KBS Real Estate Investment Trust III (KBSR) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 05, 2017
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
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		181,587,682

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Real estate:
Land	$ 395,133	$ 395,133
Buildings and improvements	2,660,146	2,651,690
Construction in progress	31,609	21,853
Tenant origination and absorption costs	257,161	264,973
Total real estate, cost	3,344,049	3,333,649
Less accumulated depreciation and amortization	(370,189)	(344,794)
Total real estate, net	2,973,860	2,988,855
Cash and cash equivalents	55,648	72,068
Investment in unconsolidated joint venture	32,786	0
Rents and other receivables, net	73,039	64,654
Above-market leases, net	7,488	8,191
Due from affiliates	223	0
Prepaid expenses and other assets	71,217	48,908
Total assets	3,214,261	3,182,676
Liabilities and equity
Notes payable, net	1,843,709	1,783,468
Accounts payable and accrued liabilities	49,896	56,210
Due to affiliate	2,470	2,397
Distributions payable	10,026	10,000
Below-market leases, net	31,381	33,655
Other liabilities	41,551	41,699
Total liabilities	1,979,033	1,927,429
Commitments and contingencies (Note 10)
Redeemable common stock	64,327	61,871
KBS Real Estate Investment Trust III, Inc. 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, 181,173,476 and 180,890,572 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively	1,812	1,809
Additional paid-in capital	1,591,649	1,591,652
Cumulative distributions and net losses	(422,181)	(398,087)
Accumulated other comprehensive loss	(679)	(2,298)
Total KBS Real Estate Investment Trust III, Inc. stockholders’ equity	1,170,601	1,193,076
Noncontrolling interest	300	300
Total equity	1,170,901	1,193,376
Total liabilities and equity	$ 3,214,261	$ 3,182,676

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued	181,173,476	180,890,572
Common stock, shares outstanding	181,173,476	180,890,572

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues:
Rental income	$ 80,821	$ 74,985
Tenant reimbursements	19,105	17,503
Other operating income	5,474	5,006
Interest income from real estate loan receivable	0	409
Total revenues	105,400	97,903
Expenses:
Operating, maintenance and management	22,489	21,895
Real estate taxes and insurance	15,922	15,618
Asset management fees to affiliate	6,205	6,143
Real estate acquisition fees to affiliate	0	1,473
Real estate acquisition fees and expenses	0	288
General and administrative expenses	1,224	1,258
Depreciation and amortization	41,695	39,465
Interest expense	12,901	25,355
Total expenses	100,436	111,495
Other income:
Other interest income	23	12
Equity in loss of unconsolidated joint venture	(1)	0
Total other income, net	22	12
Net income (loss)	4,986	(13,580)
Net income (loss) attributable to noncontrolling interest	0	0
Net income (loss) attributable to common stockholders	$ 4,986	$ (13,580)
Net income (loss) per common share attributable to common stockholders, basic and diluted (in dollars per share)	$ 0.03	$ (0.08)
Weighted-average number of common shares outstanding, basic and diluted (in shares)	181,445,091	178,880,351

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 4,986	$ (13,580)
Other comprehensive income (loss):
Unrealized income (losses) on derivative instruments	725	(6,306)
Reclassification adjustment realized in net income (effective portion)	894	1,459
Total other comprehensive income (loss)	1,619	(4,847)
Total comprehensive income (loss)	6,605	(18,427)
Total comprehensive income (loss) attributable to noncontrolling interest	0	0
Total comprehensive income (loss)	$ 6,605	$ (18,427)

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Total Stockholders’ Equity	Common Stock [Member]	Additional Paid-in Capital [Member]	Cumulative Distributions and Net Losses [Member]	Accumulated Other Comprehensive Loss [Member]	Noncontrolling Interest
Balance, shares at Dec. 31, 2015			177,943,238
Balance, value at Dec. 31, 2015	$ 1,286,832	$ 1,286,832	$ 1,779	$ 1,571,107	$ (281,825)	$ (4,229)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	763	763			763
Other comprehensive income	1,931	1,931				1,931
Issuance of common stock, shares			6,485,383
Issuance of common stock, value	61,871	61,871	$ 65	61,806
Transfers to redeemable common stock	(6,504)	(6,504)		(6,504)
Redemptions of common stock, shares			(3,538,049)
Redemptions of common stock, value	(34,767)	(34,767)	$ (35)	(34,732)
Distributions declared	(117,025)	(117,025)			(117,025)
Other offering costs	(25)	(25)		(25)
Noncontrolling interest contribution	$ 300						300
Balance, shares at Dec. 31, 2016	180,890,572		180,890,572
Balance, value at Dec. 31, 2016	$ 1,193,076	1,193,076	$ 1,809	1,591,652	(398,087)	(2,298)	300
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,193,376
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,986	4,986			4,986
Other comprehensive income	1,619	1,619				1,619
Issuance of common stock, shares			1,483,839
Issuance of common stock, value	14,987	14,987	$ 15	14,972
Transfers to redeemable common stock	(2,456)	(2,456)		(2,456)
Redemptions of common stock, shares			(1,200,935)
Redemptions of common stock, value	(12,530)	(12,530)	$ (12)	(12,518)
Distributions declared	(29,080)	(29,080)			(29,080)
Other offering costs	$ (1)	(1)		(1)
Balance, shares at Mar. 31, 2017	181,173,476		181,173,476
Balance, value at Mar. 31, 2017	$ 1,170,601	$ 1,170,601	$ 1,812	$ 1,591,649	$ (422,181)	$ (679)	$ 300
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 1,170,901

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flows from Operating Activities:
Net income (loss)	$ 4,986	$ (13,580)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	41,695	39,465
Equity in loss of unconsolidated joint venture	1	0
Noncash interest income on real estate-related investment	0	7
Deferred rents	(4,063)	(5,804)
Allowance for doubtful accounts	211	151
Amortization of above- and below-market leases, net	(1,571)	(2,163)
Amortization of deferred financing costs	1,210	1,267
Unrealized (gains) losses on derivative instruments	(2,538)	12,743
Changes in operating assets and liabilities:
Rents and other receivables	(4,069)	(1,886)
Prepaid expenses and other assets	(12,834)	(10,935)
Accounts payable and accrued liabilities	(6,857)	(7,948)
Other liabilities	3,207	(1,643)
Due from affiliate	(223)	(309)
Due to affiliates	(58)	(2,527)
Net cash provided by operating activities	19,097	6,838
Cash Flows from Investing Activities:
Acquisitions of real estate	0	(141,604)
Improvements to real estate	(15,218)	(12,118)
Investment in unconsolidated joint venture	(32,773)	0
Payments for construction in progress	(11,213)	(474)
Principal repayments on real estate loan receivable	0	45
Escrow deposits for tenant improvements	(7,744)	0
Net cash used in investing activities	(66,948)	(154,151)
Cash Flows from Financing Activities:
Proceeds from notes payable	59,675	134,394
Principal payments on notes payable	(532)	(31,000)
Payments of deferred financing costs	(1,162)	(1,324)
Payments to redeem common stock	(12,482)	(4,570)
Return of contingent consideration related to acquisition of real estate	0	85
Payments of other offering costs	(1)	(5)
Distributions paid to common stockholders	(14,067)	(13,281)
Net cash provided by financing activities	31,431	84,299
Net decrease in cash and cash equivalents	(16,420)	(63,014)
Cash and cash equivalents, beginning of period	72,068	108,242
Cash and cash equivalents, end of period	55,648	45,228
Supplemental Disclosure of Cash Flow Information:
Interest paid, net of capitalized interest of $170 and $0 for the three months ended March 31, 2017 and 2016, respectively	13,527	10,903
Supplemental Disclosure of Noncash Investing and Financing Activities:
Distributions paid to common stockholders through common stock issuances pursuant to the dividend reinvestment plan	14,987	15,322
Increase in distributions payable	26	64
Increase in redeemable common stock payable	48	0
Increase in accrued improvements to real estate	0	1,959
Liabilities assumed in connection with real estate acquisition	0	157
Increase in construction in progress payable	0	1,716
Increase in construction in progress due to affiliate	117	25
Application of escrow deposits to acquisition of real estate	$ 0	$ 4,350

CONSOLIDATED STATEMENTS OF CAS8

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Cash Flows [Abstract]
Interest capitalized	$ 170	$ 0

