KBS Growth & Income REIT (KBSG) 10-Q 12 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 10, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	KBS Growth & Income REIT, Inc.
Entity Central Index Key	1,631,256
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		8,289,661

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Real estate:
Land	$ 10,600,000	$ 10,600,000
Building and improvements	8,833,424	8,833,424
Tenant origination and absorption costs	1,987,175	1,987,175
Total real estate, cost	21,420,599	21,420,599
Less accumulated depreciation and amortization	(567,522)	(340,993)
Total real estate, net	20,853,077	21,079,606
Cash and cash equivalents	46,746,054	12,892,900
Rent and other receivables	365,207	305,007
Due from affiliate	3,670	0
Prepaid expenses and other assets, net	109,422	62,100
Total assets	68,077,430	34,339,613
Liabilities and stockholders’ equity
Note payable, net	16,097,216	16,056,981
Accounts payable and accrued liabilities	330,522	232,035
Due to affiliates	1,307,194	1,434,522
Increase in cash distributions payable	213,109	87,679
Below-market leases, net	107,544	113,211
Other liabilities	215,392	255,640
Total liabilities	$ 18,270,977	$ 18,180,068
Commitments and contingencies (Note 9)
Redeemable common stock	$ 251,160	$ 53,830
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, 6,348,966 and 2,216,821 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively	63,490	22,168
Additional paid-in capital	51,247,004	17,078,538
Cumulative distributions and net losses	(1,755,201)	(994,991)
Total stockholders’ equity	49,555,293	16,105,715
Total liabilities and stockholders’ equity	$ 68,077,430	$ 34,339,613

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	6,348,966	2,216,821
Common stock, shares outstanding	6,348,966	2,216,821

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	2 Months Ended	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2016
Revenues:
Rental income	$ 0	$ 567,726
Tenant reimbursements	0	28,055
Total revenues	0	595,781
Expenses:
Operating, maintenance, and management	0	151,360
Property management fees and expenses to affiliate	0	7,770
Real estate taxes and insurance	0	69,411
Asset management fees to affiliate	0	20,262
General and administrative expenses	170	218,510
Depreciation and amortization	0	226,529
Interest expense	0	177,840
Total expenses	170	871,682
Other income:
Interest income	0	20,122
Total other income	0	20,122
Net loss	$ (170)	$ (255,779)
Net (loss) income per common share, basic and diluted (in dollars per share)	$ 0	$ (0.07)
Weighted-average number of common shares outstanding, basic and diluted (in shares)	41,413	3,582,937

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Cumulative Distributions and Net Losses [Member]
Balance, shares at Jan. 27, 2015		20,000
Balance, value at Jan. 27, 2015	$ 200,000	$ 200	$ 199,800	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(776,202)			(776,202)
Issuance of common stock, shares		2,194,161
Issuance of common stock, value	19,105,265	$ 21,941	19,083,324
Transfers to redeemable common stock	(53,830)		(53,830)
Stock dividends issued, shares		2,660
Stock dividends issued, value	0	$ 27	23,867	(23,894)
Distributions declared	(194,895)			(194,895)
Commissions on stock sales and related dealer manager fees to affiliate	(1,085,364)		(1,085,364)
Other offering costs	(1,089,259)		(1,089,259)
Balance, value at Dec. 31, 2015	$ 16,105,715	$ 22,168	17,078,538	(994,991)
Balance, shares at Dec. 31, 2015	2,216,821	2,216,821
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (255,779)			(255,779)
Issuance of common stock, shares		4,125,171
Issuance of common stock, value	37,217,059	$ 41,252	37,175,807
Transfers to redeemable common stock	(197,330)		(197,330)
Stock dividends issued, shares		6,974
Stock dividends issued, value	0	$ 70	64,360	(64,430)
Distributions declared	(440,001)			(440,001)
Commissions on stock sales and related dealer manager fees to affiliate	(2,547,015)		(2,547,015)
Other offering costs	(327,356)		(327,356)
Balance, value at Mar. 31, 2016	$ 49,555,293	$ 63,490	$ 51,247,004	$ (1,755,201)
Balance, shares at Mar. 31, 2016	6,348,966	6,348,966

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	2 Months Ended	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2016
Cash Flows from Operating Activities:
Net loss	$ (170)	$ (255,779)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	0	226,529
Deferred rents	0	(55,872)
Amortization of below-market leases	0	(5,667)
Amortization of deferred financing costs	0	15,485
Changes in operating assets and liabilities:
Rents and other receivables	0	(4,328)
Prepaid expenses and other assets	0	(47,322)
Accounts payable and accrued liabilities	0	120,210
Due from affiliate	0	(3,670)
Due to affiliates	0	(148,526)
Other liabilities	0	(40,248)
Net cash used in operating activities	(170)	(199,188)
Cash Flows from Investing Activities:
Improvements to real estate	0	(21,723)
Net cash used in investing activities	0	(21,723)
Cash Flows from Financing Activities:
Proceeds from note payable	0	25,750
Payments of deferred financing costs	0	(1,000)
Cash distribution advance from affiliate	0	458,289
Proceeds from issuance of common stock	200,000	37,019,729
Payments of commissions on stock sales and related dealer manager fees to affiliate	0	(2,547,015)
Payments of other offering costs	0	(764,447)
Distributions paid to common stockholders	0	(117,241)
Net cash provided by financing activities	200,000	34,074,065
Net increase in cash and cash equivalents	199,830	33,853,154
Cash and cash equivalents, beginning of period	0	12,892,900
Cash and cash equivalents, end of period	199,830	46,746,054
Supplemental Disclosure of Cash Flow Information
Interest paid	0	158,972
Supplemental Disclosure of Noncash Investing and Financing Activities:
Stock dividends issued	0	64,430
Increases in distributions payable	0	125,430
Increase in cash distributions payable		213,109
Dividends paid to common stockholders through common stock issuances pursuant to the distribution reinvestment plan	$ 0	$ 197,330

