KBS Growth & Income REIT (KBSG) 10-Q 12 Aug 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Aug. 10, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	000-56050
Entity Registrant Name	KBS GROWTH & INCOME REIT, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	47-2778257
Entity Address, Address Line One	800 Newport Center Drive, Suite 700
Entity Address, City or Town	Newport Beach,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92660
City Area Code	949
Local Phone Number	417-6500
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001631256
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		9,851,052
Class T Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		307,606

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Real estate:
Land	$ 18,242	$ 19,822
Buildings and improvements	97,721	110,582
Tenant origination and absorption costs	6,838	7,873
Total real estate, cost	122,801	138,277
Less accumulated depreciation and amortization	(13,575)	(15,101)
Total real estate, net	109,226	123,176
Cash and cash equivalents	6,352	7,882
Restricted cash	247	247
Rents and other receivables	4,717	4,284
Above-market leases, net	61	72
Due from affiliates	15	276
Prepaid expenses and other assets	2,322	2,218
Total assets	122,940	138,155
Liabilities and stockholders’ equity
Notes payable, net	101,528	101,454
Accounts payable and accrued liabilities	2,316	3,825
Due to affiliates	9,866	9,006
Below-market leases, net	650	838
Other liabilities	1,398	1,982
Total liabilities	115,758	117,105
Commitments and contingencies (Note 10)
Redeemable common stock	236	250
Stockholders’ equity:
Preferred stock, $.01 par value; 10,000,000 shares authorized, no shares issued and outstanding	0	0
Additional paid-in capital	85,158	85,158
Cumulative distributions and net losses	(78,314)	(64,460)
Total stockholders’ equity	6,946	20,800
Total liabilities and stockholders’ equity	122,940	138,155
Class A Common Stock
Stockholders’ equity:
Common stock	99	99
Class T Common Stock
Stockholders’ equity:
Common stock	$ 3	$ 3

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
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
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)	9,851,052	9,855,330
Common stock, shares outstanding (in shares)	9,851,052	9,855,330
Class T Common Stock
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)	310,974	310,974
Common stock, shares outstanding (in shares)	310,974	310,974

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues:
Rental income	$ 3,631,000	$ 4,081,000	$ 7,317,000	$ 8,375,000
Other operating income	35,000	48,000	76,000	69,000
Total revenues	3,666,000	4,129,000	7,393,000	8,444,000
Expenses:
Operating, maintenance, and management	942,000	935,000	1,825,000	1,765,000
Property management fees and expenses to affiliate	22,000	28,000	46,000	59,000
Real estate taxes and insurance	772,000	728,000	1,556,000	1,494,000
Asset management fees to affiliate	436,000	434,000	866,000	862,000
General and administrative expenses	412,000	445,000	1,033,000	922,000
Depreciation and amortization	1,504,000	1,896,000	3,052,000	3,878,000
Interest expense	689,000	608,000	1,141,000	1,181,000
Impairment charges on real estate	8,409,000	0	11,733,000	0
Total expenses	13,186,000	5,074,000	21,252,000	10,161,000
Other income:
Interest and other income	5,000	0	5,000	0
Total other income	5,000	0	5,000	0
Net loss	$ (9,515,000)	$ (945,000)	$ (13,854,000)	$ (1,717,000)
Net loss per common share, basic (in dollars per share)	$ (0.94)	$ (0.09)	$ (1.36)	$ (0.17)
Net loss per common share, diluted (in dollars per share)	$ (0.94)	$ (0.09)	$ (1.36)	$ (0.17)
Weighted-average number of common shares outstanding, basic (in shares)	10,162,026	10,173,832	10,163,371	10,179,185
Weighted-average number of common shares outstanding, diluted (in shares)	10,162,026	10,173,832	10,163,371	10,179,185

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Class A Common Stock	Class T Common Stock	Common Stock Class A Common Stock	Common Stock Class T Common Stock	Additional Paid-in Capital	Cumulative Distributions and Net Losses
Balance (in shares) at Dec. 31, 2020				9,873,729	310,974
Balance at Dec. 31, 2020	$ 39,590			$ 99	$ 3	$ 85,248	$ (45,760)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(1,717)						(1,717)
Transfers from redeemable common stock	67					67
Redemptions of common stock (in shares)				(13,588)
Redemptions of common stock	(67)					(67)
Distributions declared	(873)						(873)
Balance (in shares) at Jun. 30, 2021				9,860,141	310,974
Balance at Jun. 30, 2021	37,000			$ 99	$ 3	85,248	(48,350)
Balance (in shares) at Mar. 31, 2021				9,864,261	310,974
Balance at Mar. 31, 2021	38,381			$ 99	$ 3	85,248	(46,969)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(945)						(945)
Transfers from redeemable common stock	21					21
Redemptions of common stock (in shares)				(4,120)
Redemptions of common stock	(21)					(21)
Distributions declared	(436)						(436)
Balance (in shares) at Jun. 30, 2021				9,860,141	310,974
Balance at Jun. 30, 2021	37,000			$ 99	$ 3	85,248	(48,350)
Balance (in shares) at Dec. 31, 2021		9,855,330	310,974	9,855,330	310,974
Balance at Dec. 31, 2021	20,800			$ 99	$ 3	85,158	(64,460)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(13,854)						(13,854)
Transfers from redeemable common stock	14					14
Redemptions of common stock (in shares)				(4,278)
Redemptions of common stock	(14)					(14)
Balance (in shares) at Jun. 30, 2022		9,851,052	310,974	9,851,052	310,974
Balance at Jun. 30, 2022	6,946			$ 99	$ 3	85,158	(78,314)
Balance (in shares) at Mar. 31, 2022				9,851,052	310,974
Balance at Mar. 31, 2022	16,461			$ 99	$ 3	85,158	(68,799)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(9,515)						(9,515)
Balance (in shares) at Jun. 30, 2022		9,851,052	310,974	9,851,052	310,974
Balance at Jun. 30, 2022	$ 6,946			$ 99	$ 3	$ 85,158	$ (78,314)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash Flows from Operating Activities:
Net loss	$ (13,854,000)	$ (1,717,000)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	3,052,000	3,878,000
Impairment charges on real estate	11,733,000	0
Deferred rents	(480,000)	176,000
Amortization of above and below-market leases, net	(177,000)	(392,000)
Amortization of deferred financing costs	111,000	120,000
Unrealized gain on derivative instruments	(564,000)	(850,000)
Changes in operating assets and liabilities:
Rents and other receivables	39,000	(648,000)
Prepaid expenses and other assets	(282,000)	(365,000)
Accounts payable and accrued liabilities	(1,594,000)	(42,000)
Due from affiliates	261,000	0
Due to affiliates	860,000	860,000
Other liabilities	(17,000)	(439,000)
Net cash (used in) provided by operating activities	(912,000)	581,000
Cash Flows from Investing Activities:
Improvements to real estate	(567,000)	(352,000)
Net cash used in investing activities	(567,000)	(352,000)
Cash Flows from Financing Activities:
Proceeds from notes payable	0	2,000,000
Principal payments on notes payable	(37,000)	0
Payments to redeem common stock	(14,000)	(67,000)
Distributions paid to common stockholders	0	(873,000)
Net cash (used in) provided by financing activities	(51,000)	1,060,000
Net (decrease) increase in cash and cash equivalents	(1,530,000)	1,289,000
Cash and cash equivalents and restricted cash, beginning of period	8,129,000	4,359,000
Cash and cash equivalents and restricted cash, end of period	6,599,000	5,648,000
Supplemental Disclosure of Cash Flow Information
Interest paid	1,551,000	1,917,000
Supplemental Disclosure of Noncash Investing and Financing Activities:
Accrued improvements to real estate	$ 213,000	$ 12,000

