,952
Accumulated Depreciation and Amortization	(2,935)
Total real estate, net	$ 114,017
Towers at Emeryville [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Dec. 23, 2014
Total Real Estate at Cost	$ 250,380
Accumulated Depreciation and Amortization	(6,608)
Total real estate, net	$ 243,772
101 South Hanley [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Dec. 24, 2014
Total Real Estate at Cost	$ 63,828
Accumulated Depreciation and Amortization	(2,046)
Total real estate, net	$ 61,782
3003 Washington Boulevard [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Dec. 30, 2014
Total Real Estate at Cost	$ 150,256
Accumulated Depreciation and Amortization	(2,355)
Total real estate, net	$ 147,901
Village Center Station [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	May 20, 2015
Total Real Estate at Cost	$ 78,014
Accumulated Depreciation and Amortization	(451)
Total real estate, net	$ 77,563
Park Place Village [Member] | Office/Retail [Member]
Real Estate Properties [Line Items]
Date Acquired	Jun. 18, 2015
Total Real Estate at Cost	$ 128,084
Accumulated Depreciation and Amortization	(264)
Total real estate, net	$ 127,820
201 17th Street [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Jun. 23, 2015
Total Real Estate at Cost	$ 93,635
Accumulated Depreciation and Amortization	(165)
Total real estate, net	$ 93,470

REAL ESTATE (Properties Represe

REAL ESTATE (Properties Represented More than 10% of Company’s Total Assets) (Details) $ in Thousands		6 Months Ended
		Jun. 30, 2015USD ($)ft²$ / ft²	Dec. 31, 2014USD ($)
Real Estate Properties [Line Items]
Rentable Square Feet | ft²		9,300,000
Total Real Estate, Net		$ 2,471,647	$ 2,197,080
Occupancy		89.00%
500 West Madison [Member] | Assets, Total [Member]
Real Estate Properties [Line Items]
Rentable Square Feet | ft²		1,457,724
Total Real Estate, Net		$ 401,648
Percentage of Total Assets		14.60%
Annualized Base Rent	[1]	$ 34,525
Average Annualized Base Rent per sq. ft. | $ / ft²		25.05
Occupancy		94.60%
[1]	Annualized base rent represents annualized contractual base rental income as of June 30, 2015, adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term.

REAL ESTATE (Operating Leases)

REAL ESTATE (Operating Leases) (Narrative) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)Tenants	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Operating Leased Assets [Line Items]
Deferred rent recognized	$ 8,998	$ 4,452
Deferred rent receivables	27,800		$ 18,400
Incentive to Lessee	$ 1,400		1,100
Number of tenants | Tenants	700
Maximum [Member]
Operating Leased Assets [Line Items]
Operating lease, term	13 years 10 months 24 days
Weighted Average [Member]
Operating Leased Assets [Line Items]
Operating lease, term	5 years 3 months 18 days
Other Liabilities [Member]
Operating Leased Assets [Line Items]
Security deposit liability	$ 8,900		$ 7,900

REAL ESTATE (Future Minimum Ren

REAL ESTATE (Future Minimum Rental Income) (Details) $ in Thousands	Jun. 30, 2015USD ($)
Real Estate [Abstract]
July 1, 2015 through December 31, 2015	$ 109,833
2,016	221,069
2,017	207,046
2,018	187,413
2,019	162,044
Thereafter	545,773
Future minimum rental income	$ 1,433,178

REAL ESTATE (Highes Tenant Indu

REAL ESTATE (Highes Tenant Industry Concentrations- Grater than 10% of Annual Base Rent) (Details) - Jun. 30, 2015 $ in Thousands		USD ($)Tenants
Concentration Risk [Line Items]
Number of Tenants		700
Industry - Finance [Member]
Concentration Risk [Line Items]
Number of Tenants		130
Annualized Base Rent | $	[1]	$ 49,522
Percentage of Annualized Base Rent		21.20%
[1]	Annualized base rent represents annualized contractual base rental income as of June 30, 2015, adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term.