ORGANIZATION

ORGANIZATION	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	ORGANIZATION KBS Growth & Income REIT, Inc. (the “Company”) was formed on January 12, 2015 as a Maryland corporation that intends to qualify as a real estate investment trust (“REIT”) beginning with the taxable year ended December 31, 2015. Substantially all of the Company’s business is conducted through KBS Growth & Income Limited Partnership (the “Operating Partnership”), a Delaware limited partnership formed on January 14, 2015. The Company is the sole general partner of, and owns a 0.1% partnership interest in, the Operating Partnership. KBS Growth & Income REIT Holdings LLC (“REIT Holdings”), a Delaware limited liability company formed on January 14, 2015, owns the remaining 99.9% partnership interest in the Operating Partnership and is the sole limited partner. The Company is the sole member and manager of REIT Holdings. Subject to certain restrictions and limitations, the business of the Company is externally managed by KBS Capital Advisors LLC (the “Advisor”), an affiliate of the Company, pursuant to an advisory agreement between the Company and the Advisor initially entered June 11, 2015, and amended at various points thereafter through March 31, 2016 (the “Advisory Agreement”). The Advisor conducts the Company’s operations and manages its portfolio of core real estate properties and real estate-related assets. On January 27, 2015, the Company issued 20,000 shares of its common stock to the Advisor at a purchase price of $10.00 per share. On June 11, 2015, these outstanding shares of common stock were designated Class A shares of common stock. As of March 31, 2016 , the Class A shares of common stock were the only class of common stock designated and unless otherwise indicated, any reference in these notes to consolidated financial statements to the Company’s common stock is to the Class A shares of common stock. See Note 3, “Stockholders’ Equity,” for a discussion of the Company’s common stock designation. The Company has invested in an office building and intends to invest in a diverse portfolio of core real estate properties and real estate-related assets, including the acquisition of commercial properties and the acquisition and origination of real estate-related assets. Such real estate-related assets may include mortgage, mezzanine, bridge and other loans, debt and derivative securities related to real estate assets, including mortgage-backed securities, and equity securities such as common stocks, preferred stocks and convertible preferred securities of other REITs and real estate companies. The Company commenced a private placement offering exempt from registration under the Securities Act of 1933, as amended, on June 11, 2015, pursuant to which the Company offered a maximum of $105,000,000 of shares of its Class A common stock for sale to certain accredited investors (the “Private Offering”), of which $5,000,000 of Class A shares are being offered pursuant to the Company’s distribution reinvestment plan. The Company ceased offering shares in the primary portion of the Private Offering on April 27, 2016. The Company may continue to process subscriptions for the primary Private Offering dated on or prior to April 27, 2016 for up to 30 days following April 27, 2016. KBS Capital Markets Group LLC (the “Dealer Manager”), an affiliate of the Advisor, served as the dealer manager of the Private Offering pursuant to a dealer manager agreement dated June 11, 2015 (the “Dealer Manager Agreement”). The Dealer Manager was responsible for marketing the Company’s shares in the Private Offering. On February 4, 2015, the Company filed a registration statement on Form S-11 with the Securities and Exchange Commission (the “SEC”) to register an initial public offering of its common stock to offer a maximum of $1,500,000,000 in shares of common stock for sale to the public in the primary offering, consisting of two classes of shares: Class A and Class T (the “Primary Offering”). The Company also registered a maximum of $800,000,000 in both classes of shares of its common stock pursuant to the Company’s distribution reinvestment plan (the “DRP Offering” and, together with the Primary Offering, the “Public Offering”). The Company is offering to sell any combination of Class A and Class T shares in the Primary Offering and DRP Offering. The Company reserves the right to reallocate shares between the Primary Offering and the DRP Offering. The SEC declared the Company’s registration statement effective on April 28, 2016 and the Company retained the Dealer Manager to serve as the dealer manager of the Public Offering. The Dealer Manager will be responsible for marketing the Company’s shares in the Public Offering. As described above, the Company intends to use substantially all of the net proceeds from the Private Offering and the Primary Offering to invest in a diverse portfolio of core real estate properties and real estate-related assets. As of March 31, 2016 , the Company owned one office building. As of March 31, 2016 , the Company had sold 6,276,970 shares of common stock for gross offering proceeds of $56.0 million in the Private Offering, including 28,789 shares of common stock under its distribution reinvestment plan for gross offering proceeds of $0.3 million . Additionally, on August 11, 2015, two of the individuals who own and control the Company’s sponsor, Charles J. Schreiber, Jr. (who also acts as chief executive officer, the chairman of the board and a director of the Company) and Peter M. Bren (who also acts as president of the Company), purchased 21,181.2380 and 21,181.2390 shares of common stock, respectively, each for an aggregate purchase price of $172,500 or $8.144 per share. The per share purchase price reflects an 8.5% discount to the $8.90 offering price in the Private Offering in effect on the date of their purchase because selling commissions and dealer manager fees were not paid in connection with the sales. Mr. Bren’s investment was made on behalf of and for the account of three of his children, and he has disclaimed beneficial ownership of the shares. The Company issued these shares in private transactions exempt from the registration requirements pursuant to Section 4(2) of the Securities Act of 1933, as amended.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The consolidated financial statements include the accounts of the Company, REIT Holdings, the Operating Partnership, and their direct and indirect wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements and the accompanying notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. Revenue Recognition Real Estate The Company recognizes minimum rent, including rental abatements, lease incentives and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related leases when collectibility is reasonably assured and records amounts expected to be received in later years as deferred rent receivable. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that the tenant can take in the form of cash or a credit against its rent) that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how a tenant improvement allowance may be spent; • whether the amount of a tenant improvement allowance is in excess of market rates; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general-purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease. The Company records property operating expense reimbursements due from tenants for common area maintenance, real estate taxes, and other recoverable costs in the period the related expenses are incurred. The Company makes estimates of the collectibility of its tenant receivables related to base rents, including deferred rent receivable, expense reimbursements and other revenue or income. Management specifically analyzes accounts receivable, deferred rent receivable, historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. In addition, with respect to tenants in bankruptcy, management makes estimates of the expected recovery of pre-petition and post-petition claims in assessing the estimated collectibility of the related receivable. In some cases, the ultimate resolution of these claims can exceed one year. When a tenant is in bankruptcy, the Company will record a bad debt reserve for the tenant’s receivable balance and generally will not recognize subsequent rental revenue until cash is received or until the tenant is no longer in bankruptcy and has the ability to make rental payments. Cash and Cash Equivalents The Company recognizes interest income on its cash and cash equivalents as it is earned and classifies such amounts as other income. Real Estate Depreciation and Amortization Real estate costs related to the acquisition and improvement of properties are capitalized and amortized over the expected useful life of the asset on a straight-line basis. Repair and maintenance costs are charged to expense as incurred and significant replacements and betterments are capitalized. Repair and maintenance costs include all costs that do not extend the useful life of the real estate asset. The Company considers the period of future benefit of an asset to determine its appropriate useful life. Expenditures for tenant improvements are capitalized and amortized over the shorter of the tenant’s lease term or expected useful life. The Company anticipates the estimated useful lives of its assets by class to be generally as follows: Buildings 25 - 40 years Building improvements 10 - 25 years Tenant improvements Shorter of lease term or expected useful life Tenant origination and absorption costs Remaining term of related leases, including Real Estate Acquisition Valuation The Company records the acquisition of income-producing real estate or real estate that will be used for the production of income as a business combination. All assets acquired and liabilities assumed in a business combination are measured at their acquisition-date fair values. Acquisition costs are expensed as incurred and restructuring costs that do not meet the definition of a liability at the acquisition date are expensed in periods subsequent to the acquisition date. The Company assesses the acquisition date fair values of all tangible assets, identifiable intangibles and assumed liabilities using methods similar to those used by independent appraisers, generally utilizing a discounted cash flow analysis that applies appropriate discount and/or capitalization rates and available market information. Estimates of future cash flows are based on a number of factors, including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it were vacant. The Company records above-market and below-market in-place lease values for acquired properties based on the present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of above-market in-place leases and for the initial term plus any extended term for any leases with below-market renewal options. The Company amortizes any recorded above-market or below-market lease values as a reduction or increase, respectively, to rental income over the remaining non-cancelable terms of the respective lease, including any below-market renewal periods. The Company estimates the value of tenant origination and absorption costs by considering the estimated carrying costs during hypothetical expected lease up periods, considering current market conditions. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease up periods. The Company amortizes the value of tenant origination and absorption costs to depreciation and amortization expense over the remaining non-cancelable term of the leases. Estimates of the fair values of the tangible assets, identifiable intangibles and assumed liabilities require the Company to make significant assumptions to estimate market lease rates, property-operating expenses, carrying costs during lease-up periods, discount rates, market absorption periods, and the number of years the property will be held for investment. The use of inappropriate assumptions would result in an incorrect valuation of the Company’s acquired tangible assets, identifiable intangibles and assumed liabilities, which would impact the amount of the Company’s net income. Impairment of Real Estate and Related Intangible Assets and Liabilities The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate and related intangible assets and liabilities may not be recoverable or realized. When indicators of potential impairment suggest that the carrying value of real estate and related intangible assets and liabilities may not be recoverable, the Company assesses the recoverability by estimating whether the Company will recover the carrying value of the real estate and related intangible assets and liabilities through its undiscounted future cash flows and its eventual disposition. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of the real estate and related intangible assets and liabilities, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the real estate and related intangible assets and liabilities. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Cash and cash equivalents are stated at cost, which approximates fair value. The Company’s cash and cash equivalents balance may exceed federally insurable limits. The Company intends to mitigate this risk by depositing funds with a major financial institution; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. There were no restrictions on the use of the Company’s cash and cash equivalents as of December 31, 2015 and March 31, 2016 . Deferred Financing Costs Deferred financing costs represent commitment fees, loan fees, legal fees and other third-party costs associated with obtaining financing and are presented on the balance sheet as a direct deduction from the carrying value of the associated debt liability. These costs are amortized over the terms of the respective financing agreements using the interest method. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity unless specific rules are met that would allow for the carryover of such costs to the refinanced debt. Deferred financing costs incurred before an associated debt liability is recognized are included in prepaid and other assets on the balance sheet. Costs incurred in seeking financing transactions that do not close are expensed in the period in which it is determined that the financing will not close. Fair Value Measurements 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. When available, the Company utilizes quoted market prices from independent third-party sources to determine fair value and classifies such items in Level 1 or Level 2. In instances where the market for a financial instrument is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and establishes a fair value by assigning weights to the various valuation sources. Additionally, when determining the fair value of liabilities in circumstances in which a quoted price in an active market for an identical liability is not available, the Company measures fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities or similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. The Company considers the following factors to be indicators of an inactive market: (i) there are few recent transactions, (ii) price quotations are not based on current information, (iii) price quotations vary substantially either over time or among market makers (for example, some brokered markets), (iv) indexes that previously were highly correlated with the fair values of the asset or liability are demonstrably uncorrelated with recent indications of fair value for that asset or liability, (v) there is a significant increase in implied liquidity risk premiums, yields, or performance indicators (such as delinquency rates or loss severities) for observed transactions or quoted prices when compared with the Company’s estimate of expected cash flows, considering all available market data about credit and other nonperformance risk for the asset or liability, (vi) there is a wide bid-ask spread or significant increase in the bid-ask spread, (vii) there is a significant decline or absence of a market for new issuances (that is, a primary market) for the asset or liability or similar assets or liabilities, and (viii) little information is released publicly (for example, a principal-to-principal market). The Company considers the following factors to be indicators of non-orderly transactions: (i) there was not adequate exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities under current market conditions, (ii) there was a usual and customary marketing period, but the seller marketed the asset or liability to a single market participant, (iii) the seller is in or near bankruptcy or receivership (that is, distressed), or the seller was required to sell to meet regulatory or legal requirements (that is, forced), and (iv) the transaction price is an outlier when compared with other recent transactions for the same or similar assets or liabilities. Redeemable Common Stock In connection with the Private Offering, the Company adopted a share redemption program that enabled stockholders to sell their shares to the Company in limited circumstances. On March 16, 2016, the Company adopted an Amended and Restated Share Redemption Program in anticipation of the commencement of the Public Offering and related designation of Class T shares of common stock (as discussed below): There are several limitations on the Company’s ability to redeem shares under the share redemption program: • Unless the shares are being redeemed in connection with a stockholder’s death, “qualifying disability” or “determination of incompetence” (each as defined under the share redemption program), the Company may not redeem shares unless the stockholder has held the shares for one year. • During any calendar year, the Company may redeem only the number of shares that it could purchase with the amount of net proceeds from the sale of shares under its distribution reinvestment plan during the prior calendar year. However, the Company may increase or decrease the funding available for the redemption of shares pursuant to the program upon ten business days’ notice to its stockholders. • During any calendar year, the Company may redeem no more than 5% of the weighted average number of shares outstanding during the prior calendar year. • The Company has no obligation to redeem shares if the redemption would violate the restrictions on distributions under Maryland law, which prohibits distributions that would cause a corporation to fail to meet statutory tests of solvency. Pursuant to the share redemption program, and provided the redeeming stockholder has held his or her shares for at least one year, the Company expects to initially redeem shares submitted as an ordinary redemption at 95.0% of the price paid to acquire the shares from the Company. Notwithstanding the foregoing, stock dividends will initially be redeemed at the “net investment amount” per share, which will be based on the “amount available for investment/net investment amount” percentage shown in the estimated use of proceeds table in the Company’s prospectus, as supplemented, for the Public Offering. For each class of shares designated, this amount will initially equal $9.40 per share for redemptions of shares received as a result of a stock dividend. Once the Company has established an estimated net asset value (“NAV”) per share of its common stock, it will redeem all shares submitted in connection with an ordinary redemption at 95.0% of the Company’s most recent estimated NAV per share as of the applicable redemption date. For purposes of determining whether a redeeming stockholder has held the share submitted for redemption for at least one year, the time period begins as of the date the stockholder acquired the share; provided, that shares purchased by the redeeming stockholder pursuant to the distribution reinvestment plan or received as a stock dividend will be deemed to have been acquired on the same date as the initial share to which the distribution reinvestment plan shares or stock dividend shares relate. The Company expects to establish an estimated NAV per share no later than 150 days after the second anniversary of the date on which the Company commenced the Public Offering. Once announced, the Company expects to update the estimated NAV per share in December of each year. In several respects the Company treats redemptions sought upon a stockholder’s death, qualifying disability or determination of incompetence differently from other redemptions: • there is no one-year holding requirement; • until the Company establishes an estimated NAV per share, the redemption price is the amount paid to acquire the shares from the Company. Notwithstanding the foregoing, stock dividends will initially be redeemed at the “net investment amount” per share, which will be based on the “amount available for investment/net investment amount” percentage shown in the estimated use of proceeds table in the Company’s prospectus, as supplemented, for the Public Offering. For each class of shares designated, this amount will initially equal $9.40 per share for redemptions of shares received as a result of a stock dividend; and • once the Company has established an estimated NAV per share, the redemption price will be the estimated NAV per share as of the redemption date. The board may amend, suspend or terminate the share redemption program upon 30 days’ notice to stockholders, provided that the Company may increase or decrease the funding available for the redemption of shares pursuant to the share redemption program upon 10 business days’ notice. The Company records amounts that are redeemable under the share redemption program as redeemable common stock in its consolidated balance sheets because the shares will be mandatorily redeemable at the option of the holder and therefore their redemption is outside the control of the Company. The maximum amount redeemable under the Company’s share redemption program is limited to the number of shares the Company could redeem with the amount of the net proceeds from the sale of shares under the distribution reinvestment plan during the prior calendar year. However, because the amounts that can be redeemed are determinable and only contingent on an event that is likely to occur (e.g., the passage of time) the Company will present the net proceeds from the current year and prior year distribution reinvestment plan, net of current year redemptions, as redeemable common stock in its consolidated balance sheets. The Company will classify as liabilities financial instruments that represent a mandatory obligation of the Company to redeem shares. The Company’s redeemable common shares are contingently redeemable at the option of the holder. When the Company determines it has a mandatory obligation to repurchase shares under the share redemption program, it will reclassify such obligations from temporary equity to a liability based upon their respective settlement values. Organization and Offering Costs Organization and offering costs of the Company (other than selling commissions, dealer manager fees and the stockholder servicing fee) may be paid by the Advisor, the Dealer Manager or their affiliates on behalf of the Company or may be paid directly by the Company. Offering costs include all expenses incurred in connection with the Private Offering and the Public Offering. Organization costs include all expenses incurred in connection with the formation of the Company, including but not limited to legal fees and other costs to incorporate the Company. During the Private Offering, there was no limit on the amount of organization and offering costs the Company could incur and the Company is obligated to reimburse the Advisor, the Dealer Manager or their affiliates, as applicable, for organization and offering costs (excluding wholesaling compensation expenses) paid by them on behalf of the Company. During the Public Offering, pursuant to the second amended and restated advisory agreement entered as of April 28, 2016 and the dealer manager agreement for the Public Offering entered as of April 28, 2016, the Company is obligated to reimburse the Advisor, the Dealer Manager or their affiliates, as applicable, for organization and offering costs related to the Public Offering (excluding wholesaling compensation expenses) paid by them on behalf of the Company provided such reimbursement would not cause the total organization and offering costs borne by the Company related to the Public Offering (including selling commissions, dealer manager fees, the stockholder servicing fee and all other items of organization and offering expenses) to exceed 15% of gross offering proceeds raised in the Public Offering as of the date of reimbursement. The Company reimburses the Dealer Manager for underwriting compensation in connection with the Private Offering; however, the Company may also pay all of these costs directly as discussed in the private placement memorandum for the Private Offering. The Company also expects to reimburse the Dealer Manager for underwriting compensation in connection with the Public Offering as discussed in the prospectus for the Public Offering. The Dealer Manager has agreed to reimburse the Company to the extent that total underwriting compensation for the Primary Offering exceeds 10% of the gross offering proceeds raised in the Primary Offering, as of the termination of the Primary Offering. The Company also pays directly or reimburses, and expects to pay directly or reimburse, the Dealer Manager for due diligence expenses of broker dealers in connection with the Private Offering and the Public Offering, respectively. In addition, the Advisor is obligated to reimburse the Company to the extent organization and offering costs (excluding selling commissions, the dealer manager fee and stockholder servicing fee) borne by the Company and incurred in connection with the Primary Offering exceed 1% of gross proceeds raised in the Primary Offering as of the termination of the Primary Offering. As of March 31, 2016 , the Company had not incurred any organization and offering costs related to the Public Offering and all such costs had been funded by the Advisor or the Dealer Manager. As a result, these organization and offering costs related to the Public Offering are not recorded in the financial statements of the Company as of March 31, 2016 because such costs are only a liability of the Company to the extent organization and offering costs incurred by the Company in connection with the Public Offering do not exceed 15% of the gross proceeds raised in the Public Offering. Organization and offering costs related to the Private Offering were not a liability to the Company until the Company satisfied the minimum offering amount in the Private Offering. Because the Company broke escrow in the Private Offering on August 12, 2015, organization and offering costs related to the Private Offering are recorded in the financial statements of the Company as of March 31, 2016 . Organization costs are expensed as incurred and offering costs are deferred and charged to stockholder’s equity as such amounts are reimbursed to the Advisor, the Dealer Manager or their affiliates from the gross proceeds of the applicable offering. Income Taxes The Company intends to elect to be taxed as a REIT under the Internal Revenue Code of 1986, as amended and intends to operate as such beginning with its taxable year ended December 31, 2015. The Company expects to have little or no taxable income prior to electing REIT status. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the Company’s annual REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to federal income tax to the extent it distributes qualifying dividends to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially and adversely affect the Company’s net income and net cash available for distribution to stockholders. However, the Company intends to organize and operate in such a manner as to qualify for treatment as a REIT. Per Share Data Basic net income (loss) per share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock equals basic net income (loss) per share of common stock as there were no potentially dilutive securities outstanding for the period from January 27, 2015 to March 31, 2016. For the purpose of determining the weighted average number of shares outstanding, stock dividends issued during the period presented and subsequent to March 31, 2016 but before the issuance of the consolidated financial statements are adjusted retroactively and treated as if they were issued and outstanding for all periods presented. During the three months ended March 31, 2016, the Company declared total cash distributions of $0.12328740 per share of common stock and total stock dividends of 0.00246576 shares of common stock on each outstanding share of common stock, assuming the share of common stock was outstanding each day that was a record date for cash distributions or stock dividends, respectively. The Company did not declare any cash distributions or stock dividends during the period from January 27, 2015 to March 31, 2015. Square Footage, Occupancy and Other Measures Square footage, number of acres, occupancy and other measures used to describe real estate investments included in these Condensed Notes to Consolidated Financial Statements are presented on an unaudited basis. Recently Issued Accounting Standards Update In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”). ASU No. 2014-09 requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU No. 2014-09 supersedes the revenue requirements in Revenue Recognition (Topic 605) and most industry-specific guidance throughout the Industry Topics of the Codification. ASU No. 2014-09 does not apply to lease contracts within the scope of Leases (Topic 840). ASU No. 2014-09 was to be effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU No. 2015-14”), which defers the effective date of ASU No. 2014-09 by one year. Early adoption is permitted but not before the original effective date. The Company is still evaluating the impact of adopting ASU No. 2014-09 on its financial statements, but does not expect the adoption of ASU No. 2014-09 to have a material impact on its financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements (Subtopic 205-40) , Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU No. 2014-15”). The amendments in ASU No. 2014-15 require management to evaluate, for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or are available to be issued when applicable) and, if so, provide related disclosures. ASU No. 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not expect the adoption of ASU No. 2014-15 to have a significant impact on its financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments -

