KBS Growth & Income REIT (KBSG) 10-Q 13 Nov 23 2023 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2023	Nov. 09, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		9,838,569
Class T Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		307,606

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF NET ASSETS $ in Thousands	Sep. 30, 2023 USD ($)
Assets
Real estate	$ 54,170
Cash and cash equivalents	3,928
Restricted cash	1,781
Rents and other receivables	44
Other assets	58
Total assets	59,981
Liabilities
Liabilities for estimated costs in excess of estimated receipts during liquidation	721
Notes payable	55,855
Accounts payable and accrued liabilities	1,899
Due to affiliates	9
Other liabilities	507
Total liabilities	58,991
Commitments and contingencies (Note 9)
Net assets in liquidation	$ 990

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET $ in Thousands	Dec. 31, 2022 USD ($)
Real estate:
Land	$ 16,764
Buildings and improvements	91,904
Tenant origination and absorption costs	6,565
Total real estate, cost	115,233
Less accumulated depreciation and amortization	(15,233)
Total real estate, net	100,000
Cash and cash equivalents	5,281
Restricted cash	1,252
Rents and other receivables	5,452
Above-market leases, net	51
Due from affiliates	2
Prepaid expenses and other assets	2,872
Total assets	114,910
Liabilities and stockholders’ equity
Notes payable, net	102,099
Accounts payable and accrued liabilities	3,846
Due to affiliates	5,906
Below-market leases, net	436
Other liabilities	1,537
Total liabilities	113,824
Commitments and contingencies (Note 9)
Redeemable common stock	0
Stockholders’ equity:
Preferred stock, $.01 par value; 10,000,000 shares authorized, no shares issued and outstanding	0
Additional paid-in capital	85,340
Cumulative distributions and net losses	(84,356)
Total stockholders’ equity	1,086
Total liabilities and stockholders’ equity	114,910
Class A Common Stock
Stockholders’ equity:
Common stock	99
Class T Common Stock
Stockholders’ equity:
Common stock	$ 3

CONSOLIDATED BALANCE SHEET (Par

CONSOLIDATED BALANCE SHEET (Parenthetical)	Dec. 31, 2022 $ / shares shares
Preferred stock, par value (in dollars per share) | $ / shares	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000
Preferred stock, shares issued (in shares)	0
Preferred stock, shares outstanding (in shares)	0
Class A Common Stock
Common stock, par value (in dollars per share) | $ / shares	$ 0.01
Common stock, shares authorized (in shares)	500,000,000
Common stock, shares issued (in shares)	9,838,569
Common stock, shares outstanding (in shares)	9,838,569
Class T Common Stock
Common stock, par value (in dollars per share) | $ / shares	$ 0.01
Common stock, shares authorized (in shares)	500,000,000
Common stock, shares issued (in shares)	307,606
Common stock, shares outstanding (in shares)	307,606

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS $ in Thousands	6 Months Ended
	Sep. 30, 2023 USD ($)
Changes in Net Assets in Liquidation [Roll Forward]
Net assets in liquidation, beginning of period	$ 1,398
Change in liquidation value of real estate properties after closing costs/disposition fees	256
Change in estimated cash flow during liquidation	(432)
Change in estimated capital expenditures	(201)
Other changes, net	(31)
Changes in net assets in liquidation	(408)
Net assets in liquidation, end of period	$ 990

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Sep. 30, 2022	Sep. 30, 2022
Revenues:
Rental income	$ 3,701	$ 3,589	$ 10,906
Other operating income	33	35	111
Total revenues	3,734	3,624	11,017
Expenses:
Operating, maintenance, and management	897	943	2,768
Property management fees and expenses to affiliate	0	24	70
Real estate taxes and insurance	864	849	2,405
Asset management fees to affiliate	0	442	1,308
General and administrative expenses	514	372	1,405
Depreciation and amortization	1,351	1,468	4,520
Interest expense	2,244	1,243	2,384
Impairment charges on real estate	0	2,490	14,223
Total expenses	5,870	7,831	29,083
Other income:
Interest and other income	29	14	19
Total other income	29	14	19
Net loss	$ (2,107)	$ (4,193)	$ (18,047)
Net loss per common share, basic (in dollars per share)	$ (0.21)	$ (0.41)	$ (1.78)
Net loss per common share, diluted (in dollars per share)	$ (0.21)	$ (0.41)	$ (1.78)
Weighted-average number of common shares outstanding basic (in shares)	10,146,175	10,159,683	10,162,128
Weighted-average number of common shares outstanding diluted (in shares)	10,146,175	10,159,683	10,162,128