REAL ESTATE REAL ESTATE (Geogra

REAL ESTATE REAL ESTATE (Geographic Concentration Risk) (Narrative) (Details) - Assets, Total [Member]	6 Months Ended
	Jun. 30, 2015
California [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	19.00%
Illinois [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	15.00%
Texas [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	13.00%

TENANT ORIGINATION AND ABSORP41

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
Tenant Origination and Absorption Costs, Cost	$ 246,665		$ 246,665		$ 221,169
Tenant Origination and Absorption Costs, Accumulated Amortization	(54,888)		(54,888)		(38,645)
Tenant Origination and Absorption Costs, Net Amount	191,777		191,777		182,524
Tenant Origination and Absorption Costs, Amortization expense	(10,985)	$ (6,890)	(21,095)	$ (13,142)
Above-Market Lease Assets, Cost	15,780		15,780		16,113
Above-Market Lease Assets, Accumulated Amortization	(3,670)		(3,670)		(2,369)
Above-Market Lease Assets, Net Amount	12,110		12,110		13,744
Above-Market Lease Assets, Amortization expense	(1,049)	(534)	(2,112)	(1,003)
Below-Market Lease Liabilities, Cost	(46,460)		(46,460)		(41,175)
Below-Market Lease Liabilities, Accumulated Amortization	11,772		11,772		8,430
Below-Market Lease Liabilities, Net Amount	(34,688)		(34,688)		$ (32,745)
Below-Market Lease Liabilities, Amortization expense	$ 2,532	$ 1,717	$ 5,027	$ 3,240

REAL ESTATE LOAN RECEIVABLE (Sc

REAL ESTATE LOAN RECEIVABLE (Schedule of Real Estate Loans Receivable) (Details) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Book Value		$ 21,655	$ 20,010
Aberdeen First Mortgage Origination [Member] | Mortgages [Member] | Office Building [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding Principal Balance	[1]	21,626
Book Value	[2]	$ 21,655	$ 20,010
Contractual Interest Rate	[3]	7.50%
Annualized Effective Interest Rate	[3]	7.50%
Maturity Date		Jul. 1, 2016
[1]	Outstanding principal balance as of June 30, 2015 represents original principal balance outstanding under the loan, increased for any subsequent fundings and reduced for any principal paydowns.
[2]	Book value represents outstanding principal balance, adjusted for unamortized origination fees and direct origination and acquisition costs.
[3]	Contractual interest rate is the stated interest rate on the face of the loan. Annualized effective interest rate is calculated as the actual interest income recognized in 2015, using the interest method, divided by the average amortized cost basis of the investment. The contractual interest rate and annualized effective interest rate presented are as of June 30, 2015.

REAL ESTATE LOAN RECEIVABLE (43

REAL ESTATE LOAN RECEIVABLE (Schedule of Activity Related to Real Estate Loans Receivable) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Real Estate Loans Receivable [Roll Forward]
Real estate loan receivable - December 31, 2014			$ 20,010
Advances on real estate loan receivable			1,738
Principal repayments received on real estate loan receivable			(80)
Amortization of closing costs and origination fees on originated real estate loan receivable	$ (6)	$ (6)	(13)	$ (12)
Real estate loan receivable - June 30, 2015	$ 21,655		$ 21,655

REAL ESTATE LOAN RECEIVABLE (44

REAL ESTATE LOAN RECEIVABLE (Schedule of Interest Income from Real Estate Loans Receivable) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Receivables [Abstract]
Contractual interest income	$ 408	$ 333	$ 796	$ 660
Amortization of closing costs and origination fees	(6)	(6)	(13)	(12)
Interest income from real estate loan receivable	$ 402	$ 327	$ 783	$ 648

NOTES PAYABLE (Narrative) (Deta

NOTES PAYABLE (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Debt Instrument [Line Items]
Interest expense	$ 7,636	$ 6,269	$ 20,050	$ 11,566
Interest payable, current	2,700		2,700		$ 2,400
Amortization of deferred financing costs			1,675	929
Interest expense incurred as a result of derivative instruments	200	1,500	5,400	2,400
Interest Expense [Member]
Debt Instrument [Line Items]
Amortization of deferred financing costs	800	$ 400	1,675	$ 929
Deferred Financing Costs, Prepaid Expenses and Other Assets [Member]
Debt Instrument [Line Items]
Deferred financing costs	$ 10,600		$ 10,600		$ 11,200

