KBS Growth & Income REIT (KBSG) 10-Q 7 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 03, 2018
Entity Listings [Line Items]
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	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Class A
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		9,274,484
Class T
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		290,216

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Real estate:
Land	$ 31,309	$ 31,309
Building and improvements	142,813	142,400
Tenant origination and absorption costs	16,400	17,047
Total real estate, cost	190,522	190,756
Less accumulated depreciation and amortization	(13,626)	(9,627)
Total real estate, net	176,896	181,129
Cash and cash equivalents	5,219	2,523
Rent and other receivables	2,643	1,920
Above-market leases, net	165	180
Prepaid expenses and other assets, net	2,413	1,388
Total assets	187,336	187,140
Liabilities and stockholders’ equity
Notes payable, net	116,682	112,780
Accounts payable and accrued liabilities	2,278	2,717
Due to affiliates	2,703	1,787
Distributions payable	410	385
Below-market leases, net	4,652	5,910
Other liabilities	2,559	1,828
Total liabilities	129,284	125,407
Commitments and contingencies (Note 9)
Redeemable common stock	0	2,314
Stockholders’ equity
Preferred stock, $.01 par value; 10,000,000 shares authorized, no shares issued and outstanding	0	0
Additional paid-in capital	78,145	76,265
Cumulative distributions and net losses	(20,188)	(16,940)
Total stockholders’ equity	58,052	59,419
Total liabilities and stockholders’ equity	187,336	187,140
Class A
Stockholders’ equity
Common stock	92	91
Class T
Stockholders’ equity
Common stock	$ 3	$ 3

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Class A
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	9,194,944	9,149,100
Common stock, shares outstanding (in shares)	9,194,944	9,149,100
Class T
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	287,878	281,537
Common stock, shares outstanding (in shares)	287,878	281,537

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues:
Rental income	$ 4,825	$ 3,290	$ 9,239	$ 6,526
Tenant reimbursements	867	877	1,995	1,656
Other operating income	37	20	76	38
Total revenues	5,729	4,187	11,310	8,220
Expenses:
Operating, maintenance, and management	1,336	878	2,205	1,623
Property management fees and expenses to affiliate	42	31	84	60
Real estate taxes and insurance	679	513	1,430	970
Asset management fees to affiliate	462	0	918	214
General and administrative expenses	362	422	755	763
Depreciation and amortization	2,784	1,822	5,093	3,540
Interest expense	797	757	1,768	1,500
Total expenses	6,462	4,423	12,253	8,670
Other income (loss):
Interest and other income	8	18	13	35
Loss from extinguishment of debt	0	(206)	0	(206)
Total other income (loss)	8	(188)	13	(171)
Net loss	(725)	(424)	(930)	(621)
Common Stock:
Net loss	(725)	(424)	(930)	(621)
Class A
Other income (loss):
Net loss	(703)	(406)	(902)	(596)
Common Stock:
Net loss	$ (703)	$ (406)	$ (902)	$ (596)
Net loss per common share, basic and diluted (in dollars per share)	$ (0.08)	$ (0.04)	$ (0.10)	$ (0.07)
Weighted-average number of common shares outstanding, basic and diluted (in shares)	9,096,617	9,076,034	9,095,895	9,020,742
Class T
Other income (loss):
Net loss	$ (22)	$ (18)	$ (28)	$ (25)
Common Stock:
Net loss	$ (22)	$ (18)	$ (28)	$ (25)
Net loss per common share, basic and diluted (in dollars per share)	$ (0.08)	$ (0.07)	$ (0.10)	$ (0.11)
Weighted-average number of common shares outstanding, basic and diluted (in shares)	286,721	261,613	285,165	214,044

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Class A	Class T	Common StockClass A	Common StockClass T	Additional Paid-in Capital	Cumulative Distributions and Net Losses
Balance (in shares) at Dec. 31, 2016				8,846,164	94,018
Balance at Dec. 31, 2016	$ 62,630			$ 88	$ 1	$ 71,992	$ (9,451)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(2,199)						(2,199)
Issuance of common stock (in shares)				380,538	185,845
Issuance of common stock	5,421			$ 2	$ 2	5,417
Transfers to redeemable common stock	(523)					(523)
Redemptions of common stock (in shares)				(145,214)
Redemptions of common stock	(1,210)					(1,210)
Stock dividends issued (in shares)				67,612	1,674
Stock dividends issued	0			$ 1		706	(707)
Distributions declared	(4,583)						(4,583)
Commissions on stock sales, related dealer manager fees and stockholder servicing fees to affiliate	(103)					(103)
Other offering costs to affiliate	(14)					(14)
Balance (in shares) at Dec. 31, 2017		9,149,100	281,537	9,149,100	281,537
Balance at Dec. 31, 2017	59,419			$ 91	$ 3	76,265	(16,940)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(930)	$ (902)	$ (28)				(930)
Issuance of common stock (in shares)				322,916	6,341
Issuance of common stock	2,895			$ 4	$ 0	2,891
Redemptions of common stock (in shares)				(277,072)
Redemptions of common stock	(2,314)			$ (3)		(2,311)
Distributions declared	(2,318)						(2,318)
Transfers from redeemable common stock	1,300					1,300
Balance (in shares) at Jun. 30, 2018		9,194,944	287,878	9,194,944	287,878
Balance at Jun. 30, 2018	$ 58,052			$ 92	$ 3	$ 78,145	$ (20,188)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash Flows from Operating Activities:
Net loss	$ (930)	$ (621)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	5,093	3,540
Deferred rents	(721)	(315)
Allowance for doubtful accounts	90	(13)
Amortization of above and below-market leases, net	(1,243)	(759)
Amortization of deferred financing costs	169	253
Unrealized gain on derivative instrument	(811)	0
Loss from extinguishment of debt	0	206
Changes in operating assets and liabilities:
Rents and other receivables	(112)	(90)
Prepaid expenses and other assets	(543)	62
Accounts payable and accrued liabilities	(203)	(656)
Due to affiliates	916	(11)
Other liabilities	(283)	8
Net cash provided by operating activities	1,422	1,604
Cash Flows from Investing Activities:
Improvements to real estate	(1,008)	(310)
Net cash used in investing activities	(1,008)	(310)
Cash Flows from Financing Activities:
Proceeds from notes payable	45,000	1,950
Principal payments on notes payable	(41,000)	(11,260)
Payments of deferred financing costs	(6)	(103)
Proceeds from issuance of common stock	1,881	2,522
Payments to redeem common stock	(2,314)	(64)
Payments of commissions on stock sales, related dealer manager fees to affiliate and other offering costs	0	(137)
Distributions paid to common stockholders	(1,279)	(1,065)
Net cash provided by (used in) financing activities	2,282	(8,157)
Net increase (decrease) in cash and cash equivalents	2,696	(6,863)
Cash and cash equivalents, beginning of period	2,523	15,666
Cash and cash equivalents, end of period	5,219	8,803
Supplemental Disclosure of Cash Flow Information
Interest paid	2,362	1,245
Supplemental Disclosure of Noncash Investing and Financing Activities:
Stock dividends issued	0	476
Increase in cash distributions payable	25	5
Dividends paid to common stockholders through common stock issuances pursuant to the distribution reinvestment plan	1,014	1,199
Increase in redemptions payable	1,014	0
Increase in accrued improvements to real estate	0	914
Write-off of deferred financing costs	$ 0	$ (206)