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
STOCKHOLDERS’ EQUITY	STOCKHOLDERS’ EQUITY General Under the Second Articles of Amendment and Restatement of the Company, the total number of shares of capital stock authorized for issuance is 1,010,000,000 shares, consisting of 1,000,000,000 shares of common stock, 500,000,000 of which are classified as shares of Class A common stock, and 10,000,000 shares of preferred stock, each as defined by the Company’s Second Articles of Amendment and Restatement. On April 8, 2016, the Company classified and designated 500,000,000 shares of its common stock as shares of Class T common stock. The shares of common stock have a par value of $0.01 per share and entitle the holders to one vote per share on all matters upon which stockholders are entitled to vote, to receive dividends and other distributions as authorized by the board of directors in accordance with the Maryland General Corporation Law and to all rights of a stockholder pursuant to the Maryland General Corporation Law. The common stock has no preferences or preemptive, conversion or exchange rights. As of March 31, 2016 and December 31, 2015 , the Company had issued 6,348,966 shares of Class A common stock and 2,216,821 shares of Class A common stock, respectively. The Company is authorized to issue one or more classes or series of preferred stock. Prior to the issuance of such shares, the board of directors shall have the power from time to time to classify or reclassify, in one or more series, any unissued shares and designate the preferences, rights and privileges of such shares. As of December 31, 2015 and March 31, 2016 , no shares of the Company’s preferred stock were issued and outstanding. Distribution Reinvestment Plan The Company has adopted a distribution reinvestment plan, as amended and restated (the “DRP”), through which common stockholders may elect to reinvest an amount equal to the cash distributions declared on their shares, excluding those distributions that the board of directors designates as ineligible for reinvestment through the DRP, in additional shares of the Company’s common stock in lieu of receiving cash distributions. Until the Company announces an estimated NAV, participants in the DRP will acquire shares of common stock at a price per share equal to 95% of the then-current offering price for shares in the primary portion of an offering (whether in the primary portion of the Private Offering, the Public Offering or a follow-on primary offering and ignoring any discounts that may be available to certain categories of purchasers) or 95% of the most recent offering price in a primary offering if there is no current offering. This DRP offering price was initially $8.455 per share of common stock and increased to $8.598 effective November 19, 2015, $8.740 effective December 3, 2015, $8.835 effective February 4, 2016 and $8.930 effective March 31, 2016, in accordance with the pricing schedule for the Private Offering. Upon the commencement of the Public Offering on April 28, 2016, the DRP offering price increased to $9.88 per Class A share and $9.50 per Class T share. Once the Company has announced an estimated NAV per share, which the Company expects to occur no later than 150 days after the second anniversary of the date on which the Company commences the Public Offering, participants in the DRP will acquire shares of common stock at a price equal to 95% of the estimated NAV per share of the Company’s common stock. The board of directors of the Company may amend or terminate the DRP for any reason upon 10 days’ notice to participants.

REAL ESTATE

REAL ESTATE	3 Months Ended
	Mar. 31, 2016
Real Estate [Abstract]
REAL ESTATE	REAL ESTATE As of March 31, 2016 , the Company owned one office building containing 101,161 rentable square feet, which was 100% leased. The following table provides summary information regarding the property owned by the Company as of March 31, 2016 : Property Date Acquired City State Property Type Total Real Estate at Cost Accumulated Depreciation and Amortization Total Real Estate, Net Von Karman Tech Center 08/12/2015 Irvine CA Office $ 21,420,599 $ (567,522 ) $ 20,853,077 Operating Leases The Company’s real estate property is leased to tenants under operating leases for which the terms and expirations vary. As of March 31, 2016 , the leases had remaining terms, excluding options to extend, of up to 10.3 years with a weighted-average remaining term of 5.5 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, 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 $0.2 million and $0.2 million as of March 31, 2016 and December 31, 2015 . During the three months ended March 31, 2016 , the Company recognized deferred rent from tenants of $0.1 million , respectively. As of March 31, 2016, the cumulative deferred rent balance was $0.3 million and is included in rents and other receivables on the accompanying balance sheets. As of March 31, 2016 , the future minimum rental income from the Company’s property under its non-cancelable operating leases was as follows: April 1, 2016 through December 31, 2016 $ 1,519,173 2017 2,092,148 2018 1,866,986 2019 1,497,443 2020 1,440,502 Thereafter 3,943,938 $ 12,360,190 As of March 31, 2016 , the Company had a concentration of credit risk related to LNH, Inc., a tenant in Von Karman Tech in the computer industry, which represented 40% of the Company’s annualized base rent. The tenant individually occupied 44,892 rentable square feet or approximately 44% of the total property rentable square feet at Von Karman Tech Center. Its lease expires on June 30, 2023, with two five -year extension options. As of March 31, 2016 , the annualized base rent for this tenant was approximately $0.9 million or $20.05 per square foot. No other tenant represented more than 10% of the Company’s annualized base rent. No material tenant credit issues have been identified at this time.

TENANT ORIGINATION AND ABSORPTI

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES	3 Months Ended
	Mar. 31, 2016
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 AND BELOW-MARKET LEASE LIABILITIES As of March 31, 2016 and December 31, 2015 , the Company’s tenant origination and absorption costs, and below-market lease liabilities were as follows: Tenant Origination and Absorption Costs Below-Market Lease Liabilities March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 Cost $ 1,987,175 $ 1,987,175 $ (122,143 ) $ (122,143 ) Accumulated Amortization (240,158 ) (144,599 ) 14,599 8,932 Net Amount $ 1,747,017 $ 1,842,576 $ (107,544 ) $ (113,211 ) During the three months ended March 31, 2016 , the Company recorded $95,559 of amortization expense related to tenant origination and absorption costs and $5,667 related to below-market lease liabilities, respectively.

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2016
Notes Payable [Abstract]
NOTES PAYABLE	NOTES PAYABLE As of March 31, 2016, the Company’s notes payable consisted of the following: Book Value as of March 31, 2016 Book Value as of December 31, 2015 Contractual Interest Rate as of March 31, 2016 (1) Effective Interest Rate at March 31, 2016 (1) Payment Type Maturity Date Von Karman Tech Center Mortgage Loan (2) $ 16,371,790 $ 16,346,040 One-month LIBOR + 3.50% 3.94% (3) 09/01/2020 Note payable principal outstanding 16,371,790 16,346,040 Deferred financing costs, net (274,574 ) (289,059 ) Note payable, net $ 16,097,216 $ 16,056,981 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of March 31, 2016 . Effective interest rate is calculated as the actual interest rate in effect at March 31, 2016 (consisting of the contractual interest rate), using interest rate indices at March 31, 2016 , where applicable. (2) Subsequent to March 31, 2016 , the Company repaid $5.1 million of the Von Karman Tech Center Mortgage Loan principal balance. (3) Monthly payments are initially interest-only; however, under certain circumstances described in the loan agreement, the Company may be required to make payments consisting of both principal and interest. During the three months ended March 31, 2016 , the Company incurred $0.2 million of interest expense. As of March 31, 2016 and December 31, 2015 , $55,525 and $52,142 of interest expense was payable. Included in interest expense during the three months ended March 31, 2016 was $15,485 of amortization of deferred financing costs.