NOTES PAYABLE (Schedule of Long

NOTES PAYABLE (Schedule of Long-term Debt Instruments) (Details) - USD ($)		6 Months Ended
		Jun. 30, 2015	Dec. 31, 2014	May. 06, 2014
Debt Instrument [Line Items]
Principal Balance		$ 1,235,990,000	$ 1,322,898,000
Portfolio Loan [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Term debt		100,000,000
500 West Madison [Member]
Debt Instrument [Line Items]
Term debt		215,000,000
500 West Madison [Member] | First Non-Revolver Tranche [Member]
Debt Instrument [Line Items]
Current borrowing capacity		40,000,000
Mortgages [Member]
Debt Instrument [Line Items]
Principal Balance		1,235,990,000	1,322,898,000
Mortgages [Member] | Town Center [Member]
Debt Instrument [Line Items]
Principal Balance		$ 75,000,000	75,000,000
Effective Interest Rate	[1]	2.87%
Payment Type		Interest Only
Maturity Date	[2]	Mar. 27, 2018
Mortgages [Member] | Town Center [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	[1]	1.85%
Mortgages [Member] | Portfolio Loan [Member]
Debt Instrument [Line Items]
Principal Balance	[3]	$ 100,000,000	160,000,000
Effective Interest Rate	[1],[3]	2.08%
Payment Type	[3]	Interest Only
Maturity Date	[2],[3]	Jun. 1, 2019
Mortgages [Member] | Portfolio Loan [Member] | Minimum [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	[1],[3]	1.90%
Mortgages [Member] | RBC Plaza [Member]
Debt Instrument [Line Items]
Principal Balance		$ 74,465,000	74,465,000
Effective Interest Rate	[1]	2.54%
Payment Type		Interest Only
Maturity Date	[2]	Feb. 1, 2017
Mortgages [Member] | RBC Plaza [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	[1]	1.80%
Mortgages [Member] | National Office Portfolio [Member]
Debt Instrument [Line Items]
Principal Balance	[4]	$ 166,893,000	166,893,000
Effective Interest Rate	[1],[4]	2.77%
Payment Type	[4]	Interest Only
Maturity Date	[2],[4]	Jul. 1, 2017
Mortgages [Member] | National Office Portfolio [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	[1],[4]	1.50%
Mortgages [Member] | 500 West Madison [Member]
Debt Instrument [Line Items]
Principal Balance	[5]	$ 215,000,000	255,000,000
Effective Interest Rate	[1],[5]	3.16%
Payment Type	[5]	Interest Only
Maturity Date	[2],[5]	Dec. 16, 2018
Mortgages [Member] | 500 West Madison [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	[1],[5]	1.65%
Mortgages [Member] | 222 Main [Member]
Debt Instrument [Line Items]
Principal Balance		$ 102,700,000	102,700,000
Contractual Interest Rate		3.97%
Effective Interest Rate	[1]	3.97%
Maturity Date	[2]	Mar. 1, 2021
Mortgages [Member] | Anchor Centre [Member]
Debt Instrument [Line Items]
Principal Balance		$ 50,000,000	50,000,000
Effective Interest Rate	[1]	3.18%
Payment Type		Interest Only
Maturity Date	[2]	Jun. 1, 2017
Mortgages [Member] | Anchor Centre [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	[1]	1.50%
Mortgages [Member] | 171 17th Street Mortgage Loan [Member]
Debt Instrument [Line Items]
Principal Balance	[6]	$ 79,500,000	79,500,000
Effective Interest Rate	[1],[6]	2.69%
Maturity Date	[2],[6]	Sep. 1, 2018
Maximum borrowing capacity		$ 85,500,000
Line of Credit Facility, Decrease in Periodic Payment		69,300
Loan, amount outstanding		79,500,000
Unused borrowing capacity, amount		$ 6,000,000
Mortgages [Member] | 171 17th Street Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	[1],[6]	1.45%
Mortgages [Member] | Reston Square Mortgage Loan [Member]
Debt Instrument [Line Items]
Principal Balance		$ 23,840,000	29,800,000
Effective Interest Rate	[1]	1.68%
Payment Type		Interest Only
Maturity Date	[2]	Feb. 1, 2018
Mortgages [Member] | Reston Square Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	[1]	1.50%
Mortgages [Member] | Ten Almaden Mortgage Loan [Member]
Debt Instrument [Line Items]
Principal Balance	[7]	$ 63,540,000	63,540,000
Effective Interest Rate	[1],[7]	1.83%
Payment Type	[7]	Interest Only
Maturity Date	[2],[7]	Jan. 1, 2018
Loan, amount outstanding		$ 63,500,000
Unused borrowing capacity, amount		$ 13,100,000
Mortgages [Member] | Ten Almaden Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	[1],[7]	1.65%
Mortgages [Member] | Towers at Emeryville Mortgage Loan [Member]
Debt Instrument [Line Items]
Principal Balance	[8]	$ 142,500,000	142,500,000
Effective Interest Rate	[1],[8]	1.93%
Payment Type	[8]	Interest Only
Maturity Date	[2],[8]	Jan. 15, 2018
Loan, amount outstanding		$ 142,500,000
Unused borrowing capacity, amount		$ 32,500,000
Mortgages [Member] | Towers at Emeryville Mortgage Loan [Member] | Minimum [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	[1],[8]	1.75%
Mortgages [Member] | 101 South Hanley Mortgage Loan [Member]
Debt Instrument [Line Items]
Principal Balance	[9]	$ 34,500,000	34,500,000
Effective Interest Rate	[1],[9]	1.73%
Maturity Date	[2],[9]	Jan. 1, 2020
Loan, amount outstanding		$ 34,500,000
Unused borrowing capacity, amount		$ 12,700,000
Mortgages [Member] | 101 South Hanley Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	[1],[9]	1.55%
Mortgages [Member] | 3003 Washington Boulevard Mortgage Loan [Member]
Debt Instrument [Line Items]
Principal Balance		$ 89,000,000	89,000,000
Effective Interest Rate	[1]	1.73%