ORGANIZATION

ORGANIZATION	6 Months Ended
	Jun. 30, 2022
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, 2022, the Company had invested in four office properties. The Company has invested in a portfolio of core real estate properties. The Company considers core properties to be existing properties with at least 80% occupancy. The Company commenced capital raising activities in June 2015 through a private placement offering. The private offering was followed by a public offering and a second private offering. In August 2020, the Company’s board of directors approved the termination of capital raising activities with the termination of the Company’s distribution reinvestment plan offering and second private offering. As of June 30, 2022, the Company had 9,851,052 and 310,974 shares of Class A and Class T common stock outstanding, respectively. COVID-19 Pandemic One of the most significant risks and uncertainties facing the Company and the real estate industry generally, and in particular office REITs like the Company, continues to be the effect of the public health crisis of the novel coronavirus disease (“COVID-19”) pandemic. The Company recognized impairment charges related to a projected reduction in cash flows as a result of changes in leasing projections that were impacted in part by the COVID-19 pandemic at the Institute Property and 210 W. Chicago during the year ended December 31, 2020, the Commonwealth Building during the year ended December 31, 2021, and the Commonwealth Building and the Institute Property during the six months ended June 30, 2022. The extent to which the COVID-19 pandemic impacts the Company’s operations and those of its tenants and the Company’s implementation of a Plan of Liquidation (defined below) depends on future developments, which remain uncertain and cannot be predicted with confidence, including, among other developments, potential changes in customer behavior, such as the continued social acceptance, desirability and perceived economic benefits of work-from-home arrangements, resulting from the COVID-19 pandemic, which could materially and negatively impact the future demand for office space, resulting in slower overall leasing and an adverse impact to our operations. Plan of Liquidation The Company’s board of directors and a special committee composed of all of the Company’s independent directors (the “Special Committee”) has undertaken a review of various strategic alternatives available to the Company and expects to approve the sale of all of the Company’s assets and the Company’s dissolution pursuant to the terms of a plan of complete liquidation and dissolution (a “Plan of Liquidation”). Once approved by the Company’s board of directors, a Plan of Liquidation will be submitted to the Company’s stockholders for approval. The Advisor has been working diligently to develop a Plan of Liquidation to present to the Company’s Special Committee and Board of Directors for approval; however, the impact of the COVID-19 pandemic on a Plan of Liquidation for the Company’s portfolio, as well as the decreased demand for office space as employees continue to work from home, the rising interest rate environment that is impacting the ability of buyers to obtain favorable financing and continued social unrest and increased crime in the Portland area where one of the Company’s properties is located, have created significant headwinds to finalizing a Plan of Liquidation. The principal purpose of a Plan of Liquidation will be to provide liquidity to the Company’s stockholders by selling the Company’s assets, paying its debts and distributing the net proceeds from liquidation to the Company’s stockholders. Although this is the current intention of the Company’s board of directors, the Company can provide no assurances as to the ultimate approval of a Plan of Liquidation or the timing of the liquidation of the Company. If the Company’s board of directors and stockholders approve a Plan of Liquidation, the Company intends to pursue an orderly liquidation of its company by selling all of its remaining assets, paying its debts and its known liabilities, providing for the payment of unknown or contingent liabilities, distributing the net proceeds from liquidation to the Company’s stockholders and winding up its operations and dissolving its company. In the interim, the Company intends to continue to manage its portfolio of assets to maintain and, if possible, improve the quality and income-producing ability of its properties to enhance property stability and better position the Company’s assets for a potential sale. A Plan of Liquidation remains subject to approval by the Company’s board of directors and the Company’s stockholders and the Company can give no assurance regarding the timing of the liquidation of the Company. Additional information regarding a Plan of Liquidation will be provided to the Company’s stockholders in a proxy statement to be distributed to stockholders in connection with a liquidation vote.

GOING CONCERN

GOING CONCERN	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GOING CONCERN	GOING CONCERNThe consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) on the basis that the Company will continue as a going concern, which assumes that the Company will be able to meet its obligations and continue its operations one year from the date the consolidated financial statements are issued. The Company has experienced a decline in occupancy from 90.4% as of December 31, 2020 to 74.5% as of June 30, 2022 and such occupancy may continue to decrease in the future as tenant leases expire. The decrease in occupancy has resulted in a decrease in cash flow from operations and has negatively impacted the market values of the properties in the Company’s portfolio. Additionally, the Commonwealth Building Mortgage Loan with an outstanding principal balance of $45.7 million is maturing in February 2023. Due to the decrease in occupancy and a decrease in market value of the property securing the Commonwealth Building Mortgage Loan, the Company does not expect to be able to extend or refinance that loan at current terms and may be required to pay down a portion of the maturing debt in order to extend or refinance the loan. With the Company’s limited amount of cash on hand, the Company’s ability to make any loan paydowns, without the sale of real estate assets, is severely limited. Additionally, in order to attract or retain tenants needed to increase occupancy and sustain operations, the Company will need to spend a substantial amount on capital leasing costs, however, the Company has limited amounts of liquidity to make these capital commitments. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments to reflect the outcome of these uncertainties. The Company’s ability to continue as a going concern is dependent upon the Company’s ability to exercise its extension option or refinance the Company’s mortgage debt. No assurances can be given that the Company will be successful in achieving these objectives. In addition, as described in Note 1, “Organization – Plan of Liquidation”, if the Company’s board of directors and its stockholders approve a Plan of Liquidation, the Company intends to pursue an orderly liquidation of its company by selling all of its remaining assets, paying its debts and its known liabilities, providing for the payment of unknown or contingent liabilities, distributing the net proceeds from liquidation to the Company’s stockholders and winding up its operations and dissolving the company.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2022
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, 2021. 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, 2021 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. 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, 2022. Substantially all of the Company’s revenue and net loss is from real estate, and therefore, the Company currently operates in one reportable segment. 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 six months ended June 30, 2022 and 2021. Basic and diluted net income (loss) per share of Class A common stock and basic and diluted net income (loss) per share of Class T common stock were equal for the three and six months ended June 30, 2022 and 2021 as aggregate cash distributions for each share class were equal during those periods. During the three and six months ended June 30, 2021, aggregate cash distributions declared per share of Class A and Class T common stock were $0.04287500 and $0.08575000, respectively, 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, 2022, the Company did not declare any distributions. 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 March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU No. 2020-04”) to provide temporary optional expedients and exceptions to the guidance in GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). Modified contracts that meet the following criteria are eligible for relief from the modification accounting requirements under GAAP: (1) The contract references LIBOR or another rate that is expected to be discontinued due to reference rate reform, (2) The modified terms directly replace or have the potential to replace the reference rate that is expected to be discontinued due to reference rate reform, and (3) Any contemporaneous changes to other terms (i.e., those that do not directly replace or have the potential to replace the reference rate) that change or have the potential to change the amount and timing of contractual cash flows must be related to the replacement of the reference rate. For a contract that meets the criteria, the guidance generally allows an entity to account for and present modifications as an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. That is, the modified contract is accounted for as a continuation of the existing contract. In addition, ASU No. 2020-04 provides various optional expedients for hedging relationships affected by reference rate reform, if certain criteria are met. The amendments in ASU No. 2020-04 are effective for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic, the amendments in this Update must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. An entity may elect to apply the amendments in ASU No. 2020-04 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020 and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020.