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ (DEFICIT) EQUITY - USD ($) $ in Thousands	Total	Class A	Class T	Common Stock Class A	Common Stock Class T	Additional Paid-in Capital	Cumulative Distributions and Net Losses
Balance (in shares) at Dec. 31, 2021				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	(18,047)						(18,047)
Transfers from redeemable common stock	26					26
Redemptions of common stock (in shares)				(4,278)	(3,368)
Redemptions of common stock	(26)					(26)
Balance (in shares) at Sep. 30, 2022				9,851,052	307,606
Balance at Sep. 30, 2022	2,753			$ 99	$ 3	85,158	(82,507)
Balance (in shares) at Jun. 30, 2022				9,851,052	310,974
Balance at Jun. 30, 2022	6,946			$ 99	$ 3	85,158	(78,314)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(4,193)						(4,193)
Transfers from redeemable common stock	12					12
Redemptions of common stock (in shares)					(3,368)
Redemptions of common stock	(12)					(12)
Balance (in shares) at Sep. 30, 2022				9,851,052	307,606
Balance at Sep. 30, 2022	2,753			$ 99	$ 3	85,158	(82,507)
Balance (in shares) at Dec. 31, 2022		9,838,569	307,606	9,838,569	307,606
Balance at Dec. 31, 2022	1,086			$ 99	$ 3	85,340	(84,356)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(2,107)						(2,107)
Balance (in shares) at Mar. 31, 2023				9,838,569	307,606
Balance at Mar. 31, 2023	$ (1,021)			$ 99	$ 3	$ 85,340	$ (86,463)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2023	Sep. 30, 2022
Cash Flows from Operating Activities:
Net loss	$ (2,107)	$ (18,047)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,351	4,520
Impairment charges on real estate	0	14,223
Deferred rents	(160)	(625)
Amortization of above and below-market leases, net	(39)	(260)
Amortization of deferred financing costs	27	166
Unrealized gain on derivative instruments	0	(617)
Changes in operating assets and liabilities:
Rents and other receivables	(146)	(362)
Prepaid expenses and other assets	(217)	(507)
Accounts payable and accrued liabilities	(1,038)	(254)
Due from affiliates	2	276
Due to affiliates	7	1,299
Other liabilities	(230)	(27)
Net cash used in operating activities	(2,550)	(215)
Cash Flows from Investing Activities:
Improvements to real estate	(86)	(800)
Net cash used in investing activities	(86)	(800)
Cash Flows from Financing Activities:
Proceeds from notes payable	1,494	0
Principal payments on notes payable	(19)	(56)
Payments of deferred financing costs	0	(91)
Payments to redeem common stock	0	(26)
Net cash provided by (used in) financing activities	1,475	(173)
Net decrease in cash and cash equivalents	(1,161)	(1,188)
Cash and cash equivalents and restricted cash, beginning of period	6,533	8,129
Cash and cash equivalents and restricted cash, end of period	5,372	6,941
Supplemental Disclosure of Cash Flow Information
Interest paid	2,056	2,701
Supplemental Disclosure of Noncash Investing and Financing Activities:
Accrued improvements to real estate	$ 50	$ 55