Payment Type		Interest Only
Maturity Date	[2]	Feb. 1, 2020
Mortgages [Member] | 3003 Washington Boulevard Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	[1]	1.55%
Mortgages [Member] | Rocklin Corporate Center Mortgage Loan [Member]
Debt Instrument [Line Items]
Principal Balance		$ 19,052,000	$ 0
Effective Interest Rate		1.68%
Payment Type		Interest Only
Maturity Date		Jun. 5, 2018
Mortgages [Member] | Rocklin Corporate Center Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	[1]	1.50%
Secured Debt [Member] | Portfolio Loan [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 200,000,000
Loan, amount outstanding		100,000,000
Potential maximum borrowing capacity		350,000,000
Secured Debt [Member] | Portfolio Loan [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 100,000,000
Maximum borrowing capacity, percentage		50.00%
Secured Debt [Member] | Portfolio Loan [Member] | Revolving Credit Facility [Member] | Subject to Certain Conditions [Member]
Debt Instrument [Line Items]
Unused borrowing capacity, amount		$ 100,000,000
Secured Debt [Member] | Portfolio Loan [Member] | Non-Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity, percentage		50.00%
Secured Debt [Member] | Rocklin Corporate Center Mortgage Loan [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 22,900,000
Loan, amount outstanding				19,100,000
Unused borrowing capacity, amount				$ 3,800,000
Secured Debt [Member] | Rocklin Corporate Center Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Contractual Interest Rate				1.50%
[1]	Contractual interest rate represents the interest rate in effect under the loan as of June 30, 2015. Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2015 (consisting of the contractual interest rate and the effect of interest rate swaps, if applicable), using interest rate indices as of June 30, 2015, where applicable. For further information regarding the Company's derivative instruments, see Note 8, “Derivative Instruments.”
[2]	Represents the maturity date as of June 30, 2015; subject to certain conditions, the maturity dates of certain loans may be extended beyond the dates shown.
[3]	As of June 30, 2015, the Portfolio Loan was secured by Domain Gateway, the McEwen Building, Gateway Tech Center, the Tower on Lake Carolyn and Park Place Village. The face amount of the Portfolio Loan is $200.0 million, of which $100.0 million is term debt and $100.0 million is revolving debt. As of June 30, 2015, the outstanding balance under the loan was $100.0 million of term debt. As of June 30, 2015, an additional $100.0 million of revolving debt remained available for immediate future disbursements, subject to certain conditions set forth in the loan agreement. During the term of the Portfolio Loan, the Company has an option, which may be exercised up to three times, to increase the loan amount to a maximum of $350.0 million, of which 50% would be term debt and 50% would be revolving debt, with the addition of one or more properties to secure the Portfolio Loan, subject to certain conditions contained in the loan documents. For information regarding the June 22, 2015 Portfolio Loan modification, see “– Recent Financing Transactions – Portfolio Loan Modification.”
[4]	The National Office Portfolio Mortgage Loan is secured by One Washingtonian Center, Preston Commons and Sterling Plaza.
[5]	As of June 30, 2015, $215.0 million of term debt was outstanding and $40.0 million remained available for future disbursements, subject to certain terms and conditions contained in the loan documents.
[6]	As of June 30, 2015, $79.5 million had been disbursed to the Company and $6.0 million remained available to be used for future disbursements, subject to certain conditions set forth in the loan documents. Monthly payments are initially interest-only. Beginning October 1, 2017 and continuing on the first day of each month thereafter through the maturity date of the loan, the committed amount of $85.5 million (the “Committed Amount”) will be reduced by $69,300 per month. To the extent that, following any such reduction in the Committed Amount, the outstanding principal balance of the loan exceeds the then Committed Amount, the 171 17th Street owner will pay to the lender a principal payment in an amount sufficient to reduce the outstanding principal balance of the loan to an amount less than the then reduced Committed Amount. The remaining principal balance, all accrued and unpaid interest and any other amounts will be due at maturity.
[7]	As of June 30, 2015, $63.5 million had been disbursed to the Company and $13.1 million remained available for future disbursements, subject to certain conditions set forth in the loan documents.
[8]	As of June 30, 2015, $142.5 million had been disbursed to the Company and $32.5 million remained available for future disbursements, subject to certain conditions set forth in the loan documents.
[9]	As of June 30, 2015, $34.5 million had been disbursed to the Company and $12.7 million remained available to be used for future disbursements, subject to certain conditions set forth in the loan documents.