ORGANIZATION

ORGANIZATION	3 Months Ended
	Mar. 31, 2017
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 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 March 31, 2017 , the Advisor owned 20,000 shares of the Company’s common stock. The Company owns a diverse portfolio of real estate investments. As of March 31, 2017 , the Company owned 28 office properties and one mixed-use office/retail property and had made an investment in an unconsolidated joint venture to develop and subsequently operate an office/retail property, which is currently under construction. Additionally, as of March 31, 2017 , the Company had entered into a joint venture to develop and subsequently operate a multifamily apartment project, which is currently under construction. The Company commenced its initial public offering (the “Offering”) on October 26, 2010. Upon commencing the Offering, 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”). 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 169,006,162 shares of common stock in the primary Offering for gross proceeds of $1.7 billion . As of March 31, 2017 , the Company had also sold 18,457,068 shares of common stock under its dividend reinvestment plan for gross offering proceeds of $179.9 million . Also as of March 31, 2017 , the Company had redeemed 6,568,216 shares sold in the Offering for $65.0 million . 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(a)(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 its dividend reinvestment plan offering. The Company may terminate its dividend reinvestment plan offering at any time.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES There have been no significant changes to the Company’s accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2016 except for the addition of an accounting policy with respect to investments in unconsolidated joint ventures under the equity method. For further information about the Company’s accounting policies, refer to the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (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 months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The consolidated financial statements include the accounts of the Company, REIT Holdings III, the Operating Partnership, their direct and indirect wholly owned subsidiaries and a joint venture in which the Company has a controlling interest. 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 condensed notes. Actual results could materially differ from those estimates. Investments in Unconsolidated Joint Ventures The Company accounts for investments in unconsolidated joint ventures over which the Company may exercise significant influence, but does not control, using the equity method of accounting. Under the equity method, the investment is initially recorded at cost and subsequently adjusted to reflect additional contributions or distributions and the Company’s proportionate share of equity in the joint venture’s income (loss). The Company recognizes its proportionate share of the ongoing income or loss of the unconsolidated joint venture as equity in income (loss) of unconsolidated joint venture on the consolidated statements of operations. On a quarterly basis, the Company evaluates its investment in an unconsolidated joint venture for other-than-temporary impairments. As of March 31, 2017 , the Company did not identify any indicators of impairment related to its unconsolidated real estate joint venture accounted for under the equity method. 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 the prior period. Per Share Data Basic net income (loss) per share of common stock is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock equals basic net income (loss) per share of common stock as there were no potentially dilutive securities outstanding during the three months ended March 31, 2017 and 2016 , respectively. Distributions declared per common share were $0.160 and $ 0.160 for the three months ended March 31, 2017 and 2016 , respectively. Distributions declared per common share assumes each share was issued and outstanding each day during the three months ended March 31, 2017 and 2016 , respectively. For each day that was a record date for distributions during the three months ended March 31, 2017 and 2016 , distributions were calculated at a rate of $0.00178082 per share per day. Each day during the periods from January 1, 2016 through February 28, 2016, March 1, 2016 through March 31, 2016 and January 1, 2017 through March 31, 2017 was a record date for distributions. Segments The Company has invested 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 March 31, 2017 , the Company aggregated its investments in real estate properties into one reportable business 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 was to be effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU No. 2015-14”), which defers the effective date of ASU No. 2014-09 by one year. Early adoption is permitted but not before the original effective date. As the primary source of revenue for the Company is generated through leasing arrangements, which are scoped out of this standard, the Company does not expect the adoption of ASU No. 2014-09 to have a significant impact on its financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU No. 2016-01”). The amendments in ASU No. 2016-01 address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU No. 2016-01 primarily affects accounting for equity investments and financial liabilities where the fair value option has been elected. ASU No. 2016-01 also requires entities to present financial assets and financial liabilities separately, grouped by measurement category and form of financial asset in the balance sheet or in the accompanying notes to the financial statements. ASU No. 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of ASU No. 2016-01 to have a significant impact on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU No. 2016-02”). The amendments in ASU No. 2016-02 change the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU No. 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of ASU No. 2016-02 as of its issuance is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting the new leases standard on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments (“ASU No. 2016-13”). ASU No. 2016-13 affects entities holding financial assets and net investments in leases that are not accounted for at fair value through net income. The amendments in ASU No. 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. ASU No. 2016-13 also amends the impairment model for available-for-sale securities. An entity will recognize an allowance for credit losses on available-for-sale debt securities as a contra-account to the amortized cost basis rather than as a direct reduction of the amortized cost basis of the investment, as is currently required. ASU No. 2016-13 also requires new disclosures. For financial assets measured at amortized cost, an entity will be required to disclose information about how it developed its allowance for credit losses, including changes in the factors that influenced management’s estimate of expected credit losses and the reasons for those changes. For financing receivables and net investments in leases measured at amortized cost, an entity will be required to further disaggregate the information it currently discloses about the credit quality of these assets by year of the asset’s origination for as many as five annual periods. For available for sale securities, an entity will be required to provide a roll-forward of the allowance for credit losses and an aging analysis for securities that are past due. ASU No. 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is still evaluating the impact of adopting ASU No. 2016-13 on its financial statements, but does not expect the adoption of ASU No. 2016-13 to have a material impact on its financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU No. 2016-15”). ASU No. 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The amendments in ASU No. 2016-15 provide guidance on eight specific cash flow issues, including the following that are or may be relevant to the Company: (a) Cash payments for debt prepayment or debt extinguishment costs should be classified as cash outflows for financing activities; (b) Cash payments relating to contingent consideration made soon after an acquisition’s consummation date (i.e., approximately three months or less) should be classified as cash outflows for investing activities. Payments made thereafter should be classified as cash outflows for financing activities up to the amount of the original contingent consideration liability. Payments made in excess of the amount of the original contingent consideration liability should be classified as cash outflows for operating activities; (c) Cash payments received from the settlement of insurance claims should be classified on the basis of the nature of the loss (or each component loss, if an entity receives a lump-sum settlement); (d) Relating to distributions received from equity method investments, ASU No. 2016-15 provides an accounting policy election for classifying distributions received from equity method investments. Such amounts can be classified using a (1) cumulative earnings approach, or (2) nature of distribution approach. Under the cumulative earnings approach, an investor would compare the distributions received to its cumulative equity method earnings since inception. Any distributions received up to the amount of cumulative equity earnings would be considered a return on investment and classified in operating activities. Any excess distributions would be considered a return of investment and classified in investing activities. Alternatively, an investor can choose to classify the distributions based on the nature of activities of the investee that generated the distribution. If the necessary information is subsequently not available for an investee to determine the nature of the activities, the entity should use the cumulative earnings approach for that investee and report a change in accounting principle on a retrospective basis; (e) In the absence of specific guidance, an entity should classify each separately identifiable cash source and use on the basis of the nature of the underlying cash flows. For cash flows with aspects of more than one class that cannot be separated, the classification should be based on the activity that is likely to be the predominant source or use of cash flow. ASU No. 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is still evaluating the impact of adopting ASU No. 2016-15 on its financial statements, but does not expect the adoption of ASU No. 2016-15 to have a material impact on its financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU No. 2016-18”). ASU No. 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. ASU No. 2016-18 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The Company elected to early adopt ASU No. 2016-18 for the reporting period ended December 31, 2016 and applied it retrospectively. As a result of adoption of the ASU No. 2016-18, the Company no longer presents the changes within restricted cash in the consolidated statements of cash flows. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU No. 2017-01”) to add guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU No. 2017-01 provides a screen to determine when an integrated set of assets and activities (collectively referred to as a “set”) is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, ASU No. 2017-01 (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) removes the evaluation of whether a market participant could replace missing elements. ASU No. 2017-01 provides a framework to assist entities in evaluating whether both an input and a substantive process are present. The framework includes two sets of criteria to consider that depend on whether a set has outputs. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the FASB has developed more stringent criteria for sets without outputs. ASU No. 2017-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The amendments can be applied to transactions occurring before the guidance was issued (January 5, 2017) as long as the applicable financial statements have not been issued. The Company elected to early adopt ASU No. 2017-01 for the reporting period beginning January 1, 2017. As a result of the adoption of ASU No. 2017-01, the Company’s acquisitions of investment properties beginning January 1, 2017 could qualify as asset acquisitions (as opposed to business combinations). Transaction costs associated with asset acquisitions are capitalized, while transaction costs associated with business combinations will continue to be expensed as incurred.

REAL ESTATE

REAL ESTATE	3 Months Ended
	Mar. 31, 2017
Real Estate [Abstract]
REAL ESTATE	REAL ESTATE As of March 31, 2017 , the Company’s real estate portfolio was composed of 28 office properties and one mixed-use office/retail property encompassing in the aggregate approximately 11.1 million rentable square feet. In addition, the Company had entered into a joint venture to develop and subsequently operate a multifamily apartment project, which is currently under construction. As of March 31, 2017 , the Company’s real estate portfolio was collectively 93% occupied. The following table summarizes the Company’s investments in real estate as of March 31, 2017 (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 $ (11,923 ) $ 35,450 Town Center 03/27/2012 Plano TX Office 115,703 (21,847 ) 93,856 McEwen Building 04/30/2012 Franklin TN Office 38,544 (8,052 ) 30,492 Gateway Tech Center 05/09/2012 Salt Lake City UT Office 24,976 (5,616 ) 19,360 Tower on Lake Carolyn 12/21/2012 Irving TX Office 51,035 (10,513 ) 40,522 RBC Plaza 01/31/2013 Minneapolis MN Office 150,504 (26,330 ) 124,174 One Washingtonian Center 06/19/2013 Gaithersburg MD Office 90,265 (12,790 ) 77,475 Preston Commons 06/19/2013 Dallas TX Office 116,055 (17,223 ) 98,832 Sterling Plaza 06/19/2013 Dallas TX Office 79,371 (10,687 ) 68,684 201 Spear Street 12/03/2013 San Francisco CA Office 134,575 (11,406 ) 123,169 500 West Madison 12/16/2013 Chicago IL Office 436,854 (59,218 ) 377,636 222 Main 02/27/2014 Salt Lake City UT Office 165,327 (20,053 ) 145,274 Anchor Centre 05/22/2014 Phoenix AZ Office 92,837 (10,860 ) 81,977 171 17th Street 08/25/2014 Atlanta GA Office 131,947 (16,455 ) 115,492 Rocklin Corporate Center 11/06/2014 Rocklin CA Office 33,428 (4,362 ) 29,066 Reston Square 12/03/2014 Reston VA Office 46,887 (5,313 ) 41,574 Ten Almaden 12/05/2014 San Jose CA Office 123,162 (12,077 ) 111,085 Towers at Emeryville 12/23/2014 Emeryville CA Office 260,323 (25,286 ) 235,037 101 South Hanley 12/24/2014 St. Louis MO Office 69,976 (6,707 ) 63,269 3003 Washington Boulevard 12/30/2014 Arlington VA Office 151,334 (11,303 ) 140,031 Village Center Station 05/20/2015 Greenwood Village CO Office 78,040 (6,791 ) 71,249 Park Place Village 06/18/2015 Leawood KS Office/Retail 129,555 (10,028 ) 119,527 201 17th Street 06/23/2015 Atlanta GA Office 103,228 (7,587 ) 95,641 Promenade I & II at Eilan 07/14/2015 San Antonio TX Office 62,623 (5,211 ) 57,412 CrossPoint at Valley Forge 08/18/2015 Wayne PA Office 90,041 (5,694 ) 84,347 515 Congress 08/31/2015 Austin TX Office 116,789 (8,294 ) 108,495 The Almaden 09/23/2015 San Jose CA Office 164,288 (8,821 ) 155,467 3001 Washington Boulevard 11/06/2015 Arlington VA Office 55,870 (1,849 ) 54,021 Carillon 01/15/2016 Charlotte NC Office 151,530 (7,893 ) 143,637 Hardware Village (1) 08/26/2016 Salt Lake City UT Development/Apartment 31,609 — 31,609 $ 3,344,049 $ (370,189 ) $ 2,973,860 _____________________ (1) On August 26, 2016, the Company, through an indirect wholly-owned subsidiary, entered into a joint venture (the “Hardware Village Joint Venture”) to develop and subsequently operate a multifamily apartment complex, located on the developable land at Gateway Tech Center. The Company owns a 99.24% equity interest in the joint venture. As of March 31, 2017 , the following property represented more than 10% of the Company’s total assets: Property Location Rentable Total Real Estate, Net Percentage of Total Assets Annualized Base Rent (1) Average Annualized Base Rent per sq. ft. Occupancy 500 West Madison Chicago, IL 1,457,724 $ 377,636 11.7 % $ 35,203 $ 24.95 96.8 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of March 31, 2017 , 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 March 31, 2017 , the leases had remaining terms, excluding options to extend, of up to 14.8 years with a weighted-average remaining term of 4.7 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 $12.3 million and $12.7 million as of March 31, 2017 and December 31, 2016 , respectively. During the three months ended March 31, 2017 and 2016 , the Company recognized deferred rent from tenants of $4.1 million and $5.8 million , respectively. As of March 31, 2017 and December 31, 2016 , the cumulative deferred rent balance was $63.6 million and $58.6 million , respectively, and is included in rents and other receivables on the accompanying balance sheets. The cumulative deferred rent balance included $5.9 million and $5.2 million of unamortized lease incentives as of March 31, 2017 and December 31, 2016 , respectively. As of March 31, 2017 , the future minimum rental income from the Company’s properties under its non-cancelable operating leases was as follows (in thousands): April 1, 2017 through December 31, 2017 $ 214,415 2018 283,496 2019 258,389 2020 222,601 2021 190,487 Thereafter 566,531 $ 1,735,919 As of March 31, 2017 , the Company’s real estate properties were leased to approximately 900 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 163 $ 63,728 21.6 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of March 31, 2017 , 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 March 31, 2017 , 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 March 31, 2017 , the Company’s net investments in real estate in California, Texas and Illinois represented 20% , 16% and 12% 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, Texas and Illinois 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 pay distributions to stockholders.