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	3 Months Ended
	Mar. 31, 2016
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, as defined under GAAP, is the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. The fair value for certain financial instruments is derived using valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of the Company’s financial instruments. Financial instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive or consist of non-orderly trades. The Company evaluates several factors when determining if a market is inactive or when market transactions are not orderly. The following is a summary of the methods and assumptions used by management in estimating the fair value of each class of financial instrument for which it is practicable to estimate the fair value: Cash and cash equivalents, restricted cash, and accounts payable and accrued liabilities: These balances approximate their fair values due to the short maturities of these items. Notes payable: The fair value of the Company’s notes payable is estimated using a discounted cash flow analysis based on management’s estimates of current market interest rates for instruments with similar characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. Additionally, when determining the fair value of liabilities in circumstances in which a quoted price in an active market for an identical liability is not available, the Company measures fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities or similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. The Company classifies these inputs as Level 3 inputs. The following were the face value, carrying amount and fair value of the Company’s note payable as of March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 16,371,790 $ 16,097,216 $ 16,471,151 $ 16,346,040 $ 16,056,981 $ 16,556,729 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. The actual value could be materially different from the Company’s estimate of value.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED-PARTY TRANSACTIONS As of March 31, 2016 , the Company had entered into the Advisory Agreement with the Advisor and the Dealer Manager Agreement with the Dealer Manager with respect to the Private Offering. These agreements entitle the Advisor and/or the Dealer Manager to specified fees upon the provision of certain services with regard to the Private Offering and entitle the Advisor to specified fees upon the provision of certain services with regard to the investment of funds in real estate investments, the management of those investments, among other services, and the disposition of investments, as well as reimbursement of organization and offering costs incurred by the Advisor and the Dealer Manager on behalf of the Company, such as expenses related to the Private Offering, 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. 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. Upon commencement of the Public Offering on April 28, 2016, the Company entered a second amended and restated advisory agreement with the Advisor and a new dealer manager agreement with the Dealer Manager. The Advisor and Dealer Manager also serve as the advisor and dealer manager, respectively, for KBS Real Estate Investment Trust, Inc. (“KBS REIT I”), KBS Real Estate Investment Trust II, Inc. (“KBS REIT II”), KBS Real Estate Investment Trust III, Inc. (“KBS REIT III”), KBS Strategic Opportunity REIT, Inc. (“KBS Strategic Opportunity REIT”), KBS Legacy Partners Apartment REIT, Inc. (“KBS Legacy Partners Apartment REIT”) and KBS Strategic Opportunity REIT II, Inc. (“KBS Strategic Opportunity REIT II”). The fees and reimbursement obligations, including the Company’s obligation to reimburse the Advisor for an advance to fund cash distributions, with respect to the agreements in place through March 31, 2016 for the Private Offering are as follows: Form of Compensation Amount Selling Commissions The Company pays the Dealer Manager up to 6.5% of gross offering proceeds in the primary offering of the Private Offering. No selling commissions are payable on shares sold under the distribution reinvestment plan. The Dealer Manager reallows 100% of selling commissions earned to participating broker-dealers. Dealer Manager Fee The Company pays the Dealer Manager up to 2.0% of gross offering proceeds in the primary offering of the Private Offering. The Dealer Manager may reallow to any participating broker-dealer up to 1.5% of the gross offering proceeds attributable to that participating broker-dealer as a marketing fee, based upon such factors as the projected sales volume by such participating broker-dealer and the level of assistance of such participating broker-dealer in marketing this offering; no dealer manager fee is payable on shares of common stock sold under the distribution reinvestment plan. Organization and Other Offering Expenses The Company reimburses the Advisor and the Dealer Manager for organization and other offering costs they incur on its behalf in connection with the Private Offering. These organization and other offering expenses include all expenses (other than selling commissions and the dealer manager fee) to be paid in connection with the Private Offering, including the Company’s legal, accounting, printing, mailing and filing fees, charges of the escrow holder and transfer agent, charges of the Advisor for administrative services related to the issuance of shares in the Private Offering, reimbursement of due diligence expenses of broker dealers, reimbursement of the Advisor for costs in connection with preparing supplemental sales materials, the cost of training and education meetings held by the Company (primarily the travel, meal and lodging costs of registered representatives of broker-dealers), attendance and sponsorship fees, travel, meal and lodging costs for registered persons associated with the Dealer Manager and officers and employees of the Company’s affiliates to attend retail seminars conducted by broker-dealers. The Company does not reimburse for wholesaling compensation expenses. Also see Note 2, “Summary of Significant Accounting Policies — Organization and Offering Costs” for further discussion. Form of Compensation Amount Acquisition and Origination Fees The Company pays the Advisor 2.0% of the cost of investments acquired or originated by the Company, or the amount to be funded to acquire or originate loans, including acquisition and origination expenses and any debt attributable to such investments, plus significant capital expenditures budgeted as of the date of acquisition related to the development, construction or improvement of a real estate property. Acquisition fees calculated based on capital expenditures budgeted as of the date of acquisition are paid at the time funds are disbursed pursuant to a final approved budget upon receipt of an invoice by the Company. Acquisition and Origination Expenses The Company reimburses the Advisor or its affiliates for customary acquisition and origination expenses (including expenses relating to potential investments that do not close), such as legal fees and expenses (including fees of independent contractor in-house counsel that are not employees of the Advisor), costs of due diligence (including, as necessary, updated appraisals, surveys and environmental site assessments), travel and communication expenses, accounting fees and expenses and other closing costs and miscellaneous expenses relating to the acquisition or origination of real estate properties and real estate-related investments. Asset Management Fees The Company pays the Advisor a monthly fee equal to one-twelfth of 1.6% of the cost of its investments, less any debt secured by or attributable to the investments. The cost of the real property investments is calculated as the amount paid or allocated to acquire the real property, plus the budgeted capital improvement costs for the development, construction or improvements to the property once such funds are disbursed pursuant to a final approved budget and fees and expenses related to the acquisition, but excluding acquisition fees paid or payable to the Advisor. The cost of the Company’s real estate-related investments and any investments other than real property will be calculated as the lesser of: (x) the amount paid or allocated to acquire or fund the investment, including fees and expenses related to the acquisition or origination (but excluding acquisition or origination fees paid to the Advisor), and (y) the outstanding principal amount of such investment, including fees and expenses related to the acquisition or funding of such investment (but excluding acquisition or origination fees paid or payable to the Advisor). In the case of investments made through joint ventures, the asset management fee will be determined based on the Company’s proportionate share of the underlying investment. Reimbursement of Operating Expenses The Company may reimburse the expenses incurred by the Advisor or its affiliates in connection with their provision of services to the Company, including the Company’s allocable share of the Advisor’s overhead, such as rent, employee costs, utilities and cybersecurity costs. The Advisor may seek reimbursement for employee costs under the Advisory Agreement. At this time, the Company anticipates it will only reimburses the Advisor for its allocable portion of the salaries, benefits and overhead of internal audit department personnel providing services to the Company. In the future, if the Advisor seeks reimbursement for additional employee costs, such costs may include the Company’s proportionate share of the salaries of persons involved in the preparation of documents to meet SEC reporting requirements if the Company becomes a public reporting company. The Company will not reimburse the Advisor or its affiliates for employee costs in connection with services for which the Advisor or its affiliates receive acquisition or origination fees or disposition fees (other than reimbursement of travel and communication expenses) or for the salaries and benefits the Advisor or its affiliates may pay to the Company’s executive officers. Form of Compensation Amount The Company reimburses the Dealer Manager for certain fees and expenses it incurs for administering the Company’s participation in the DTCC Alternative Investment Product Platform, or the AIP Platform, with respect to certain accounts of the Company’s investors serviced through the AIP Platform. The Company has entered, together with KBS REIT I, KBS REIT II, KBS Strategic Opportunity REIT, KBS Legacy Partners Apartment REIT, KBS REIT III, KBS Strategic Opportunity REIT II, the Dealer Manager, the Advisor and other KBS affiliated entities, 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. Subordinated Participation in Net Cash Flows After the Company’s common stockholders have received, together as a collective group, aggregate distributions (including distributions that may constitute a return of capital for federal income tax purposes) sufficient to provide (i) a return of their gross investment amount, which is the amount calculated by multiplying the total number of shares purchased by stockholders by the issue price, reduced by the total number of shares repurchased by the Company multiplied by the weighted average issue price of the shares sold in the primary offering, and (ii) a 6% per year cumulative, noncompounded return on such gross investment amount, the Advisor is entitled to receive 15% of the Company’s net cash flows, whether from continuing operations, net sales proceeds, net financing proceeds, or otherwise. Net sales proceeds means the net cash proceeds realized by the Company after deduction of all expenses incurred (i) in connection with a disposition of the Company’s assets, or (ii) from the prepayment, maturity, workout or other settlement of any loan or other investment. Net financing proceeds means the net cash proceeds realized from the financing of the Company’s assets or refinancing of the Company’s debt. The 6% per year cumulative, noncompounded return on gross investment amount is calculated on a daily basis. In making this calculation, gross investment amount is determined for each day during the period for which the 6% per year cumulative, noncompounded return is being calculated, including a daily adjustment to reflect shares repurchased by the Company, and gross investment amount is reduced by the following: (i) distributions from net sales proceeds, (ii) distributions paid from operating cash flow in excess of a cumulative, noncompounded, annual return of 6%, and (iii) distributions from net financing proceeds, except to the extent such distributions would be required to supplement prior distributions paid in order to achieve a cumulative, noncompounded, annual return of 6%. Gross investment amount is only reduced as described above; it is not reduced simply because a distribution constitutes a return of capital for federal income tax purposes. Form of Compensation Amount Disposition Fee In connection with the sale of the Company’s assets, which includes the sale of a single asset or the sale of all or a portion of the Company’s assets through a portfolio sale, merger, or business combination transaction, the Company will pay the Advisor or its affiliates a percentage of the contract sales price of the assets sold (including residential or commercial mortgage-backed securities issued by a subsidiary of the Company as part of a securitization transaction). For dispositions with a contract sales price less than or equal to $1.5 billion, the disposition fee will equal 1.5% of the contract sales price. For dispositions with a contract sales price greater than $1.5 billion, the disposition fee will equal 1.5% of the first $1.5 billion of the contract sales price, plus 1.1% of the amount of the contract sales price in excess of $1.5 billion. The Company will not pay a disposition fee upon the maturity, prepayment or workout of a loan or other debt-related investment, provided that (i) if the Company negotiates a discounted payoff with the borrower it will pay a disposition fee and (ii) if the Company takes ownership of a property as a result of a workout or foreclosure of a loan, it will pay a disposition fee upon the sale of such property. The disposition fee is determined on a per transaction basis and is not cumulative. Subordinated Incentive Fee Upon a merger or listing of the Company’s common stock on a national securities exchange, the Company will pay the Advisor an incentive fee. Upon a listing this fee will equal 15% of the amount by which (i) the market value of the outstanding stock plus the total of all distributions paid by the Company to stockholders from inception until the date market value is determined (including distributions that may constitute a return of capital for federal income tax purposes and excluding any stock dividend) exceeds (ii) the sum of the stockholders’ gross investment amount, which is the amount calculated by multiplying the total number of shares purchased by stockholders by the issue price, reduced by the total number of shares repurchased by the Company multiplied by the weighted average issue price of the shares sold in the primary offering, and the amount of cash flow necessary to generate a 6% per year cumulative, noncompounded return on stockholders’ gross investment amount from inception of the Company through the date the market value is determined. Upon a merger this fee will equal 15% of the amount by which (i) the merger consideration amount plus the total of all