ORGANIZATION

ORGANIZATION	6 Months Ended
	Jun. 30, 2018
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 elected to be taxed 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 into on June 11, 2015, and amended at various times thereafter (the “Advisory Agreement”). The Advisor conducts the Company’s operations and manages its portfolio of core real estate properties. 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 June 30, 2018 , the Company had invested in four office properties. The Company intends to invest in a diverse portfolio of core real estate properties. The Company considers core properties to be existing properties with at least 80% occupancy. Based on the current market outlook, the Company expects its core focus in the U.S. office sector to reflect a value-creating core strategy, which is also known as a core-plus strategy. The Company commenced a private placement offering exempt from registration pursuant to Rule 506(b) of Regulation D of the Securities Act of 1933, as amended, on June 11, 2015, pursuant to which the Company offered a maximum of $105,000,000 in shares of its Class A common stock for sale to accredited investors (the “Initial Private Offering”), of which $5,000,000 of Class A shares were offered pursuant to the Company’s distribution reinvestment plan. The Company ceased offering shares in the primary portion of the Initial Private Offering on April 27, 2016 and processed subscriptions for the primary Initial Private Offering dated on or prior to April 27, 2016 through May 30, 2016. KBS Capital Markets Group LLC (the “Dealer Manager”), an affiliate of the Advisor, served as the dealer manager of the Initial Private Offering pursuant to a dealer manager agreement dated June 11, 2015 (the “Initial Private Offering Dealer Manager Agreement”). 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 a primary offering, consisting of two classes of shares: Class A and Class T (the “Primary Offering”) and 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 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 pursuant to a dealer manager agreement dated April 28, 2016 (the “Public Offering Dealer Manager Agreement”). The Company terminated the Primary Offering effective June 30, 2017. The Company continues to offer shares of common stock pursuant to the DRP Offering. In some states, the Company will need to renew the registration statement annually to continue the DRP Offering. The Company may terminate the DRP Offering at any time. On October 3, 2017, the Company launched a private placement offering exempt from registration pursuant to Rule 506(c) of Regulation D of the Securities Act pursuant to which the Company is currently offering a maximum of $1,000,000,000 in shares of its Class A common stock to accredited investors (the “Second Private Offering”). Prior to the launch of the Second Private Offering, on September 29, 2017, the Company entered into a dealer manager agreement (the “NCPS Dealer Agreement”) with the Advisor and North Capital Private Securities Corporation (“NCPS”) in connection with the Second Private Offering. The Company sold 8,548,972 shares of Class A common stock for gross offering proceeds of $76.8 million in the Initial Private Offering, including 74,744 shares of Class A common stock under its distribution reinvestment plan for gross offering proceeds of $0.7 million . The Company sold 122,721 and 270,415 shares of Class A and Class T common stock in the Primary Offering for aggregate gross offering proceeds of $3.9 million . As of June 30, 2018 , the Company had sold 464,125 and 15,689 shares of Class A and Class T common stock in the DRP Offering for aggregate gross offering proceeds of $4.5 million . As of June 30, 2018 , the Company had sold 253,308 shares of Class A common stock in the Second Private Offering for aggregate gross offering proceeds of $2.2 million . As of June 30, 2018 , the Company had redeemed 422,286 Class A shares for $3.5 million . 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 and director of the Company), purchased 21,181.2380 and 21,181.2390 shares of Class A 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(a)(2) of the Securities Act of 1933. As described above, the Company intends to use substantially all of the net proceeds from its private and public offerings to invest in a diverse portfolio of core real estate properties.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES There have been no significant changes to the Company’s accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2017 , except for the Company’s adoption of the revenue recognition standards issued by the Financial Accounting Standards Board (“FASB”) effective on January 1, 2018. For further information about the Company’s accounting policies, refer to the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”). Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the 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 six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . 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. Segments The Company had invested in four office properties as of June 30, 2018 . Substantially all of the Company’s revenue and net loss is from real estate, and therefore, the Company currently operates in one reportable segment. Revenue Recognition Effective January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”) using the modified retrospective approach, which requires a cumulative effect adjustment as of the date of the Company’s adoption. Under the modified retrospective approach, an entity may also elect to apply this standard to either (i) all contracts as of January 1, 2018 or (ii) only to contracts that were not completed as of January 1, 2018. A completed contract is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP that was in effect before the date of initial application. The Company elected to apply this standard only to contracts that were not completed as of January 1, 2018. Based on the Company’s evaluation of contracts within the scope of ASU No. 2014-09, revenue that is impacted by ASU No. 2014-09 includes revenue generated by sales of real estate, other operating income and tenant reimbursements for substantial services earned at the Company’s properties. The recognition of such revenue will occur when the services are provided and the performance obligations are satisfied. For the three and six months ended June 30, 2018 , tenant reimbursements for substantial services accounted for under ASU No. 2014-09 were $28,000 and $64,000 , respectively, and were included in tenant reimbursements on the accompanying statements of operations. Sales of Real Estate Effective January 1, 2018, the Company adopted the guidance of ASC 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (“ASC 610-20”), which applies to sales or transfers to noncustomers of nonfinancial assets or in substance nonfinancial assets that do not meet the definition of a business. Generally, the Company’s sales of real estate would be considered a sale of a nonfinancial asset as defined by ASC 610-20. ASC 610-20 refers to the revenue recognition principles under ASU No. 2014-09. Under ASC 610-20, if the Company determines it does not have a controlling financial interest in the entity that holds the asset and the arrangement meets the criteria to be accounted for as a contract, the Company would derecognize the asset and recognize a gain or loss on the sale of the real estate when control of the underlying asset transfers to the buyer. As a result of the adoption of ASU 610-20, there was no impact to the Company’s consolidated financial statements of operations for the three and six months ended June 30, 2018 and 2017 since the Company did not sell any real estate properties for those periods. Per Share Data Basic net income (loss) per share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock equals basic net income (loss) per share of common stock as there were no potentially dilutive securities outstanding for the three and six months ended June 30, 2018 and 2017 , respectively. For the purpose of determining the weighted average number of shares outstanding, stock dividends issued during the period presented are adjusted retroactively and treated as if they were issued and outstanding for all periods presented. During the three and six months ended June 30, 2017 , the Company declared stock distributions of 0.00249999 and 0.00499998 shares per share outstanding, respectively, and issued a total of 23,160 and 45,846 shares. The Company ceased issuing stock dividends to all stockholders on September 5, 2017. Stock dividends had been declared on a monthly basis and the amount declared per share outstanding assumed the share was issued and outstanding each date that was a record date for stock dividends during the periods presented. Stock dividends were issued in the same class of shares as the shares for which such stockholder received the stock dividend. During the three and six months ended June 30, 2018 , aggregate cash distributions declared per share of Class A common stock were $0.12787633 and $0.24708313 , assuming the share was issued and outstanding each date that was a record date for distributions during the period. During the three and six months ended June 30, 2018 , aggregate cash distributions declared per share of Class T common stock were $0.12787633 and $0.24708313 , assuming the share was issued and outstanding each date that was a record date for distributions during the period. During the three and six months ended June 30, 2017 , aggregate cash distributions declared per share of Class A common stock were $0.12465726 and $0.24794466 , assuming the share was issued and outstanding each date that was a record date for distributions during the period. During the three and six months ended June 30, 2017 , aggregate cash distributions declared per share of Class T common stock were $0.10005293 and $0.19885548 , assuming the share was issued and outstanding each date that was a record date for distributions during the period. Distributions for the period from January 1, 2017 through June 30, 2017 were calculated at a rate of (i) $0.00136986 per share per day, less (ii) the applicable daily class-specific 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 each respective record date. Distributions for the period from January 1, 2018 through April 30, 2018 and from May 1, 2018 through June 30, 2018 were calculated at a rate of $0.00132452 per share per day and $0.00144493 per share per day, respectively. Each day during the six months ended June 30, 2018 and 2017 was a record date for distributions. In accordance with FASB ASC Topic 260-10-45, Earnings Per Share , the Company uses the two-class method to calculate earnings per share. Basic earnings per share is calculated based on dividends declared (“distributed earnings”) and the rights of common shares and participating securities in any undistributed earnings, which represents net income remaining after deduction of dividends declared during the period. The undistributed earnings are allocated to all outstanding common shares based on the relative percentage of each class of shares to the total number of outstanding shares. The Company does not have any participating securities outstanding other than Class A Common Stock and Class T Common Stock during the periods presented. The Company’s calculated earnings per share for the three and six months ended June 30, 2018 and 2017 were as follows (in thousands, except share and per share amounts): For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Net loss $ (725 ) $ (424 ) $ (930 ) $ (621 ) Less: Class A Common Stock cash distributions declared 1,163 1,128 2,248 2,226 Less: Class T Common Stock cash distributions declared 37 26 70 42 Undistributed net loss $ (1,925 ) $ (1,578 ) $ (3,248 ) $ (2,889 ) Class A Common Stock: Undistributed net loss $ (1,866 ) $ (1,534 ) $ (3,150 ) $ (2,822 ) Class A Common Stock cash distributions declared 1,163 1,128 2,248 2,226 Net loss $ (703 ) $ (406 ) $ (902 ) $ (596 ) Net loss per common share, basic and diluted $ (0.08 ) $ (0.04 ) $ (0.10 ) $ (0.07 ) Weighted-average number of common shares outstanding, basic and diluted 9,096,617 9,076,034 9,095,895 9,020,742 Class T Common Stock: Undistributed net loss $ (59 ) $ (44 ) $ (98 ) $ (67 ) Class T Common Stock cash distributions declared 37 26 70 42 Net loss $ (22 ) $ (18 ) $ (28 ) $ (25 ) Net loss per common share, basic and diluted $ (0.08 ) $ (0.07 ) $ (0.10 ) $ (0.11 ) Weighted-average number of common shares outstanding, basic and diluted 286,721 261,613 285,165 214,044 Square Footage, Occupancy and Other Measures Square footage, occupancy, number of tenants and other measures, including annualized base rent and annualized base rent per square foot, or amounts derived from such measures, used to describe real estate investments included in these condensed notes to consolidated financial statements are presented on an unaudited basis and outside the scope of the Company’s independent registered public accounting firm’s review of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. Recently Issued Accounting Standards Update 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. ASU No. 2016-02 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 lease accounting standard on its consolidated financial statements. Upon adoption of ASU No. 2016-02, the Company expects to adopt the package of practical expedients for all leases that commenced before the effective date of January 1, 2019. Accordingly, the Company will 1) not reassess whether any expired or existing contracts are or contain leases, 2) not reassess the lease classification for any expired or existing lease, and 3) not reassess initial direct costs for any existing leases. The Company does not expect to elect the practical expedient related to using hindsight to reevaluate the lease term. In addition, the Company expects to adopt the practical expedient for land easements to not assess whether existing or expired land easements that were not previously accounted for as leases under the current lease accounting standards of Topic 840 are or contain a lease under Topic 842. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842), Targeted Improvements (“ASU No. 2018-11”), which provides lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue recognition standard (Topic 606) and if certain conditions are met. Upon adoption of the lease accounting standard under Topic 842, the Company expects to adopt this practical expedient, specifically related to its tenant reimbursements which would otherwise be accounted for under the new revenue recognition standard. The Company believes the two conditions have been met for tenant reimbursements as 1) the timing and pattern of transfer of the nonlease components and associated lease components are the same and 2) the lease component would be classified as an operating lease. In addition. ASU No. 2018-11, provides an additional optional transition method to allow entities to apply the new lease accounting standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. An entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new lease accounting standard will continue to be reported under the current lease accounting standards of Topic 840. The Company expects to adopt this transition method upon adoption of the lease accounting standard of Topic 842 on January 1, 2019. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments (“ASU No. 2016-13”). ASU No. 2016-13 affects entities holding financial assets and net investments in leases that are not accounted for at fair value through net income. The amendments in ASU No. 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. ASU No. 2016-13 also amends the impairment model for available-for-sale securities. An entity will recognize an allowance for credit losses on available-for-sale debt securities as a contra-account to the amortized cost basis rather than as a direct reduction of the amortized cost basis of the investment, as is currently required. ASU No. 2016-13 also requires new disclosures. For financial assets measured at amortized cost, an entity will be required to disclose information about how it developed its allowance for credit losses, including changes in the factors that influenced management’s estimate of expected credit losses and the reasons for those changes. For financing receivables and net investments in leases measured at amortized cost, an entity will be required to further disaggregate the information it currently discloses about the credit quality of these assets by year of the asset’s origination for as many as five annual periods. For available for sale securities, an entity will be required to provide a roll-forward of the allowance for credit losses and an aging analysis for securities that are past due. ASU No. 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is still evaluating the impact of adopting ASU No. 2016-13 on its financial statements, but does not expect the adoption of ASU No. 2016-13 to have a material impact on its financial statements.