TENANT ORIGINATION AND ABSORPTI

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 and December 31, 2016 , 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 March 31, December 31, March 31, December 31, March 31, December 31, Cost $ 257,161 $ 264,973 $ 13,731 $ 14,383 $ (51,295 ) $ (55,438 ) Accumulated Amortization (103,051 ) (99,757 ) (6,243 ) (6,192 ) 19,914 21,783 Net Amount $ 154,110 $ 165,216 $ 7,488 $ 8,191 $ (31,381 ) $ (33,655 ) 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 months ended March 31, 2017 and 2016 were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Three Months Ended March 31, For the Three Months Ended March 31, For the Three Months Ended March 31, 2017 2016 2017 2016 2017 2016 Amortization $ (11,106 ) $ (11,730 ) $ (703 ) $ (680 ) $ 2,274 $ 2,843

INVESTMENT IN UNCONSOLIDATED JO

INVESTMENT IN UNCONSOLIDATED JOINT VENTURE	3 Months Ended
	Mar. 31, 2017
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENT IN UNCONSOLIDATED JOINT VENTURE	INVESTMENT IN UNCONSOLIDATED JOINT VENTURE Village Center Station II Equity Method Investment On March 3, 2017, the Company, through an indirect wholly owned subsidiary, acquired a 75% equity interest in an existing company and created a joint venture with an unaffiliated developer, Shea Village Center Station II, LLC (the “Developer”) (the “Village Center Station II Joint Venture”) to develop and subsequently operate a 12-story office building and an adjacent two-story office/retail building in the Denver submarket of Greenwood Village, Colorado (together “Village Center Station II”). The total projected cost of the development is approximately $113.1 million and the Company’s initial capital contribution to the Village Center Station II Joint Venture was $32.3 million . The Village Center Station II Joint Venture intends to fund the construction of Village Center Station II with capital contributions from its members and proceeds from a construction loan for borrowings of up to $78.5 million . As of March 31, 2017 , no amounts have been drawn under the construction loan. The Company has concluded that the Village Center Station II Joint Venture qualifies as a Variable Interest Entity (“VIE”) and determined that it is not the primary beneficiary of this VIE and to account for its investment in the project under the equity method of accounting. Under the agreement, the Company may be required to contribute up to 75% of additional requested contributions to the Village Center Station II Joint Venture. The Developer will fund all cost overruns (excluding certain overruns described in the Charter Communications lease) once the Village Center Station II Joint Venture has used all available funds in the development of Village Center Station II. Upon completion of Village Center Station II, the Company expects to purchase the Developer’s 25% equity interest. The Developer has an option, provided the put conditions have been satisfied, the most significant of which is completion of the project, to require the Company to purchase its 25% equity interest. If the Developer does not make such request, the Company has the right to purchase the Developer’s 25% equity interest. The expected purchase price of the Developer’s 25% equity interest is approximately $25.0 million . As of March 31, 2017 , the book value of the Company’s investment in the Village Center Station II Joint Venture was $32.8 million which includes $0.5 million of acquisition costs incurred directly by the Company. As of March 31, 2017 , the Company’s maximum loss exposure related to its investment in the Village Center Station II Joint Venture is equal to the carrying value of its $32.8 million investment. Summarized financial information for the Village Center Station II Joint Venture follows (in thousands): March 31, 2017 Assets: Construction in progress $ 37,447 Cash and cash equivalents 8,178 Other assets 3,205 Total assets $ 48,830 Liabilities and equity: Accounts payable $ 5,687 Other liabilities 28 Members’ capital 43,115 Total liabilities and equity $ 48,830

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2017
Notes Payable [Abstract]
NOTES PAYABLE	NOTES PAYABLE As of March 31, 2017 and December 31, 2016 , the Company’s notes payable consisted of the following (dollars in thousands): Book Value as of March 31, 2017 Book Value as of December 31, 2016 Contractual Interest Rate as of March 31, 2017 (1) Effective Interest Rate as of March 31, 2017 (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) 153,460 127,500 One-month LIBOR + 1.90% 2.68% Interest Only 06/01/2019 RBC Plaza Mortgage Loan 75,859 75,930 One-month LIBOR + 1.80% 2.58% Principal & Interest 02/01/2018 National Office Portfolio Mortgage Loan (5) 170,602 170,602 One-month LIBOR + 1.50% 2.82% Interest Only 07/01/2017 500 West Madison Mortgage Loan (6) 215,000 215,000 One-month LIBOR + 1.65% 3.16% Interest Only 12/16/2018 222 Main Mortgage Loan 100,882 101,343 3.97% 3.97% Principal & Interest 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 83,778 83,778 One-month LIBOR + 1.45% 2.75% Interest Only (3) 09/01/2018 Reston Square Mortgage Loan 29,800 23,840 One-month LIBOR + 1.50% 3.54% Interest Only 02/01/2018 Ten Almaden Mortgage Loan 65,853 65,853 One-month LIBOR + 1.65% 3.42% Interest Only 01/01/2018 Towers at Emeryville Mortgage Loan (7) 151,929 145,379 One-month LIBOR + 1.75% 3.95% Interest Only 01/15/2018 101 South Hanley Mortgage Loan 39,133 37,502 One-month LIBOR + 1.55% 2.33% Interest Only (3) 01/01/2020 3003 Washington Boulevard Mortgage Loan 90,378 90,378 One-month LIBOR + 1.55% 3.53% Interest Only 02/01/2020 Rocklin Corporate Center Mortgage Loan 21,689 20,868 One-month LIBOR + 1.50% 2.28% Interest Only 06/05/2018 201 17th Street Mortgage Loan 63,950 58,063 One-month LIBOR + 1.40% 2.18% Interest Only 08/01/2018 CrossPoint at Valley Forge Mortgage Loan 51,000 51,000 One-month LIBOR + 1.50% 3.33% Interest Only (3) 09/01/2022 The Almaden Mortgage Loan 93,000 93,000 4.20% 4.20% Interest Only 01/01/2022 Promenade I & II at Eilan Mortgage Loan 37,300 37,300 One-month LIBOR + 1.75% 3.57% Interest Only 10/01/2022 515 Congress Mortgage Loan 67,500 67,500 One-month LIBOR + 1.70% 2.49% Interest Only 11/01/2020 201 Spear Street Mortgage Loan 100,000 100,000 One-month LIBOR + 1.66% 2.45% Interest Only 01/01/2019 Carillon Mortgage Loan 89,306 76,440 One-month LIBOR + 1.65% 3.19% Interest Only 02/01/2020 3001 Washington Boulevard Mortgage Loan 27,129 27,129 One-month LIBOR + 1.60% 2.39% Interest Only 02/01/2019 Hardware Village Loan Facility (8) — — (8) —% Interest Only 02/23/2020 Total notes payable principal outstanding 1,852,548 1,793,405 Deferred financing costs, net (8,839 ) (9,937 ) Total notes payable, net $ 1,843,709 $ 1,783,468 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of March 31, 2017 . Effective interest rate is calculated as the actual interest rate in effect as of March 31, 2017 (consisting of the contractual interest rate and the effect of interest rate swaps and caps, if applicable), using interest rate indices as of March 31, 2017 , where applicable. For further information regarding the Company's derivative instruments, see Note 7, “Derivative Instruments.” (2) Represents the maturity date as of March 31, 2017 ; 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 March 31, 2017 . 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 March 31, 2017 , the Portfolio Loan was secured by Domain Gateway, the McEwen Building, Gateway Tech Center, the Tower on Lake Carolyn, Park Place Village and Village Center Station. The face amount of the Portfolio Loan is $ 255.0 million , of which $ 127.5 million is term debt and $ 127.5 million is revolving debt. As of March 31, 2017 , the outstanding balance under the loan consisted of $ 127.5 million of term debt and $26.0 million of revolving debt. As of March 31, 2017 , an additional $100.5 million of revolving debt remained available for immediate future disbursements, subject to certain conditions set forth in the loan agreement. The remaining $1.0 million of revolving debt is available for future disbursements upon the Company meeting certain financial coverage ratios and subject to certain conditions set forth in the loan agreement. During the remaining term of the Portfolio Loan, the Company has an option, which may be exercised up to two 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. (5) The National Office Portfolio Mortgage Loan is secured by One Washingtonian Center, Preston Commons and Sterling Plaza. (6) As of March 31, 2017 , $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 March 31, 2017 , $151.9 million had been disbursed to the Company and $23.1 million remained available for future disbursements, subject to certain conditions set forth in the loan documents. (8) See “ – Recent Financing Transactions – Hardware Village Loan Facility” below. As of March 31, 2017 , the Company’s deferred financing costs were $9.9 million , net of amortization, of which $8.8 million was included in notes payable, net, and $1.1 million was included in prepaid expenses and other assets on the accompanying consolidated balance sheets. As of December 31, 2016 , the Company’s deferred financing costs were $10.0 million , net of amortization, of which $9.9 million was included in notes payable, net, and $0.1 million was included in prepaid expenses and other assets on the accompanying consolidated balance sheets. During the three months ended March 31, 2017 and 2016 , the Company incurred $12.9 million and $25.4 million of interest expense, respectively. As of March 31, 2017 and December 31, 2016 , $5.0 million and $4.3 million of interest expense were payable, respectively. Included in interest expense for the three months ended March 31, 2017 and 2016 was $1.2 million and $1.3 million of amortization of deferred financing costs, respectively. Additionally, during the three months ended March 31, 2017 , the Company capitalized $0.2 million of interest to construction in progress. The Company's interest expense was reduced by $0.1 million as a result of the Company's derivative instruments for the three months March 31, 2017 . Interest expense incurred as a result of the Company’s derivative instruments for the three months ended March 31, 2016 was $14.4 million . The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of March 31, 2017 (in thousands): April 1, 2017 through December 31, 2017 $ 222,722 2018 784,578 2019 283,170 2020 287,532 2021 93,956 Thereafter 180,590 $ 1,852,548 The Company’s notes payable contain financial debt covenants. As of March 31, 2017 , the Company was in compliance with these debt covenants. Recent Financing Transactions Hardware Village Loan Facility On February 23, 2017, the Company, through the Hardware Village Joint Venture, entered into a construction loan facility with an unaffiliated lender for borrowings of up to $74.0 million secured by Hardware Village (the “Hardware Village Loan Facility”). The Hardware Village Loan Facility matures on February 23, 2020 with two one -year extension options, subject to certain terms described in the loan documents, and bears interest at a floating rate of 325 basis points over either one, two, three or six-month LIBOR at the election of the Hardware Village Joint Venture. Monthly payments are interest-only during the initial term and first extension of the loan. During the second extension term, the Company would be required to make principal payments in an amount equal to an amount that would amortize the outstanding principal balance of the loan in 30 years at a rate of interest equal to the greater of (i) a fixed rate of 6% per annum or (ii) the rate of interest on a ten -year United States Treasury Note in the amount of the loan plus 2.25% . The Hardware Village Joint Venture 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. KBS REIT Properties III (“REIT Properties III”) is providing a guaranty with respect to certain obligations and liabilities, and related costs, damages and expenses, owed by the Hardware Village Joint Venture to the lender under the Hardware Village Loan Facility resulting from: certain intentional actions committed by the Hardware Village Joint Venture, REIT Properties III and/or any of their affiliates in violation of the loan documents and certain other occurrences described in the loan documents. REIT Properties III is also providing a guaranty of 35% of the principal balance and any interest or other sums outstanding under the loan and a full guaranty of the principal balance and any interest or other sums outstanding under the loan facility in the event of certain (i) bankruptcy or insolvency proceedings involving the Hardware Village Joint Venture or REIT Properties III or (ii) transfers of Hardware Village in violation of the loan documents. REIT Properties III is also providing a guaranty of the completion of construction of Hardware Village and of the payment of all amounts related thereto.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 and December 31, 2016 . 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): March 31, 2017 December 31, 2016 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 March 31, 2017 Derivative instruments designated as hedging instruments Interest Rate Swaps 6 $ 556,400 7 $ 625,130 One-month LIBOR/ Fixed at 0.86% - 1.68% 1.42% 1.4 Derivative instruments not designated as hedging instruments Interest Rate Swaps (1) 12 $ 658,183 12 $ 658,183 One-month LIBOR/ 1.99% 3.3 Interest Rate Cap (2) — $ — 1 $ 147,340 (2) (2) (2) _____________________ (1) Included in these amounts are three forward interest rate swaps with an aggregate notional amount of $140.1 million that were not yet in effect as of March 31, 2017 . These three interest rate swaps will become effective at various times during the remainder of 2017 through 2018. (2) The interest rate cap matured on 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 March 31, 2017 and December 31, 2016 (dollars in thousands): March 31, 2017 December 31, 2016 Derivative Instruments Balance Sheet Location Number of Instruments Fair Value Number of Fair Value Derivative instruments designated as hedging instruments Interest Rate Swaps Prepaid expenses and other assets, at fair value 2 $ 159 1 $ 42 Interest Rate Swaps Other liabilities, at fair value 4 $ (838 ) 6 $ (2,340 ) Derivative instruments not designated as hedging instruments Interest Rate Swaps Prepaid expenses and other assets, at fair value 4 $ 2,225 4 $ 1,588 Interest Rate Swaps Other liabilities, at fair value 8 $ (5,487 ) 8 $ (7,388 ) Interest Rate Cap Prepaid expenses and other assets, at fair value — $ — 1 $ — 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 equity. Amounts in other comprehensive income (loss) will be reclassified into earnings in the periods in which earnings are affected by the hedged cash flows. The change in fair value of the ineffective portion is recognized directly in earnings. With respect to swap agreements that are 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 March 31, 2017 2016 Income statement related Derivatives designated as hedging instruments Amount of expense recognized on interest rate swaps (effective portion) $ 894 $ 1,459 894 1,459 Derivatives not designated as hedging instruments Realized loss recognized on interest rate swaps 1,543 180 Unrealized (gain) loss on interest rate swaps (2,538 ) 12,741 Unrealized loss on interest rate cap — 2 (995 ) 12,923 (Decrease) increase in interest expense as a result of derivatives $ (101 ) $ 14,382 Other comprehensive income related Unrealized income (losses) on derivative instruments $ 725 $ (6,306 ) During the three months ended March 31, 2017 and 2016 , 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 $1.0 million as of March 31, 2017 and was included in accumulated other comprehensive income (loss).