NOTES PAYABLE (Schedule of Matu

NOTES PAYABLE (Schedule of Maturities of Long-term Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Notes Payable [Abstract]
July 1, 2015 through December 31, 2015	$ 0
2,016	1,357
2,017	293,231
2,018	620,860
2,019	102,581
Thereafter	217,961
Total notes payable	$ 1,235,990	$ 1,322,898

NOTES PAYABLE (Recent Financing

NOTES PAYABLE (Recent Financing Transactions) (Details)	Jun. 22, 2015USD ($)	May. 06, 2015extension	Jun. 30, 2015USD ($)option	May. 06, 2014USD ($)
Rocklin Corporate Center Mortgage Loan [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 22,900,000
Loan, amount outstanding				19,100,000
Unused borrowing capacity, amount				$ 3,800,000
Number of extensions | extension		2
Extension period		1 year
Percent of outstanding balance under guarantees				25.00%
Rocklin Corporate Center Mortgage Loan [Member] | Secured Debt [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Stated percentage				1.50%
Portfolio Loan Modification [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 350,000,000
Extension period	1 year
Percent of outstanding balance under guarantees	25.00%
Current borrowing capacity	$ 200,000,000
Options to increase loan amount | option			3
Portfolio Loan Modification [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 100,000,000
Components of total loan, percent			50.00%
Portfolio Loan Modification [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Stated percentage	1.90%
Portfolio Loan Modification [Member] | Term Loan [Member]
Debt Instrument [Line Items]
Term debt	$ 100,000,000		$ 100,000,000
Components of total loan, percent			50.00%

DERIVATIVE INSTRUMENTS (Narrati

DERIVATIVE INSTRUMENTS (Narrative) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2015USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Additional interest expense expected to be recognized over the next 12 months related to derivative instruments designated as cash flow hedges	$ 6

DERIVATIVE INSTRUMENTS (Notiona

DERIVATIVE INSTRUMENTS (Notional Amount) (Details) $ in Thousands		6 Months Ended
		Jun. 30, 2015USD ($)Investments	Jan. 07, 2015USD ($)	Dec. 31, 2014USD ($)Investments
Effective from January 7, 2015 to June 30, 2016 [Member]
Derivative [Line Items]
Notional Amount			$ 353,400
July 1, 2016 to January 1, 2017 [Member]
Derivative [Line Items]
Notional Amount			$ 147,300
Interest Rate Swap [Member] | Exercised at Various Dates (2015-2017) [Member]
Derivative [Line Items]
Number of Instruments | Investments		6
Notional Amount		$ 353,400
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Number of Instruments | Investments	[1]	7		7
Notional Amount	[1]	$ 625,130		$ 625,130
Weighted-Average Fix Pay Rate	[1]	1.35%
Weighted-Average Remaining Term in Years	[1]	3 years
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Minimum [Member] | One-month LIBOR [Member]
Derivative [Line Items]
Reference Rate	[1]	0.79%
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Maximum [Member] | One-month LIBOR [Member]
Derivative [Line Items]
Reference Rate	[1]	1.68%
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Number of Instruments | Investments	[1]	6		4
Notional Amount	[1]	$ 353,380		$ 264,680
Weighted-Average Fix Pay Rate	[1]	2.14%
Weighted-Average Remaining Term in Years	[1]	2 years 10 months 24 days
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Minimum [Member] | One-month LIBOR [Member]
Derivative [Line Items]
Reference Rate	[1]	1.81%
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Maximum [Member] | One-month LIBOR [Member]
Derivative [Line Items]
Reference Rate	[1]	2.37%
Not Designated as Hedging Instrument [Member] | Interest Rate Cap [Member]
Derivative [Line Items]
Number of Instruments | Investments	[2]	1		0
Notional Amount	[2]	$ 353,380		$ 0
Weighted-Average Fix Pay Rate	[2]	2.46%
Weighted-Average Remaining Term in Years	[2]	1 year 6 months
Not Designated as Hedging Instrument [Member] | Interest Rate Cap [Member] | One-month LIBOR [Member]
Derivative [Line Items]
Reference Rate	[2]	2.46%
[1]	hese amounts are six forward interest rate swaps with an aggregate notional amount of $353.4 million that were not yet in effect as of June 30, 2015. These six interest rate swaps will become effective at various times during 2016 and 2017.
[2]	On January 7, 2015, the Company entered into an interest rate cap with an unaffiliated LIBOR cap provider, for a notional amount of $353.4 million, effective from January 7, 2015 to June 30, 2016. The notional amount on the interest rate cap is reduced to $147.3 million from July 1, 2016 to January 1, 2017.