ORGANIZATION

ORGANIZATION	9 Months Ended
	Sep. 30, 2023
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 September 30, 2023, the Company had remaining investments in three office properties. 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 September 30, 2023, the Company had 9,838,569 and 307,606 shares of Class A and Class T common stock outstanding, respectively. On December 15, 2022 and affirmed on February 2, 2023, the Company’s board of directors and a special committee composed of all of the Company’s independent directors (the “Special Committee”) each approved 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 (the “Plan of Liquidation”). The principal purpose of the Plan of Liquidation is to provide liquidity to the Company’s stockholders by selling its assets, paying its debts and distributing the net proceeds from liquidation to the Company’s stockholders. On May 9, 2023, the Company’s stockholders approved the Plan of Liquidation. In connection with its consideration of the Plan of Liquidation, the Company’s board of directors determined to cease regular quarterly distributions and terminated the share redemption program. The Company expects any future liquidity to its stockholders will be provided in the form of liquidating distributions. The Company expects to distribute all of the net proceeds from liquidation to its stockholders within 24 months from May 9, 2023. The Company can give no assurance regarding the timing of asset dispositions in connection with the implementation of the Plan of Liquidation, the sale prices it will receive for its assets, and the amount or timing of any liquidating distributions to be received by its stockholders.

PLAN OF LIQUIDATION

PLAN OF LIQUIDATION	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
PLAN OF LIQUIDATION	PLAN OF LIQUIDATION The Plan of Liquidation authorizes the Company to undertake an orderly liquidation. In an orderly liquidation, the Company intends to sell or otherwise dispose of its remaining properties, pay or otherwise settle all of its known liabilities, provide for the payment of its unknown or contingent liabilities, distribute any remaining cash to its stockholders, wind up its operations and dissolve. The Company is authorized to provide for the payment of any unascertained or contingent liabilities and may do so by purchasing insurance, by establishing a reserve fund or in other ways. The Plan of Liquidation enables the Company to sell any and all of its assets without further approval of its stockholders and provides that the amounts and timing of liquidating distributions will be determined by the Company’s board of directors or, if a liquidating trust is formed, by the trustees of the liquidating trust, in their discretion. Pursuant to applicable REIT rules, liquidating distributions the Company pays pursuant to the Plan of Liquidation will qualify for the dividends paid deduction, provided that they are paid within 24 months of the May 9, 2023 approval of the plan by the Company’s stockholders. However, if the Company cannot sell or otherwise dispose of its properties and pay its debts within such time period, or if the board of directors and the Special Committee determine that it is otherwise advisable to do so, the Company may transfer and assign its remaining assets to a liquidating trust. Upon such transfer and assignment, the Company’s stockholders would receive beneficial interests in the liquidating trust. The liquidating trust would pay or provide for all of the Company’s liabilities and distribute any remaining net proceeds from liquidation to the holders of beneficial interests in the liquidating trust. If the Company is not able to sell or otherwise dispose of its properties and pay its debt within the 24-month period and the remaining assets are not transferred to a liquidating trust, any distributions made during the 24 months may not qualify for the dividends paid deduction and may increase the Company’s tax liability. The Company’s expectations about the implementation of the Plan of Liquidation and the amount of any liquidating distributions that the Company pays to its stockholders and when the Company will pay them are subject to risks and uncertainties and are based on certain estimates and assumptions, one or more of which may prove to be incorrect. As a result, the actual amount of any liquidating distributions the Company pays to its stockholders may be more or less than the Company estimates and the liquidating distributions may be paid later than the Company predicts. There are many factors that may affect the amount of liquidating distributions the Company will ultimately pay to its stockholders. If the Company underestimates its existing obligations and liabilities or the amount of taxes, transaction fees and expenses relating to the liquidation and dissolution or if unanticipated or contingent liabilities arise, the amount of liquidating distributions ultimately paid to the Company’s stockholders could be less than estimated. Moreover, the liquidation value will fluctuate over time in response to developments related to individual assets in the Company’s portfolio and the management of those assets, in response to the real estate and finance markets, based on the amount of net proceeds received from the disposition of the remaining assets and due to other factors. Accordingly, it is not possible to precisely predict the timing of any liquidating distributions the Company pays to it stockholders or the aggregate amount of liquidating distributions that the Company will ultimately pay to its stockholders. No assurance can be given that any liquidating distributions the Company pays to its stockholders will equal or exceed the estimate of net assets in liquidation presented on the Condensed Consolidated Statement of Net Assets as of September 30, 2023. The Company expects to comply with the requirements necessary to continue to qualify as a REIT through the completion of the liquidation process, or until such time as any remaining assets are transferred into a liquidating trust. The board of directors shall use commercially reasonable efforts to continue to cause the Company to maintain its REIT status; provided, however, that the board of directors may elect to terminate the Company’s status as a REIT if it determines that such termination would be in the best interest of the stockholders.