REAL ESTATE

REAL ESTATE	6 Months Ended
	Jun. 30, 2018
Real Estate [Abstract]
REAL ESTATE	REAL ESTATE As of June 30, 2018 , the Company owned four office properties containing 683,952 rentable square feet, which were collectively 97% occupied. The following table provides summary information regarding the properties owned by the Company as of June 30, 2018 (in thousands): 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 $ 20,829 $ (1,933 ) $ 18,896 Commonwealth Building 06/30/2016 Portland OR Office 76,718 (6,378 ) 70,340 The Offices at Greenhouse 11/14/2016 Houston TX Office 47,242 (3,930 ) 43,312 Institute Property 11/09/2017 Chicago IL Office 45,733 (1,385 ) 44,348 $ 190,522 $ (13,626 ) $ 176,896 As of June 30, 2018 , the following properties represented more than 10% of the Company’s total assets: Property Location Rentable Total Real Estate, Net (in thousands) Percentage of Total Assets Annualized Base Rent (in thousands) (1) Average Annualized Base Rent per sq. ft. Occupancy Von Karman Tech Center Irvine, CA 101,161 $ 18,896 10.1 % $ 2,249 $ 22.90 97.1 % Commonwealth Building Portland, OR 224,122 70,340 37.5 % 5,727 26.79 95.4 % The Offices at Greenhouse Houston, TX 203,284 43,312 23.1 % 4,201 20.66 100.0 % Institute Property Chicago, IL 155,385 44,348 23.7 % 3,385 23.37 93.2 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2018 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term. Operating Leases The Company’s real estate properties are leased to tenants under operating leases for which the terms and expirations vary. As of June 30, 2018 , the leases had remaining terms, excluding options to extend, of up to 8.9 years with a weighted-average remaining term of 4.3 years. Some of the leases have provisions to extend the term of the leases, options for early termination for all or a part of the leased premises after paying a specified penalty, 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 $1.1 million and $1.2 million as of June 30, 2018 and December 31, 2017 , respectively. During the six months ended June 30, 2018 and 2017 , the Company recognized deferred rent from tenants, net of lease incentive amortization, of $0.7 million and $0.3 million , respectively. As of June 30, 2018 and December 31, 2017 , the cumulative deferred rent balance was $2.5 million and $1.8 million , respectively, and is included in rents and other receivables on the accompanying balance sheets. The cumulative deferred rent balance included $0.2 million and $0.2 million of unamortized lease incentives as of June 30, 2018 and December 31, 2017 , respectively. As of June 30, 2018 , the future minimum rental income from the Company’s properties under its non-cancelable operating leases was as follows (in thousands): July 1, 2018 through December 31, 2018 $ 7,375 2019 14,314 2020 14,308 2021 12,902 2022 11,131 Thereafter 16,483 $ 76,513 As of June 30, 2018 , the Company had a concentration of credit risk related to AECOM, one of the tenants in The Offices at Greenhouse in the engineering industry, which represented 19% of the Company’s annualized base rent. The tenant individually occupied 140,922 rentable square feet or approximately 21% of the total rentable square feet of the Company’s real estate portfolio. Of the 140,922 rentable square feet, 5,195 rentable square feet expires on July 24, 2019, with two three -year extension options, and 135,727 rentable square feet expires on December 31, 2024 , with two five -year extension options. As of June 30, 2018 , the annualized base rent for this tenant was approximately $3.0 million or $21.39 per square foot. No other tenant represented more than 10% of the Company’s annualized base rent. As of June 30, 2018 , the Company’s real estate properties were leased to approximately 80 tenants over a diverse range of industries. The Company’s highest tenant industry concentration (greater than 10% of annualized base rent) was as follows: Industry Number of Tenants Annualized Base Rent (1) (in thousands) Percentage of Annualized Base Rent Professional, scientific and technical 14 $ 5,910 38.0 % Information technology 9 1,849 11.9 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2018 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term. As of June 30, 2018 , no other tenant industries accounted for more than 10% of 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	6 Months Ended
	Jun. 30, 2018
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES	TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES As of June 30, 2018 and December 31, 2017 , the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities (excluding fully amortized assets and liabilities and accumulated amortization) were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 Cost $ 16,400 $ 17,047 $ 213 $ 213 $ (7,226 ) $ (7,838 ) Accumulated Amortization (4,781 ) (3,480 ) (48 ) (33 ) 2,574 1,928 Net Amount $ 11,619 $ 13,567 $ 165 $ 180 $ (4,652 ) $ (5,910 ) Increases (decreases) in net income as a result of amortization of the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities for the three and six months ended June 30, 2018 and 2017 were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Three Months Ended June 30, For the Three Months Ended June 30, For the Three Months Ended June 30, 2018 2017 2018 2017 2018 2017 Amortization $ (1,130 ) $ (703 ) $ (7 ) $ (7 ) $ 803 $ 423 Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Six Months Ended June 30, For the Six Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 2018 2017 Amortization $ (1,948 ) $ (1,336 ) $ (15 ) $ (15 ) $ 1,258 $ 774

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Jun. 30, 2018
Notes Payable [Abstract]
NOTES PAYABLE	NOTES PAYABLE As of June 30, 2018 , the Company’s notes payable consisted of the following (dollars in thousands): Book Value as of June 30, 2018 Book Value as of December 31, 2017 Contractual Interest Rate as of June 30, 2018 (1) Effective Interest Rate at June 30, 2018 (1) Payment Type Maturity Date (2) Commonwealth Building Mortgage Loan (3) $ 45,000 $ 41,000 One-month LIBOR + 1.80% 3.79% Interest Only 02/01/2023 Term Loan (4) 72,800 72,800 One-month LIBOR + 2.00% 3.99% Interest Only 11/09/2020 Notes payable principal outstanding $ 117,800 $ 113,800 Deferred financing costs, net (1,118 ) (1,020 ) Notes payable, net $ 116,682 $ 112,780 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of June 30, 2018 . Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2018 (consisting of the contractual interest rate), using interest rate indices as of June 30, 2018 , where applicable. (2) Represents the maturity date as of June 30, 2018 ; subject to certain conditions, the maturity dates of certain loans may be extended beyond the dates shown. (3) On January 18, 2018, the Company, through an indirect wholly owned subsidiary, closed the refinancing of the initial Commonwealth Building mortgage loan with an unaffiliated lender (the “Refinancing”) for a maximum loan amount of up to $51.4 million . With the proceeds from the Refinancing, the Company repaid $41.0 million of principal in satisfaction of the initial Commonwealth Building mortgage loan. Under the current Commonwealth Building Mortgage Loan under the Refinancing, monthly payments are interest-only with the remaining principal balance, all accrued and unpaid interest and all other sums due under the loan documents payable at maturity. If the LIBOR rate is equal to or greater than 2.90% for five consecutive business days, the Company has 30 days to enter into an interest rate cap agreement with a LIBOR strike rate of 3.90% or less. The Company has the right to prepay all or a portion of the loan under the Refinancing commencing on February 1, 2019, subject to certain fees and conditions contained in the loan documents. As of June 30, 2018 , $45.0 million of the Commonwealth Building Mortgage Loan was outstanding and $6.4 million remained available for future disbursements, subject to certain terms and conditions set forth in the loan documents. (4) As of June 30, 2018 , the outstanding balance under the Term Loan consisted of $48.5 million of term commitment and $24.3 million of revolving commitment, which bears interest at a rate per annum equal to 2.0% over one-month LIBOR. The Term Loan is secured by The Offices at Greenhouse, Von Karman Tech Center and Institute Property. During the three and six months ended June 30, 2018 , the Company incurred $0.8 million and $1.8 million of interest expense, respectively. During the three and six months ended June 30, 2017 , the Company incurred $0.8 million and $1.5 million of interest expense, respectively. As of June 30, 2018 and December 31, 2017 , $0.4 million and $0.3 million of interest expense were payable, respectively. Included in interest expense during the three and six months ended June 30, 2018 were $0.1 million and $0.2 million of amortization of deferred financing costs, respectively. Also included in interest expense during the six months ended June 30, 2018 was $0.2 million of debt refinancing costs. Included in interest expense during the three and six months ended June 30, 2017 were $0.1 million and $0.3 million of amortization of deferred financing costs, respectively. Interest expense was reduced by $0.4 million and $0.8 million as a result of a change in fair value of the Company’s derivative instruments for the three and six months ended June 30, 2018 , respectively. The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of June 30, 2018 (in thousands): July 1, 2018 through December 31, 2018 $ — 2019 — 2020 72,800 2021 — 2022 — Thereafter 45,000 $ 117,800

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	6 Months Ended
	Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS	DERIVATIVE INSTRUMENTS The Company enters into derivative instruments for risk management purposes to hedge its exposure to cash flow variability caused by changing interest rates. The primary goal of the Company’s risk management practices related to interest rate risk is to prevent changes in interest rates from adversely impacting the Company’s ability to achieve its investment return objectives. The Company does not enter into derivatives for speculative purposes. The Company enters into interest rate swaps as a fixed rate payer to mitigate its exposure to rising interest rates on its variable rate notes payable. The value of interest rate swaps is primarily impacted by interest rates, market expectations about interest rates, and the remaining life of the instrument. In general, increases in interest rates, or anticipated increases in interest rates, will increase the value of the fixed rate payer position and decrease the value of the variable rate payer position. As the remaining life of the interest rate swap decreases, the value of both positions will generally move towards zero. The following table summarizes the notional amount and other information related to the Company’s interest rate swaps as of June 30, 2018 and December 31, 2017 . The notional amount is an indication of the extent of the Company’s involvement in each instrument at that time, but does not represent exposure to credit, interest rate or market risks (dollars in thousands): June 30, 2018 December 31, 2017 Weighted-Average Fix Pay Rate Weighted-Average Remaining Term in Years Derivative Instruments Number of Instruments Notional Amount Number of Instruments Notional Amount Reference Rate as of June 30, 2018 Derivative instruments not designated as hedging instruments Interest Rate Swaps (1) 2 $ 78,533 1 $ 48,533 One-month LIBOR/ 2.36% 3.23 _____________________ (1) Includes a forward interest rate swap in the amount of $48.5 million , which will become effective on November 1, 2018 and maturing on November 1, 2021 and a forward interest rate swap in the amount of $30.0 million , which will become effective on April 1, 2019 and maturing on November 1, 2022. The following table sets forth the fair value of the Company’s derivative instruments as well as their classification on the consolidated balance sheets as of June 30, 2018 and December 31, 2017 (dollars in thousands): June 30, 2018 December 31, 2017 Derivative Instruments Balance Sheet Location Number of Fair Value Number of Fair Value Derivative instruments not designated as hedging instruments Interest Rate Swaps Prepaid expenses and other assets, at fair value 2 $ 989 1 $ 178 The change in fair value of a derivative instrument that is not designated as a cash flow hedge is recorded as interest expense in the accompanying consolidated statements of operations. The following table summarizes the effects of derivative instruments on the Company’s consolidated statements of operations (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Income statement related Derivatives not designated as hedging instruments Unrealized gain on interest rate swaps $ (439 ) $ — $ (811 ) $ — Decrease in interest expense as a result of derivatives $ (439 ) $ — $ (811 ) $ —