DERIVATIVE INSTRUMENTS (Balance

DERIVATIVE INSTRUMENTS (Balance Sheet) (Details) $ in Thousands		Jun. 30, 2015USD ($)Investments	Dec. 31, 2014USD ($)Investments
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Number of Instruments	[1]	7	7
Designated as Hedging Instrument [Member] | Deferred Financing Costs, Prepaid Expenses and Other Assets [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Number of Instruments		1	2
Asset, Fair Value | $		$ 80	$ 431
Designated as Hedging Instrument [Member] | Other Liabilities [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Number of Instruments		6	5
Liability, Fair Value | $		$ (5,256)	$ (2,621)
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Number of Instruments	[1]	6	4
Not Designated as Hedging Instrument [Member] | Interest Rate Cap [Member]
Derivative [Line Items]
Number of Instruments	[2]	1	0
Not Designated as Hedging Instrument [Member] | Deferred Financing Costs, Prepaid Expenses and Other Assets [Member] | Interest Rate Cap [Member]
Derivative [Line Items]
Number of Instruments		1	0
Asset, Fair Value | $		$ 22	$ 0
Not Designated as Hedging Instrument [Member] | Other Liabilities [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Number of Instruments		6	4
Liability, Fair Value | $		$ (3,337)	$ (1,494)
[1]	hese amounts are six forward interest rate swaps with an aggregate notional amount of $353.4 million that were not yet in effect as of June 30, 2015. These six interest rate swaps will become effective at various times during 2016 and 2017.
[2]	On January 7, 2015, the Company entered into an interest rate cap with an unaffiliated LIBOR cap provider, for a notional amount of $353.4 million, effective from January 7, 2015 to June 30, 2016. The notional amount on the interest rate cap is reduced to $147.3 million from July 1, 2016 to January 1, 2017.

DERIVATIVE INSTRUMENTS (Stateme

DERIVATIVE INSTRUMENTS (Statement of Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative [Line Items]
Unrealized (gain) loss on interest rate	$ 44	$ 5,139	$ 6,353	$ 7,332
Increase in interest expense as a result of derivatives	211	1,481	5,363	2,443
Unrealized losses on derivative instruments	44	5,139	6,353	7,332
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivatives designated as hedging instruments	1,716	1,481	3,367	2,443
Increase in interest expense as a result of derivatives	1,716	1,481	3,367	2,443
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Increase in interest expense as a result of derivatives	(1,505)	0	1,996	0
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Unrealized (gain) loss on interest rate	(1,534)	0	1,843	0
Not Designated as Hedging Instrument [Member] | Interest Rate Cap [Member]
Derivative [Line Items]
Unrealized (gain) loss on interest rate	$ 29	$ 0	$ 153	$ 0

FAIR VALUE DISCLOSURES (Schedul

FAIR VALUE DISCLOSURES (Schedule of Face Value, Carrying Amounts and Fair Value) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real estate loans receivable, Face Value	$ 21,626	$ 19,968
Real estate loans receivable, Value	21,498	19,914
Notes payable, Face Value	1,235,990	1,322,898
Notes payable, Value	1,237,041	1,324,139
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real estate loans receivable, Value	21,655	20,010
Notes payable, Value	$ 1,235,990	$ 1,322,898

FAIR VALUE DISCLOSURES (Assets

FAIR VALUE DISCLOSURES (Assets and Liabilities at Fair value) (Details) - Recurring Basis [Member] $ in Thousands	Jun. 30, 2015USD ($)
Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets derivatives	$ 80
Liability derivatives	(8,593)
Interest Rate Swap [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets derivatives	0
Liability derivatives	0
Interest Rate Swap [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets derivatives	80
Liability derivatives	(8,593)
Interest Rate Swap [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets derivatives	0
Liability derivatives	0
Interest Rate Cap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets derivatives	22
Interest Rate Cap [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets derivatives	0
Interest Rate Cap [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets derivatives	22
Interest Rate Cap [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets derivatives	$ 0