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE DISCLOSURES	FAIR VALUE DISCLOSURES Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other non-financial and financial assets at fair value on a non-recurring basis (e.g., carrying value of impaired 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. 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. The fair value of interest rate caps (floors) are determined using the market standard methodology of discounting the future expected cash payments (receipts) which would occur if variable interest rates rise above (below) the strike rate of the caps (floors). The variable interest rates used in the calculation of projected payments (receipts) on the cap (floors) are based on an expectation of future interest rates derived from observed market interest rate curves and volatilities. 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 notes payable as of March 31, 2017 and December 31, 2016 , which carrying amounts generally do not approximate the fair values (in thousands): March 31, 2017 December 31, 2016 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 1,852,548 $ 1,843,709 $ 1,836,766 $ 1,793,405 $ 1,783,468 $ 1,775,953 Disclosure of the fair values of financial instruments is based on pertinent information available to the Company as of the period end and requires a significant amount of judgment. Low levels of transaction volume for certain financial instruments have made the estimation of fair values difficult and, therefore, both the actual results and the Company’s estimate of value at a future date could be materially different. As of March 31, 2017 , 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 swaps $ 2,384 $ — $ 2,384 $ — Liability derivatives - interest rate swaps (6,325 ) — (6,325 ) —

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS The Company has entered into the Advisory Agreement with the Advisor and the Dealer Manager Agreement with the Dealer Manager. These agreements entitled the Advisor and/or the Dealer Manager to specified fees upon the provision of certain services with regard to the Offering and reimbursement of organization and offering costs incurred by the Advisor and the Dealer Manager on behalf of the Company 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 entitle the Advisor and/or the Dealer Manager to reimbursement of organization and offering costs incurred by the Advisor and the Dealer Manager on behalf of the Company, such as expenses related to the dividend reinvestment plan, and certain costs incurred by the Advisor in providing services to the Company. 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. The Company has renewed its participation in the program, and the program is effective through June 30, 2017. During the three months ended March 31, 2017 and 2016 , 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 months ended March 31, 2017 and 2016 , respectively, and any related amounts payable as of March 31, 2017 and December 31, 2016 (in thousands): Incurred Payable as of Three Months Ended March 31, March 31, December 31, 2017 2016 2017 2016 Expensed Asset management fees $ 6,205 $ 6,143 $ 2,140 $ 2,126 Reimbursement of operating expenses (1) 141 52 67 139 Real estate acquisition fees — 1,473 — — Capitalized Acquisition fee on development project 110 25 231 121 Acquisition fee on unconsolidated joint venture 324 — — — Asset management fee on development project 48 — 18 11 Asset management fee on unconsolidated joint venture 14 — 14 — $ 6,842 $ 7,693 $ 2,470 $ 2,397 _____________________ (1) Reimbursable operating expenses primarily consists of internal audit personnel costs, accounting software and cybersecurity related expenses incurred by the Advisor 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 $65,000 and $52,000 for the three months ended March 31, 2017 and 2016 , respectively, and were the only type of employee costs reimbursed under the Advisory Agreement for the three months ended March 31, 2017 and 2016 . 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. In addition to the amounts above, the Company reimburses the Advisor for certain of the Company's direct costs incurred from third parties that were initially paid by the Advisor on behalf of the Company. 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 three months ended March 31, 2017 and 2016, the Advisor had not incurred any costs of the supplemental coverage obtained by the Company. During the three months ended March 31, 2017 and 2016, the Company had a $0.2 million property insurance rebate due from the Advisor. During the three months ended March 31, 2016 , the Company had $0.1 million for legal and professional fees due from the Advisor. 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 commenced on October 1, 2015 and terminates on August 31, 2019. The annualized base rent, which represents annualized contractual base rental income as of March 31, 2017 , adjusted to straight-line any contractual tenant concessions (including free rent) and rent increases from the lease’s inception through the balance of the lease term, for this lease is approximately $0.2 million , and the average annual rental rate (net of rental abatements) over the lease term is $46.38 per square foot. During the three months ended March 31, 2017 and 2016, the Company recognized $0.1 million of revenue related to this lease. 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	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 .

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS The Company evaluates subsequent events up until the date the consolidated financial statements are issued. Distributions Paid On April 3, 2017, the Company paid distributions of $10.0 million , which related to distributions declared for daily record dates for each day in the period from March 1, 2017 through March 31, 2017. On May 1, 2017, the Company paid distributions of $9.7 million , which related to distributions declared for daily record dates for each day in the period from April 1, 2017 through April 30, 2017. Distributions Declared On May 8, 2017, the Company’s board of directors declared distributions based on daily record dates for the period from June 1, 2017 through June 30, 2017, which the Company expects to pay in July 2017, and distributions based on daily record dates for the period from July 1, 2017 through July 31, 2017, which the Company expects to pay in August 2017. 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 6.11% annualized rate based on the Company's December 9, 2016 estimated value per share of $10.63 .

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017.
Principles of Consolidation	The consolidated financial statements include the accounts of the Company, REIT Holdings III, the Operating Partnership, their direct and indirect wholly owned subsidiaries and a joint venture in which the Company has a controlling interest. 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 condensed notes. Actual results could materially differ from those estimates.
Investments in Unconsolidated Joint Ventures	The Company accounts for investments in unconsolidated joint ventures over which the Company may exercise significant influence, but does not control, using the equity method of accounting. Under the equity method, the investment is initially recorded at cost and subsequently adjusted to reflect additional contributions or distributions and the Company’s proportionate share of equity in the joint venture’s income (loss). The Company recognizes its proportionate share of the ongoing income or loss of the unconsolidated joint venture as equity in income (loss) of unconsolidated joint venture on the consolidated statements of operations. On a quarterly basis, the Company evaluates its investment in an unconsolidated joint venture for other-than-temporary impairments. As of March 31, 2017 , the Company did not identify any indicators of impairment related to its unconsolidated real estate joint venture accounted for under the equity method.
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 the prior period.
Per Share Data	Basic net income (loss) per share of common stock is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock equals basic net income (loss) per share of common stock as there were no potentially dilutive securities outstanding during the three months ended March 31, 2017 and 2016 , respectively. Distributions declared per common share were $0.160 and $ 0.160 for the three months ended March 31, 2017 and 2016 , respectively. Distributions declared per common share assumes each share was issued and outstanding each day during the three months ended March 31, 2017 and 2016 , respectively. For each day that was a record date for distributions during the three months ended March 31, 2017 and 2016 , distributions were calculated at a rate of $0.00178082 per share per day. Each day during the periods from January 1, 2016 through February 28, 2016, March 1, 2016 through March 31, 2016 and January 1, 2017 through March 31, 2017 was a record date for distributions.
Segments	The Company has invested 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 March 31, 2017 , the Company aggregated its investments in real estate properties into one reportable business 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 was to be effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU No. 2015-14”), which defers the effective date of ASU No. 2014-09 by one year. Early adoption is permitted but not before the original effective date. As the primary source of revenue for the Company is generated through leasing arrangements, which are scoped out of this standard, the Company does not expect the adoption of ASU No. 2014-09 to have a significant impact on its financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU No. 2016-01”). The amendments in ASU No. 2016-01 address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU No. 2016-01 primarily affects accounting for equity investments and financial liabilities where the fair value option has been elected. ASU No. 2016-01 also requires entities to present financial assets and financial liabilities separately, grouped by measurement category and form of financial asset in the balance sheet or in the accompanying notes to the financial statements. ASU No. 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of ASU No. 2016-01 to have a significant impact on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU No. 2016-02”). The amendments in ASU No. 2016-02 change the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU No. 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of ASU No. 2016-02 as of its issuance is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting the new leases standard on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments (“ASU No. 2016-13”). ASU No. 2016-13 affects entities holding financial assets and net investments in leases that are not accounted for at fair value through net income. The amendments in ASU No. 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. ASU No. 2016-13 also amends the impairment model for available-for-sale securities. An entity will recognize an allowance for credit losses on available-for-sale debt securities as a contra-account to the amortized cost basis rather than as a direct reduction of the amortized cost basis of the investment, as is currently required. ASU No. 2016-13 also requires new disclosures. For financial assets measured at amortized cost, an entity will be required to disclose information about how it developed its allowance for credit losses, including changes in the factors that influenced management’s estimate of expected credit losses and the reasons for those changes. For financing receivables and net investments in leases measured at amortized cost, an entity will be required to further disaggregate the information it currently discloses about the credit quality of these assets by year of the asset’s origination for as many as five annual periods. For available for sale securities, an entity will be required to provide a roll-forward of the allowance for credit losses and an aging analysis for securities that are past due. ASU No. 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is still evaluating the impact of adopting ASU No. 2016-13 on its financial statements, but does not expect the adoption of ASU No. 2016-13 to have a material impact on its financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU No. 2016-15”). ASU No. 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The amendments in ASU No. 2016-15 provide guidance on eight specific cash flow issues, including the following that are or may be relevant to the Company: (a) Cash payments for debt prepayment or debt extinguishment costs should be classified as cash outflows for financing activities; (b) Cash payments relating to contingent consideration made soon after an acquisition’s consummation date (i.e., approximately three months or less) should be classified as cash outflows for investing activities. Payments made thereafter should be classified as cash outflows for financing activities up to the amount of the original contingent consideration liability. Payments made in excess of the amount of the original contingent consideration liability should be classified as cash outflows for operating activities; (c) Cash payments received from the settlement of insurance claims should be classified on the basis of the nature of the loss (or each component loss, if an entity receives a lump-sum settlement); (d) Relating to distributions received from equity method investments, ASU No. 2016-15 provides an accounting policy election for classifying distributions received from equity method investments. Such amounts can be classified using a (1) cumulative earnings approach, or (2) nature of distribution approach. Under the cumulative earnings approach, an investor would compare the distributions received to its cumulative equity method earnings since inception. Any distributions received up to the amount of cumulative equity earnings would be considered a return on investment and classified in operating activities. Any excess distributions would be considered a return of investment and classified in investing activities. Alternatively, an investor can choose to classify the distributions based on the nature of activities of the investee that generated the distribution. If the necessary information is subsequently not available for an investee to determine the nature of the activities, the entity should use the cumulative earnings approach for that investee and report a change in accounting principle on a retrospective basis; (e) In the absence of specific guidance, an entity should classify each separately identifiable cash source and use on the basis of the nature of the underlying cash flows. For cash flows with aspects of more than one class that cannot be separated, the classification should be based on the activity that is likely to be the predominant source or use of cash flow. ASU No. 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is still evaluating the impact of adopting ASU No. 2016-15 on its financial statements, but does not expect the adoption of ASU No. 2016-15 to have a material impact on its financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU No. 2016-18”). ASU No. 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. ASU No. 2016-18 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The Company elected to early adopt ASU No. 2016-18 for the reporting period ended December 31, 2016 and applied it retrospectively. As a result of adoption of the ASU No. 2016-18, the Company no longer presents the changes within restricted cash in the consolidated statements of cash flows. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU No. 2017-01”) to add guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU No. 2017-01 provides a screen to determine when an integrated set of assets and activities (collectively referred to as a “set”) is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, ASU No. 2017-01 (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) removes the evaluation of whether a market participant could replace missing elements. ASU No. 2017-01 provides a framework to assist entities in evaluating whether both an input and a substantive process are present. The framework includes two sets of criteria to consider that depend on whether a set has outputs. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the FASB has developed more stringent criteria for sets without outputs. ASU No. 2017-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The amendments can be applied to transactions occurring before the guidance was issued (January 5, 2017) as long as the applicable financial statements have not been issued. The Company elected to early adopt ASU No. 2017-01 for the reporting period beginning January 1, 2017. As a result of the adoption of ASU No. 2017-01, the Company’s acquisitions of investment properties beginning January 1, 2017 could qualify as asset acquisitions (as opposed to business combinations). Transaction costs associated with asset acquisitions are capitalized, while transaction costs associated with business combinations will continue to be expensed as incurred.