REAL ESTATE

REAL ESTATE	6 Months Ended
	Jun. 30, 2022
Real Estate [Abstract]
REAL ESTATE	REAL ESTATE As of June 30, 2022, the Company’s portfolio of real estate was composed of four office buildings containing 599,030 rentable square feet, which were collectively 74.5% occupied. The following table provides summary information regarding the properties owned by the Company as of June 30, 2022 (in thousands): Property Date Acquired City State Property Type Total Real Estate at Cost (1) Accumulated Depreciation and Amortization (1) Total Real Estate, Net (1) Commonwealth Building 06/30/2016 Portland OR Office $ 38,449 $ — $ 38,449 The Offices at Greenhouse 11/14/2016 Houston TX Office 47,151 (13,006) 34,145 Institute Property 11/09/2017 Chicago IL Office 32,502 (347) 32,155 210 W. Chicago 10/05/2020 Chicago IL Office 4,699 (222) 4,477 $ 122,801 $ (13,575) $ 109,226 _____________________ (1) Amounts presented are net of impairment charges and write-offs of fully depreciated/amortized assets. As of June 30, 2022, the following properties each represented more than 10% of the Company’s total assets: Property Location Rentable Square Feet Total Real Estate, Net Percentage of Total Assets Annualized Base Rent (in thousands) (1) Average Annualized Base Rent per sq. ft. Occupancy Commonwealth Building Portland, OR 224,122 $ 38,449 31.3 % $ 3,477 $ 29.96 51.8 % The Offices at Greenhouse Houston, TX 203,284 34,145 27.8 % 4,005 20.63 95.5 % Institute Property Chicago, IL 155,385 32,155 26.2 % 3,587 28.75 80.3 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2022, 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, 2022, the leases had remaining terms, excluding options to extend, of up to 8.7 years with a weighted-average remaining term of 3.5 years. Some of the leases have provisions to extend the term of the leases, options for early termination for all or a part of the leased premises after paying a specified penalty, and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires a security deposit from the tenant in the form of a cash deposit and/or a letter of credit. The amount required as a security deposit varies depending upon the terms of the respective lease and the creditworthiness of the tenant, but generally is not a significant amount. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in other liabilities in the accompanying consolidated balance sheets and totaled $0.9 million and $0.7 million as of June 30, 2022 and December 31, 2021, respectively. During the six months ended June 30, 2022 and 2021, the Company recognized deferred rent from tenants, net of lease incentive amortization, of $0.5 million and $(0.2) million, respectively. As of June 30, 2022 and December 31, 2021, the cumulative deferred rent balance was $4.6 million and $4.1 million, respectively, and is included in rents and other receivables on the accompanying consolidated balance sheets. The cumulative deferred rent balance included $1.8 million and $1.9 million of unamortized lease incentives as of June 30, 2022 and December 31, 2021, respectively. As of June 30, 2022, the future minimum rental income from the Company’s properties under its non-cancelable operating leases was as follows (in thousands): July 1, 2022 through December 31, 2022 $ 5,241 2023 10,447 2024 9,516 2025 6,523 2026 6,239 Thereafter 11,785 $ 49,751 As of June 30, 2022, 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 25% of the Company’s annualized base rent. The tenant individually occupied 135,727 rentable square feet or approximately 23% of the total rentable square feet of the Company’s real estate portfolio, which expires on December 31, 2024, with two five-year extension options. As of June 30, 2022, the annualized base rent for this tenant was approximately $2.9 million or $21.37 per square foot. No other tenant represented more than 10% of the Company’s annualized base rent. As of June 30, 2022, the Company’s real estate properties were leased to 52 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 8 $ 4,481 38.9 % Computer system design and related services 3 1,380 12.0 % $ 5,861 50.9 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2022, 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, 2022, no other tenant industries accounted for more than 10% of annualized base rent. Impairment of Real Estate During the three and six months ended June 30, 2022, the Company recorded non-cash impairment charges of $8.4 million and $11.7 million, respectively, to write down the carrying values of the Commonwealth Building, an office property located in Portland, Oregon and the Institute Property, an office property located in Chicago, Illinois, to their estimated fair values as follows: • Commonwealth Building - During the three and six months ended June 30, 2022, the Company recorded non-cash impairment charges of $8.4 million and $9.6 million, respectively, related to the Commonwealth Building as a result of a continued decrease in occupancy and changes in cash flow estimates including a change in leasing projections, which triggered the future estimated undiscounted cash flows to be lower than the net carrying value of the property. As of June 30, 2022, the Commonwealth Building was 51.8% occupied. The Company is projecting longer lease-up periods for the vacant space as demand for office space in Portland has significantly declined as a result of both the COVID-19 pandemic, with employees continuing to work from home, and the impact of the disruptions caused by protests and demonstrations and increased crime in the downtown area. Downtown Portland is experiencing record high office vacancies and it is uncertain when the market will fully recover. • Institute Property - During the six months ended June 30, 2022, the Company recorded non-cash impairment charges of $2.1 million related to the Institute Property as a result of changes in cash flow estimates including a change in leasing projections, which triggered the future estimated undiscounted cash flows to be lower than the net carrying value of the property. The decrease in cash flow projections was primarily due to reduced demand for the office space at the property resulting in longer lease-up periods and a decrease in projected rental rates due to the COVID-19 pandemic which resulted in additional challenges to re-lease the vacant space. Further, tenants at the Institute Property have been adversely impacted by the measures put in place to control the spread of COVID-19 and certain tenants at the Institute Property were granted rent concessions as their businesses have been severely impacted. The Company did not record any impairment charges on its real estate properties during the three and six months ended June 30, 2021.

TENANT ORIGINATION AND ABSORPTI

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES	6 Months Ended
	Jun. 30, 2022
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, 2022 and December 31, 2021, 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 Above-Market Below-Market June 30, December 31, 2021 June 30, December 31, 2021 June 30, December 31, 2021 Cost $ 6,838 $ 7,873 $ 178 $ 178 $ (2,630) $ (2,704) Accumulated Amortization (4,444) (4,768) (117) (106) 1,980 1,866 Net Amount $ 2,394 $ 3,105 $ 61 $ 72 $ (650) $ (838) 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, 2022 and 2021 were as follows (in thousands): Tenant Origination and Above-Market Below-Market For the Three Months Ended For the Three Months Ended For the Three Months Ended 2022 2021 2022 2021 2022 2021 Amortization $ (308) $ (420) $ (6) $ (5) $ 93 $ 232 Tenant Origination and Above-Market Below-Market For the Six Months Ended For the Six Months Ended For the Six Months Ended 2022 2021 2022 2021 2022 2021 Amortization $ (638) $ (857) $ (11) $ (10) $ 188 $ 402

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Jun. 30, 2022
Notes Payable [Abstract]
NOTES PAYABLE	NOTES PAYABLE As of June 30, 2022 and December 31, 2021, the Company’s notes payable consisted of the following (dollars in thousands): Book Value as of June 30, 2022 Book Value as of December 31, 2021 Contractual Interest Rate as of June 30, 2022 (1) Effective Interest Rate at June 30, 2022 (1) Payment Type Maturity Date (2) Commonwealth Building Mortgage Loan (3) $ 45,681 $ 45,681 One-month LIBOR + 1.80% (3) 4.27% Interest Only 02/01/2023 Term Loan (4) 52,260 52,260 One-month LIBOR + 2.00% (4) 3.79% Interest Only 11/09/2022 (4) 210 W. Chicago Mortgage Loan (5) 3,688 3,725 One-month LIBOR + 2.20% 3.95% Principal & Interest (5) 06/28/2024 Notes payable principal outstanding $ 101,629 $ 101,666 Deferred financing costs, net (101) (212) Notes payable, net $ 101,528 $ 101,454 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of June 30, 2022. Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2022 (consisting of the contractual interest rate and the effect of interest rate swaps, if applicable), using interest rate indices as of June 30, 2022, where applicable. (2) Represents the maturity date as of June 30, 2022; subject to certain conditions, the maturity dates of the loans may be extended beyond the dates shown. (3) The interest rate under this loan is calculated at a variable rate of 180 basis points over one-month LIBOR, but at no point shall the interest rate be less than 2.05%. (4) As of June 30, 2022, the outstanding balance under the Term Loan consisted of $34.9 million of term commitment and $17.4 million of revolving commitment. The Term Loan is secured by The Offices at Greenhouse and the Institute Property. On August 1, 2022, the Company entered into a modification agreement with the lender of the Term Loan to (i) extend the maturity date to November 9, 2023, (ii) convert the revolving commitment to term commitment and (iii) reset the interest rate of the loan. See Note 11, “Subsequent Events – Modified Term Loan” for additional information regarding these changes. (5) Monthly payments for the 210 W. Chicago Mortgage Loan include principal and interest with principal payments calculated using an amortization schedule of 25 years at an interest rate of 6.0%, with the remaining principal balance, all accrued and unpaid interest and any other amounts due at maturity. During the three and six months ended June 30, 2022, the Company incurred $0.7 million and $1.1 million of interest expense, respectively. During the three and six months ended June 30, 2021, the Company incurred $0.6 million and $1.2 million of interest expense, respectively. As of June 30, 2022 and December 31, 2021, $0.3 million of interest expense were payable. Included in interest expense during the three and six months ended June 30, 2022 were $0.1 million of amortization of deferred financing costs. Included in interest expense during the three and six months ended June 30, 2021 were $0.1 million of amortization of deferred financing costs. Interest expense (including gains and losses) incurred as a result of the Company’s derivative instruments decreased interest expense by $0.1 million and $0.2 million for the three and six months ended June 30, 2022, respectively. Interest expense (including gains and losses) incurred as a result of the Company’s derivative instruments increased interest expense by $28,000 and $31,000 for the three and six months ended June 30, 2021, respectively. The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of June 30, 2022 (in thousands): July 1, 2022 through December 31, 2022 $ 52,297 2023 45,755 2024 3,577 2025 — 2026 — Thereafter — $ 101,629