distributions paid or declared by the Company to stockholders from inception until the closing of the merger (including distributions that may constitute a return of capital for federal income tax purposes and excluding any stock dividend) exceeds (ii) the sum of the stockholders’ gross investment amount, which is the amount calculated by multiplying the total number of shares purchased by stockholders by the issue price, reduced by the total number of shares repurchased by the Company multiplied by the weighted average issue price of the shares sold in the primary offering, and the amount necessary to generate a 6% per year cumulative, noncompounded return on stockholders’ gross investment amount from the Company’s inception through the closing of the merger. Form of Compensation Amount The 6% per year cumulative, noncompounded return on gross investment amount is calculated on a daily basis. In making this calculation, gross investment amount is determined for each day during the period for which the 6% per year cumulative, noncompounded return is being calculated, including a daily adjustment to reflect shares repurchased by the Company, and gross investment amount is reduced by the following: (i) distributions from net sales proceeds, (ii) distributions paid from operating cash flow in excess of a cumulative, noncompounded, annual return of 6%, and (iii) distributions from net financing proceeds, except to the extent such distributions would be required to supplement prior distributions paid in order to achieve a cumulative, noncompounded, annual return of 6%. Gross investment amount is only reduced as described above; it is not reduced simply because a distribution constitutes a return of capital for federal income tax purposes. Advance from the Advisor The Advisor has agreed to advance funds to the Company for distribution record dates through the period ending May 31, 2016. The Company is only obligated to repay the Advisor for its advance if and to the extent that: (i) the Company’s modified funds from operations (“MFFO”), as such term is defined by the Investment Program Association and interpreted by the Company, for the immediately preceding month exceeds the amount of distributions declared for record dates of such prior month (an “MFFO Surplus”), and the Company will pay the Advisor the amount of the MFFO Surplus to reduce the principal amount outstanding under the advance, provided that such payments shall only be made if management in its sole discretion expects an MFFO Surplus to be recurring for at least the next two calendar quarters, determined on a quarterly basis; or (ii) Excess proceeds from third-party financings are available (“Excess Proceeds”), provided that the amount of any such Excess Proceeds that may be used to repay the principal amount outstanding under the advance shall be determined by the conflicts committee in its sole discretion. No interest accrues on the advance made by the Advisor. In determining whether Excess Proceeds are available to repay the advance, the Company’s conflicts committee will consider whether cash on hand could have been used to reduce the amount of third-party financing provided to us. If such cash could have been used instead of third-party financing, the third-party financing proceeds will be available to repay the advance. The Company may terminate the Advisory Agreement on 60 days’ written notice. The Advisor in its sole discretion may defer any fee payable to it under the Advisory Agreement. All or any portion of such fee not taken may be deferred without interest and paid when the Advisor determines. 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, 2016 and the period from January 27, 2015 to March 31, 2015 and any related amounts payable as of March 31, 2016 and December 31, 2015 . Incurred Payable as of Three Months Ended March 31, 2016 For the Period from January 27, 2015 to March 31, 2015 March 31, 2016 December 31, 2015 Expensed Asset management fees $ 20,262 $ — $ — $ — Reimbursement of operating expenses (1) 51,527 — 48,980 205,276 Property management fees (2) 7,770 — 7,770 — Other Arrangement Advisor advance for cash distributions (3) 458,289 — 656,786 198,497 Additional Paid-in Capital Selling commissions 1,833,620 — — — Dealer manager fees 713,395 — — — Reimbursable other offering costs (4) 324,983 — 593,658 1,030,749 $ 3,409,846 $ — $ 1,307,194 $ 1,434,522 _____________________ (1) Reimbursable operating expenses primarily related to directors and officers liability insurance, legal fees, state and local taxes, 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 $2,547 for the three months ended March 31, 2016 , and were the only type of employee costs reimbursed under the Advisory Agreement for the three months ended March 31, 2016 . The Company will not reimburse for employee costs in connection with services for which the Advisor earns acquisition, origination 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. (2) See “Real Estate Property Co-Management Agreement” below. (3) See “—Advance from the Advisor” above. (4) See Note 2, “Summary of Significant Accounting Policies – Organization and Offering Costs” for more information related to other offering costs related to the Private and Public Offering. As of March 31, 2016 , the Company had $3,670 due from the Advisor related to a property insurance rebate. Conflicts of Interest All of the Company’s executive officers, affiliated directors and other key real estate and debt finance professionals assembled by the Advisor are also officers, directors, managers, key professionals and/or holders of a direct or indirect controlling interest in the Advisor, the Dealer Manager and/or other KBS-affiliated investment advisors that are the sponsors of other KBS-sponsored programs or are the advisors of KBS-advised investors; and all of the Company’s executive officers, affiliated directors and other key real estate and debt finance professionals assembled by the Advisor are executive officers, affiliated directors and/or key professionals of KBS REIT I, KBS REIT II, KBS Legacy Partners Apartment REIT, KBS Strategic Opportunity REIT, KBS REIT III and KBS Strategic Opportunity REIT II, which are public, non-traded REITs advised by the Advisor. Through affiliates of the Advisor, key real estate and debt finance professionals at the Advisor also serve as investment advisors to KBS-advised investors. These individuals have legal and financial obligations with respect to those KBS-sponsored programs and KBS-advised investors that are similar to their obligations to the Company. In the future, these individuals and other affiliates of the Advisor may organize other KBS-sponsored programs, serve as the investment advisor to other KBS-advised investors and acquire for their own account real estate investments that may be suitable for the Company. Some of the material conflicts that the Advisor, the Dealer Manager or their affiliates face are 1) the determination of whether an investment opportunity should be recommended to the Company or another KBS-sponsored program or KBS-advised investor; 2) the competition for tenants or the resale of properties among the Company and other KBS-sponsored programs and KBS-advised investors; 3) the allocation of the time of key executive officers, directors, and other real estate professionals among the Company, other KBS-sponsored programs and KBS-advised investors, and the activities in which they are involved; 4) the fees received by the Advisor and its affiliates in connection with transactions involving the purchase, origination, management and sale of investments regardless of the quality of the asset acquired or the service provided the Company; and 5) the fees received by the Advisor, the Dealer Manager, and their affiliates in connection with offerings of securities. Real Estate Property Co-Management Agreement On March 9, 2016, the Company entered a property management agreement (the “Property Management Agreement”) with KBS Management Group, LLC (the “Co-Manager”), an affiliate of the Advisor, in connection with Von Karman Tech Center. Pursuant to the Property Management Agreement, the Co-Manager will provide certain management services related to Von Karman Tech Center in addition to those provided by the third-party property manager. In exchange for these services, the owner of Von Karman Tech Center, the Company’s indirect wholly owned subsidiary (the “Owner”), will pay the Co-Manager a monthly fee equal to 1.5% of the rent, payable and actually collected for the month, from the Von Karman Tech Center. The Co-Manager will generally be responsible for all expenses it incurs in rendering services pursuant to the Property Management Agreement. The effective date of the Property Management Agreement was January 1, 2016 and the initial term of the Property Management Agreement is for one year and will be deemed renewed for successive one -year periods provided it is not terminated. Each party may terminate the Property Management Agreement without cause on 30 days’ written notice to the other party and may terminate the Property Management Agreement for cause on 5 days’ written notice to the other party upon the occurrence of certain events as detailed in the Property Management Agreement.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Economic Dependency The Company depends on the Advisor and the Dealer Manager for certain services that are essential to the Company, including the sale of the Company’s shares of common stock; 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 these companies are unable to provide the respective services, the Company will be required to obtain such services from other sources. Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. Although there can be no assurance, the Company is not aware of any environmental liability that could have a material adverse effect on its financial condition or results of operations. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s property, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the property could result in future environmental liabilities. Legal Matters From time to time, the Company may become party to legal proceedings that arise in the ordinary course of its business. Management is not aware of any legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on the Company’s results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss. Additionally, the Company has not recorded any loss contingencies related to legal proceedings in which the potential loss is deemed to be remote.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS The Company evaluates subsequent events up until the date the consolidated financial statements are issued. Status of the Offering The Company commenced the Private Offering on June 11, 2015. On April 27, 2016, the Company ceased offering shares in the primary portion of the Private Offering but will continue to process subscription agreements for the primary Private Offering for up to 30 days following April 27, 2016 for subscription agreements dated on or before April 27, 2016. From commencement through May 10, 2016, the Company sold 8,205,886 shares of Class A common stock for gross offering proceeds of $73.6 million in the Private Offering. The Company commenced the Public Offering on April 28, 2016. As of May 10, 2016, the Company has not made any sales in the Public Offering. Distributions and Stock Dividends On April 1, 2016, the Company paid cash distributions of $213,109 , which related to cash distributions declared for daily record dates for each day in the period from March 1, 2016 through March 31, 2016. On May 3, 2016, the Company paid cash distributions of $299,489 , which related to cash distributions declared for daily record dates for each day in the period from April 1, 2016 through April 30, 2016. Cash distributions for all periods since inception have been funded by a total advance from the Advisor of $ 970,637 as of May 10, 2016. The Advisor has agreed to advance funds for future cash distributions for record dates through May 31, 2016. On March 16, 2016, the Company’s board of directors declared cash distributions based on daily record dates for the period from May 1, 2016 through May 31, 2016, which the Company expects to pay in June 2016. On May 11, 2016, the Company’s board of directors declared cash distributions based on daily record dates for the period from June 1, 2016 through June 30, 2016, which the Company expects to pay in July 2016, and the period from July 1, 2016 through July 31, 2016, which the Company expects to pay in August 2016. Investors may choose to receive cash distributions or purchase additional shares through the Company’s distribution reinvestment plan. Distributions for these periods will be calculated based on stockholders of record each day during these periods at a rate of $0.00136986 per share per day reduced by the applicable daily stockholder servicing fees accrued for and allocable to any class of common stock, divided by the number of shares of common stock of such class outstanding as of the close of business on the respective record date. On April 1, 2016, the Company issued 5,424 shares of common stock in connection with stock dividends declared for each share of common stock outstanding on March 31, 2016. On May 4, 2016, the Company issued 6,355 shares of common stock in connection with stock dividends declared for each share of common stock outstanding on April 30, 2016. On March 16, 2016, the Company’s board of directors declared stock dividends of 0.00084932 shares of common stock on each outstanding share of common stock to all stockholders of record as of the close of business on May 31, 2016, which the Company expects to issue in June 2016. On May 11, 2016, the Company’s board of directors declared stock dividends of 0.00082192 shares and 0.00084932 shares of common stock on each outstanding share of common stock to all stockholders of record as of the close of business on June 30, 2016 and July 31, 2016, respectively, which the Company expects to issue in July 2016 and August 2016, respectively. Probable Real Estate Acquisition Purchase and Sale Agreement for the Commonwealth Building On May 6, 2016, the Company, through an indirect wholly owned subsidiary, entered into a purchase and sale agreement to acquire a 14-story Class A office building containing 216,099 rentable square feet located on approximately 0.46 acres of land in Portland, Oregon (the “Commonwealth Building”). The seller is not affiliated with the Company or the Advisor. The contractual purchase price of the Commonwealth Building is approximately $69.0 million plus closing costs. Pursuant to the purchase and sale agreement, the Company would be obligated to purchase the property only after satisfaction of agreed upon closing conditions. There can be no assurance that the Company will complete the acquisition. As of May 9, 2016, the Company had made a deposit of $2.0 million and, in some circumstances, if the Company fails to complete the acquisition, it may forfeit up to $2.0 million of earnest money. As of May 1, 2016, the Commonwealth Building was 94% leased to 25 tenants. Second Amended and Restated Advisory Agreement On April 28, 2016, in connection with the commencement of the Public Offering, the Company and the Advisor entered into the second amended and restated advisory agreement. Dealer Manager Agreement On April 28, 2016, in connection with the commencement of the Public Offering, the Company and the Dealer Manager entered into the dealer manager agreement for the Public Offering.