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), including Subtopic 205-30, “Liquidation Basis of Accounting,” as indicated, and the rules and regulations of the Securities and Exchange Commission, 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. Pursuant to the Company’s stockholders’ approval of the Plan of Liquidation, the Company adopted the liquidation basis of accounting as of and for the periods subsequent to April 1, 2023 (as the approval of the Plan of Liquidation by the Company’s stockholders became imminent during the month of April 2023 based on the results of the Company’s solicitation of proxies from its stockholders for their approval of the Plan of Liquidation). Accordingly, on April 1, 2023, assets were adjusted to their estimated net realizable value, or liquidation value, which represents the estimated amount of cash or other consideration, such as debt relief, that the Company expects to realize through the disposal of assets as it carries out the Plan of Liquidation. The liquidation values of the Company’s remaining real estate properties are presented on an undiscounted basis and are generally based on either an offer received on the properties or the amount of debt anticipated to be relieved with the sale or transfer of the properties. Liabilities are carried at their contractual amounts due or estimated settlement amounts. The Company accrues costs and income that it expects to incur and earn through the completion of its liquidation, including the estimated amount of cash or other consideration that the Company expects to realize through the disposal of its assets and the estimated costs to dispose of its assets, to the extent it has a reasonable basis for estimation. These amounts are classified as a liability for estimated costs in excess of estimated receipts during liquidation on the Condensed Consolidated Statement of Net Assets. Actual costs and income may differ from amounts reflected in the financial statements because of the inherent uncertainty in estimating future events. These differences may be material. See Note 2, “Plan of Liquidation” and Note 4, “Liabilities for Estimated Costs in Excess of Estimated Receipts During Liquidation” for further discussion. Actual costs incurred but unpaid as of September 30, 2023 are included in accounts payable and accrued liabilities, due to affiliates and other liabilities on the Condensed Consolidated Statement of Net Assets. Net assets in liquidation represents the remaining estimated liquidation value available to stockholders upon liquidation. Due to the uncertainty in the timing of the sale or transfer of the Company’s remaining real estate properties and the estimated cash flows from operations, actual liquidation costs and sale proceeds may differ materially from the amounts estimated. All financial results and disclosures through March 31, 2023, prior to the adoption of the liquidation basis of accounting, are presented on a going concern basis, which contemplates the realization of assets and liabilities in the normal course of business. As a result, the balance sheet as of December 31, 2022, the statements of operations, the statements of stockholders’ (deficit) equity and the statements of cash flows for the three months ended March 31, 2023 and the three and nine months ended September 30, 2022 are presented using the going concern basis of accounting. The Company’s consolidated financial statements included its accounts and the accounts of REIT Holdings, the Operating Partnership and their direct and indirect wholly owned subsidiaries. All significant intercompany balances and transactions were eliminated in consolidation. Use of Estimates The preparation of the unaudited consolidated financial statements and condensed notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and condensed notes. Actual results could materially differ from those estimates. Real Estate Liquidation Basis of Accounting As of April 1, 2023, the Company’s investments in real estate were adjusted to their estimated net realizable value, or liquidation value, to reflect the change to the liquidation basis of accounting. The liquidation value represents the estimated amount of cash or other consideration, such as debt relief, that the Company expects to realize through the disposal of its assets, including any residual value attributable to lease intangibles, as it carries out the Plan of Liquidation. The Company estimated the liquidation value of its investments in real estate generally based on either an offer received on the properties or the amount of debt anticipated to be relieved with the sale or transfer of the properties. The liquidation values of the Company’s investments in real estate are presented on an undiscounted basis and investments in real estate are no longer depreciated. Subsequent to April 1, 2023, all changes in the estimated liquidation value of the investments in real estate are reflected as a change to the Company’s net assets in liquidation. Rents and Other Receivables In accordance with the liquidation basis of accounting, as of April 1, 2023, rents and other receivables were adjusted to their net realizable value. The Company periodically evaluates the collectibility of amounts due from tenants. Any changes in the collectibility of the receivables are reflected as a change to the Company’s net assets in liquidation. Revenue Recognition Liquidation Basis of Accounting Under the liquidation basis of accounting, the Company has accrued all income that it expects to earn through the completion of its liquidation to the extent it has a reasonable basis for estimation. Revenue from tenants is estimated based on the contractual in-place leases and projected leases through the anticipated disposition date of the property. These amounts are presented net of estimated expenses and other liquidation costs and are classified in liabilities for estimated costs in excess of estimated receipts during liquidation on the Consolidated Statement of Net Assets. Accrued Liquidation Costs In accordance with the liquidation basis of accounting, the Company accrues for certain estimated liquidation costs to the extent it has a reasonable basis for estimation. These consist of legal fees, dissolution costs, final audit/tax costs, insurance, and transfer agent related costs.