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	6 Months Ended
	Jun. 30, 2022
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 term 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 swap as of June 30, 2022 and December 31, 2021. 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, 2022 December 31, 2021 Reference Rate as of June 30, 2022 Fix Pay Rate as of June 30, 2022 Remaining Term in Years as of June 30, 2022 Derivative Instruments Number of Instruments Notional Amount Number of Instruments Notional Amount Derivative instruments not designated as hedging instruments Interest Rate Swap 1 $ 30,000 1 $ 30,000 One-month LIBOR/ Fixed at 2.82% 2.82% 0.3 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, 2022 and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Derivative Instruments Balance Sheet Location Number of Instruments Fair Value Number of Instruments Fair Value Derivative instruments not designated as hedging instruments Interest Rate Swap Other liabilities, at fair value 1 $ (46) 1 $ (610) The change in fair value of a derivative instrument that is not designated as a cash flow hedge is included in 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 For the Six Months Ended 2022 2021 2022 2021 Income statement related Derivatives not designated as hedging instruments Realized loss recognized on interest rate swaps $ 156 $ 445 $ 356 $ 881 Unrealized gain on interest rate swaps (223) (417) (564) (850) (Decrease) increase in interest expense as a result of derivatives $ (67) $ 28 $ (208) $ 31

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	6 Months Ended
	Jun. 30, 2022
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, restricted cash, 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, 2022 and December 31, 2021, which carrying amounts generally do not approximate the fair values (in thousands): June 30, 2022 December 31, 2021 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 101,629 $ 101,528 $ 95,220 $ 101,666 $ 101,454 $ 100,367 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, 2022, the Company measured the following derivative instruments at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Recurring Basis: Liability derivative - interest rate swap $ (46) $ — $ (46) $ — During the six months ended June 30, 2022, the Company measured the following asset at fair value on a nonrecurring basis (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Nonrecurring Basis: Impaired real estate (1) $ 73,000 $ — $ — $ 73,000 _____________________ (1) Amount represents the fair value for real estate assets impacted by an impairment charge during the six months ended June 30, 2022, as of the date that the fair value measurement was made, which was March 31, 2022 for the Institute Property and June 30, 2022 for the Commonwealth Building. The carrying value for the real estate asset measured at a reporting date other than June 30, 2022 may have subsequently increased or decreased from the fair value reflected due to activity that has occurred since the measurement date. During the six months ended June 30, 2022, the Commonwealth Building and the Institute Property were measured at their estimated fair values based on a discounted cash flow approach. The significant unobservable inputs the Company used in measuring the estimated fair value of the Commonwealth Building include a discount rate of 10.00% and a terminal cap rate of 6.50% and the significant unobservable inputs the Company used in measuring the estimated fair value of the Institute Property include a discount rate of 7.50% and a terminal cap rate of 6.50%. See Note 4, “Real Estate - Impairment of Real Estate” for further discussion on the impaired real estate property.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS Pursuant to the Advisory Agreement, the Company is obligated to pay the Advisor specified fees upon the provision of certain services related to the management of the Company’s investments and for other services (including, but not limited to, the disposition of investments). The Company is also obligated to reimburse the Advisor for 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 paid all offering expenses related to the second private offering conducted by the Company without reimbursement by the Company. In addition, in connection with 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 II, Inc. (“KBS REIT II”) and KBS Real Estate Investment Trust III, Inc. (“KBS REIT III”). The Dealer Manager also serves as the dealer manager for KBS REIT II and KBS REIT III. As of January 1, 2021, the Company, together with KBS REIT II, KBS REIT III, the Dealer Manager, the Advisor and other KBS affiliated entities, had entered into an errors and omissions and directors and officers liability insurance program where the lower tiers of such insurance coverage were 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. In June 2022, the Company renewed its participation in the program, and the program is effective through June 30, 2023. At renewal on June 30, 2022, KBS REIT II elected to cease participation in the program and obtained separate insurance coverage. During the six months ended June 30, 2022 and 2021, no other business transactions occurred between the Company and KBS REIT II and KBS REIT III. 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, 2022 and 2021, and any related amounts receivable and payable as of June 30, 2022 and December 31, 2021 (in thousands). Incurred Receivable as of Payable as of Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, June 30, December 31, 2022 2021 2022 2021 2022 2021 2022 2021 Expensed Asset management fees (1) $ 436 $ 434 $ 866 $ 862 $ — $ — $ 8,507 $ 7,641 Reimbursement of operating expenses (2) 46 71 78 164 15 276 14 19 Property management fees (3) 22 28 46 59 — — 7 8 Other Arrangement Advisor advance for cash distributions (4) — — — — — — 1,338 1,338 $ 504 $ 533 $ 990 $ 1,085 $ 15 $ 276 $ 9,866 $ 9,006 _____________________ (1) 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, 2022, the Company had accrued and deferred payment of $8.5 million of asset management fees related to the periods from October 2017 through June 2022. (2) See “Reimbursable Operating Expenses” below. (3) See “Real Estate Property Co-Management Agreements” below. (4) See “Advance from the Advisor” below. 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 $47,000 and $73,000 for the three and six months ended June 30, 2022, respectively, and $70,000 and $159,000 for the three and six months ended June 30, 2021, respectively, and were the only type of employee costs reimbursed under the Advisory Agreement for the periods. 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. The receivable as of December 31, 2021 includes $0.3 million of estimated amounts charged to the Company by certain vendors for services for which the Company believes it was either overcharged or which were never performed. During the six months ended June 30, 2022, the Company incurred $0.2 million of legal and accounting costs related to the investigation of this matter. As of June 30, 2022, the Advisor had reimbursed the Company $0.5 million for any amounts inappropriately charged to the Company and for legal and accounting costs incurred related to the investigation of this matter. 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, 2022 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, 2022, the total advanced funds due to the Advisor from the Company was approximately $1.3 million, which is included in due to affiliates in the Company’s consolidated balance sheet. 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 quarter exceeds the amount of cash distributions declared for record dates of such prior quarter (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; (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; or (iii) Net sales proceeds from the sale of the Company’s real estate portfolio, after the pay down of any related debt and selling costs and expenses, are available. 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 the Company. If such cash could have been used instead of third-party financing, the third-party financing proceeds will be available to repay the advance. The Advisor may defer repayment of the advance notwithstanding that the Company would otherwise be obligated 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 pays 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 Commonwealth Building 07/01/2016 1.25% The Offices at Greenhouse 11/14/2016 0.25% Institute Property 11/09/2017 1.00%