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	6 Months Ended
	Jun. 30, 2018
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 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 a combination of market quotes, pricing models and other valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of the Company’s financial instruments. Financial instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive or consist of non-orderly trades. The Company evaluates several factors when determining if a market is inactive or when market transactions are not orderly. The following is a summary of the methods and assumptions used by management in estimating the fair value of each class of financial instrument for which it is practicable to estimate the fair value: Cash and cash equivalents, rent and other receivables, and accounts payable and accrued liabilities: These balances approximate their fair values due to the short maturities of these items. Derivative instruments: The Company’s derivative instruments are presented at fair value on the accompanying consolidated balance sheets. The valuation of these instruments is determined using a proprietary model that utilizes observable inputs. As such, the Company classifies these inputs as Level 2 inputs. The proprietary model uses the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves and volatility. The fair values of interest rate swaps are estimated using the market standard methodology of netting the discounted fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of interest rates (forward curves) derived from observable market interest rate curves. In addition, credit valuation adjustments, which consider the impact of any credit risks to the contracts, are incorporated in the fair values to account for potential nonperformance risk. 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 when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. The Company classifies these inputs as Level 3 inputs. The following were the face values, carrying amounts and fair values of the Company’s notes payable as of June 30, 2018 and December 31, 2017 , which carrying amounts generally do not approximate the fair values (in thousands): June 30, 2018 December 31, 2017 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 117,800 $ 116,682 $ 119,250 $ 113,800 $ 112,780 $ 114,327 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. As of June 30, 2018 , the Company measured the following assets at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recurring Basis: Asset derivatives - interest rate swaps $ 989 $ — $ 989 $ —

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED-PARTY TRANSACTIONS Pursuant to the Advisory Agreement, the Initial Private Offering Dealer Manager Agreement and the Public Offering Dealer Manager Agreement, the Company is or was obligated to pay the Advisor and the Dealer Manager specified fees upon the provision of certain services related to the Initial Private Offering and the Public Offering, the investment of funds in real estate, management of the Company’s investments and for other services (including, but not limited to, the disposition of investments). The Company was also obligated to reimburse the Advisor and Dealer Manager for certain organization and offering costs incurred by the Advisor and the Dealer Manager on behalf of the Company, and the Company is obligated to reimburse the Advisor for acquisition and origination expenses and certain operating expenses incurred on behalf of the Company or incurred in connection with providing services to the Company. The Advisor is entitled to certain other fees, including an incentive fee upon achieving certain performance goals, as detailed in the Advisory Agreement. In addition, the Advisor will pay all offering expenses related to the Second Private Offering without reimbursement by the Company. In addition, in connection with certain property acquisitions, the Company, through indirect wholly owned subsidiaries, has entered into separate Property Management Agreements (defined below) with KBS Management Group, LLC, an affiliate of the Advisor (the “Co-Manager”). The Company has also entered into a fee reimbursement agreement with the Dealer Manager pursuant to which the Company agreed to reimburse the Dealer Manager for certain fees and expenses it incurs for administering the Company’s participation in the DTCC Alternative Investment Product Platform with respect to certain accounts of the Company’s investors serviced through the platform. The Advisor also serves as the advisor 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 Dealer Manager also serves as the dealer manager for KBS REIT II, KBS REIT III, KBS Strategic Opportunity REIT, KBS Legacy Partners Apartment REIT and KBS Strategic Opportunity REIT II. The Company, 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, entered into an errors and omissions and directors and officers liability insurance program where the lower tiers of such insurance coverage are shared. The cost of these lower tiers is allocated by the Advisor and its insurance broker among each of the various entities covered by the program and is billed directly to each entity. The allocation of these shared coverage costs is proportionate to the pricing by the insurance marketplace for the first tiers of directors and officers liability coverage purchased individually by each REIT. The Advisor’s and the Dealer Manager’s portion of the shared lower tiers’ cost is proportionate to the respective entities’ prior cost for the errors and omissions insurance. In June 2018, the Company renewed its participation in the program. At renewal, KBS Strategic Opportunity REIT, KBS Strategic Opportunity REIT II and Legacy Partners Apartment REIT elected to cease participation in the program and obtain separate insurance coverage. The program is effective through June 30, 2019. KBS REIT I elected to cease participation in the program at the June 2017 renewal and obtained separate insurance coverage. During the six months ended June 30, 2018 and 2017 , no other business transactions occurred between the Company and KBS REIT I, KBS REIT II, KBS REIT III, KBS Strategic Opportunity REIT, KBS Legacy Partners Apartment REIT and KBS Strategic Opportunity REIT II. Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the three and six months ended June 30, 2018 and 2017 , respectively, and any related amounts payable as of June 30, 2018 and December 31, 2017 (in thousands). Incurred Payable as of Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 June 30, 2018 December 31, 2017 Expensed Asset management fees (1) $ 462 $ — $ 918 $ 214 $ 1,336 $ 418 Reimbursement of operating expenses (2) 53 50 106 104 19 18 Property management fees (3) 42 31 84 60 10 13 Other Arrangement Advisor advance for cash distributions (4) — — — — 1,338 1,338 Additional Paid-in Capital Selling commissions — 17 — 78 — — Dealer manager fees — 15 — 50 — — Stockholder servicing fees (5) — (77 ) — (26 ) — — Reimbursable other offering costs (6) — (9 ) — 14 — — $ 557 $ 27 $ 1,108 $ 494 $ 2,703 $ 1,787 _____________________ (1) Through August 8, 2017 , the asset management fee payable to the Advisor was a monthly fee equal to one-twelfth of 1.6% of the cost of the Company’s investments, less any debt secured by or attributable to the investments. Beginning on August 9, 2017, the asset management fee is a monthly fee payable to the Advisor in an amount equal to one-twelfth of 1.0% of the cost of the Company’s investments including the portion of the investment that is debt financed. As of June 30, 2018 , the Company had accrued and deferred payment of $1.3 million of asset management fees related to the fourth quarter of 2017 through the second quarter of 2018. (2) See “Reimbursable Operating Expenses” below. (3) See “Real Estate Property Co-Management Agreements” below. (4) See “Advance from the Advisor” below. (5) The Public Offering was terminated effective June 30, 2017. Pursuant to the terms of the Class T shares as set forth in the Articles Supplementary and Multiple Class Plan of the Company, the Company ceased accruing for stockholder servicing fees after June 30, 2017 and reversed the amounts previously accrued. (6) See “Organization and Offering Costs” below. During the six months ended June 30, 2018 , the Advisor paid the Company a $10,655 property insurance rebate. Reimbursable Operating Expenses 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 $50,213 and $103,212 for the three and six months ended June 30, 2018 , respectively, and $49,399 and $101,741 for the three and six months ended June 30, 2017 , respectively, and were the only type of employee costs reimbursed under the Advisory Agreement for the three and six months ended June 30, 2018 and 2017 , respectively. The Company does not reimburse for employee costs in connection with services for which the Advisor earned or 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. Effective September 29, 2017, the Company eliminated its obligation to reimburse expenses incurred by the Advisor in connection with providing services pursuant to the Advisory Agreement, other than (i) the allocable portion of the costs of the internal audit department and (ii) promotional costs and expenses related to the leasing of properties. Commencing with the quarter ended December 31, 2016, the Advisor must reimburse the Company the amount by which the Company’s aggregate total operating expenses for the four fiscal quarters then ended exceed the greater of 2% of the Company’s average invested assets or 25% of the Company’s net income, unless the conflicts committee has determined that such excess expenses were justified based on unusual and non-recurring factors. Operating expenses for the four fiscal quarters ended June 30, 2018 did not exceed the charter-imposed limitation. Advance from the Advisor The Advisor advanced funds to the Company, which are non-interest bearing, for distribution record dates through the period ended May 31, 2016. As of June 30, 2018 , the total advanced funds due to the Advisor from the Company was approximately $1.3 million . 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 Institute for Portfolio Alternatives and interpreted by the Company, for the immediately preceding month exceeds the amount of cash 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. 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. Real Estate Property Co-Management Agreements In connection with its property acquisitions, the Company, through separate, indirect, wholly-owned subsidiaries, entered into separate property management agreements (each, a “Property Management Agreement”) with the Co-Manager for each of its properties. Under each Property Management Agreement, the Co-Manager will provide certain management services related to these properties in addition to those provided by the third-party property managers. In exchange for these services, the Company will pay the Co-Manager a monthly fee equal to a percentage of the rent, payable and actually collected for the month from each of the properties. Each Property Management Agreement has an initial term of 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 each Property Management Agreement for cause on 5 days’ written notice to the other party upon the occurrence of certain events as detailed in each Property Management Agreement. Property Name Effective Date Annual Fee Percentage Von Karman Tech Center 07/31/2015 1.50% Commonwealth Building 07/01/2016 1.25% The Offices at Greenhouse 11/14/2016 0.25% Institute Property 11/09/2017 1.00% Organization and Offering Costs Offering costs include all expenses incurred in connection with the offerings of securities by the Company. 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. With respect to the Public Offering, the Advisor and the Dealer Manager generally paid the organization and offering expenses of the Company incurred in the Primary Offering (other than selling commissions, dealer manager fees and stockholder servicing fees) directly. The Company reimbursed the Advisor, the Dealer Manager and its affiliates up to 1% of gross proceeds raised in the Primary Offering for commercially reasonable organization and offering expenses (other than selling commissions, dealer manager fees and stockholder servicing fees). The Advisor, the Dealer Manager and their affiliates were responsible for all organization and other offering expenses (which excludes selling commissions, dealer manager fees and stockholder servicing fees) paid related to the Primary Offering to the extent they exceeded 1% of gross proceeds raised in the Primary Offering. The Company did not reimburse the Dealer Manager for wholesaling compensation expenses. During the Initial Private Offering, the Company was obligated to reimburse the Advisor and its affiliates for all organization and offering costs (excluding wholesaling compensation expenses) paid by them on behalf of the Company. The Advisor has agreed to pay directly all offering expenses related to the Second Private Offering without reimbursement by the Company. Through June 30, 2018 , the Advisor and its affiliates had incurred organization and other offering costs (which exclude selling commissions, dealer manager fees and stockholder servicing fees) on the Company’s behalf in connection with the Public Offering of approximately $4.4 million . As of June 30, 2018 , the Company had recorded $39,358 of organization and other offering expenses related to the Public Offering, which amounts represent the Company’s maximum liability for organization and other offering costs as of June 30, 2018 based on the limitations described above. As of June 30, 2018 , the Company had recorded $1.5 million of organization and other offering costs related to the Initial Private Offering. Organization costs were expensed as incurred and offering costs are deferred and charged to stockholders’ equity as such amounts were reimbursed to the Advisor, the Dealer Manager or their affiliates from the gross proceeds of the applicable offering. As of June 30, 2018 , the Advisor had incurred $3.6 million in offering expenses related to the Second Private Offering.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Economic Dependency The Company depends on the Advisor for certain services that are essential to the Company, including the identification, evaluation, negotiation, acquisition and disposition of investments; management of the daily operations of the Company’s investment portfolio; and other general and administrative responsibilities. In the event that the Advisor is unable to provide such services, the Company will be required to obtain such services from other sources. 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. 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.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS The Company evaluates subsequent events up until the date the consolidated financial statements are issued. Cash Distributions Paid On July 2, 2018 , the Company paid cash distributions of $0.4 million , which related to distributions on the Company’s common stock, declared for daily record dates for each day in the period from June 1, 2018 through June 30, 2018 . On August 1, 2018 , the Company paid cash distributions of $0.4 million , which related to distributions on the Company’s common stock, declared for daily record dates for each day in the period from July 1, 2018 through July 31, 2018 . Distributions Authorized On July 16, 2018 , the Company’s board of directors authorized cash distributions on the outstanding shares of all classes of the Company’s common stock based on daily record dates for the period from August 1, 2018 through August 31, 2018 , which the Company expects to pay in September 2018 . On August 6, 2018, the Company’s board of directors authorized cash distributions on the outstanding shares of all classes of the Company’s common stock based on daily record dates for the period from September 1, 2018 through September 30, 2018 , which the Company expects to pay in October 2018 , and the period from October 1, 2018 through October 31, 2018 , which the Company expects to pay in November 2018 . 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 $0.00144493 per share per day.