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		65 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Dec. 31, 2014	Mar. 05, 2014
Related Party Transaction [Line Items]
Payable as of		$ 9,675		$ 9,675		$ 9,675	$ 3,554
Administrative fees, amount paid		35	$ 36	69	$ 63
Other organization and offering costs						$ 1,200
Other organizational offering cost related to follow on offering							1,200
Stockholders' percent of noncompounded return								8.00%
Maximum [Member]
Related Party Transaction [Line Items]
Reimbursed offering costs determination, gross offering costs, percentage						15.00%
Asset Management Fees [Member]
Related Party Transaction [Line Items]
Payable as of		8,400		8,400		$ 8,400
Advisor and Dealer Manager [Member]
Related Party Transaction [Line Items]
Incurred		31,103	12,498	61,521	29,968
Payable as of		9,675		9,675		9,675	3,554
Advisor and Dealer Manager [Member] | Expensed [Member] | Asset Management Fees [Member]
Related Party Transaction [Line Items]
Expenses	[1]	4,497	2,725	8,814	5,184
Payable as of	[1]	8,394		8,394		8,394	3,465
Advisor and Dealer Manager [Member] | Expensed [Member] | Reimbursement of Operating Expenses [Member]
Related Party Transaction [Line Items]
Expenses	[2]	40	36	79	63
Payable as of	[2]	83		83		83	36
Advisor and Dealer Manager [Member] | Expensed [Member] | Real Estate Acquisition Fees [Member]
Related Party Transaction [Line Items]
Expenses		3,019	853	3,019	2,558
Payable as of		980		980		980	0
Advisor and Dealer Manager [Member] | Additional Paid-in Capital [Member] | Selling Commissions [Member]
Related Party Transaction [Line Items]
Incurred		15,329	5,579	32,413	13,781
Payable as of		0		0		0	0
Advisor and Dealer Manager [Member] | Additional Paid-in Capital [Member] | Dealer Manager Fees [Member]
Related Party Transaction [Line Items]
Incurred		7,284	2,740	15,359	6,695
Payable as of		0		0		0	0
Advisor and Dealer Manager [Member] | Additional Paid-in Capital [Member] | Reimbursable Other Offering Costs [Member]
Related Party Transaction [Line Items]
Incurred	[3]	934	$ 565	1,837	$ 1,687
Payable as of	[3]	$ 218		218		$ 218	$ 53
Advisor [Member]
Related Party Transaction [Line Items]
Incurred				$ 100
[1]	As of June 30, 2015, the Company had accrued and deferred payment of $8.4 million of asset management fees. See “Deferral of Asset Management Fees” below.
[2]	The Advisor may seek reimbursement for certain employee costs under the Advisory Agreement. 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 $35,000 and $69,000 for the three and six months ended June 30, 2015, respectively, and $36,000 and $63,000 for the three and six months ended June 30, 2014, respectively, and were the only employee costs reimbursed under the Advisory Agreement for the three and six months ended June 30, 2015 and 2014, respectively. The Company will not reimburse for employee costs in connection with services for which the Advisor earns acquisition or origination fees or disposition fees (other than reimbursement of travel and communication expenses) or for the salaries or benefits the Advisor or its affiliates may pay to the Company’s executive officers.
[3]	Also see “Other Offering Costs” below.

RELATED PARTY TRANSACTIONS (Lea

RELATED PARTY TRANSACTIONS (Lease to Affiliate) (Details) - May. 29, 2015 - Subsidiaries [Member] - Affiliated Entity [Member] $ in Millions	USD ($)ft²$ / ft²
Related Party Transaction [Line Items]
Net rentable area	5,046
Percent of total rentable square feet	2.30%
Annualized base rent | $	$ 0.3
Average annualized base rent per square foot | $ / ft²	51.90