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2022
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 management of the daily operations of the Company’s investment portfolio, disposition of investments 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, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS The Company evaluates subsequent events up until the date the consolidated financial statements are issued. Modified Term Loan On August 1, 2022, the Company, through its wholly owned subsidiaries (collectively, the “Borrower”), entered into a modification agreement to the Term Loan (the “Modified Term Loan”) with JP Morgan Chase Bank, N.A. (the “Lender”) to (i) extend the maturity date from November 9, 2022 to November 9, 2023, (ii) convert the revolving commitment to term commitment and (iii) reset the interest rate of the Term Loan. The Modified Term Loan has an outstanding balance of $52.3 million, which is the maximum term commitment available under the Modified Term Loan. The Modified Term Loan continues to be secured by the Offices at Greenhouse and the Institute Property. The Modified Term Loan bears interest at the forward-looking term rate based on SOFR (“Secured Overnight Financing Rate”) with a tenor comparable to one-month plus 10 basis points (“Adjusted Term SOFR”) plus 200 basis points per annum prior to May 9, 2023. After May 9, 2023, the Modified Term Loan will bear interest at Adjusted Term SOFR plus 250 basis points per annum. 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. The Company has the right to prepay all or a portion of the Modified Term Loan at any time, subject to certain fees and conditions contained in the loan documents. Subject to certain terms and conditions contained in the loan documents, cash currently held by the Company may only be used for the Company’s operating costs including but not limited to the Company’s general and administrative costs, liquidation costs (which may include proxy solicitation costs, DST transfer agent costs, legal costs, tail insurance policy costs and other reasonable and customary costs to maintain the Company in good standing), capital costs (including building improvements, tenant improvements and leasing commissions at its owned properties) and any other reasonable costs and expenses required to maintain the Company as a going concern (collectively “REIT Operating Costs”), but for no other purpose. Further, the Company is required to deposit any cash amount exceeding $7.0 million into an account controlled by the Lender or apply it to pay down the Modified Term Loan. The Company is prohibited from making any cash distributions (other than REIT Operating Costs) except for amounts needed to maintain REIT status and redemptions sought upon a stockholder’s death, “qualifying disability” or “determination of incompetence” (each as defined in the share redemption program) not exceeding $250,000 annually, in the aggregate, for any calendar year. In addition, on a monthly basis, any excess cash flow (as defined in the modification agreement) from the Offices at Greenhouse and the Institute Property is required to be deposited into an account which will serve as additional security for the loan.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.
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, 2022. Substantially all of the Company’s revenue and net loss is from real estate, and therefore, the Company currently operates in one reportable segment.
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 six months ended June 30, 2022 and 2021. Basic and diluted net income (loss) per share of Class A common stock and basic and diluted net income (loss) per share of Class T common stock were equal for the three and six months ended June 30, 2022 and 2021 as aggregate cash distributions for each share class were equal during those periods.
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 March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU No. 2020-04”) to provide temporary optional expedients and exceptions to the guidance in GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). Modified contracts that meet the following criteria are eligible for relief from the modification accounting requirements under GAAP: (1) The contract references LIBOR or another rate that is expected to be discontinued due to reference rate reform, (2) The modified terms directly replace or have the potential to replace the reference rate that is expected to be discontinued due to reference rate reform, and (3) Any contemporaneous changes to other terms (i.e., those that do not directly replace or have the potential to replace the reference rate) that change or have the potential to change the amount and timing of contractual cash flows must be related to the replacement of the reference rate. For a contract that meets the criteria, the guidance generally allows an entity to account for and present modifications as an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. That is, the modified contract is accounted for as a continuation of the existing contract. In addition, ASU No. 2020-04 provides various optional expedients for hedging relationships affected by reference rate reform, if certain criteria are met. The amendments in ASU No. 2020-04 are effective for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic, the amendments in this Update must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. An entity may elect to apply the amendments in ASU No. 2020-04 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020 and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020.
Fair Value Measurement	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.

REAL ESTATE (Tables)

REAL ESTATE (Tables)	6 Months Ended
	Jun. 30, 2022
Real Estate [Abstract]
Schedule of Real Estate	The following table provides summary information regarding the properties owned by the Company as of June 30, 2022 (in thousands): Property Date Acquired City State Property Type Total Real Estate at Cost (1) Accumulated Depreciation and Amortization (1) Total Real Estate, Net (1) Commonwealth Building 06/30/2016 Portland OR Office $ 38,449 $ — $ 38,449 The Offices at Greenhouse 11/14/2016 Houston TX Office 47,151 (13,006) 34,145 Institute Property 11/09/2017 Chicago IL Office 32,502 (347) 32,155 210 W. Chicago 10/05/2020 Chicago IL Office 4,699 (222) 4,477 $ 122,801 $ (13,575) $ 109,226 _____________________
Schedules of Concentration of Risk, by Risk Factor	As of June 30, 2022, the following properties each represented more than 10% of the Company’s total assets: Property Location Rentable Square Feet Total Real Estate, Net Percentage of Total Assets Annualized Base Rent (in thousands) (1) Average Annualized Base Rent per sq. ft. Occupancy Commonwealth Building Portland, OR 224,122 $ 38,449 31.3 % $ 3,477 $ 29.96 51.8 % The Offices at Greenhouse Houston, TX 203,284 34,145 27.8 % 4,005 20.63 95.5 % Institute Property Chicago, IL 155,385 32,155 26.2 % 3,587 28.75 80.3 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of June 30, 2022, 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, 2022, the future minimum rental income from the Company’s properties under its non-cancelable operating leases was as follows (in thousands): July 1, 2022 through December 31, 2022 $ 5,241 2023 10,447 2024 9,516 2025 6,523 2026 6,239 Thereafter 11,785 $ 49,751
Schedules of Concentration of Risk, by Industry	As of June 30, 2022, the Company’s real estate properties were leased to 52 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 8 $ 4,481 38.9 % Computer system design and related services 3 1,380 12.0 % $ 5,861 50.9 % _____________________

TENANT ORIGINATION AND ABSORP_2

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2022
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, 2022 and December 31, 2021, 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 Above-Market Below-Market June 30, December 31, 2021 June 30, December 31, 2021 June 30, December 31, 2021 Cost $ 6,838 $ 7,873 $ 178 $ 178 $ (2,630) $ (2,704) Accumulated Amortization (4,444) (4,768) (117) (106) 1,980 1,866 Net Amount $ 2,394 $ 3,105 $ 61 $ 72 $ (650) $ (838)
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, 2022 and 2021 were as follows (in thousands): Tenant Origination and Above-Market Below-Market For the Three Months Ended For the Three Months Ended For the Three Months Ended 2022 2021 2022 2021 2022 2021 Amortization $ (308) $ (420) $ (6) $ (5) $ 93 $ 232 Tenant Origination and Above-Market Below-Market For the Six Months Ended For the Six Months Ended For the Six Months Ended 2022 2021 2022 2021 2022 2021 Amortization $ (638) $ (857) $ (11) $ (10) $ 188 $ 402