SUMMARY OF SIGNIFICANT ACCOUN17

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2018
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 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 six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 .
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.
Segments	The Company had invested in four office properties as of June 30, 2018 . Substantially all of the Company’s revenue and net loss is from real estate, and therefore, the Company currently operates in one reportable segment.
Revenue Recognition	Effective January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”) using the modified retrospective approach, which requires a cumulative effect adjustment as of the date of the Company’s adoption. Under the modified retrospective approach, an entity may also elect to apply this standard to either (i) all contracts as of January 1, 2018 or (ii) only to contracts that were not completed as of January 1, 2018. A completed contract is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP that was in effect before the date of initial application. The Company elected to apply this standard only to contracts that were not completed as of January 1, 2018. Based on the Company’s evaluation of contracts within the scope of ASU No. 2014-09, revenue that is impacted by ASU No. 2014-09 includes revenue generated by sales of real estate, other operating income and tenant reimbursements for substantial services earned at the Company’s properties. The recognition of such revenue will occur when the services are provided and the performance obligations are satisfied. For the three and six months ended June 30, 2018 , tenant reimbursements for substantial services accounted for under ASU No. 2014-09 were $28,000 and $64,000 , respectively, and were included in tenant reimbursements on the accompanying statements of operations.
Sales of Real Estate	Effective January 1, 2018, the Company adopted the guidance of ASC 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (“ASC 610-20”), which applies to sales or transfers to noncustomers of nonfinancial assets or in substance nonfinancial assets that do not meet the definition of a business. Generally, the Company’s sales of real estate would be considered a sale of a nonfinancial asset as defined by ASC 610-20. ASC 610-20 refers to the revenue recognition principles under ASU No. 2014-09. Under ASC 610-20, if the Company determines it does not have a controlling financial interest in the entity that holds the asset and the arrangement meets the criteria to be accounted for as a contract, the Company would derecognize the asset and recognize a gain or loss on the sale of the real estate when control of the underlying asset transfers to the buyer. As a result of the adoption of ASU 610-20, there was no impact to the Company’s consolidated financial statements of operations for the three and six months ended June 30, 2018 and 2017 since the Company did not sell any real estate properties for those periods.
Per Share Data	Basic net income (loss) per share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock equals basic net income (loss) per share of common stock as there were no potentially dilutive securities outstanding for the three and six months ended June 30, 2018 and 2017 , respectively. For the purpose of determining the weighted average number of shares outstanding, stock dividends issued during the period presented are adjusted retroactively and treated as if they were issued and outstanding for all periods presented. In accordance with FASB ASC Topic 260-10-45, Earnings Per Share , the Company uses the two-class method to calculate earnings per share. Basic earnings per share is calculated based on dividends declared (“distributed earnings”) and the rights of common shares and participating securities in any undistributed earnings, which represents net income remaining after deduction of dividends declared during the period. The undistributed earnings are allocated to all outstanding common shares based on the relative percentage of each class of shares to the total number of outstanding shares. The Company does not have any participating securities outstanding other than Class A Common Stock and Class T Common Stock during the periods presented.
Square Footage, Occupancy and Other Measures	Square footage, occupancy, number of tenants and other measures, including annualized base rent and annualized base rent per square foot, or amounts derived from such measures, used to describe real estate investments included in these condensed notes to consolidated financial statements are presented on an unaudited basis and outside the scope of the Company’s independent registered public accounting firm’s review of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board.
Recently Issued Accounting Standards Updates	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. ASU No. 2016-02 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 lease accounting standard on its consolidated financial statements. Upon adoption of ASU No. 2016-02, the Company expects to adopt the package of practical expedients for all leases that commenced before the effective date of January 1, 2019. Accordingly, the Company will 1) not reassess whether any expired or existing contracts are or contain leases, 2) not reassess the lease classification for any expired or existing lease, and 3) not reassess initial direct costs for any existing leases. The Company does not expect to elect the practical expedient related to using hindsight to reevaluate the lease term. In addition, the Company expects to adopt the practical expedient for land easements to not assess whether existing or expired land easements that were not previously accounted for as leases under the current lease accounting standards of Topic 840 are or contain a lease under Topic 842. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842), Targeted Improvements (“ASU No. 2018-11”), which provides lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue recognition standard (Topic 606) and if certain conditions are met. Upon adoption of the lease accounting standard under Topic 842, the Company expects to adopt this practical expedient, specifically related to its tenant reimbursements which would otherwise be accounted for under the new revenue recognition standard. The Company believes the two conditions have been met for tenant reimbursements as 1) the timing and pattern of transfer of the nonlease components and associated lease components are the same and 2) the lease component would be classified as an operating lease. In addition. ASU No. 2018-11, provides an additional optional transition method to allow entities to apply the new lease accounting standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. An entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new lease accounting standard will continue to be reported under the current lease accounting standards of Topic 840. The Company expects to adopt this transition method upon adoption of the lease accounting standard of Topic 842 on January 1, 2019. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments (“ASU No. 2016-13”). ASU No. 2016-13 affects entities holding financial assets and net investments in leases that are not accounted for at fair value through net income. The amendments in ASU No. 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. ASU No. 2016-13 also amends the impairment model for available-for-sale securities. An entity will recognize an allowance for credit losses on available-for-sale debt securities as a contra-account to the amortized cost basis rather than as a direct reduction of the amortized cost basis of the investment, as is currently required. ASU No. 2016-13 also requires new disclosures. For financial assets measured at amortized cost, an entity will be required to disclose information about how it developed its allowance for credit losses, including changes in the factors that influenced management’s estimate of expected credit losses and the reasons for those changes. For financing receivables and net investments in leases measured at amortized cost, an entity will be required to further disaggregate the information it currently discloses about the credit quality of these assets by year of the asset’s origination for as many as five annual periods. For available for sale securities, an entity will be required to provide a roll-forward of the allowance for credit losses and an aging analysis for securities that are past due. ASU No. 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is still evaluating the impact of adopting ASU No. 2016-13 on its financial statements, but does not expect the adoption of ASU No. 2016-13 to have a material impact on its financial statements.

SUMMARY OF SIGNIFICANT ACCOUN18

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Schedule of Earnings Per Share, Including Two Class Method	The Company’s calculated earnings per share for the three and six months ended June 30, 2018 and 2017 were as follows (in thousands, except share and per share amounts): For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Net loss $ (725 ) $ (424 ) $ (930 ) $ (621 ) Less: Class A Common Stock cash distributions declared 1,163 1,128 2,248 2,226 Less: Class T Common Stock cash distributions declared 37 26 70 42 Undistributed net loss $ (1,925 ) $ (1,578 ) $ (3,248 ) $ (2,889 ) Class A Common Stock: Undistributed net loss $ (1,866 ) $ (1,534 ) $ (3,150 ) $ (2,822 ) Class A Common Stock cash distributions declared 1,163 1,128 2,248 2,226 Net loss $ (703 ) $ (406 ) $ (902 ) $ (596 ) Net loss per common share, basic and diluted $ (0.08 ) $ (0.04 ) $ (0.10 ) $ (0.07 ) Weighted-average number of common shares outstanding, basic and diluted 9,096,617 9,076,034 9,095,895 9,020,742 Class T Common Stock: Undistributed net loss $ (59 ) $ (44 ) $ (98 ) $ (67 ) Class T Common Stock cash distributions declared 37 26 70 42 Net loss $ (22 ) $ (18 ) $ (28 ) $ (25 ) Net loss per common share, basic and diluted $ (0.08 ) $ (0.07 ) $ (0.10 ) $ (0.11 ) Weighted-average number of common shares outstanding, basic and diluted 286,721 261,613 285,165 214,044

REAL ESTATE (Tables)

REAL ESTATE (Tables)	6 Months Ended
	Jun. 30, 2018
Real Estate [Abstract]
Schedule of Real Estate	The following table provides summary information regarding the properties owned by the Company as of June 30, 2018 (in thousands): 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 $ 20,829 $ (1,933 ) $ 18,896 Commonwealth Building 06/30/2016 Portland OR Office 76,718 (6,378 ) 70,340 The Offices at Greenhouse 11/14/2016 Houston TX Office 47,242 (3,930 ) 43,312 Institute Property 11/09/2017 Chicago IL Office 45,733 (1,385 ) 44,348 $ 190,522 $ (13,626 ) $ 176,896
Schedules of Concentration of Risk, by Risk Factor	As of June 30, 2018 , the Company’s real estate properties were leased to approximately 80 tenants over a diverse range of industries. The Company’s highest tenant industry concentration (greater than 10% of annualized base rent) was as follows: Industry Number of Tenants Annualized Base Rent (1) (in thousands) Percentage of Annualized Base Rent Professional, scientific and technical 14 $ 5,910 38.0 % Information technology 9 1,849 11.9 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2018 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term. As of June 30, 2018 , the following properties represented more than 10% of the Company’s total assets: Property Location Rentable Total Real Estate, Net (in thousands) Percentage of Total Assets Annualized Base Rent (in thousands) (1) Average Annualized Base Rent per sq. ft. Occupancy Von Karman Tech Center Irvine, CA 101,161 $ 18,896 10.1 % $ 2,249 $ 22.90 97.1 % Commonwealth Building Portland, OR 224,122 70,340 37.5 % 5,727 26.79 95.4 % The Offices at Greenhouse Houston, TX 203,284 43,312 23.1 % 4,201 20.66 100.0 % Institute Property Chicago, IL 155,385 44,348 23.7 % 3,385 23.37 93.2 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2018 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term.
Schedule of Future Minimum Rental Income for Company's Properties	As of June 30, 2018 , the future minimum rental income from the Company’s properties under its non-cancelable operating leases was as follows (in thousands): July 1, 2018 through December 31, 2018 $ 7,375 2019 14,314 2020 14,308 2021 12,902 2022 11,131 Thereafter 16,483 $ 76,513