SUMMARY OF SIGNIFICANT ACCOUN17

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2016
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, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.
Principles of Consolidation	The consolidated financial statements include the accounts of the Company, REIT Holdings, the Operating Partnership, and their direct and indirect wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation.
Use of Estimates	The preparation of the consolidated financial statements and the accompanying notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates.
Revenue Recognition, Real Estate	The Company recognizes minimum rent, including rental abatements, lease incentives and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related leases when collectibility is reasonably assured and records amounts expected to be received in later years as deferred rent receivable. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that the tenant can take in the form of cash or a credit against its rent) that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how a tenant improvement allowance may be spent; • whether the amount of a tenant improvement allowance is in excess of market rates; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general-purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease. The Company records property operating expense reimbursements due from tenants for common area maintenance, real estate taxes, and other recoverable costs in the period the related expenses are incurred. The Company makes estimates of the collectibility of its tenant receivables related to base rents, including deferred rent receivable, expense reimbursements and other revenue or income. Management specifically analyzes accounts receivable, deferred rent receivable, historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. In addition, with respect to tenants in bankruptcy, management makes estimates of the expected recovery of pre-petition and post-petition claims in assessing the estimated collectibility of the related receivable. In some cases, the ultimate resolution of these claims can exceed one year. When a tenant is in bankruptcy, the Company will record a bad debt reserve for the tenant’s receivable balance and generally will not recognize subsequent rental revenue until cash is received or until the tenant is no longer in bankruptcy and has the ability to make rental payments.
Revenue Recognition, Cash and Cash Equivalents	The Company recognizes interest income on its cash and cash equivalents as it is earned and classifies such amounts as other income.
Real Estate, Depreciation and Amortization	Real estate costs related to the acquisition and improvement of properties are capitalized and amortized over the expected useful life of the asset on a straight-line basis. Repair and maintenance costs are charged to expense as incurred and significant replacements and betterments are capitalized. Repair and maintenance costs include all costs that do not extend the useful life of the real estate asset. The Company considers the period of future benefit of an asset to determine its appropriate useful life. Expenditures for tenant improvements are capitalized and amortized over the shorter of the tenant’s lease term or expected useful life. The Company anticipates the estimated useful lives of its assets by class to be generally as follows: Buildings 25 - 40 years Building improvements 10 - 25 years Tenant improvements Shorter of lease term or expected useful life Tenant origination and absorption costs Remaining term of related leases, including
Real Estate, Real Estate Acquisition Valuation	The Company records the acquisition of income-producing real estate or real estate that will be used for the production of income as a business combination. All assets acquired and liabilities assumed in a business combination are measured at their acquisition-date fair values. Acquisition costs are expensed as incurred and restructuring costs that do not meet the definition of a liability at the acquisition date are expensed in periods subsequent to the acquisition date. The Company assesses the acquisition date fair values of all tangible assets, identifiable intangibles and assumed liabilities using methods similar to those used by independent appraisers, generally utilizing a discounted cash flow analysis that applies appropriate discount and/or capitalization rates and available market information. Estimates of future cash flows are based on a number of factors, including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it were vacant. The Company records above-market and below-market in-place lease values for acquired properties based on the present value (using a discount rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of above-market in-place leases and for the initial term plus any extended term for any leases with below-market renewal options. The Company amortizes any recorded above-market or below-market lease values as a reduction or increase, respectively, to rental income over the remaining non-cancelable terms of the respective lease, including any below-market renewal periods. The Company estimates the value of tenant origination and absorption costs by considering the estimated carrying costs during hypothetical expected lease up periods, considering current market conditions. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease up periods. The Company amortizes the value of tenant origination and absorption costs to depreciation and amortization expense over the remaining non-cancelable term of the leases. Estimates of the fair values of the tangible assets, identifiable intangibles and assumed liabilities require the Company to make significant assumptions to estimate market lease rates, property-operating expenses, carrying costs during lease-up periods, discount rates, market absorption periods, and the number of years the property will be held for investment. The use of inappropriate assumptions would result in an incorrect valuation of the Company’s acquired tangible assets, identifiable intangibles and assumed liabilities, which would impact the amount of the Company’s net income.
Real Estate, Impairments of Real Estate and Related Intangible Assets and Liabilities	The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate and related intangible assets and liabilities may not be recoverable or realized. When indicators of potential impairment suggest that the carrying value of real estate and related intangible assets and liabilities may not be recoverable, the Company assesses the recoverability by estimating whether the Company will recover the carrying value of the real estate and related intangible assets and liabilities through its undiscounted future cash flows and its eventual disposition. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of the real estate and related intangible assets and liabilities, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the real estate and related intangible assets and liabilities.
Cash and Cash Equivalents	The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Cash and cash equivalents are stated at cost, which approximates fair value. The Company’s cash and cash equivalents balance may exceed federally insurable limits. The Company intends to mitigate this risk by depositing funds with a major financial institution; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. There were no restrictions on the use of the Company’s cash and cash equivalents as of December 31, 2015 and March 31, 2016 .
Deferred Financing Costs	Deferred financing costs represent commitment fees, loan fees, legal fees and other third-party costs associated with obtaining financing and are presented on the balance sheet as a direct deduction from the carrying value of the associated debt liability. These costs are amortized over the terms of the respective financing agreements using the interest method. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity unless specific rules are met that would allow for the carryover of such costs to the refinanced debt. Deferred financing costs incurred before an associated debt liability is recognized are included in prepaid and other assets on the balance sheet. Costs incurred in seeking financing transactions that do not close are expensed in the period in which it is determined that the financing will not close.
Fair Value Measurements	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. When available, the Company utilizes quoted market prices from independent third-party sources to determine fair value and classifies such items in Level 1 or Level 2. In instances where the market for a financial instrument is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and establishes a fair value by assigning weights to the various valuation sources. Additionally, when determining the fair value of liabilities in circumstances in which a quoted price in an active market for an identical liability is not available, the Company measures fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities or similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. The Company considers the following factors to be indicators of an inactive market: (i) there are few recent transactions, (ii) price quotations are not based on current information, (iii) price quotations vary substantially either over time or among market makers (for example, some brokered markets), (iv) indexes that previously were highly correlated with the fair values of the asset or liability are demonstrably uncorrelated with recent indications of fair value for that asset or liability, (v) there is a significant increase in implied liquidity risk premiums, yields, or performance indicators (such as delinquency rates or loss severities) for observed transactions or quoted prices when compared with the Company’s estimate of expected cash flows, considering all available market data about credit and other nonperformance risk for the asset or liability, (vi) there is a wide bid-ask spread or significant increase in the bid-ask spread, (vii) there is a significant decline or absence of a market for new issuances (that is, a primary market) for the asset or liability or similar assets or liabilities, and (viii) little information is released publicly (for example, a principal-to-principal market). The Company considers the following factors to be indicators of non-orderly transactions: (i) there was not adequate exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities under current market conditions, (ii) there was a usual and customary marketing period, but the seller marketed the asset or liability to a single market participant, (iii) the seller is in or near bankruptcy or receivership (that is, distressed), or the seller was required to sell to meet regulatory or legal requirements (that is, forced), and (iv) the transaction price is an outlier when compared with other recent transactions for the same or similar assets or liabilities.
Organization and Offering Costs	Organization and offering costs of the Company (other than selling commissions, dealer manager fees and the stockholder servicing fee) may be paid by the Advisor, the Dealer Manager or their affiliates on behalf of the Company or may be paid directly by the Company. Offering costs include all expenses incurred in connection with the Private Offering and the Public Offering. Organization costs include all expenses incurred in connection with the formation of the Company, including but not limited to legal fees and other costs to incorporate the Company. During the Private Offering, there was no limit on the amount of organization and offering costs the Company could incur and the Company is obligated to reimburse the Advisor, the Dealer Manager or their affiliates, as applicable, for organization and offering costs (excluding wholesaling compensation expenses) paid by them on behalf of the Company. During the Public Offering, pursuant to the second amended and restated advisory agreement entered as of April 28, 2016 and the dealer manager agreement for the Public Offering entered as of April 28, 2016, the Company is obligated to reimburse the Advisor, the Dealer Manager or their affiliates, as applicable, for organization and offering costs related to the Public Offering (excluding wholesaling compensation expenses) paid by them on behalf of the Company provided such reimbursement would not cause the total organization and offering costs borne by the Company related to the Public Offering (including selling commissions, dealer manager fees, the stockholder servicing fee and all other items of organization and offering expenses) to exceed 15% of gross offering proceeds raised in the Public Offering as of the date of reimbursement. The Company reimburses the Dealer Manager for underwriting compensation in connection with the Private Offering; however, the Company may also pay all of these costs directly as discussed in the private placement memorandum for the Private Offering. The Company also expects to reimburse the Dealer Manager for underwriting compensation in connection with the Public Offering as discussed in the prospectus for the Public Offering. The Dealer Manager has agreed to reimburse the Company to the extent that total underwriting compensation for the Primary Offering exceeds 10% of the gross offering proceeds raised in the Primary Offering, as of the termination of the Primary Offering. The Company also pays directly or reimburses, and expects to pay directly or reimburse, the Dealer Manager for due diligence expenses of broker dealers in connection with the Private Offering and the Public Offering, respectively. In addition, the Advisor is obligated to reimburse the Company to the extent organization and offering costs (excluding selling commissions, the dealer manager fee and stockholder servicing fee) borne by the Company and incurred in connection with the Primary Offering exceed 1% of gross proceeds raised in the Primary Offering as of the termination of the Primary Offering. As of March 31, 2016 , the Company had not incurred any organization and offering costs related to the Public Offering and all such costs had been funded by the Advisor or the Dealer Manager. As a result, these organization and offering costs related to the Public Offering are not recorded in the financial statements of the Company as of March 31, 2016 because such costs are only a liability of the Company to the extent organization and offering costs incurred by the Company in connection with the Public Offering do not exceed 15% of the gross proceeds raised in the Public Offering. Organization and offering costs related to the Private Offering were not a liability to the Company until the Company satisfied the minimum offering amount in the Private Offering. Because the Company broke escrow in the Private Offering on August 12, 2015, organization and offering costs related to the Private Offering are recorded in the financial statements of the Company as of March 31, 2016 . Organization costs are expensed as incurred and offering costs are deferred and charged to stockholder’s equity as such amounts are reimbursed to the Advisor, the Dealer Manager or their affiliates from the gross proceeds of the applicable offering.
Income Taxes	The Company intends to elect to be taxed as a REIT under the Internal Revenue Code of 1986, as amended and intends to operate as such beginning with its taxable year ended December 31, 2015. The Company expects to have little or no taxable income prior to electing REIT status. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the Company’s annual REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to federal income tax to the extent it distributes qualifying dividends to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially and adversely affect the Company’s net income and net cash available for distribution to stockholders. However, the Company intends to organize and operate in such a manner as to qualify for treatment as a REIT.
Per Share Data	Basic net income (loss) per share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock equals basic net income (loss) per share of common stock as there were no potentially dilutive securities outstanding for the period from January 27, 2015 to March 31, 2016. For the purpose of determining the weighted average number of shares outstanding, stock dividends issued during the period presented and subsequent to March 31, 2016 but before the issuance of the consolidated financial statements are adjusted retroactively and treated as if they were issued and outstanding for all periods presented. During the three months ended March 31, 2016, the Company declared total cash distributions of $0.12328740 per share of common stock and total stock dividends of 0.00246576 shares of common stock on each outstanding share of common stock, assuming the share of common stock was outstanding each day that was a record date for cash distributions or stock dividends, respectively. The Company did not declare any cash distributions or stock dividends during the period from January 27, 2015 to March 31, 2015.
Square Footage, Occupancy and Other Measures	Square footage, number of acres, occupancy and other measures used to describe real estate investments included in these Condensed Notes to Consolidated Financial Statements are presented on an unaudited basis.
Recently Issued Accounting Standards Updates	In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”). ASU No. 2014-09 requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU No. 2014-09 supersedes the revenue requirements in Revenue Recognition (Topic 605) and most industry-specific guidance throughout the Industry Topics of the Codification. ASU No. 2014-09 does not apply to lease contracts within the scope of Leases (Topic 840). ASU No. 2014-09 was to be effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU No. 2015-14”), which defers the effective date of ASU No. 2014-09 by one year. Early adoption is permitted but not before the original effective date. The Company is still evaluating the impact of adopting ASU No. 2014-09 on its financial statements, but does not expect the adoption of ASU No. 2014-09 to have a material impact on its financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements (Subtopic 205-40) , Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU No. 2014-15”). The amendments in ASU No. 2014-15 require management to evaluate, for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or are available to be issued when applicable) and, if so, provide related disclosures. ASU No. 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not expect the adoption of ASU No. 2014-15 to have a significant impact on its financial statements. In January 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.