REAL ESTATE (Tables)

REAL ESTATE (Tables)	3 Months Ended
	Mar. 31, 2017
Real Estate [Abstract]
Schedule of Real Estate Investments	The following table summarizes the Company’s investments in real estate as of March 31, 2017 (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 $ (11,923 ) $ 35,450 Town Center 03/27/2012 Plano TX Office 115,703 (21,847 ) 93,856 McEwen Building 04/30/2012 Franklin TN Office 38,544 (8,052 ) 30,492 Gateway Tech Center 05/09/2012 Salt Lake City UT Office 24,976 (5,616 ) 19,360 Tower on Lake Carolyn 12/21/2012 Irving TX Office 51,035 (10,513 ) 40,522 RBC Plaza 01/31/2013 Minneapolis MN Office 150,504 (26,330 ) 124,174 One Washingtonian Center 06/19/2013 Gaithersburg MD Office 90,265 (12,790 ) 77,475 Preston Commons 06/19/2013 Dallas TX Office 116,055 (17,223 ) 98,832 Sterling Plaza 06/19/2013 Dallas TX Office 79,371 (10,687 ) 68,684 201 Spear Street 12/03/2013 San Francisco CA Office 134,575 (11,406 ) 123,169 500 West Madison 12/16/2013 Chicago IL Office 436,854 (59,218 ) 377,636 222 Main 02/27/2014 Salt Lake City UT Office 165,327 (20,053 ) 145,274 Anchor Centre 05/22/2014 Phoenix AZ Office 92,837 (10,860 ) 81,977 171 17th Street 08/25/2014 Atlanta GA Office 131,947 (16,455 ) 115,492 Rocklin Corporate Center 11/06/2014 Rocklin CA Office 33,428 (4,362 ) 29,066 Reston Square 12/03/2014 Reston VA Office 46,887 (5,313 ) 41,574 Ten Almaden 12/05/2014 San Jose CA Office 123,162 (12,077 ) 111,085 Towers at Emeryville 12/23/2014 Emeryville CA Office 260,323 (25,286 ) 235,037 101 South Hanley 12/24/2014 St. Louis MO Office 69,976 (6,707 ) 63,269 3003 Washington Boulevard 12/30/2014 Arlington VA Office 151,334 (11,303 ) 140,031 Village Center Station 05/20/2015 Greenwood Village CO Office 78,040 (6,791 ) 71,249 Park Place Village 06/18/2015 Leawood KS Office/Retail 129,555 (10,028 ) 119,527 201 17th Street 06/23/2015 Atlanta GA Office 103,228 (7,587 ) 95,641 Promenade I & II at Eilan 07/14/2015 San Antonio TX Office 62,623 (5,211 ) 57,412 CrossPoint at Valley Forge 08/18/2015 Wayne PA Office 90,041 (5,694 ) 84,347 515 Congress 08/31/2015 Austin TX Office 116,789 (8,294 ) 108,495 The Almaden 09/23/2015 San Jose CA Office 164,288 (8,821 ) 155,467 3001 Washington Boulevard 11/06/2015 Arlington VA Office 55,870 (1,849 ) 54,021 Carillon 01/15/2016 Charlotte NC Office 151,530 (7,893 ) 143,637 Hardware Village (1) 08/26/2016 Salt Lake City UT Development/Apartment 31,609 — 31,609 $ 3,344,049 $ (370,189 ) $ 2,973,860 _____________________ (1) On August 26, 2016, the Company, through an indirect wholly-owned subsidiary, entered into a joint venture (the “Hardware Village Joint Venture”) to develop and subsequently operate a multifamily apartment complex, located on the developable land at Gateway Tech Center. The Company owns a 99.24% equity interest in the joint venture.
Schedule of Future Minimum Rental Income for Company's Properties	As of March 31, 2017 , the future minimum rental income from the Company’s properties under its non-cancelable operating leases was as follows (in thousands): April 1, 2017 through December 31, 2017 $ 214,415 2018 283,496 2019 258,389 2020 222,601 2021 190,487 Thereafter 566,531 $ 1,735,919
Schedules of Concentration of Risk, by Risk Factor	As of March 31, 2017 , the Company’s real estate properties were leased to approximately 900 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 163 $ 63,728 21.6 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of March 31, 2017 , 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 March 31, 2017 , the following property represented more than 10% of the Company’s total assets: Property Location Rentable Total Real Estate, Net Percentage of Total Assets Annualized Base Rent (1) Average Annualized Base Rent per sq. ft. Occupancy 500 West Madison Chicago, IL 1,457,724 $ 377,636 11.7 % $ 35,203 $ 24.95 96.8 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of March 31, 2017 , 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 ABSORP22

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 and December 31, 2016 , 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 March 31, December 31, March 31, December 31, March 31, December 31, Cost $ 257,161 $ 264,973 $ 13,731 $ 14,383 $ (51,295 ) $ (55,438 ) Accumulated Amortization (103,051 ) (99,757 ) (6,243 ) (6,192 ) 19,914 21,783 Net Amount $ 154,110 $ 165,216 $ 7,488 $ 8,191 $ (31,381 ) $ (33,655 )
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 months ended March 31, 2017 and 2016 were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Three Months Ended March 31, For the Three Months Ended March 31, For the Three Months Ended March 31, 2017 2016 2017 2016 2017 2016 Amortization $ (11,106 ) $ (11,730 ) $ (703 ) $ (680 ) $ 2,274 $ 2,843

INVESTMENT IN UNCONSOLIDATED 23

INVESTMENT IN UNCONSOLIDATED JOINT VENTURE (Tables)	3 Months Ended
	Mar. 31, 2017
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Financial Information for Joint Ventures	Summarized financial information for the Village Center Station II Joint Venture follows (in thousands): March 31, 2017 Assets: Construction in progress $ 37,447 Cash and cash equivalents 8,178 Other assets 3,205 Total assets $ 48,830 Liabilities and equity: Accounts payable $ 5,687 Other liabilities 28 Members’ capital 43,115 Total liabilities and equity $ 48,830

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Payable [Abstract]
Schedule of Long-term Debt Instruments	As of March 31, 2017 and December 31, 2016 , the Company’s notes payable consisted of the following (dollars in thousands): Book Value as of March 31, 2017 Book Value as of December 31, 2016 Contractual Interest Rate as of March 31, 2017 (1) Effective Interest Rate as of March 31, 2017 (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) 153,460 127,500 One-month LIBOR + 1.90% 2.68% Interest Only 06/01/2019 RBC Plaza Mortgage Loan 75,859 75,930 One-month LIBOR + 1.80% 2.58% Principal & Interest 02/01/2018 National Office Portfolio Mortgage Loan (5) 170,602 170,602 One-month LIBOR + 1.50% 2.82% Interest Only 07/01/2017 500 West Madison Mortgage Loan (6) 215,000 215,000 One-month LIBOR + 1.65% 3.16% Interest Only 12/16/2018 222 Main Mortgage Loan 100,882 101,343 3.97% 3.97% Principal & Interest 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 83,778 83,778 One-month LIBOR + 1.45% 2.75% Interest Only (3) 09/01/2018 Reston Square Mortgage Loan 29,800 23,840 One-month LIBOR + 1.50% 3.54% Interest Only 02/01/2018 Ten Almaden Mortgage Loan 65,853 65,853 One-month LIBOR + 1.65% 3.42% Interest Only 01/01/2018 Towers at Emeryville Mortgage Loan (7) 151,929 145,379 One-month LIBOR + 1.75% 3.95% Interest Only 01/15/2018 101 South Hanley Mortgage Loan 39,133 37,502 One-month LIBOR + 1.55% 2.33% Interest Only (3) 01/01/2020 3003 Washington Boulevard Mortgage Loan 90,378 90,378 One-month LIBOR + 1.55% 3.53% Interest Only 02/01/2020 Rocklin Corporate Center Mortgage Loan 21,689 20,868 One-month LIBOR + 1.50% 2.28% Interest Only 06/05/2018 201 17th Street Mortgage Loan 63,950 58,063 One-month LIBOR + 1.40% 2.18% Interest Only 08/01/2018 CrossPoint at Valley Forge Mortgage Loan 51,000 51,000 One-month LIBOR + 1.50% 3.33% Interest Only (3) 09/01/2022 The Almaden Mortgage Loan 93,000 93,000 4.20% 4.20% Interest Only 01/01/2022 Promenade I & II at Eilan Mortgage Loan 37,300 37,300 One-month LIBOR + 1.75% 3.57% Interest Only 10/01/2022 515 Congress Mortgage Loan 67,500 67,500 One-month LIBOR + 1.70% 2.49% Interest Only 11/01/2020 201 Spear Street Mortgage Loan 100,000 100,000 One-month LIBOR + 1.66% 2.45% Interest Only 01/01/2019 Carillon Mortgage Loan 89,306 76,440 One-month LIBOR + 1.65% 3.19% Interest Only 02/01/2020 3001 Washington Boulevard Mortgage Loan 27,129 27,129 One-month LIBOR + 1.60% 2.39% Interest Only 02/01/2019 Hardware Village Loan Facility (8) — — (8) —% Interest Only 02/23/2020 Total notes payable principal outstanding 1,852,548 1,793,405 Deferred financing costs, net (8,839 ) (9,937 ) Total notes payable, net $ 1,843,709 $ 1,783,468 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of March 31, 2017 . Effective interest rate is calculated as the actual interest rate in effect as of March 31, 2017 (consisting of the contractual interest rate and the effect of interest rate swaps and caps, if applicable), using interest rate indices as of March 31, 2017 , where applicable. For further information regarding the Company's derivative instruments, see Note 7, “Derivative Instruments.” (2) Represents the maturity date as of March 31, 2017 ; 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 March 31, 2017 . 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 March 31, 2017 , the Portfolio Loan was secured by Domain Gateway, the McEwen Building, Gateway Tech Center, the Tower on Lake Carolyn, Park Place Village and Village Center Station. The face amount of the Portfolio Loan is $ 255.0 million , of which $ 127.5 million is term debt and $ 127.5 million is revolving debt. As of March 31, 2017 , the outstanding balance under the loan consisted of $ 127.5 million of term debt and $26.0 million of revolving debt. As of March 31, 2017 , an additional $100.5 million of revolving debt remained available for immediate future disbursements, subject to certain conditions set forth in the loan agreement. The remaining $1.0 million of revolving debt is available for future disbursements upon the Company meeting certain financial coverage ratios and subject to certain conditions set forth in the loan agreement. During the remaining term of the Portfolio Loan, the Company has an option, which may be exercised up to two 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. (5) The National Office Portfolio Mortgage Loan is secured by One Washingtonian Center, Preston Commons and Sterling Plaza. (6) As of March 31, 2017 , $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 March 31, 2017 , $151.9 million had been disbursed to the Company and $23.1 million remained available for future disbursements, subject to certain conditions set forth in the loan documents. (8) See “ – Recent Financing Transactions – Hardware Village Loan Facility” below.
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 March 31, 2017 (in thousands): April 1, 2017 through December 31, 2017 $ 222,722 2018 784,578 2019 283,170 2020 287,532 2021 93,956 Thereafter 180,590 $ 1,852,548