TENANT ORIGINATION AND ABSORP20

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2018
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities	As of June 30, 2018 and December 31, 2017 , the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities (excluding fully amortized assets and liabilities and accumulated amortization) were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 Cost $ 16,400 $ 17,047 $ 213 $ 213 $ (7,226 ) $ (7,838 ) Accumulated Amortization (4,781 ) (3,480 ) (48 ) (33 ) 2,574 1,928 Net Amount $ 11,619 $ 13,567 $ 165 $ 180 $ (4,652 ) $ (5,910 )
Amortization of Tenant Origination and Absorption Costs, Above-Market Leases and Below-Market Lease Liabilities	Increases (decreases) in net income as a result of amortization of the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities for the three and six months ended June 30, 2018 and 2017 were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Three Months Ended June 30, For the Three Months Ended June 30, For the Three Months Ended June 30, 2018 2017 2018 2017 2018 2017 Amortization $ (1,130 ) $ (703 ) $ (7 ) $ (7 ) $ 803 $ 423 Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Six Months Ended June 30, For the Six Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 2018 2017 Amortization $ (1,948 ) $ (1,336 ) $ (15 ) $ (15 ) $ 1,258 $ 774

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2018
Notes Payable [Abstract]
Schedule of Long-term Debt Instruments	As of June 30, 2018 , the Company’s notes payable consisted of the following (dollars in thousands): Book Value as of June 30, 2018 Book Value as of December 31, 2017 Contractual Interest Rate as of June 30, 2018 (1) Effective Interest Rate at June 30, 2018 (1) Payment Type Maturity Date (2) Commonwealth Building Mortgage Loan (3) $ 45,000 $ 41,000 One-month LIBOR + 1.80% 3.79% Interest Only 02/01/2023 Term Loan (4) 72,800 72,800 One-month LIBOR + 2.00% 3.99% Interest Only 11/09/2020 Notes payable principal outstanding $ 117,800 $ 113,800 Deferred financing costs, net (1,118 ) (1,020 ) Notes payable, net $ 116,682 $ 112,780 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of June 30, 2018 . Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2018 (consisting of the contractual interest rate), using interest rate indices as of June 30, 2018 , where applicable. (2) Represents the maturity date as of June 30, 2018 ; subject to certain conditions, the maturity dates of certain loans may be extended beyond the dates shown. (3) On January 18, 2018, the Company, through an indirect wholly owned subsidiary, closed the refinancing of the initial Commonwealth Building mortgage loan with an unaffiliated lender (the “Refinancing”) for a maximum loan amount of up to $51.4 million . With the proceeds from the Refinancing, the Company repaid $41.0 million of principal in satisfaction of the initial Commonwealth Building mortgage loan. Under the current Commonwealth Building Mortgage Loan under the Refinancing, monthly payments are interest-only with the remaining principal balance, all accrued and unpaid interest and all other sums due under the loan documents payable at maturity. If the LIBOR rate is equal to or greater than 2.90% for five consecutive business days, the Company has 30 days to enter into an interest rate cap agreement with a LIBOR strike rate of 3.90% or less. The Company has the right to prepay all or a portion of the loan under the Refinancing commencing on February 1, 2019, subject to certain fees and conditions contained in the loan documents. As of June 30, 2018 , $45.0 million of the Commonwealth Building Mortgage Loan was outstanding and $6.4 million remained available for future disbursements, subject to certain terms and conditions set forth in the loan documents. (4) As of June 30, 2018 , the outstanding balance under the Term Loan consisted of $48.5 million of term commitment and $24.3 million of revolving commitment, which bears interest at a rate per annum equal to 2.0% over one-month LIBOR. The Term Loan is secured by The Offices at Greenhouse, Von Karman Tech Center and Institute Property.
Schedule of Maturities of Long-term Debt	The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of June 30, 2018 (in thousands): July 1, 2018 through December 31, 2018 $ — 2019 — 2020 72,800 2021 — 2022 — Thereafter 45,000 $ 117,800

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Notional and Fair Value of Interest Rate Swaps	The following table summarizes the notional amount and other information related to the Company’s interest rate swaps as of June 30, 2018 and December 31, 2017 . The notional amount is an indication of the extent of the Company’s involvement in each instrument at that time, but does not represent exposure to credit, interest rate or market risks (dollars in thousands): June 30, 2018 December 31, 2017 Weighted-Average Fix Pay Rate Weighted-Average Remaining Term in Years Derivative Instruments Number of Instruments Notional Amount Number of Instruments Notional Amount Reference Rate as of June 30, 2018 Derivative instruments not designated as hedging instruments Interest Rate Swaps (1) 2 $ 78,533 1 $ 48,533 One-month LIBOR/ 2.36% 3.23 _____________________ (1) Includes a forward interest rate swap in the amount of $48.5 million , which will become effective on November 1, 2018 and maturing on November 1, 2021 and a forward interest rate swap in the amount of $30.0 million , which will become effective on April 1, 2019 and maturing on November 1, 2022.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The following table sets forth the fair value of the Company’s derivative instruments as well as their classification on the consolidated balance sheets as of June 30, 2018 and December 31, 2017 (dollars in thousands): June 30, 2018 December 31, 2017 Derivative Instruments Balance Sheet Location Number of Fair Value Number of Fair Value Derivative instruments not designated as hedging instruments Interest Rate Swaps Prepaid expenses and other assets, at fair value 2 $ 989 1 $ 178
Schedule of Derivative Instruments in Statement of Operations	The following table summarizes the effects of derivative instruments on the Company’s consolidated statements of operations (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Income statement related Derivatives not designated as hedging instruments Unrealized gain on interest rate swaps $ (439 ) $ — $ (811 ) $ — Decrease in interest expense as a result of derivatives $ (439 ) $ — $ (811 ) $ —

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of Face Value, Carrying Amounts and Fair Value	The following were the face values, carrying amounts and fair values of the Company’s notes payable as of June 30, 2018 and December 31, 2017 , which carrying amounts generally do not approximate the fair values (in thousands): June 30, 2018 December 31, 2017 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 117,800 $ 116,682 $ 119,250 $ 113,800 $ 112,780 $ 114,327
Schedule of Fair Value Measurements	As of June 30, 2018 , the Company measured the following assets at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recurring Basis: Asset derivatives - interest rate swaps $ 989 $ — $ 989 $ —

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
Schedule of Related Party Costs	Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the three and six months ended June 30, 2018 and 2017 , respectively, and any related amounts payable as of June 30, 2018 and December 31, 2017 (in thousands). Incurred Payable as of Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 June 30, 2018 December 31, 2017 Expensed Asset management fees (1) $ 462 $ — $ 918 $ 214 $ 1,336 $ 418 Reimbursement of operating expenses (2) 53 50 106 104 19 18 Property management fees (3) 42 31 84 60 10 13 Other Arrangement Advisor advance for cash distributions (4) — — — — 1,338 1,338 Additional Paid-in Capital Selling commissions — 17 — 78 — — Dealer manager fees — 15 — 50 — — Stockholder servicing fees (5) — (77 ) — (26 ) — — Reimbursable other offering costs (6) — (9 ) — 14 — — $ 557 $ 27 $ 1,108 $ 494 $ 2,703 $ 1,787 _____________________ (1) Through August 8, 2017 , the asset management fee payable to the Advisor was a monthly fee equal to one-twelfth of 1.6% of the cost of the Company’s investments, less any debt secured by or attributable to the investments. Beginning on August 9, 2017, the asset management fee is a monthly fee payable to the Advisor in an amount equal to one-twelfth of 1.0% of the cost of the Company’s investments including the portion of the investment that is debt financed. As of June 30, 2018 , the Company had accrued and deferred payment of $1.3 million of asset management fees related to the fourth quarter of 2017 through the second quarter of 2018. (2) See “Reimbursable Operating Expenses” below. (3) See “Real Estate Property Co-Management Agreements” below. (4) See “Advance from the Advisor” below. (5) The Public Offering was terminated effective June 30, 2017. Pursuant to the terms of the Class T shares as set forth in the Articles Supplementary and Multiple Class Plan of the Company, the Company ceased accruing for stockholder servicing fees after June 30, 2017 and reversed the amounts previously accrued. (6) See “Organization and Offering Costs” below.
Schedule of Annual Fee Percentage	Property Name Effective Date Annual Fee Percentage Von Karman Tech Center 07/31/2015 1.50% Commonwealth Building 07/01/2016 1.25% The Offices at Greenhouse 11/14/2016 0.25% Institute Property 11/09/2017 1.00%

ORGANIZATION (Details)