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2022
Notes Payable [Abstract]
Schedule of Long-term Debt Instruments	As of June 30, 2022 and December 31, 2021, the Company’s notes payable consisted of the following (dollars in thousands): Book Value as of June 30, 2022 Book Value as of December 31, 2021 Contractual Interest Rate as of June 30, 2022 (1) Effective Interest Rate at June 30, 2022 (1) Payment Type Maturity Date (2) Commonwealth Building Mortgage Loan (3) $ 45,681 $ 45,681 One-month LIBOR + 1.80% (3) 4.27% Interest Only 02/01/2023 Term Loan (4) 52,260 52,260 One-month LIBOR + 2.00% (4) 3.79% Interest Only 11/09/2022 (4) 210 W. Chicago Mortgage Loan (5) 3,688 3,725 One-month LIBOR + 2.20% 3.95% Principal & Interest (5) 06/28/2024 Notes payable principal outstanding $ 101,629 $ 101,666 Deferred financing costs, net (101) (212) Notes payable, net $ 101,528 $ 101,454 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of June 30, 2022. Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2022 (consisting of the contractual interest rate and the effect of interest rate swaps, if applicable), using interest rate indices as of June 30, 2022, where applicable. (2) Represents the maturity date as of June 30, 2022; subject to certain conditions, the maturity dates of the loans may be extended beyond the dates shown. (3) The interest rate under this loan is calculated at a variable rate of 180 basis points over one-month LIBOR, but at no point shall the interest rate be less than 2.05%. (4) As of June 30, 2022, the outstanding balance under the Term Loan consisted of $34.9 million of term commitment and $17.4 million of revolving commitment. The Term Loan is secured by The Offices at Greenhouse and the Institute Property. On August 1, 2022, the Company entered into a modification agreement with the lender of the Term Loan to (i) extend the maturity date to November 9, 2023, (ii) convert the revolving commitment to term commitment and (iii) reset the interest rate of the loan. See Note 11, “Subsequent Events – Modified Term Loan” for additional information regarding these changes.
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, 2022 (in thousands): July 1, 2022 through December 31, 2022 $ 52,297 2023 45,755 2024 3,577 2025 — 2026 — Thereafter — $ 101,629

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2022
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 swap as of June 30, 2022 and December 31, 2021. 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, 2022 December 31, 2021 Reference Rate as of June 30, 2022 Fix Pay Rate as of June 30, 2022 Remaining Term in Years as of June 30, 2022 Derivative Instruments Number of Instruments Notional Amount Number of Instruments Notional Amount Derivative instruments not designated as hedging instruments Interest Rate Swap 1 $ 30,000 1 $ 30,000 One-month LIBOR/ Fixed at 2.82% 2.82% 0.3
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, 2022 and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Derivative Instruments Balance Sheet Location Number of Instruments Fair Value Number of Instruments Fair Value Derivative instruments not designated as hedging instruments Interest Rate Swap Other liabilities, at fair value 1 $ (46) 1 $ (610)
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 For the Six Months Ended 2022 2021 2022 2021 Income statement related Derivatives not designated as hedging instruments Realized loss recognized on interest rate swaps $ 156 $ 445 $ 356 $ 881 Unrealized gain on interest rate swaps (223) (417) (564) (850) (Decrease) increase in interest expense as a result of derivatives $ (67) $ 28 $ (208) $ 31

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	6 Months Ended
	Jun. 30, 2022
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, 2022 and December 31, 2021, which carrying amounts generally do not approximate the fair values (in thousands): June 30, 2022 December 31, 2021 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 101,629 $ 101,528 $ 95,220 $ 101,666 $ 101,454 $ 100,367
Fair Value Measurements, Recurring and Nonrecurring	As of June 30, 2022, the Company measured the following derivative instruments at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Recurring Basis: Liability derivative - interest rate swap $ (46) $ — $ (46) $ — During the six months ended June 30, 2022, the Company measured the following asset at fair value on a nonrecurring basis (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Nonrecurring Basis: Impaired real estate (1) $ 73,000 $ — $ — $ 73,000 _____________________ (1) Amount represents the fair value for real estate assets impacted by an impairment charge during the six months ended June 30, 2022, as of the date that the fair value measurement was made, which was March 31, 2022 for the Institute Property and June 30, 2022 for the Commonwealth Building. The carrying value for the real estate asset measured at a reporting date other than June 30, 2022 may have subsequently increased or decreased from the fair value reflected due to activity that has occurred since the measurement date.

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2022
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, 2022 and 2021, and any related amounts receivable and payable as of June 30, 2022 and December 31, 2021 (in thousands). Incurred Receivable as of Payable as of Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, June 30, December 31, 2022 2021 2022 2021 2022 2021 2022 2021 Expensed Asset management fees (1) $ 436 $ 434 $ 866 $ 862 $ — $ — $ 8,507 $ 7,641 Reimbursement of operating expenses (2) 46 71 78 164 15 276 14 19 Property management fees (3) 22 28 46 59 — — 7 8 Other Arrangement Advisor advance for cash distributions (4) — — — — — — 1,338 1,338 $ 504 $ 533 $ 990 $ 1,085 $ 15 $ 276 $ 9,866 $ 9,006 _____________________ (1) 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, 2022, the Company had accrued and deferred payment of $8.5 million of asset management fees related to the periods from October 2017 through June 2022. (2) See “Reimbursable Operating Expenses” below. (3) See “Real Estate Property Co-Management Agreements” below. (4) See “Advance from the Advisor” below.
Schedule of Annual Fee Percentage	Property Name Effective Date Annual Fee Percentage 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)	6 Months Ended
	Jun. 30, 2022 property shares	Dec. 31, 2021 shares	Jan. 27, 2015 $ / shares shares
Organizational Structure [Line Items]
Core property, minimum percent of occupancy	80%
Class A Common Stock
Organizational Structure [Line Items]
Common stock, shares issued (in shares)	9,851,052	9,855,330
Class T Common Stock
Organizational Structure [Line Items]
Common stock, shares issued (in shares)	310,974	310,974
Office Building
Organizational Structure [Line Items]
Number of real estate properties | property	4
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
KBS Growth & Income Limited Partnership
Organizational Structure [Line Items]
Managing member or general partner, ownership interest	0.10%
Members or limited partners, ownership interest	99.90%

GOING CONCERN (Details)

GOING CONCERN (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Occupancy	74.50%		90.40%
Notes payable principal outstanding	$ 101,629	$ 101,666
Commonwealth Building Mortgage Loan | Mortgages
Debt Instrument [Line Items]
Notes payable principal outstanding	$ 45,681	$ 45,681

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details)	6 Months Ended
	Jun. 30, 2022 property segment
Accounting Policies [Abstract]
Number of reportable segments | segment	1
Office Building
Real Estate Properties [Line Items]
Number of real estate properties | property	4

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Per Share Data (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Accounting Policies [Abstract]
Potentially dilutive securities			0	0
Class A Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Distributions declared per share (in dollars per share)	$ 0	$ 0.04287500	$ 0	$ 0.08575000
Class T Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Distributions declared per share (in dollars per share)	$ 0	$ 0.04287500	$ 0	$ 0.08575000

REAL ESTATE - Additional Inform

REAL ESTATE - Additional Information (Details)	Jun. 30, 2022 ft² property	Dec. 31, 2020
Real Estate Properties [Line Items]
Occupancy	74.50%	90.40%
Office Building
Real Estate Properties [Line Items]
Number of real estate properties | property	4
Rentable Square Feet | ft²	599,030
Occupancy	74.50%

REAL ESTATE - Schedule of Real

REAL ESTATE - Schedule of Real Estate Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Real Estate Properties [Line Items]
Total Real Estate at Cost	$ 122,801	$ 138,277
Accumulated Depreciation and Amortization	(13,575)	(15,101)
Total real estate, net	109,226	$ 123,176
Commonwealth Building | Office Building
Real Estate Properties [Line Items]
Total Real Estate at Cost	38,449
Accumulated Depreciation and Amortization	0
Total real estate, net	38,449
The Offices at Greenhouse | Office Building
Real Estate Properties [Line Items]
Total Real Estate at Cost	47,151
Accumulated Depreciation and Amortization	(13,006)
Total real estate, net	34,145
Institute Property | Office Building
Real Estate Properties [Line Items]
Total Real Estate at Cost	32,502
Accumulated Depreciation and Amortization	(347)
Total real estate, net	32,155
210 W. Chicago | Office Building
Real Estate Properties [Line Items]
Total Real Estate at Cost	4,699
Accumulated Depreciation and Amortization	(222)
Total real estate, net	$ 4,477