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 and December 31, 2016 . 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): March 31, 2017 December 31, 2016 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 March 31, 2017 Derivative instruments designated as hedging instruments Interest Rate Swaps 6 $ 556,400 7 $ 625,130 One-month LIBOR/ Fixed at 0.86% - 1.68% 1.42% 1.4 Derivative instruments not designated as hedging instruments Interest Rate Swaps (1) 12 $ 658,183 12 $ 658,183 One-month LIBOR/ 1.99% 3.3 Interest Rate Cap (2) — $ — 1 $ 147,340 (2) (2) (2) _____________________ (1) Included in these amounts are three forward interest rate swaps with an aggregate notional amount of $140.1 million that were not yet in effect as of March 31, 2017 . These three interest rate swaps will become effective at various times during the remainder of 2017 through 2018. (2) The interest rate cap matured on 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 March 31, 2017 and December 31, 2016 (dollars in thousands): March 31, 2017 December 31, 2016 Derivative Instruments Balance Sheet Location Number of Instruments Fair Value Number of Fair Value Derivative instruments designated as hedging instruments Interest Rate Swaps Prepaid expenses and other assets, at fair value 2 $ 159 1 $ 42 Interest Rate Swaps Other liabilities, at fair value 4 $ (838 ) 6 $ (2,340 ) Derivative instruments not designated as hedging instruments Interest Rate Swaps Prepaid expenses and other assets, at fair value 4 $ 2,225 4 $ 1,588 Interest Rate Swaps Other liabilities, at fair value 8 $ (5,487 ) 8 $ (7,388 ) Interest Rate Cap Prepaid expenses and other assets, at fair value — $ — 1 $ —
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 March 31, 2017 2016 Income statement related Derivatives designated as hedging instruments Amount of expense recognized on interest rate swaps (effective portion) $ 894 $ 1,459 894 1,459 Derivatives not designated as hedging instruments Realized loss recognized on interest rate swaps 1,543 180 Unrealized (gain) loss on interest rate swaps (2,538 ) 12,741 Unrealized loss on interest rate cap — 2 (995 ) 12,923 (Decrease) increase in interest expense as a result of derivatives $ (101 ) $ 14,382 Other comprehensive income related Unrealized income (losses) on derivative instruments $ 725 $ (6,306 )

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	3 Months Ended
	Mar. 31, 2017
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 notes payable as of March 31, 2017 and December 31, 2016 , which carrying amounts generally do not approximate the fair values (in thousands): March 31, 2017 December 31, 2016 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 1,852,548 $ 1,843,709 $ 1,836,766 $ 1,793,405 $ 1,783,468 $ 1,775,953
Schedule of Assets and Liabilities at Fair Value	As of March 31, 2017 , 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 swaps $ 2,384 $ — $ 2,384 $ — Liability derivatives - interest rate swaps (6,325 ) — (6,325 ) —

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Schedule of Related Party Costs	Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the three months ended March 31, 2017 and 2016 , respectively, and any related amounts payable as of March 31, 2017 and December 31, 2016 (in thousands): Incurred Payable as of Three Months Ended March 31, March 31, December 31, 2017 2016 2017 2016 Expensed Asset management fees $ 6,205 $ 6,143 $ 2,140 $ 2,126 Reimbursement of operating expenses (1) 141 52 67 139 Real estate acquisition fees — 1,473 — — Capitalized Acquisition fee on development project 110 25 231 121 Acquisition fee on unconsolidated joint venture 324 — — — Asset management fee on development project 48 — 18 11 Asset management fee on unconsolidated joint venture 14 — 14 — $ 6,842 $ 7,693 $ 2,470 $ 2,397 _____________________ (1) Reimbursable operating expenses primarily consists of internal audit personnel costs, accounting software and cybersecurity related expenses incurred by the Advisor 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 $65,000 and $52,000 for the three months ended March 31, 2017 and 2016 , respectively, and were the only type of employee costs reimbursed under the Advisory Agreement for the three months ended March 31, 2017 and 2016 . 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. In addition to the amounts above, the Company reimburses the Advisor for certain of the Company's direct costs incurred from third parties that were initially paid by the Advisor on behalf of the Company.

ORGANIZATION (Details)

ORGANIZATION (Details) $ / shares in Units, $ in Thousands	Oct. 03, 2014USD ($)shares	Mar. 31, 2017USD ($)propertyinvestmentshares	Dec. 31, 2016USD ($)shares	Mar. 31, 2017USD ($)propertyinvestmentshares	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		181,173,476	180,890,572	181,173,476
Number of investments in unconsolidated joint venture | investment		1		1
Issuance of common stock, value | $		$ 14,987	$ 61,871
Redemptions of common stock, value | $		$ 12,530	$ 34,767
Private Transactions [Member]
Organizational Structure [Line Items]
Issuance of common stock, shares	258,462
Issuance of common stock, value | $	$ 2,400
Office Properties [Member]
Organizational Structure [Line Items]
Number of real estate properties | property		28		28
Mixed-use Office/Retail Property [Member]
Organizational Structure [Line Items]
Number of real estate properties | property		1		1
Common Stock [Member]
Organizational Structure [Line Items]
Shares held by affiliate (in shares)		20,000		20,000
Issuance of common stock, shares		1,483,839	6,485,383	169,006,162
Issuance of common stock, value | $		$ 15	$ 65	$ 1,700,000
Shares of common stock sold under dividend reinvestment plan, shares				18,457,068
Shares of common stock sold under dividend reinvestment plan, value | $				$ 179,900
Redemptions of common stock, shares		1,200,935	3,538,049	6,568,216
Redemptions of common stock, value | $		$ 12	$ 35	$ 65,000
Advisor [Member]
Organizational Structure [Line Items]
Common stock, shares issued					20,000
Common stock, purchase price per share (in dollars per share) | $ / shares					$ 10

SUMMARY OF SIGNIFICANT ACCOUN29

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Accounting Policies [Abstract]
Distributions declared per share (in dollars per share)	$ 0.160	$ 0.160
Distribution rate per share per day, declared (in dollars per share)	$ 0.00178082	$ 0.00178082

REAL ESTATE (Narrative) (Detail

REAL ESTATE (Narrative) (Details) ft² in Millions	Mar. 31, 2017ft²property
Real Estate Properties [Line Items]
Rentable square feet | ft²	11.1
Percentage of portfolio occupied	93.00%
Office Properties [Member]
Real Estate Properties [Line Items]
Number of real estate properties	28
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	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Aug. 26, 2016
Real Estate Properties [Line Items]
Total Real Estate at Cost	$ 3,344,049	$ 3,333,649
Accumulated Depreciation and Amortization	(370,189)	(344,794)
Total real estate, net	$ 2,973,860	$ 2,988,855
Hardware Village Joint Venture [Member]
Real Estate Properties [Line Items]
Equity interest in joint venture			99.24%
Domain Gateway [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Sep. 29, 2011
Total Real Estate at Cost	$ 47,373
Accumulated Depreciation and Amortization	(11,923)
Total real estate, net	$ 35,450
Town Center [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Mar. 27, 2012
Total Real Estate at Cost	$ 115,703
Accumulated Depreciation and Amortization	(21,847)
Total real estate, net	$ 93,856
McEwen Building [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Apr. 30, 2012
Total Real Estate at Cost	$ 38,544
Accumulated Depreciation and Amortization	(8,052)
Total real estate, net	$ 30,492
Gateway Tech Center [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	May 9, 2012
Total Real Estate at Cost	$ 24,976
Accumulated Depreciation and Amortization	(5,616)
Total real estate, net	$ 19,360
Tower on Lake Carolyn [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Dec. 21, 2012
Total Real Estate at Cost	$ 51,035
Accumulated Depreciation and Amortization	(10,513)
Total real estate, net	$ 40,522
RBC Plaza [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Jan. 31, 2013
Total Real Estate at Cost	$ 150,504
Accumulated Depreciation and Amortization	(26,330)
Total real estate, net	$ 124,174
One Washingtonian Center [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Jun. 19, 2013
Total Real Estate at Cost	$ 90,265
Accumulated Depreciation and Amortization	(12,790)
Total real estate, net	$ 77,475
Preston Commons [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Jun. 19, 2013
Total Real Estate at Cost	$ 116,055
Accumulated Depreciation and Amortization	(17,223)
Total real estate, net	$ 98,832
Sterling Plaza [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Jun. 19, 2013
Total Real Estate at Cost	$ 79,371
Accumulated Depreciation and Amortization	(10,687)
Total real estate, net	$ 68,684
201 Spear Street [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Dec. 3, 2013
Total Real Estate at Cost	$ 134,575
Accumulated Depreciation and Amortization	(11,406)
Total real estate, net	$ 123,169
500 West Madison [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Dec. 16, 2013
Total Real Estate at Cost	$ 436,854
Accumulated Depreciation and Amortization	(59,218)
Total real estate, net	$ 377,636
222 Main [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Feb. 27, 2014
Total Real Estate at Cost	$ 165,327
Accumulated Depreciation and Amortization	(20,053)
Total real estate, net	$ 145,274
Anchor Centre [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	May 22, 2014
Total Real Estate at Cost	$ 92,837
Accumulated Depreciation and Amortization	(10,860)
Total real estate, net	$ 81,977
171 17th Street [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Aug. 25, 2014
Total Real Estate at Cost	$ 131,947
Accumulated Depreciation and Amortization	(16,455)
Total real estate, net	$ 115,492
Rocklin Corporate Center [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Nov. 6, 2014
Total Real Estate at Cost	$ 33,428
Accumulated Depreciation and Amortization	(4,362)
Total real estate, net	$ 29,066
Reston Square [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Dec. 3, 2014
Total Real Estate at Cost	$ 46,887
Accumulated Depreciation and Amortization	(5,313)
Total real estate, net	$ 41,574
Ten Almaden [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Dec. 5, 2014
Total Real Estate at Cost	$ 123,162
Accumulated Depreciation and Amortization	(12,077)
Total real estate, net	$ 111,085
Towers at Emeryville [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Dec. 23, 2014
Total Real Estate at Cost	$ 260,323
Accumulated Depreciation and Amortization	(25,286)
Total real estate, net	$ 235,037
101 South Hanley [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Dec. 24, 2014
Total Real Estate at Cost	$ 69,976
Accumulated Depreciation and Amortization	(6,707)
Total real estate, net	$ 63,269
3003 Washington Boulevard [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Dec. 30, 2014
Total Real Estate at Cost	$ 151,334
Accumulated Depreciation and Amortization	(11,303)
Total real estate, net	$ 140,031
Village Center Station [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	May 20, 2015
Total Real Estate at Cost	$ 78,040
Accumulated Depreciation and Amortization	(6,791)
Total real estate, net	$ 71,249
Park Place Village [Member] | Office/Retail [Member]
Real Estate Properties [Line Items]
Date Acquired	Jun. 18, 2015
Total Real Estate at Cost	$ 129,555
Accumulated Depreciation and Amortization	(10,028)
Total real estate, net	$ 119,527
201 17th Street [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Jun. 23, 2015
Total Real Estate at Cost	$ 103,228
Accumulated Depreciation and Amortization	(7,587)
Total real estate, net	$ 95,641
Promenade I & II at Eilan [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Jul. 14, 2015
Total Real Estate at Cost	$ 62,623
Accumulated Depreciation and Amortization	(5,211)
Total real estate, net	$ 57,412
CrossPoint at Valley Forge [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Aug. 18, 2015
Total Real Estate at Cost	$ 90,041
Accumulated Depreciation and Amortization	(5,694)
Total real estate, net	$ 84,347
515 Congress [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Aug. 31, 2015
Total Real Estate at Cost	$ 116,789
Accumulated Depreciation and Amortization	(8,294)
Total real estate, net	$ 108,495
The Almaden [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Sep. 23, 2015
Total Real Estate at Cost	$ 164,288
Accumulated Depreciation and Amortization	(8,821)
Total real estate, net	$ 155,467
3001 Washington Boulevard [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Nov. 6, 2015
Total Real Estate at Cost	$ 55,870
Accumulated Depreciation and Amortization	(1,849)
Total real estate, net	$ 54,021
Carillon [Member] | Office Properties [Member]
Real Estate Properties [Line Items]
Date Acquired	Jan. 15, 2016
Total Real Estate at Cost	$ 151,530
Accumulated Depreciation and Amortization	(7,893)
Total real estate, net	$ 143,637
Hardware Village [Member] | Development/ Apartment Building [Member]
Real Estate Properties [Line Items]
Date Acquired	Aug. 26, 2016
Total Real Estate at Cost	$ 31,609
Accumulated Depreciation and Amortization	0
Total real estate, net	$ 31,609