ORGANIZATION (Details)	Aug. 11, 2015USD ($)individual$ / sharesshares	Jun. 30, 2018USD ($)shares	Dec. 31, 2017USD ($)shares	Jun. 30, 2018USD ($)shares	Jun. 30, 2018USD ($)shares	Oct. 03, 2017shares	Jun. 11, 2015shares	Feb. 04, 2015USD ($)	Jan. 27, 2015$ / sharesshares
Organizational Structure [Line Items]
Managing member or general partner, ownership interest		0.10%
Members or limited partners, ownership interest		99.90%
Core property, minimum percent of occupancy		80.00%		80.00%	80.00%
Issuance of common stock | $		$ 2,895,000	$ 5,421,000
Redemptions of common stock | $		$ 2,314,000	$ 1,210,000
Number of individuals who own and control company's sponsor | individual	2
Class A
Organizational Structure [Line Items]
Common stock, shares issued (in shares)		9,194,944	9,149,100	9,194,944	9,194,944
Class T
Organizational Structure [Line Items]
Common stock, shares issued (in shares)		287,878	281,537	287,878	287,878
Maximum | Class A | Second Private Placement
Organizational Structure [Line Items]
Shares authorized for issuance						1,000,000,000
Common Stock | Public Offering
Organizational Structure [Line Items]
Issuance of common stock | $					$ 3,900,000
Stock issued during period, dividend reinvestment plan | $					$ 4,500,000
Common Stock | Class A
Organizational Structure [Line Items]
Shares authorized for dividend reinvestment plan							5,000,000
Issuance of common stock (in shares)		322,916	380,538
Issuance of common stock | $		$ 4,000	$ 2,000
Redemptions of common stock (in shares)		277,072	145,214		422,286
Redemptions of common stock | $		$ 3,000			$ 3,500,000
Common Stock | Class A | Private Placement
Organizational Structure [Line Items]
Issuance of common stock (in shares)				8,548,972
Issuance of common stock | $	$ 172,500			$ 76,800,000
Stock issued during period, dividend reinvestment plan (in shares)				74,744
Stock issued during period, dividend reinvestment plan | $				$ 700,000
Shares issued, price per share | $ / shares	$ 8.144
Shares issued, discount to offering price	8.50%
Offering, share price (in usd per share) | $ / shares	$ 8.90
Common Stock | Class A | Private Placement | CEO
Organizational Structure [Line Items]
Issuance of common stock (in shares)	21,181.2380
Common Stock | Class A | Private Placement | President
Organizational Structure [Line Items]
Issuance of common stock (in shares)	21,181.2390
Common Stock | Class A | Public Offering
Organizational Structure [Line Items]
Issuance of common stock (in shares)					122,721
Stock issued during period, dividend reinvestment plan (in shares)					464,125
Common Stock | Class A | Second Private Offering
Organizational Structure [Line Items]
Issuance of common stock (in shares)				253,308
Issuance of common stock | $				$ 2,200,000
Common Stock | Class T
Organizational Structure [Line Items]
Issuance of common stock (in shares)		6,341	185,845
Issuance of common stock | $		$ 0	$ 2,000
Common Stock | Class T | Public Offering
Organizational Structure [Line Items]
Issuance of common stock (in shares)					270,415
Stock issued during period, dividend reinvestment plan (in shares)					15,689
Common Stock | Maximum
Organizational Structure [Line Items]
Shares authorized for issuance, value | $								$ 1,500,000,000
Shares authorized for dividend reinvestment plan | $								$ 800,000,000
Common Stock | Maximum | Class A
Organizational Structure [Line Items]
Shares authorized for issuance							105,000,000
KBS Capital Advisors LLC
Organizational Structure [Line Items]
Common stock, shares issued (in shares)									20,000
Purchase price per share (in usd per share) | $ / shares									$ 10

SUMMARY OF SIGNIFICANT ACCOUN26

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Segments and Revenue) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)property	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)segmentproperty	Jun. 30, 2017USD ($)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Tenant reimbursements	$ 867	$ 877	$ 1,995	$ 1,656
Number of reportable segments | segment			1
Office Building
Real Estate Properties [Line Items]
Number of real estate properties | property	4		4
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Tenant reimbursements	$ 28		$ 64

SUMMARY OF SIGNIFICANT ACCOUN27

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Stock Dividends) (Details)	3 Months Ended	6 Months Ended
	Jun. 30, 2017shares	Jun. 30, 2017shares
Accounting Policies [Abstract]
Common stock dividends, shares, ratio	0.00249999	0.00499998
Stock dividends issued (in shares)	23,160	45,846

SUMMARY OF SIGNIFICANT ACCOUN28

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Per Share Data) (Details) - $ / shares	2 Months Ended	3 Months Ended		4 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 2017	Apr. 30, 2018	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Distribution rate per share per day, declared (in dollars per share)	$ 0.00144493			$ 0.00132452		$ 0.00136986
Class A
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Distributions declared per share (in dollars per share)		$ 0.12787633	$ 0.12465726		$ 0.24708313	0.24794466
Class T
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Distributions declared per share (in dollars per share)		$ 0.12787633	$ 0.10005293		$ 0.24708313	$ 0.19885548

SUMMARY OF SIGNIFICANT ACCOUN29

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (EPS Two-class Method) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net loss	$ (725)	$ (424)	$ (930)	$ (621)	$ (2,199)
Undistributed net loss	(1,925)	(1,578)	(3,248)	(2,889)
Class A
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net loss	(703)	(406)	(902)	(596)
Less: Common Stock cash distributions declared	1,163	1,128	2,248	2,226
Undistributed net loss	$ (1,866)	$ (1,534)	$ (3,150)	$ (2,822)
Net loss per common share, basic and diluted (in dollars per share)	$ (0.08)	$ (0.04)	$ (0.10)	$ (0.07)
Weighted-average number of common shares outstanding, basic and diluted (in shares)	9,096,617	9,076,034	9,095,895	9,020,742
Class T
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net loss	$ (22)	$ (18)	$ (28)	$ (25)
Less: Common Stock cash distributions declared	37	26	70	42
Undistributed net loss	$ (59)	$ (44)	$ (98)	$ (67)
Net loss per common share, basic and diluted (in dollars per share)	$ (0.08)	$ (0.07)	$ (0.10)	$ (0.11)
Weighted-average number of common shares outstanding, basic and diluted (in shares)	286,721	261,613	285,165	214,044

REAL ESTATE (Narrative) (Detail

REAL ESTATE (Narrative) (Details) - Office Building	Jun. 30, 2018ft²property
Real Estate Properties [Line Items]
Number of real estate properties | property	4
Rentable Square Feet | ft²	683,952
Occupancy	97.00%

REAL ESTATE (Schedule of Real E

REAL ESTATE (Schedule of Real Estate Investments) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Real Estate Properties [Line Items]
Total real estate, cost	$ 190,522	$ 190,756
Less accumulated depreciation and amortization	(13,626)	(9,627)
Total real estate, net	$ 176,896	$ 181,129
Von Karman Tech Center | Office Building
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on	Aug. 12, 2015
Total real estate, cost	$ 20,829
Less accumulated depreciation and amortization	(1,933)
Total real estate, net	$ 18,896
Commonwealth Building | Office Building
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on	Jun. 30, 2016
Total real estate, cost	$ 76,718
Less accumulated depreciation and amortization	(6,378)
Total real estate, net	$ 70,340
The Offices at Greenhouse | Office Building
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on	Nov. 14, 2016
Total real estate, cost	$ 47,242
Less accumulated depreciation and amortization	(3,930)
Total real estate, net	$ 43,312
Institute Property | Office Building
Real Estate Properties [Line Items]
Date Acquired or Foreclosed on	Nov. 9, 2017
Total real estate, cost	$ 45,733
Less accumulated depreciation and amortization	(1,385)
Total real estate, net	$ 44,348

REAL ESTATE (Assets Concentrati

REAL ESTATE (Assets Concentration Risk) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)ft²$ / ft²	Dec. 31, 2017USD ($)
Concentration Risk [Line Items]
Total Real Estate, Net (in thousands)	$ 176,896	$ 181,129
Von Karman Tech Center | Assets, Total
Concentration Risk [Line Items]
Rentable Square Feet | ft²	101,161
Total Real Estate, Net (in thousands)	$ 18,896
Percentage of Total Assets	10.10%
Annualized Base Rent	$ 2,249
Average Annualized Base Rent per sq. ft. | $ / ft²	22.90
Occupancy	97.10%
Commonwealth Building | Assets, Total
Concentration Risk [Line Items]
Rentable Square Feet | ft²	224,122
Total Real Estate, Net (in thousands)	$ 70,340
Percentage of Total Assets	37.50%
Annualized Base Rent	$ 5,727
Average Annualized Base Rent per sq. ft. | $ / ft²	26.79
Occupancy	95.40%
The Offices at Greenhouse | Assets, Total
Concentration Risk [Line Items]
Rentable Square Feet | ft²	203,284
Total Real Estate, Net (in thousands)	$ 43,312
Percentage of Total Assets	23.10%
Annualized Base Rent	$ 4,201
Average Annualized Base Rent per sq. ft. | $ / ft²	20.66
Occupancy	100.00%
Institute Property | Assets, Total
Concentration Risk [Line Items]
Rentable Square Feet | ft²	155,385
Total Real Estate, Net (in thousands)	$ 44,348
Percentage of Total Assets	23.70%
Annualized Base Rent	$ 3,385
Average Annualized Base Rent per sq. ft. | $ / ft²	23.37
Occupancy	93.20%

REAL ESTATE (Operating Leases)

REAL ESTATE (Operating Leases) (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Operating Leased Assets [Line Items]
Recognition of Deferred Revenue	$ 721	$ 315
Deferred rent receivables	2,500		$ 1,800
Unamortized lease incentives	200		200
Other Liabilities
Operating Leased Assets [Line Items]
Security deposit liability	$ 1,100		$ 1,200
Maximum
Operating Leased Assets [Line Items]
Remaining terms	8 years 10 months 24 days
Weighted Average
Operating Leased Assets [Line Items]
Remaining terms	4 years 3 months 18 days

REAL ESTATE (Future Minimum Ren

REAL ESTATE (Future Minimum Rental Income) (Details) $ in Thousands	Jun. 30, 2018USD ($)
Real Estate [Abstract]
July 1, 2018 through December 31, 2018	$ 7,375
2,019	14,314
2,020	14,308
2,021	12,902
2,022	11,131
Thereafter	16,483
Future minimum rental income	$ 76,513

REAL ESTATE (Concentration Risk

REAL ESTATE (Concentration Risk) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)ft²tenantextension$ / ft²
Concentration Risk [Line Items]
Number of tenants | tenant	80
Customer Concentration Risk
Concentration Risk [Line Items]
Annualized base rent | $	$ 3
Average Annualized Base Rent per sq. ft. | $ / ft²	21.39
Customer Concentration Risk | Expires on July 24, 2019
Concentration Risk [Line Items]
Extension options | extension	2
Extension period	3 years
Customer Concentration Risk | Expires on December 31, 2024
Concentration Risk [Line Items]
Extension options | extension	2
Extension period	5 years
Customer Concentration Risk | Annualized Rent
Concentration Risk [Line Items]
Number of tenants | tenant	1
Concentration risk, percentage	19.00%
Customer Concentration Risk | Rentable Square Feet
Concentration Risk [Line Items]
Concentration risk, percentage	21.00%
Net rentable area	140,922
Customer Concentration Risk | Rentable Square Feet | Expires on July 24, 2019
Concentration Risk [Line Items]
Net rentable area	5,195
Customer Concentration Risk | Rentable Square Feet | Expires on December 31, 2024
Concentration Risk [Line Items]
Net rentable area	135,727

REAL ESTATE (Highest Tenant Ind

REAL ESTATE (Highest Tenant Industry Concentrations- Grater than 10% of Annual Base Rent) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)tenant
Concentration Risk [Line Items]
Number of Tenants	80
Professional, scientific and technical
Concentration Risk [Line Items]
Number of Tenants	14
Annualized Base Rent | $	$ 5,910
Percentage of Annualized Base Rent	38.00%
Information technology
Concentration Risk [Line Items]
Number of Tenants	9
Annualized Base Rent | $	$ 1,849
Percentage of Annualized Base Rent	11.90%