REAL ESTATE - Assets Concentrat

REAL ESTATE - Assets Concentration Risk (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) ft² $ / ft²	Dec. 31, 2021 USD ($)	Dec. 31, 2020
Concentration Risk [Line Items]
Total real estate, net	$ 109,226	$ 123,176
Annualized Base Rent	$ 5,861
Occupancy	74.50%		90.40%
Commonwealth Building | Assets, Total | Customer Concentration Risk
Concentration Risk [Line Items]
Rentable Square Feet | ft²	224,122
Total real estate, net	$ 38,449
Percentage of Total Assets	31.30%
Annualized Base Rent	$ 3,477
Average Annualized Base Rent per sq. ft. | $ / ft²	29.96
Occupancy	51.80%
The Offices at Greenhouse | Assets, Total | Customer Concentration Risk
Concentration Risk [Line Items]
Rentable Square Feet | ft²	203,284
Total real estate, net	$ 34,145
Percentage of Total Assets	27.80%
Annualized Base Rent	$ 4,005
Average Annualized Base Rent per sq. ft. | $ / ft²	20.63
Occupancy	95.50%
Institute Property | Assets, Total | Customer Concentration Risk
Concentration Risk [Line Items]
Rentable Square Feet | ft²	155,385
Total real estate, net	$ 32,155
Percentage of Total Assets	26.20%
Annualized Base Rent	$ 3,587
Average Annualized Base Rent per sq. ft. | $ / ft²	28.75
Occupancy	80.30%

REAL ESTATE - Operating Leases,

REAL ESTATE - Operating Leases, Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Operating Leased Assets [Line Items]
Recognition of deferred revenue	$ 480	$ (176)
Deferred rent receivables	4,600		$ 4,100
Unamortized lease incentives	1,800		1,900
Other liabilities, at fair value
Operating Leased Assets [Line Items]
Security deposit liability	$ 900		$ 700
Maximum
Operating Leased Assets [Line Items]
Remaining terms	8 years 8 months 12 days
Weighted Average
Operating Leased Assets [Line Items]
Remaining terms	3 years 6 months

REAL ESTATE - Future Minimum Re

REAL ESTATE - Future Minimum Rental Income (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Real Estate [Abstract]
July 1, 2022 through December 31, 2022	$ 5,241
2023	10,447
2024	9,516
2025	6,523
2026	6,239
Thereafter	11,785
Future minimum rental income	$ 49,751

REAL ESTATE - Concentration Ris

REAL ESTATE - Concentration Risk (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) ft² tenant extension $ / ft²
Concentration Risk [Line Items]
Number of tenants | tenant	52
Annualized base rent | $	$ 5,861
Customer Concentration Risk | AECOM
Concentration Risk [Line Items]
Annualized base rent | $	$ 2,900
Average Annualized Base Rent per sq. ft. | $ / ft²	21.37
Customer Concentration Risk | AECOM | Expires on December 31, 2024
Concentration Risk [Line Items]
Extension options | extension	2
Extension period	5 years
Customer Concentration Risk | Annualized Rent | AECOM
Concentration Risk [Line Items]
Number of tenants | tenant	1
Concentration risk, percentage	25%
Customer Concentration Risk | Rentable Square Feet | AECOM
Concentration Risk [Line Items]
Concentration risk, percentage	23%
Net rentable area | ft²	135,727

REAL ESTATE - Highest Tenant In

REAL ESTATE - Highest Tenant Industry Concentrations - Greater than 10% of Annual Base Rent (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) tenant
Concentration Risk [Line Items]
Number of Tenants | tenant	52
Annualized Base Rent | $	$ 5,861
Industry | Customer Concentration Risk | Revenue
Concentration Risk [Line Items]
Percentage of Annualized Base Rent	50.90%
Professional, scientific and technical
Concentration Risk [Line Items]
Number of Tenants | tenant	8
Annualized Base Rent | $	$ 4,481
Professional, scientific and technical | Customer Concentration Risk | Revenue
Concentration Risk [Line Items]
Percentage of Annualized Base Rent	38.90%
Computer system design and related services
Concentration Risk [Line Items]
Number of Tenants | tenant	3
Annualized Base Rent | $	$ 1,380
Computer system design and related services | Customer Concentration Risk | Revenue
Concentration Risk [Line Items]
Percentage of Annualized Base Rent	12%

REAL ESTATE - Impairment of Rea

REAL ESTATE - Impairment of Real Estate (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2020
Concentration Risk [Line Items]
Impairment charges on real estate	$ 8,409,000	$ 0	$ 11,733,000	$ 0
Occupancy	74.50%		74.50%		90.40%
Commonwealth Building
Concentration Risk [Line Items]
Impairment charges on real estate	$ 8,400,000		$ 9,600,000
Commonwealth Building | Assets, Total | Customer Concentration Risk
Concentration Risk [Line Items]
Occupancy	51.80%		51.80%
Institute Property
Concentration Risk [Line Items]
Impairment charges on real estate			$ 2,100,000
Institute Property | Assets, Total | Customer Concentration Risk
Concentration Risk [Line Items]
Occupancy	80.30%		80.30%

TENANT ORIGINATION AND ABSORP_3

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, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
Tenant Origination And Absorption Costs, Cost	$ 6,838		$ 6,838		$ 7,873
Tenant Origination and Absorption Costs, Accumulated Amortization	(4,444)		(4,444)		(4,768)
Tenant Origination and Absorption Costs, Net Amount	2,394		2,394		3,105
Tenant Origination and Absorption Costs, Amortization	(308)	$ (420)	(638)	$ (857)
Above-Market Lease Assets, Cost	178		178		178
Above-Market Lease Assets, Accumulated Amortization	(117)		(117)		(106)
Above-Market Lease Assets, Net Amount	61		61		72
Above-Market Lease Assets, Amortization	(6)	(5)	(11)	(10)
Below-Market Lease Liabilities, Cost	(2,630)		(2,630)		(2,704)
Below-Market Lease Liabilities, Accumulated Amortization	1,980		1,980		1,866
Below-Market Lease Liabilities, Net Amount	(650)		(650)		$ (838)
Below-Market Lease Liabilities, Amortization	$ 93	$ 232	$ 188	$ 402

NOTES PAYABLE - Schedule of Lon

NOTES PAYABLE - Schedule of Long-term Debt Instruments (Details) - USD ($)		6 Months Ended
	Jul. 05, 2021	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Notes payable principal outstanding		$ 101,629,000	$ 101,666,000
Deferred financing costs, net		(101,000)	(212,000)
Notes payable, net		101,528,000	101,454,000
Mortgage | Commonwealth Building Mortgage Loan
Debt Instrument [Line Items]
Notes payable principal outstanding		$ 45,681,000	45,681,000
Effective Interest Rate		4.27%
Mortgage | Commonwealth Building Mortgage Loan | Minimum
Debt Instrument [Line Items]
Effective Interest Rate		2.05%
Mortgage | Commonwealth Building Mortgage Loan | One-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		1.80%
Mortgage | 210 W. Chicago Mortgage Loan
Debt Instrument [Line Items]
Notes payable principal outstanding		$ 3,688,000	3,725,000
Effective Interest Rate		3.95%
Amortization schedule	25 years
Stated percentage	6%
Mortgage | 210 W. Chicago Mortgage Loan | One-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		2.20%
Secured Debt | Term Loan
Debt Instrument [Line Items]
Notes payable principal outstanding		$ 52,260,000	$ 52,260,000
Notes payable, net		$ 34,900,000
Effective Interest Rate		3.79%
Secured Debt | Term Loan | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 17,400,000
Secured Debt | Term Loan | One-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		2%