SUMMARY OF SIGNIFICANT ACCOUN18

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Schedule of Property, Plant and Equipment	The Company anticipates the estimated useful lives of its assets by class to be generally as follows: Buildings 25 - 40 years Building improvements 10 - 25 years Tenant improvements Shorter of lease term or expected useful life Tenant origination and absorption costs Remaining term of related leases, including

REAL ESTATE (Tables)

REAL ESTATE (Tables)	3 Months Ended
	Mar. 31, 2016
Real Estate [Abstract]
Schedule of Real Estate	The following table provides summary information regarding the property owned by the Company as of March 31, 2016 : Property Date Acquired City State Property Type Total Real Estate at Cost Accumulated Depreciation and Amortization Total Real Estate, Net Von Karman Tech Center 08/12/2015 Irvine CA Office $ 21,420,599 $ (567,522 ) $ 20,853,077
Schedule of Future Minimum Rental Income for Company's Properties	As of March 31, 2016 , the future minimum rental income from the Company’s property under its non-cancelable operating leases was as follows: April 1, 2016 through December 31, 2016 $ 1,519,173 2017 2,092,148 2018 1,866,986 2019 1,497,443 2020 1,440,502 Thereafter 3,943,938 $ 12,360,190

TENANT ORIGINATION AND ABSORP20

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2016
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, 2016 and December 31, 2015 , the Company’s tenant origination and absorption costs, and below-market lease liabilities were as follows: Tenant Origination and Absorption Costs Below-Market Lease Liabilities March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 Cost $ 1,987,175 $ 1,987,175 $ (122,143 ) $ (122,143 ) Accumulated Amortization (240,158 ) (144,599 ) 14,599 8,932 Net Amount $ 1,747,017 $ 1,842,576 $ (107,544 ) $ (113,211 )

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Payable [Abstract]
Schedule of Long-term Debt Instruments	As of March 31, 2016, the Company’s notes payable consisted of the following: Book Value as of March 31, 2016 Book Value as of December 31, 2015 Contractual Interest Rate as of March 31, 2016 (1) Effective Interest Rate at March 31, 2016 (1) Payment Type Maturity Date Von Karman Tech Center Mortgage Loan (2) $ 16,371,790 $ 16,346,040 One-month LIBOR + 3.50% 3.94% (3) 09/01/2020 Note payable principal outstanding 16,371,790 16,346,040 Deferred financing costs, net (274,574 ) (289,059 ) Note payable, net $ 16,097,216 $ 16,056,981 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of March 31, 2016 . Effective interest rate is calculated as the actual interest rate in effect at March 31, 2016 (consisting of the contractual interest rate), using interest rate indices at March 31, 2016 , where applicable. (2) Subsequent to March 31, 2016 , the Company repaid $5.1 million of the Von Karman Tech Center Mortgage Loan principal balance. (3) Monthly payments are initially interest-only; however, under certain circumstances described in the loan agreement, the Company may be required to make payments consisting of both principal and interest.

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Schedule of Face Value, Carrying Amounts and Fair Value	The following were the face value, carrying amount and fair value of the Company’s note payable as of March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 16,371,790 $ 16,097,216 $ 16,471,151 $ 16,346,040 $ 16,056,981 $ 16,556,729

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	3 Months Ended
	Mar. 31, 2016
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, 2016 and the period from January 27, 2015 to March 31, 2015 and any related amounts payable as of March 31, 2016 and December 31, 2015 . Incurred Payable as of Three Months Ended March 31, 2016 For the Period from January 27, 2015 to March 31, 2015 March 31, 2016 December 31, 2015 Expensed Asset management fees $ 20,262 $ — $ — $ — Reimbursement of operating expenses (1) 51,527 — 48,980 205,276 Property management fees (2) 7,770 — 7,770 — Other Arrangement Advisor advance for cash distributions (3) 458,289 — 656,786 198,497 Additional Paid-in Capital Selling commissions 1,833,620 — — — Dealer manager fees 713,395 — — — Reimbursable other offering costs (4) 324,983 — 593,658 1,030,749 $ 3,409,846 $ — $ 1,307,194 $ 1,434,522 _____________________ (1) Reimbursable operating expenses primarily related to directors and officers liability insurance, legal fees, state and local taxes, 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 $2,547 for the three months ended March 31, 2016 , and were the only type of employee costs reimbursed under the Advisory Agreement for the three months ended March 31, 2016 . The Company will not reimburse for employee costs in connection with services for which the Advisor earns acquisition, origination 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. (2) See “Real Estate Property Co-Management Agreement” below. (3) See “—Advance from the Advisor” above. (4) See Note 2, “Summary of Significant Accounting Policies – Organization and Offering Costs” for more information related to other offering costs related to the Private and Public Offering.

ORGANIZATION ORGANIZATION (Deta

ORGANIZATION ORGANIZATION (Details) - USD ($)	May. 10, 2016	Apr. 27, 2016	Aug. 11, 2015	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2016	Feb. 04, 2015	Jan. 27, 2015
Organizational Structure [Line Items]
Managing member or general partner, ownership interest				0.10%
Members or limited partners, ownership interest				99.90%
Common stock, shares issued				6,348,966	2,216,821	6,348,966
Issuance of common stock, value				$ 37,217,059	$ 19,105,265	$ 56,000,000
Stock issued during period, value, dividend reinvestment plan						$ 300,000
Common Stock [Member]
Organizational Structure [Line Items]
Issuance of common stock, shares				4,125,171	2,194,161	6,276,970
Issuance of common stock, value				$ 41,252	$ 21,941
Stock issued during period, shares, dividend reinvestment plan						28,789
Primary offering, purchase price per share, discount			8.50%
Primary offering, purchase price per share			$ 8.90
Common Stock [Member] | Chief Executive Officer [Member]
Organizational Structure [Line Items]
Issuance of common stock, shares			21,181.2380
Common Stock [Member] | President [Member]
Organizational Structure [Line Items]
Issuance of common stock, shares			21,181.2390
Common Stock [Member] | Chief Executive Officer and President [Member]
Organizational Structure [Line Items]
Issuance of common stock, value			$ 172,500
Shares issued, price per share			$ 8.144
Maximum [Member] | Common Stock [Member]
Organizational Structure [Line Items]
Shares authorized for issuance, value							$ 1,500,000,000
Shares authorized for dividend reinvestment plan, value							$ 800,000,000
Subsequent Event [Member]
Organizational Structure [Line Items]
Issuance of common stock, value	$ 73,600,000
Subsequent Event [Member] | Common Stock [Member]
Organizational Structure [Line Items]
Shares authorized for dividend reinvestment plan		5,000,000
Primary private offering, period of continuation to process subscriptions		30 days
Issuance of common stock, shares	8,205,886
Subsequent Event [Member] | Maximum [Member] | Common Stock [Member]
Organizational Structure [Line Items]
Shares authorized for issuance		105,000,000
KBS Capital Advisors LLC [Member]
Organizational Structure [Line Items]
Common stock, shares issued								20,000
Purchase price per share (in usd per share)								$ 10

SUMMARY OF SIGNIFICANT ACCOUN25

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Useful Life) (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Building [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful lives	25 years
Building [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful lives	40 years
Building Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful lives	10 years
Building Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful lives	25 years
Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Useful lives		Shorter of lease term or expected useful life
Tenant Origination and Absorption Costs [Member]
Property, Plant and Equipment [Line Items]
Useful lives		Remaining term of related leases, including below-market renewal periods

SUMMARY OF SIGNIFICANT ACCOUN26

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Redeemable Common Stock) (Details) - Amendment of Share Redemption Program [Member]	Mar. 16, 2016$ / shares
Summary of Significant Accounting Policies [Line Items]
Holding requirement	1 year
Redemption price percentage of most recent estimated value per share	95.00%
Estimated value per share of company's common stock	$ 9.40
Dividend reinvestment plan, period estimating net assets value per share	150 days
Share redemption program, termination period	30 days
Period of increase or decrease of funding available for redemption	10 days
Maximum [Member]
Summary of Significant Accounting Policies [Line Items]
Percentage of weighted-average shares outstanding available for redemption during any calendar year	5.00%

SUMMARY OF SIGNIFICANT ACCOUN27

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Organization and Offering Costs) (Details) - IPO [Member]	3 Months Ended
	Mar. 31, 2016
Minimum [Member]
Summary of Significant Accounting Policies [Line Items]
Reimbursable offering costs determination, gross offering costs, percentage	15.00%
Maximum [Member]
Summary of Significant Accounting Policies [Line Items]
Reimbursed offering costs determination, gross offering costs, percentage	15.00%
Dealer Manager [Member] | Minimum [Member]
Summary of Significant Accounting Policies [Line Items]
Reimbursable offering costs determination, gross offering costs, percentage	10.00%
KBS Capital Advisors LLC [Member] | Minimum [Member]
Summary of Significant Accounting Policies [Line Items]
Reimbursable offering costs determination, gross offering costs, percentage	1.00%

SUMMARY OF SIGNIFICANT ACCOUN28

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Per Share Data) (Details)	3 Months Ended
	Mar. 31, 2016USD ($)$ / shares
Accounting Policies [Abstract]
Distributions declared per share | $ / shares	$ 0.12328740
Stock dividends | $	$ 0.00246576

STOCKHOLDERS_ EQUITY (Details)

STOCKHOLDERS’ EQUITY (Details) - $ / shares	Apr. 28, 2016	Apr. 08, 2016	Mar. 31, 2016	Feb. 04, 2016	Dec. 31, 2015	Dec. 03, 2015	Nov. 19, 2015
Class of Stock [Line Items]
Total shares authorized by entity			1,010,000,000
Common stock, shares authorized			1,000,000,000		1,000,000,000
Preferred stock, shares authorized			10,000,000		10,000,000
Common stock, par value (in dollars per share)			$ 0.01		$ 0.01
Common stock, shares issued			6,348,966		2,216,821
Preferred stock, shares issued			0		0
Preferred stock, shares outstanding			0		0
Dividend reinvestment plan, price per share as percent of than-current offering price for share			95.00%
Dividend reinvestment plan, price per share as percent of most recent offering price			95.00%
Dividend reinvestment plan, initial purchase price per share			$ 8.455
Dividend reinvestment plan, purchase price per share			$ 8.930	$ 8.835		$ 8.740	$ 8.598
Class A [Member]
Class of Stock [Line Items]
Common stock, shares authorized			500,000,000
Common stock, shares issued			6,348,966		6,348,966
Class T [Member]
Class of Stock [Line Items]
Common stock, shares issued			2,216,821		2,216,821
Subsequent Event [Member]
Class of Stock [Line Items]
Dividend reinvestment plan, period estimating net assets value per share	150 days
Dividend reinvestment plan, price per share as percent of NAValue per share	95.00%
Dividend reinvestment plan, termination period	10 days
Subsequent Event [Member] | Class A [Member]
Class of Stock [Line Items]
Dividend reinvestment plan, offering price per share	$ 9.88
Subsequent Event [Member] | Class T [Member]
Class of Stock [Line Items]
Common stock, shares authorized		500,000,000
Dividend reinvestment plan, offering price per share	$ 9.50