LIABILITIES FOR ESTIMATED COSTS

LIABILITIES FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION	9 Months Ended
	Sep. 30, 2023
Liability during Liquidation [Abstract]
LIABILITIES FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION	LIABILITIES FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION The liquidation basis of accounting requires the Company to estimate net cash flows from operations and to accrue all costs associated with implementing and completing the Plan of Liquidation. As of September 30, 2023, the Company estimated that it will have costs in excess of estimated receipts during the liquidation process. These amounts can vary significantly due to, among other things, the timing and estimates for executing and renewing leases, estimates of tenant improvement costs and capital expenditures, the timing of sale or transfer of properties, direct costs incurred to complete the sales, the timing and amounts associated with discharging known and contingent liabilities and the costs associated with the winding down of operations. These costs are estimated and are anticipated to be paid out over the liquidation period. Upon transition to the liquidation basis of accounting on April 1, 2023, the Company accrued the following revenues and expenses expected to be incurred during liquidation (in thousands): As of April 1, 2023 Rental income $ 9,806 Other operating income 124 Operating, maintenance, and management (2,495) Real estate taxes and insurance (2,066) General and administrative expenses (976) Interest expense (3,866) Liquidating transaction costs (600) Capital expenditures (302) Liabilities for estimated costs in excess of estimated receipts during liquidation $ (375) The change in the liabilities for estimated costs in excess of estimated receipts during liquidation as of September 30, 2023 is as follows (in thousands): April 1, 2023 Cash Payments Remeasurement of September 30, 2023 Assets: Estimated net inflows from investments in real estate $ 1,503 $ (980) $ (10) $ 513 1,503 (980) (10) 513 Liabilities: Liquidation transaction costs (600) 212 88 (300) Corporate expenditures (976) 808 (510) (678) Capital expenditures (302) 247 (201) (256) (1,878) 1,267 (623) (1,234) Total liabilities for estimated costs in excess of estimated receipts during liquidation $ (375) $ 287 $ (633) $ (721)

NET ASSETS IN LIQUIDATION

NET ASSETS IN LIQUIDATION	9 Months Ended
	Sep. 30, 2023
Assets in Liquidation [Abstract]
NET ASSETS IN LIQUIDATION	NET ASSETS IN LIQUIDATIONThe net assets in liquidation as of September 30, 2023 would result in the payment of estimated liquidating distributions of approximately $0.10 per share of common stock to the Company’s stockholders of record as of September 30, 2023. This estimate of liquidating distributions includes projections of costs and expenses to be incurred during the estimated period required to complete the Plan of Liquidation. There is inherent uncertainty with these estimates and projections, and they could change materially based on the timing of the disposition or transfer of the Company’s remaining real estate properties, the performance of the Company’s remaining assets and any changes in the underlying assumptions of the projected cash flows from such properties. See Note 2, “Plan of Liquidation.”