NOTES PAYABLE - Additional Info

NOTES PAYABLE - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Notes Payable [Abstract]
Interest expense	$ 689	$ 608	$ 1,141	$ 1,181
Interest payable, current	300		300		$ 300
Amortization of deferred financing costs	100	100	111	120
Interest Rate Swap
Derivative [Line Items]
(Decrease) increase in interest expense as a result of derivatives	$ (100)	$ 28	$ (200)	$ 31

NOTES PAYABLE - Schedule of Mat

NOTES PAYABLE - Schedule of Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Notes Payable [Abstract]
July 1, 2022 through December 31, 2022	$ 52,297
2023	45,755
2024	3,577
2025	0
2026	0
Thereafter	0
Total notes payable, net	$ 101,629	$ 101,666

DERIVATIVE INSTRUMENTS - Notion

DERIVATIVE INSTRUMENTS - Notional Amount (Details) - Derivative instruments not designated as hedging instruments - Interest Rate Swap	6 Months Ended
	Jun. 30, 2022 USD ($) investment	Dec. 31, 2021 USD ($) investment
Derivative [Line Items]
Number of Instruments | investment	1	1
Notional Amount | $	$ 30,000,000	$ 30,000,000
Weighted-Average Fix Pay Rate	2.82%
Weighted-Average Remaining Term in Years	3 months 18 days
One-month LIBOR
Derivative [Line Items]
Reference Rate	2.82%

DERIVATIVE INSTRUMENTS - Balanc

DERIVATIVE INSTRUMENTS - Balance Sheet (Details) - Derivative instruments not designated as hedging instruments - Interest Rate Swap $ in Thousands	Jun. 30, 2022 USD ($) investment	Dec. 31, 2021 USD ($) investment
Derivative [Line Items]
Number of Instruments	1	1
Other liabilities, at fair value
Derivative [Line Items]
Number of Instruments	1	1
Liability, Fair Value | $	$ (46)	$ (610)

DERIVATIVE INSTRUMENTS - Statem

DERIVATIVE INSTRUMENTS - Statement of Operations (Details) - Interest Rate Swap - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Derivative [Line Items]
(Decrease) increase in interest expense as a result of derivatives	$ (100)	$ 28	$ (200)	$ 31
Derivative instruments not designated as hedging instruments
Derivative [Line Items]
Realized loss recognized on interest rate swaps	156	445	356	881
Unrealized gain on interest rate swaps	(223)	(417)	(564)	(850)
(Decrease) increase in interest expense as a result of derivatives	$ (67)	$ 28	$ (208)	$ 31

FAIR VALUE DISCLOSURES - Carryi

FAIR VALUE DISCLOSURES - Carrying Amounts of Notes Payable (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Face Value	$ 101,629	$ 101,666
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Value	101,528	101,454
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Value	$ 95,220	$ 100,367

FAIR VALUE DISCLOSURES - Schedu

FAIR VALUE DISCLOSURES - Schedule of Assets and Liabilities at Fair Value (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Recurring Basis | Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability derivative - interest rate swap	$ (46)
Recurring Basis | Interest Rate Swap | Quoted Prices in Active Markets  for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability derivative - interest rate swap	0
Recurring Basis | Interest Rate Swap | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability derivative - interest rate swap	(46)
Recurring Basis | Interest Rate Swap | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability derivative - interest rate swap	0
Nonrecurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate	73,000
Nonrecurring Basis | Quoted Prices in Active Markets  for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate	0
Nonrecurring Basis | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate	0
Nonrecurring Basis | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate	$ 73,000

FAIR VALUE DISCLOSURES - Additi

FAIR VALUE DISCLOSURES - Additional Information (Details)	Jun. 30, 2022
Discount Rate | Commonwealth Building
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired real estate, measurement input	10%
Discount Rate | Institute Property
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired real estate, measurement input	7.50%
Terminal Cap Rate | Commonwealth Building
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired real estate, measurement input	6.50%
Terminal Cap Rate | Institute Property
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired real estate, measurement input	6.50%

RELATED PARTY TRANSACTIONS - Re

RELATED PARTY TRANSACTIONS - Related-party Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Receivable as of	$ 15		$ 15		$ 276
Payable as of	9,866		9,866		9,006
Advisor and Dealer Manager
Related Party Transaction [Line Items]
Incurred	504	$ 533	990	$ 1,085
Receivable as of	15		15		276
Payable as of	9,866		9,866		9,006
Advisor and Dealer Manager | Asset management fees
Related Party Transaction [Line Items]
Expenses	436	434	866	862
Receivable as of	0		0		0
Payable as of	8,507		8,507		7,641
Advisor and Dealer Manager | Reimbursement of operating expenses
Related Party Transaction [Line Items]
Expenses	46	71	78	164
Receivable as of	15		15		276
Payable as of	14		14		19
Advisor and Dealer Manager | Property management fees
Related Party Transaction [Line Items]
Expenses	22	28	46	59
Receivable as of	0		0		0
Payable as of	7		7		8
Advisor and Dealer Manager | Advisor advance for cash distributions
Related Party Transaction [Line Items]
Incurred	0	$ 0	0	$ 0
Receivable as of	0		0		0
Payable as of	$ 1,338		$ 1,338		$ 1,338
KBS Capital Advisors LLC | Cost of Investments
Related Party Transaction [Line Items]
Property management fee, percent fee			1%

RELATED PARTY TRANSACTIONS - Ad

RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Payment for administrative fees	$ 47	$ 70	$ 73	$ 159
Limit of total operating expenses as a percent of average invested assets	2%		2%
Limit of total operating expenses as a percent of net income for the four most recently completed fiscal quarters	25%		25%
Due to affiliates	$ 9,866		$ 9,866		$ 9,006
Advisor and Dealer Manager
Related Party Transaction [Line Items]
Incurred (reimbursed)	504	533	990	1,085
Due to affiliates	9,866		9,866		9,006
Advisor and Dealer Manager | Advisor advance for cash distributions
Related Party Transaction [Line Items]
Incurred (reimbursed)	0	$ 0	0	$ 0
Due to affiliates	$ 1,338		1,338		1,338
Advisor and Dealer Manager | Overcharged Fees
Related Party Transaction [Line Items]
Incurred (reimbursed)					$ 300
Advisor and Dealer Manager | Legal and Accounting Costs
Related Party Transaction [Line Items]
Incurred (reimbursed)			200
Advisor and Dealer Manager | Overcharged fees, legal and accounting
Related Party Transaction [Line Items]
Incurred (reimbursed)			$ (500)

RELATED PARTY TRANSACTIONS - _2

RELATED PARTY TRANSACTIONS - Real Estate Property Co-Management Agreements (Details) - KBS Management Group, LLC	6 Months Ended
	Jun. 30, 2022
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
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%

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands		6 Months Ended	9 Months Ended
	Aug. 01, 2022	Nov. 09, 2023	May 08, 2023	Jun. 30, 2022	Dec. 31, 2021
Subsequent Event [Line Items]
Amount outstanding				$ 101,528	$ 101,454
Restricted cash				247	$ 247
Term Loan | Secured Debt
Subsequent Event [Line Items]
Amount outstanding				$ 34,900
Forecast | Term Loan | Secured Debt | SOFR
Subsequent Event [Line Items]
Basis spread on variable rate		2.50%	2%
Subsequent Event | Term Loan | Secured Debt
Subsequent Event [Line Items]
Amount outstanding	$ 52,300
Subsequent Event | Term Loan | Secured Debt | Minimum
Subsequent Event [Line Items]
Restricted cash	7,000
Subsequent Event | Term Loan | Secured Debt | Maximum
Subsequent Event [Line Items]
Cash distributions	$ 250
Subsequent Event | Term Loan | Secured Debt | Adjusted Term SOFR
Subsequent Event [Line Items]
Basis spread on variable rate	0.10%