REAL ESTATE (Properties Represe

REAL ESTATE (Properties Represented More than 10% of Company’s Total Assets) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)ft²$ / ft²	Dec. 31, 2016USD ($)
Real Estate Properties [Line Items]
Rentable Square Feet | ft²	11,100,000
Total Real Estate, Net	$ 2,973,860	$ 2,988,855
Occupancy	93.00%
500 West Madison [Member] | Assets, Total [Member]
Real Estate Properties [Line Items]
Rentable Square Feet | ft²	1,457,724
Total Real Estate, Net	$ 377,636
Percentage of Total Assets	11.70%
Annualized Base Rent	$ 35,203
Average Annualized Base Rent per sq. ft. | $ / ft²	24.95
Occupancy	96.80%

REAL ESTATE (Operating Leases)

REAL ESTATE (Operating Leases) (Narrative) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)Tenants	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Operating Leased Assets [Line Items]
Deferred rent recognized	$ 4,063	$ 5,804
Deferred rent receivables	63,600		$ 58,600
Incentive to Lessee	$ 5,900		5,200
Number of tenants | Tenants	900
Maximum [Member]
Operating Leased Assets [Line Items]
Operating lease, term	14 years 9 months 18 days
Weighted Average [Member]
Operating Leased Assets [Line Items]
Operating lease, term	4 years 8 months 12 days
Other liabilities, at fair value [Member]
Operating Leased Assets [Line Items]
Security deposit liability	$ 12,300		$ 12,700

REAL ESTATE (Future Minimum Ren

REAL ESTATE (Future Minimum Rental Income) (Details) $ in Thousands	Mar. 31, 2017USD ($)
Real Estate [Abstract]
April 1, 2017 through December 31, 2017	$ 214,415
2,018	283,496
2,019	258,389
2,020	222,601
2,021	190,487
Thereafter	566,531
Future minimum rental income	$ 1,735,919

REAL ESTATE (Highes Tenant Indu

REAL ESTATE (Highes Tenant Industry Concentrations- Grater than 10% of Annual Base Rent) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)Tenantstenant
Concentration Risk [Line Items]
Number of Tenants | Tenants	900
Industry - Finance [Member]
Concentration Risk [Line Items]
Number of Tenants | tenant	163
Annualized Base Rent | $	$ 63,728
Percentage of Annualized Base Rent	21.60%

REAL ESTATE REAL ESTATE (Geogra

REAL ESTATE REAL ESTATE (Geographic Concentration Risk) (Narrative) (Details) - Assets, Total [Member]	3 Months Ended
	Mar. 31, 2017
California [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	20.00%
Texas [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	16.00%
Illinois [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	12.00%

TENANT ORIGINATION AND ABSORP37

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
Tenant Origination and Absorption Costs, Cost	$ 257,161		$ 264,973
Tenant Origination and Absorption Costs, Accumulated Amortization	(103,051)		(99,757)
Tenant Origination and Absorption Costs, Net Amount	154,110		165,216
Tenant Origination and Absorption Costs, Amortization	(11,106)	$ (11,730)
Above-Market Lease Assets, Cost	13,731		14,383
Above-Market Lease Assets, Accumulated Amortization	(6,243)		(6,192)
Above-Market Lease Assets, Net Amount	7,488		8,191
Above-Market Lease Assets, Amortization	(703)	(680)
Below-Market Lease Liabilities, Cost	(51,295)		(55,438)
Below-Market Lease Liabilities, Accumulated Amortization	19,914		21,783
Below-Market Lease Liabilities, Net amount	(31,381)		$ (33,655)
Below-Market Lease Liabilities, Amortization	$ 2,274	$ 2,843

INVESTMENT IN UNCONSOLIDATED 38

INVESTMENT IN UNCONSOLIDATED JOINT VENTURE (Narrative) (Details) - Village Center Station II Joint Venture [Member] - USD ($)	Mar. 03, 2017	Mar. 31, 2017
Village Center Station II Construction Loan [Member] | Secured Debt [Member]
Schedule of Equity Method Investments [Line Items]
Maximum borrowing capacity	$ 78,500,000
Village Center Station II [Member]
Schedule of Equity Method Investments [Line Items]
Equity interest in joint venture	75.00%
Payments to acquire investments	$ 113,100,000
Contributed capital	$ 32,300,000
Additional capital contributions required, percent		75.00%
Equity interest in joint venture to be purchased	25.00%
Equity interest in joint venture to be purchased, value	$ 25,000,000
Equity method investments		$ 32,800,000
Equity method investments, acquisition cost		$ 500,000

INVESTMENT IN UNCONSOLIDATED 39

INVESTMENT IN UNCONSOLIDATED JOINT VENTURE (Balance Sheets) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Assets
Construction in progress	$ 31,609	$ 21,853
Cash and cash equivalents	55,648	72,068	$ 45,228	$ 108,242
Total assets	3,214,261	3,182,676
Liabilities and equity
Accounts payable	1,843,709	1,783,468
Other liabilities	41,551	41,699
Total liabilities and equity	3,214,261	$ 3,182,676
Village Center Station II Joint Venture [Member]
Assets
Construction in progress	37,447
Cash and cash equivalents	8,178
Other assets	3,205
Total assets	48,830
Liabilities and equity
Accounts payable	5,687
Other liabilities	28
Members’ capital	43,115
Total liabilities and equity	$ 48,830

NOTES PAYABLE (Narrative) (Deta

NOTES PAYABLE (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Debt Instrument [Line Items]
Deferred financing costs	$ 9,900		$ 10,000
Interest expense	12,901	$ 25,355
Interest payable, current	5,000		4,300
Amortization of deferred financing costs	1,210	1,267
Interest capitalized	200
Interest expense incurred as a result of derivative instruments	100	14,400
Interest Expense [Member]
Debt Instrument [Line Items]
Amortization of deferred financing costs	1,200	$ 1,300
Notes Payable [Member]
Debt Instrument [Line Items]
Deferred financing costs	8,800		9,900
Prepaid expenses and other assets, at fair value [Member]
Debt Instrument [Line Items]
Deferred financing costs	$ 1,100		$ 100

NOTES PAYABLE (Schedule of Long

NOTES PAYABLE (Schedule of Long-term Debt Instruments) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 1,852,548,000	$ 1,793,405,000
Deferred financing costs, net	(8,839,000)	(9,937,000)
Total notes payable, net	1,843,709,000	1,783,468,000
Portfolio Loan [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Total notes payable, net	127,500,000
500 West Madison [Member]
Debt Instrument [Line Items]
Total notes payable, net	215,000,000
500 West Madison [Member] | First Non-Revolver Tranche [Member]
Debt Instrument [Line Items]
Current borrowing capacity	40,000,000
Mortgages [Member] | Town Center [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 75,000,000	75,000,000
Effective Interest Rate	2.87%
Maturity Date	Mar. 27, 2018
Mortgages [Member] | Town Center [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.85%
Mortgages [Member] | Portfolio Loan [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 153,460,000	127,500,000
Effective Interest Rate	2.68%
Maturity Date	Jun. 1, 2019
Mortgages [Member] | Portfolio Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.90%
Mortgages [Member] | RBC Plaza [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 75,859,000	75,930,000
Effective Interest Rate	2.58%
Maturity Date	Feb. 1, 2018
Mortgages [Member] | RBC Plaza [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.80%
Mortgages [Member] | National Office Portfolio [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 170,602,000	170,602,000
Effective Interest Rate	2.82%
Maturity Date	Jul. 1, 2017
Mortgages [Member] | National Office Portfolio [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Mortgages [Member] | 500 West Madison [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 215,000,000	215,000,000
Effective Interest Rate	3.16%
Maturity Date	Dec. 16, 2018
Mortgages [Member] | 500 West Madison [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.65%
Mortgages [Member] | 222 Main [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 100,882,000	101,343,000
Stated percentage	3.97%
Effective Interest Rate	3.97%
Maturity Date	Mar. 1, 2021
Mortgages [Member] | Anchor Centre [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 50,000,000	50,000,000
Effective Interest Rate	3.18%
Maturity Date	Jun. 1, 2017
Mortgages [Member] | Anchor Centre [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Mortgages [Member] | 171 17th Street Mortgage Loan [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 83,778,000	83,778,000
Effective Interest Rate	2.75%
Maturity Date	Sep. 1, 2018
Mortgages [Member] | 171 17th Street Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.45%
Mortgages [Member] | Reston Square Mortgage Loan [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 29,800,000	23,840,000
Effective Interest Rate	3.54%
Maturity Date	Feb. 1, 2018
Mortgages [Member] | Reston Square Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Mortgages [Member] | Ten Almaden Mortgage Loan [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 65,853,000	65,853,000
Effective Interest Rate	3.42%
Maturity Date	Jan. 1, 2018
Mortgages [Member] | Ten Almaden Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.65%
Mortgages [Member] | Towers at Emeryville Mortgage Loan [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 151,929,000	145,379,000
Effective Interest Rate	3.95%
Maturity Date	Jan. 15, 2018
Loan, amount outstanding	$ 151,900,000
Unused borrowing capacity, amount	$ 23,100,000
Mortgages [Member] | Towers at Emeryville Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Mortgages [Member] | 101 South Hanley Mortgage Loan [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 39,133,000	37,502,000
Effective Interest Rate	2.33%
Maturity Date	Jan. 1, 2020
Mortgages [Member] | 101 South Hanley Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.55%
Mortgages [Member] | 3003 Washington Boulevard Mortgage Loan [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 90,378,000	90,378,000
Effective Interest Rate	3.53%
Maturity Date	Feb. 1, 2020
Mortgages [Member] | 3003 Washington Boulevard Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.55%
Mortgages [Member] | Rocklin Corporate Center Mortgage Loan [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 21,689,000	20,868,000
Effective Interest Rate	2.28%
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	1.50%
Mortgages [Member] | 201 17th Street Mortgage Loan [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 63,950,000	58,063,000
Effective Interest Rate	2.18%
Maturity Date	Aug. 1, 2018
Mortgages [Member] | 201 17th Street Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.40%
Mortgages [Member] | CrossPoint at Valley Forge Mortgage Loan [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 51,000,000	51,000,000
Effective Interest Rate	3.33%
Maturity Date	Sep. 1, 2022
Mortgages [Member] | CrossPoint at Valley Forge Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Mortgages [Member] | The Almaden Mortgage Loan [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 93,000,000	93,000,000
Effective Interest Rate	4.20%
Maturity Date	Jan. 1, 2022
Mortgages [Member] | The Almaden Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Mortgages [Member] | Promenade I & II at Eilan Mortgage Loan [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 37,300,000	37,300,000
Effective Interest Rate	3.57%
Maturity Date	Oct. 1, 2022
Mortgages [Member] | Promenade I & II at Eilan Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Mortgages [Member] | 515 Congress Mortgage Loan [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 67,500,000	67,500,000
Effective Interest Rate	2.49%
Maturity Date	Nov. 1, 2020
Mortgages [Member] | 515 Congress Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.70%
Mortgages [Member] | 201 Spear Street Mortgage Loan [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 100,000,000	100,000,000
Effective Interest Rate	2.45%
Maturity Date	Jan. 1, 2019
Mortgages [Member] | 201 Spear Street Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.66%
Mortgages [Member] | Carillon Mortgage Loan [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 89,306,000	76,440,000
Effective Interest Rate	3.19%
Maturity Date	Feb. 1, 2020
Mortgages [Member] | Carillon Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.65%
Mortgages [Member] | 3001 Washington Boulevard Mortgage Loan [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 27,129,000	27,129,000
Effective Interest Rate	2.39%
Maturity Date	Feb. 1, 2019
Mortgages [Member] | 3001 Washington Boulevard Mortgage Loan [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.60%
Mortgages [Member] | Hardware Village Loan Facility [Member]
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 0	$ 0
Effective Interest Rate	0.00%
Maturity Date	Feb. 23, 2020
Secured Debt [Member] | Portfolio Loan [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 255,000,000
Loan, amount outstanding	127,500,000
Potential maximum borrowing capacity	350,000,000
Secured Debt [Member] | Portfolio Loan [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	127,500,000
Loan, amount outstanding	26,000,000
Unused borrowing capacity, amount	$ 100,500,000
Maximum borrowing capacity, percentage	50.00%
Secured Debt [Member] | Portfolio Loan [Member] | Revolving Credit Facility [Member] | Upon Meeting Certain Financial Coverage Ratio and Subject to Certain Conditions [Member]
Debt Instrument [Line Items]
Unused borrowing capacity, amount	$ 1,000,000
Secured Debt [Member] | Portfolio Loan [Member] | Non-Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity, percentage	50.00%