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands	Aug. 11, 2015	Aug. 03, 2015	Jul. 07, 2015	Jul. 01, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Jun. 30, 2015	Aug. 07, 2015
Subsequent Event [Line Items]
Issuance of common stock, value							$ 536,238		$ 583,858	$ 1,800,000
Shares of common stock sold under dividend reinvestment plan, value										$ 72,000
Redemptions of common stock, value							$ 3,588		$ 3,637
Distribution rate per share per day, declared					$ 0.00178082	$ 0.00178082	$ 0.00178082	$ 0.00178082
Common Stock [Member]
Subsequent Event [Line Items]
Issuance of common stock, shares							51,259,476		57,372,731	175,151,056
Issuance of common stock, value							$ 513		$ 574
Shares of common stock sold under dividend reinvestment plan, shares										7,379,846
Redemptions of common stock, shares							367,405		377,073	1,110,901
Redemptions of common stock, value							$ 4		$ 4	$ 10,700
Subsequent Event [Member]
Subsequent Event [Line Items]
Issuance of common stock, value											$ 1,700,000
Subsequent Event [Member] | Dividend Paid [Member]
Subsequent Event [Line Items]
Distributions paid to common stockholders		$ 9,700		$ 9,200
Subsequent Event [Member] | Dividend Declared [Member]
Subsequent Event [Line Items]
Distribution rate per share per day, declared	$ 0.00178082		$ 0.00178082
Distribution rate per share annualized, declared, based on purchase price	6.50%		6.50%
Distribution rate per share annualized, declared, based on current estimated value	6.18%		6.18%
Subsequent Event [Member] | Dividend Declared [Member] | Initial Primary Offering Purchase Price [Member]
Subsequent Event [Line Items]
Common stock, purchase price per share	$ 10		$ 10
Subsequent Event [Member] | Dividend Declared [Member] | Most Recent Primary Offering Purchase Price [Member]
Subsequent Event [Line Items]
Common stock, purchase price per share	$ 10.51		$ 10.51
Subsequent Event [Member] | Common Stock [Member]
Subsequent Event [Line Items]
Issuance of common stock, shares											169,009,930
Shares of common stock sold under dividend reinvestment plan, shares											8,407,637
Shares of common stock sold under dividend reinvestment plan, value											$ 82,300
Redemptions of common stock, shares											1,187,500
Redemptions of common stock, value											$ 11,500

SUBSEQUENT EVENTS (Real Estate

SUBSEQUENT EVENTS (Real Estate Acquisitions) (Details) $ / shares in Units, $ in Thousands	Jul. 15, 2015USD ($)ft²aTenants	Jul. 14, 2015USD ($)ft²aTenantsproperty$ / sharesshares	Jun. 30, 2015USD ($)Tenantsshares	Dec. 31, 2014shares
Subsequent Event [Line Items]
Preferred stock, shares outstanding | shares			0	0
Purchase price			$ 290,029
Number of tenants | Tenants			700
Subsequent Event [Member] | Promenade I & II at Eilan [Member]
Subsequent Event [Line Items]
Net rentable area | ft²		200,072
Area of land | a		6.3
Purchase price		$ 61,600
Percent of occupany		100.00%
Number of tenants | Tenants		15
Weighted-average remaining lease term		6 years 1 month 6 days
Subsequent Event [Member] | Promenade I & II at Eilan [Member] | Office Building [Member]
Subsequent Event [Line Items]
Number of buildings acquired | property		2
Subsequent Event [Member] | Promenade I & II at Eilan [Member] | Common Class A [Member]
Subsequent Event [Line Items]
Percent of shares acquired		100.00%
Subsequent Event [Member] | Promenade I & II at Eilan [Member] | Series A [Member]
Subsequent Event [Line Items]
Preferred stock, shares outstanding | shares		125
Redemption price per share | $ / shares		$ 1,000
Subsequent Event [Member] | CrossPoint at Valley Forge [Member] | Scenario, Plan [Member]
Subsequent Event [Line Items]
Net rentable area | ft²	272,360
Area of land | a	25.3
Purchase price	$ 89,500
Percent of occupany	95.00%
Number of tenants | Tenants	11
Weighted-average remaining lease term	8 years 8 months 12 days
Earnest money deposit, amount that may be forfeited	$ 3,000

SUBSEQUENT EVENTS (Related Fina

SUBSEQUENT EVENTS (Related Financing of 201 17th Street) (Details) - Jul. 28, 2015 - Subsequent Event [Member] - 201 17th Street Mortgage Loan [Member]	USD ($)extension
Secured Debt [Member]
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 64,800,000
Number of extensions | extension	3
Extension period	1 year
Percent of outstanding balance under guarantees	20.00%
Secured Debt [Member] | One-month LIBOR [Member]
Subsequent Event [Line Items]
Interest rate	1.40%
Secured Debt [Member]
Subsequent Event [Line Items]
Term debt	$ 48,600,000
Loan, amount outstanding	48,600,000
Revolving Credit Facility [Member] | Secured Debt [Member]
Subsequent Event [Line Items]
Maximum borrowing capacity	16,200,000
Unused borrowing capacity, amount	$ 16,200,000