REAL ESTATE (Narrative) (Detail

REAL ESTATE (Narrative) (Details) - Office Building [Member]	Mar. 31, 2016ft²property
Real Estate Properties [Line Items]
Number of real estate properties | property	1
Rentable square feet | ft²	101,161
Percent occupied	100.00%

REAL ESTATE (Schedule of Real E

REAL ESTATE (Schedule of Real Estate Investments) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Real Estate Properties [Line Items]
Total real estate, cost	$ 21,420,599	$ 21,420,599
Less accumulated depreciation and amortization	(567,522)	(340,993)
Total real estate, net	$ 20,853,077	$ 21,079,606
Von Karman Tech Center [Member] | Office Building [Member]
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on	Aug. 12, 2015
Total real estate, cost	$ 21,420,599
Less accumulated depreciation and amortization	(567,522)
Total real estate, net	$ 20,853,077

REAL ESTATE (Operating Leases)

REAL ESTATE (Operating Leases) (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Operating Leased Assets [Line Items]
Recognition of deferred rent from tenants	$ 0.1
Deferred rent receivables	0.3
Other Liabilities [Member]
Operating Leased Assets [Line Items]
Security deposit liability	$ 0.2	$ 0.2
Maximum [Member]
Operating Leased Assets [Line Items]
Remaining terms	10 years 3 months 18 days
Weighted Average [Member]
Operating Leased Assets [Line Items]
Remaining terms	5 years 6 months

REAL ESTATE (Future Minimum Ren

REAL ESTATE (Future Minimum Rental Income) (Details)	Mar. 31, 2016USD ($)
Real Estate [Abstract]
April 1, 2016 through December 31, 2016	$ 1,519,173
2,017	2,092,148
2,018	1,866,986
2,019	1,497,443
2,020	1,440,502
Thereafter	3,943,938
Future minimum rental income	$ 12,360,190

REAL ESTATE (Concentration Risk

REAL ESTATE (Concentration Risk) (Details) - Customer Concentration Risk [Member] $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)ft²extension$ / ft²
Concentration Risk [Line Items]
Extension options | extension	2
Extension period	5 years
Annualized base rent | $	$ 0.9
Average annualized base rent per square foot | $ / ft²	20.05
Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	40.00%
Rentable Square Feet [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	44.00%
Net rentable area | ft²	44,892

TENANT ORIGINATION AND ABSORP35

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
Tenant Origination And Absorption Costs, Cost	$ 1,987,175	$ 1,987,175
Tenant Origination and Absorption Costs, Accumulated Amortization	(240,158)	(144,599)
Tenant Origination and Absorption Costs, Net Amount	1,747,017	1,842,576
Below-Market Lease Liabilities, Cost	(122,143)	(122,143)
Below-Market Lease Liabilities, Accumulated Amortization	14,599	8,932
Below-Market Lease Liabilities, Net Amount	$ (107,544)	$ (113,211)

TENANT ORIGINATION AND ABSORP36

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Narrative) (Details)	3 Months Ended
	Mar. 31, 2016USD ($)
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
Amortization expense related to tenant origination and absorption costs	$ 95,559
Below-market lease liabilities	$ 5,667

NOTES PAYABLE (Narrative) (Deta

NOTES PAYABLE (Narrative) (Details) - USD ($)	2 Months Ended	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2016	Dec. 31, 2015
Notes Payable [Abstract]
Interest expense	$ 0	$ 177,840
Interest payable, current		55,525	$ 52,142
Amortization of deferred financing costs	$ 0	$ 15,485

NOTES PAYABLE (Schedule of Long

NOTES PAYABLE (Schedule of Long-term Debt Instruments) (Details) - USD ($)	1 Months Ended	3 Months Ended
	May. 12, 2016	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Note payable principal outstanding		$ 16,371,790	$ 16,346,040
Deferred financing costs, net		(274,574)	(289,059)
Note payable, net		16,097,216	16,056,981
Von Karman Tech Center Mortgage Loan [Member] | Mortgage [Member]
Debt Instrument [Line Items]
Note payable principal outstanding		$ 16,371,790	$ 16,346,040
Effective Interest Rate		3.94%
Maturity Date		Sep. 1, 2020
Von Karman Tech Center Mortgage Loan [Member] | Mortgage [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Extinguishment of debt, amount	$ 5,100,000
Von Karman Tech Center Mortgage Loan [Member] | Mortgage [Member] | One-month LIBOR [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate		3.50%

FAIR VALUE DISCLOSURES (Details

FAIR VALUE DISCLOSURES (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes and bond payable, Face Value	$ 16,371,790	$ 16,346,040
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes and bond payable, Value	16,097,216	16,056,981
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes and bond payable, Value	$ 16,471,151	$ 16,556,729

RELATED PARTY TRANSACTIONS (Fee

RELATED PARTY TRANSACTIONS (Fees and Reimbursement Obligations) (Details) $ in Billions	3 Months Ended
	Mar. 31, 2016USD ($)
Related Party Transaction [Line Items]
Percent of dealer manager reallows of sales commissions earned to participating broker-dealer	100.00%
Benchmark for amount of contracted disposition	$ 1.5
Period of termination notice	60 days
For Dispositions with a Contract Sales Price Less than or Equal to $1.5 billion [Member]
Related Party Transaction [Line Items]
Disposition fee as percent of contract sales price	1.50%
For Dispositions with a Contract Sales Price Greater than $1.5 billion, for Amount in Excess of $1.5 billion [Member]
Related Party Transaction [Line Items]
Disposition fee as percent of contract sales price	1.10%
Maximum [Member]
Related Party Transaction [Line Items]
Selling commissions fees paid, percent of gross offering proceeds	6.50%
Dealer managers fees paid, percent of gross offering proceeds	2.00%
Sales commissions, broker dealer, percentage	1.50%
KBS Capital Advisors LLC [Member]
Related Party Transaction [Line Items]
Acquisition advisory fee, percent	2.00%
Noncompounded return on invested capital as percent per year	7.00%
Percent of net cash flows to be received by related party	15.00%
Distributions paid from operating cash flow in excess of a cumulative, noncompounded, annual return, percent	6.00%
Distributions required to supplement prior distributions paid in order to achieve a cumulative, noncompounded, annual return, percent	6.00%
Subordinated incentive fee, noncompounded return on invested capital as percent per year	6.00%
Subordinated incentive listing fee to related party, percent	15.00%
KBS Capital Advisors LLC [Member] | Option One [Member]
Related Party Transaction [Line Items]
Monthly asset management fee, percent of acquisition expense, excluding acquisition fees related to thereto	0.1333%
Asset management fee, percent	1.60%

RELATED PARTY TRANSACTIONS (Rel

RELATED PARTY TRANSACTIONS (Related-party Costs) (Details) - USD ($)	2 Months Ended	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Payable as of		$ 1,307,194	$ 1,434,522
Payment for Administrative Fees		2,547
Due from affiliate		3,670	0
Advisor and Dealer Manager [Member]
Related Party Transaction [Line Items]
Incurred	$ 0	3,409,846
Payable as of		1,307,194	1,434,522
Advisor and Dealer Manager [Member] | Advisor Advance for Cash Distributions [Member]
Related Party Transaction [Line Items]
Incurred	0	458,289
Payable as of		656,786	198,497
Advisor and Dealer Manager [Member] | Selling Commissions [Member]
Related Party Transaction [Line Items]
Incurred	0	1,833,620
Payable as of		0	0
Advisor and Dealer Manager [Member] | Dealer Manager Fees [Member]
Related Party Transaction [Line Items]
Incurred	0	713,395
Payable as of		0	0
Advisor and Dealer Manager [Member] | Reimbursable Other Offering Costs [Member]
Related Party Transaction [Line Items]
Incurred	0	324,983
Payable as of		593,658	1,030,749
Advisor and Dealer Manager [Member] | Expensed [Member] | Asset Management Fees [Member]
Related Party Transaction [Line Items]
Expenses	0	20,262
Payable as of		0	0
Advisor and Dealer Manager [Member] | Expensed [Member] | Reimbursable Operating Expenses [Member]
Related Party Transaction [Line Items]
Expenses	0	51,527
Payable as of		48,980	205,276
Advisor and Dealer Manager [Member] | Expensed [Member] | Property Management Fees [Member]
Related Party Transaction [Line Items]
Expenses	$ 0	7,770
Payable as of		7,770	$ 0
KBS Capital Advisors LLC [Member]
Related Party Transaction [Line Items]
Due from affiliate		$ 3,670

RELATED PARTY TRANSACTIONS (Rea

RELATED PARTY TRANSACTIONS (Real Estate Property Co-Management Agreement) (Details) - KBS Management Group, LLC [Member]	Mar. 09, 2016
Related Party Transaction [Line Items]
Monthly fee as percent of total rent	1.50%
Initial term of management agreements	1 year
Successive periods, renewal	1 year
Period of termination notice	30 days
Period of termination notice with cause	5 days

SUBSEQUENT EVENTS (Status Offer

SUBSEQUENT EVENTS (Status Offering) (Details) - USD ($)	May. 10, 2016	Apr. 27, 2016	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2016
Subsequent Event [Line Items]
Issuance of common stock, value			$ 37,217,059	$ 19,105,265	$ 56,000,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Issuance of common stock, value	$ 73,600,000
Common Stock [Member]
Subsequent Event [Line Items]
Issuance of common stock, shares			4,125,171	2,194,161	6,276,970
Issuance of common stock, value			$ 41,252	$ 21,941
Common Stock [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Primary private offering, period of continuation to process subscriptions		30 days
Issuance of common stock, shares	8,205,886

SUBSEQUENT EVENTS (Distribution

SUBSEQUENT EVENTS (Distributions and Stock Dividends) (Details)	May. 10, 2016USD ($)	May. 06, 2016$ / shares	May. 04, 2016shares	May. 03, 2016USD ($)	Apr. 01, 2016USD ($)shares	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Jul. 31, 2016	Jun. 30, 2016	Mar. 16, 2016
Subsequent Event [Line Items]
Distributions declared						$ 440,001	$ 194,895
Common Stock Dividends, Shares, Ratio										0.00084932
Scenario, Forecast [Member]
Subsequent Event [Line Items]
Common Stock Dividends, Shares, Ratio								0.00084932	0.00082192
Subsequent Event [Member]
Subsequent Event [Line Items]
Stock dividends issued, shares | shares			6,355		5,424
Subsequent Event [Member] | Dividend Paid [Member]
Subsequent Event [Line Items]
Distributions declared				$ 299,489	$ 213,109
Distribution rate per share per day, declared | $ / shares		$ 0.00136986
Subsequent Event [Member] | Dividend Paid [Member] | KBS Capital Advisors LLC [Member]
Subsequent Event [Line Items]
Cash distribution advance from affiliate	$ 970,637

SUBSEQUENT EVENTS (Probable Rea

SUBSEQUENT EVENTS (Probable Real Estate Acquisition) (Details) - Subsequent Event [Member] - Scenario, Plan [Member] - Lincoln Court [Member] $ in Millions	May. 06, 2016USD ($)aft²Tenants
Subsequent Event [Line Items]
Net rentable area | ft²	216,099
Area of land | a	0.46
Purchase price	$ 69
Deposit	2
Earnest money deposit, amount that may be forfeited	$ 2
Percent of property leased	94.00%
Number of tenants | Tenants	25