NOTES PAYABLE (Schedule of Matu

NOTES PAYABLE (Schedule of Maturities of Long-term Debt) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Notes Payable [Abstract]
April 1, 2017 through December 31, 2017	$ 222,722
2,018	784,578
2,019	283,170
2,020	287,532
2,021	93,956
Thereafter	180,590
Total notes payable	$ 1,852,548	$ 1,793,405

NOTES PAYABLE (Recent Financing

NOTES PAYABLE (Recent Financing Transactions) (Details) - Hardware Village Construction Loan Facility [Member] - Secured Debt [Member]	Feb. 23, 2017USD ($)extension
Debt Instrument [Line Items]
Maximum borrowing capacity | $	$ 74,000,000
Number of extensions | extension	2
Extension period	1 year
Amortization schedule of mortgage loans	30 years
Rate used to calculate amortization of principal payment per annum	6.00%
Remaining maturity	10 years
Rate used to calculate amortization of principal payment based on United States Treasury Notes	2.25%
Percent of outstanding balance under guarantees	35.00%
One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	3.25%

DERIVATIVE INSTRUMENTS (Narrati

DERIVATIVE INSTRUMENTS (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)
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	$ 1

DERIVATIVE INSTRUMENTS (Notiona

DERIVATIVE INSTRUMENTS (Notional Amount) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)Investments	Dec. 31, 2016USD ($)Investments
Interest Rate Swaps [Member]
Derivative [Line Items]
Number of Instruments | Investments	3
Notional Amount | $	$ 140,100
Derivative instruments designated as hedging instruments [Member] | Interest Rate Swaps [Member]
Derivative [Line Items]
Number of Instruments | Investments	6	7
Notional Amount | $	$ 556,400	$ 625,130
Weighted-Average Fix Pay Rate	1.42%
Weighted-Average Remaining Term in Years	1 year 5 months
Derivative instruments designated as hedging instruments [Member] | Interest Rate Swaps [Member] | Minimum [Member] | One-month LIBOR [Member]
Derivative [Line Items]
Reference Rate	0.86%
Derivative instruments designated as hedging instruments [Member] | Interest Rate Swaps [Member] | Maximum [Member] | One-month LIBOR [Member]
Derivative [Line Items]
Reference Rate	1.68%
Derivative instruments not designated as hedging instruments [Member] | Interest Rate Swaps [Member]
Derivative [Line Items]
Number of Instruments | Investments	12	12
Notional Amount | $	$ 658,183	$ 658,183
Weighted-Average Fix Pay Rate	1.99%
Weighted-Average Remaining Term in Years	3 years 3 months 12 days
Derivative instruments not designated as hedging instruments [Member] | Interest Rate Swaps [Member] | Minimum [Member] | One-month LIBOR [Member]
Derivative [Line Items]
Reference Rate	1.39%
Derivative instruments not designated as hedging instruments [Member] | Interest Rate Swaps [Member] | Maximum [Member] | One-month LIBOR [Member]
Derivative [Line Items]
Reference Rate	2.37%
Derivative instruments not designated as hedging instruments [Member] | Interest Rate Cap [Member]
Derivative [Line Items]
Number of Instruments | Investments	0	1
Notional Amount | $	$ 0	$ 147,340

DERIVATIVE INSTRUMENTS (Balance

DERIVATIVE INSTRUMENTS (Balance Sheet) (Details) $ in Thousands	Mar. 31, 2017USD ($)Investments	Dec. 31, 2016USD ($)Investments
Interest Rate Swaps [Member]
Derivative [Line Items]
Number of Instruments	3
Derivative instruments designated as hedging instruments [Member] | Interest Rate Swaps [Member]
Derivative [Line Items]
Number of Instruments	6	7
Derivative instruments designated as hedging instruments [Member] | Prepaid expenses and other assets, at fair value [Member] | Interest Rate Swaps [Member]
Derivative [Line Items]
Number of Instruments	2	1
Asset, Fair Value | $	$ 159	$ 42
Derivative instruments designated as hedging instruments [Member] | Other liabilities, at fair value [Member] | Interest Rate Swaps [Member]
Derivative [Line Items]
Number of Instruments	4	6
Liability, Fair Value | $	$ (838)	$ (2,340)
Derivative instruments not designated as hedging instruments [Member] | Interest Rate Swaps [Member]
Derivative [Line Items]
Number of Instruments	12	12
Derivative instruments not designated as hedging instruments [Member] | Interest Rate Cap [Member]
Derivative [Line Items]
Number of Instruments	0	1
Derivative instruments not designated as hedging instruments [Member] | Prepaid expenses and other assets, at fair value [Member] | Interest Rate Swaps [Member]
Derivative [Line Items]
Number of Instruments	4	4
Asset, Fair Value | $	$ 2,225	$ 1,588
Derivative instruments not designated as hedging instruments [Member] | Prepaid expenses and other assets, at fair value [Member] | Interest Rate Cap [Member]
Derivative [Line Items]
Number of Instruments	0	1
Asset, Fair Value | $	$ 0	$ 0
Derivative instruments not designated as hedging instruments [Member] | Other liabilities, at fair value [Member] | Interest Rate Swaps [Member]
Derivative [Line Items]
Number of Instruments	8	8
Liability, Fair Value | $	$ (5,487)	$ (7,388)

DERIVATIVE INSTRUMENTS (Stateme

DERIVATIVE INSTRUMENTS (Statement of Operations) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Derivative [Line Items]
(Decrease) increase in interest expense as a result of derivatives	$ (101)	$ 14,382
Unrealized income (losses) on derivative instruments	(725)	6,306
Derivative instruments designated as hedging instruments [Member]
Derivative [Line Items]
Derivatives designated as hedging instruments	894	1,459
(Decrease) increase in interest expense as a result of derivatives	894	1,459
Derivative instruments not designated as hedging instruments [Member]
Derivative [Line Items]
(Decrease) increase in interest expense as a result of derivatives	(995)	12,923
Derivative instruments not designated as hedging instruments [Member] | Interest Rate Swaps [Member]
Derivative [Line Items]
Realized loss recognized on interest rate swaps	1,543	180
Unrealized income (losses) on derivative instruments	(2,538)	12,741
Derivative instruments not designated as hedging instruments [Member] | Interest Rate Cap [Member]
Derivative [Line Items]
Unrealized income (losses) on derivative instruments	$ 0	$ 2

FAIR VALUE DISCLOSURES (Schedul

FAIR VALUE DISCLOSURES (Schedule of Face Value, Carrying Amounts and Fair Value) (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Face Value	$ 1,852,548,000	$ 1,793,405,000
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Value	1,843,709,000	1,783,468,000
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Value	$ 1,836,766,000	$ 1,775,953,000

FAIR VALUE DISCLOSURES (Assets

FAIR VALUE DISCLOSURES (Assets and Liabilities at Fair value) (Details) - Recurring Basis [Member] - Interest Rate Swaps [Member] $ in Thousands	Mar. 31, 2017USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets derivatives	$ 2,384
Liability derivatives	(6,325)
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
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets derivatives	2,384
Liability derivatives	(6,325)
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

RELATED PARTY TRANSACTIONS (Rel

RELATED PARTY TRANSACTIONS (Related Party Cost) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Payable as of	$ 2,470		$ 2,397
Administrative fees, amount paid	65	$ 52
Advisor and Dealer Manager [Member]
Related Party Transaction [Line Items]
Incurred	6,842	7,693
Payable as of	2,470		2,397
Advisor and Dealer Manager [Member] | Asset Management Fees [Member]
Related Party Transaction [Line Items]
Expenses	6,205	6,143
Payable as of	2,140		2,126
Advisor and Dealer Manager [Member] | Reimbursement of Operating Expenses [Member]
Related Party Transaction [Line Items]
Expenses	141	52
Payable as of	67		139
Advisor and Dealer Manager [Member] | Real Estate Acquisition Fees [Member]
Related Party Transaction [Line Items]
Expenses	0	1,473
Payable as of	0		0
Advisor and Dealer Manager [Member] | Acquisition Fee on Development Project [Member]
Related Party Transaction [Line Items]
Incurred	110	25
Payable as of	231		121
Advisor and Dealer Manager [Member] | Acquisition Fee on Unconsolidated Joint Venture [Member]
Related Party Transaction [Line Items]
Incurred	324	0
Payable as of	0		0
Advisor and Dealer Manager [Member] | Asset Management Fees on Development Project [Member]
Related Party Transaction [Line Items]
Incurred	48	0
Payable as of	18		11
Advisor and Dealer Manager [Member] | Asset Management Fee on Unconsolidated Joint Venture [Member]
Related Party Transaction [Line Items]
Incurred	14	$ 0
Payable as of	$ 14		$ 0

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)	May 29, 2015USD ($)ft²$ / ft²
Related Party Transaction [Line Items]
Due from related party	$ 223		$ 0
KBS Capital Advisors LLC [Member] | Property Insurance Rebate [Member]
Related Party Transaction [Line Items]
Due from related party	200	$ 200
KBS Capital Advisors LLC [Member] | Legal and Professional Fees [Member]
Related Party Transaction [Line Items]
Due from related party		100
Affiliated Entity [Member] | Subsidiaries [Member]
Related Party Transaction [Line Items]
Net rentable area | ft²				5,046
Percent of total rentable square feet				2.30%
Annualized base rent				$ 200
Average annualized base rent per square foot | $ / ft²				46.38
Rental income	$ 100	$ 100

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Millions	May 01, 2017	Apr. 03, 2017	Jul. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Mar. 31, 2016
Subsequent Event [Line Items]
Distribution rate per share per day, declared (in dollars per share)					$ 0.00178082	$ 0.00178082
Dividend Declared [Member] | Scenario, Forecast [Member]
Subsequent Event [Line Items]
Distribution rate per share per day, declared (in dollars per share)			$ 0.00178082	$ 0.00178082
Distribution rate per share annualized, declared, based on current estimated value			6.11%	6.11%
Dividend Declared [Member] | Most Recent Primary Offering Purchase Price [Member] | Scenario, Forecast [Member]
Subsequent Event [Line Items]
Common stock, purchase price per share (in dollars per share)			$ 10.63	$ 10.63
Subsequent Event [Member] | Dividend Paid [Member]
Subsequent Event [Line Items]
Distributions paid to common stockholders	$ 9.7	$ 10