TENANT ORIGINATION AND ABSORP37

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
Tenant Origination And Absorption Costs, Cost	$ 16,400		$ 16,400		$ 17,047
Tenant Origination and Absorption Costs, Accumulated Amortization	(4,781)		(4,781)		(3,480)
Tenant Origination and Absorption Costs, Net Amount	11,619		11,619		13,567
Tenant Origination and Absorption Costs, Amortization	(1,130)	$ (703)	(1,948)	$ (1,336)
Above-Market Lease Assets, Cost	213		213		213
Above-Market Lease Assets, Accumulated Amortization	(48)		(48)		(33)
Above-Market Lease Assets, Net Amount	165		165		180
Above-Market Lease Assets, Amortization	(7)	(7)	(15)	(15)
Below-Market Lease Liabilities, Cost	(7,226)		(7,226)		(7,838)
Below-Market Lease Liabilities, Accumulated Amortization	2,574		2,574		1,928
Below-Market Lease Liabilities, Net Amount	(4,652)		(4,652)		$ (5,910)
Below-Market Lease Liabilities, Amortization	$ 803	$ 423	$ 1,258	$ 774

NOTES PAYABLE (Schedule of Long

NOTES PAYABLE (Schedule of Long-term Debt Instruments) (Details) - USD ($)	Jan. 18, 2018	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Notes payable principal outstanding		$ 117,800,000	$ 113,800,000
Deferred financing costs, net		(1,118,000)	(1,020,000)
Notes payable, net		116,682,000	112,780,000
Face amount of debt		117,800,000	113,800,000
Term Loan
Debt Instrument [Line Items]
Notes payable principal outstanding		$ 72,800,000	72,800,000
Effective Interest Rate		3.99%
Maturity Date		Nov. 9, 2020
Mortgage | Commonwealth Building Mortgage Loan
Debt Instrument [Line Items]
Notes payable principal outstanding		$ 45,000,000	$ 41,000,000
Effective Interest Rate		3.79%
Maturity Date		Feb. 1, 2023
Face amount of debt	$ 51,400,000
Extinguishment of debt, amount	$ 41,000,000
LIBOR benchmark to enter into derivative contract	2.90%
Period to enter into derivative contract	30 days
LIBOR strike rate for derivative contract	3.90%
Amount outstanding		$ 45,000,000
Unused borrowing capacity, amount		$ 6,400,000
Mortgage | Commonwealth Building Mortgage Loan | One-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	1.80%	1.80%
Secured Debt | Term Loan
Debt Instrument [Line Items]
Amount outstanding		$ 48,500,000
Secured Debt | Term Loan | One-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		2.00%
Secured Debt | Term Loan | Revolving Credit Facility
Debt Instrument [Line Items]
Amount outstanding		$ 24,300,000

NOTES PAYABLE (Narrative) (Deta

NOTES PAYABLE (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Notes Payable [Abstract]
Interest expense	$ 797	$ 757	$ 1,768	$ 1,500
Interest payable, current	400		400		$ 300
Amortization of deferred financing costs	100	$ 100	169	$ 253
Debt refinancing costs			200
Interest Rate Swaps
Derivative [Line Items]
Unrealized gain (loss) on derivatives	$ 400		$ 800

NOTES PAYABLE (Schedule of Matu

NOTES PAYABLE (Schedule of Maturities of Long-Term Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Notes Payable [Abstract]
July 1, 2018 through December 31, 2018	$ 0
2,019	0
2,020	72,800
2,021	0
2,022	0
Thereafter	45,000
Total notes payable, net	$ 117,800	$ 113,800

DERIVATIVE INSTRUMENTS (Notiona

DERIVATIVE INSTRUMENTS (Notional Amount) (Details) - Derivative instruments not designated as hedging instruments - Interest Rate Swaps $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)investment	Dec. 31, 2017USD ($)investment
Derivative [Line Items]
Number of Instruments | investment	2	1
Notional Amount	$ 78,533	$ 48,533
Weighted-Average Fix Pay Rate	2.36%
Weighted-Average Remaining Term in Years	3 years 2 months 23 days
Will become effective on November 1, 2018
Derivative [Line Items]
Notional Amount	$ 48,500
Will become effective on April 1, 2019
Derivative [Line Items]
Notional Amount	$ 30,000
Minimum | One-month LIBOR
Derivative [Line Items]
Reference Rate	2.07%
Maximum | One-month LIBOR
Derivative [Line Items]
Reference Rate	2.82%

DERIVATIVE INSTRUMENTS (Balance

DERIVATIVE INSTRUMENTS (Balance Sheet) (Details) - Derivative instruments not designated as hedging instruments - Interest Rate Swaps $ in Thousands	Jun. 30, 2018USD ($)Investmentsinvestment	Dec. 31, 2017USD ($)Investmentsinvestment
Derivative [Line Items]
Number of Instruments | investment	2	1
Prepaid Expenses and Other Current Assets
Derivative [Line Items]
Number of Instruments | Investments	2	1
Asset, Fair Value | $	$ 989	$ 178

DERIVATIVE INSTRUMENTS (Stateme

DERIVATIVE INSTRUMENTS (Statement of Operations) (Details) - Derivative instruments not designated as hedging instruments - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Derivative [Line Items]
Decrease in interest expense as a result of derivatives	$ (439)	$ 0	$ (811)	$ 0
Interest Rate Swaps
Derivative [Line Items]
Unrealized gains on interest rate swaps	$ (439)	$ 0	$ (811)	$ 0

FAIR VALUE DISCLOSURES (Carryin

FAIR VALUE DISCLOSURES (Carrying Amounts of Notes Payable) (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Face Value	$ 117,800,000	$ 113,800,000
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Value	116,682,000	112,780,000
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Value	$ 119,250,000	$ 114,327,000

FAIR VALUE DISCLOSURES (Schedul

FAIR VALUE DISCLOSURES (Schedule of Assets and Liabilities at Fair Value) (Details) - Recurring Basis - Interest Rate Swaps $ in Thousands	Jun. 30, 2018USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset derivatives	$ 989
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset derivatives	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset derivatives	989
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset derivatives	$ 0

RELATED PARTY TRANSACTIONS (Rel

RELATED PARTY TRANSACTIONS (Related-party Costs) (Details) - USD ($) $ in Thousands	Aug. 09, 2017	Aug. 08, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Payable as of			$ 2,703		$ 2,703		$ 2,703	$ 1,787
Advisor and Dealer Manager
Related Party Transaction [Line Items]
Incurred			557	$ 27	1,108	$ 494
Payable as of			2,703		2,703		2,703	1,787
Advisor and Dealer Manager | Asset management fees
Related Party Transaction [Line Items]
Expenses			462	0	918	214
Payable as of			1,336		1,336		1,336	418
Advisor and Dealer Manager | Reimbursement of operating expenses
Related Party Transaction [Line Items]
Expenses			53	50	106	104
Payable as of			19		19		19	18
Advisor and Dealer Manager | Property management fees
Related Party Transaction [Line Items]
Expenses			42	31	84	60
Payable as of			10		10		10	13
Advisor and Dealer Manager | Advisor advance for cash distributions
Related Party Transaction [Line Items]
Incurred			0	0	0	0
Payable as of			1,338		1,338		1,338	1,338
Advisor and Dealer Manager | Selling commissions
Related Party Transaction [Line Items]
Incurred			0	17	0	78
Payable as of			0		0		0	0
Advisor and Dealer Manager | Dealer manager fees
Related Party Transaction [Line Items]
Incurred			0	15	0	50
Payable as of			0		0		0	0
Advisor and Dealer Manager | Stockholder servicing fees
Related Party Transaction [Line Items]
Incurred			0	(77)	0	(26)
Payable as of			0		0		0	0
Advisor and Dealer Manager | Reimbursable other offering costs
Related Party Transaction [Line Items]
Incurred			0	$ (9)	0	$ 14
Payable as of			0		0		0	$ 0
KBS Capital Advisors LLC
Related Party Transaction [Line Items]
Payable as of			$ 1,300		$ 1,300		1,300
Deferred payment							$ 1,300
KBS Capital Advisors LLC | Cost of Investments
Related Party Transaction [Line Items]
Property management fee, percent fee	1.00%	1.60%

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Aug. 09, 2017	Aug. 08, 2017
Related Party Transaction [Line Items]
Payment for administrative fees	$ 50,213	$ 49,399	$ 103,212	$ 101,741
Limit of total operating expenses as a percent of net income for the four most recently completed fiscal quarters					2.00%
Limit of total operating expenses as a percent of average invested assets					25.00%
Due to affiliates	2,703,000		2,703,000		$ 1,787,000
Private Placement
Related Party Transaction [Line Items]
Other organization and offering costs	1,500,000		1,500,000
KBS Capital Advisors LLC
Related Party Transaction [Line Items]
Due to affiliates	1,300,000		1,300,000
Acquisition advisory fee, percent						0.083%	0.133%
KBS Capital Advisors LLC | Public Offering
Related Party Transaction [Line Items]
Offering costs, other than selling commissions and dealer manager fees	4,400,000		4,400,000
Organization and offering costs	$ 39,358		$ 39,358
KBS Capital Advisors LLC | Public Offering | Minimum
Related Party Transaction [Line Items]
Reimbursable offering costs determination, gross offering costs, percentage	1.00%		1.00%
KBS Capital Advisors LLC | Second Private Placement
Related Party Transaction [Line Items]
Amounts of transaction			$ 3,600,000
Property Insurance Rebate | KBS Capital Advisors LLC
Related Party Transaction [Line Items]
Amounts of transaction			$ 10,655

RELATED PARTY TRANSACTIONS (Rea

RELATED PARTY TRANSACTIONS (Real Estate Property Co-Management Agreement) (Details) - KBS Management Group, LLC	6 Months Ended
	Jun. 30, 2018
Related Party Transaction [Line Items]
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
Von Karman Tech Center
Related Party Transaction [Line Items]
Annual Fee Percentage	1.50%
Commonwealth Building
Related Party Transaction [Line Items]
Annual Fee Percentage	1.25%
The Offices at Greenhouse
Related Party Transaction [Line Items]
Annual Fee Percentage	0.25%
Institute Property
Related Party Transaction [Line Items]
Annual Fee Percentage	1.00%

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands	Aug. 06, 2018	Aug. 01, 2018	Jul. 02, 2018	Jun. 30, 2018	Apr. 30, 2018	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Subsequent Event [Line Items]
Distributions declared						$ 2,318		$ 4,583
Distribution rate per share per day, declared (in dollars per share)				$ 0.00144493	$ 0.00132452		$ 0.00136986
Subsequent Event | Dividend Paid
Subsequent Event [Line Items]
Distributions declared		$ 400	$ 400
Subsequent Event | Dividend Declared
Subsequent Event [Line Items]
Distribution rate per share per day, declared (in dollars per share)	$ 0.00144493