REAL ESTATE

REAL ESTATE	9 Months Ended
	Sep. 30, 2023
Real Estate [Abstract]
REAL ESTATE	REAL ESTATE As of September 30, 2023, the Company’s portfolio of real estate was composed of three office buildings containing 374,908 rentable square feet, which were collectively 85.5% occupied. As of September 30, 2023, the Company’s liquidation value of real estate was $54.2 million. As a result of adopting the liquidation basis of accounting in April 2023, as of September 30, 2023, real estate properties were recorded at their estimated liquidation value, which represents the estimated gross amount of cash or other consideration, such as debt relief, the Company expects to realize through the disposition or transfer of its real estate properties owned as of September 30, 2023 as it carries out its Plan of Liquidation. Foreclosure of the Commonwealth Building As previously disclosed, on February 13, 2023, the borrower under the Commonwealth Building Mortgage Loan (the “Commonwealth Borrower”) was in maturity default with respect to the Commonwealth Building Mortgage Loan following its failure to pay the amount of the debt outstanding on the loan on its February 1, 2023 due date. On July 18, 2023, the Commonwealth Building was sold at public auction in a foreclosure sale to a buyer affiliated with the Metropolitan Life Insurance Company (the “Commonwealth Lender”) and all interest in the Commonwealth Building was transferred to the buyer on that date and the Commonwealth Borrower was relieved of all debt obligations and future liabilities associated with the Commonwealth Building in conjunction with the foreclosure transaction.

NOTES PAYABLE

NOTES PAYABLE	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTES PAYABLE As of September 30, 2023 and December 31, 2022, the Company’s notes payable consisted of the following (dollars in thousands): Book Value as of September 30, 2023 Book Value as of December 31, 2022 Contractual Interest Rate as of September 30, 2023 (1) Effective Interest Rate at September 30, 2023 (1) Payment Type Maturity Date (2) Commonwealth Building Mortgage Loan (3) $ — $ 46,268 (3) (3) (3) (3) Modified Term Loan (4) 52,260 52,260 One-month Term SOFR + 0.10% + 2.50% (4) 7.92% Interest Only 11/09/2023 210 W. Chicago Mortgage Loan (5) 3,595 3,651 One-month Term SOFR + 0.10% + 2.20% 7.68% Principal & Interest (5) 06/28/2024 Notes payable principal outstanding $ 55,855 $ 102,179 Deferred financing costs, net (6) — (80) Notes payable, net $ 55,855 $ 102,099 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of September 30, 2023. Effective interest rate is calculated as the actual interest rate in effect as of September 30, 2023 using interest rate indices as of September 30, 2023. (2) Represents the maturity date as of September 30, 2023. (3) On December 22, 2022, the Commonwealth Borrower defaulted on the loan as a result of a failure to pay the full amount of the outstanding debt service due on the loan. Effective February 13, 2023, the Commonwealth Borrower was in maturity default for failure to pay the amount of the debt outstanding and due to the lender on the February 1, 2023 maturity date. On July 18, 2023, the Commonwealth Building was sold at public auction in a foreclosure sale to a buyer affiliated with the Commonwealth Lender and all interest in the Commonwealth Building was transferred to the buyer. See Note 6, “Real Estate – Foreclosure of the Commonwealth Building.” (4) The Modified Term Loan bore interest at the forward-looking term rate based on Secured Overnight Financing Rate (“SOFR”) with a tenor comparable to the one-month Term SOFR plus 10 basis points (collectively, the “Adjusted Term SOFR”) plus 200 basis points per annum prior to May 9, 2023. On and after May 9, 2023, the Modified Term Loan bears interest at Adjusted Term SOFR plus 250 basis points per annum. 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 Modified Term Loan. 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, capital costs 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 held by the Company exceeding $7.0 million into an account controlled by the lender or apply it to pay down the Modified Term Loan. The Modified Term Loan is full recourse under the guaranty provided by KBSGI REIT Properties, LLC (“KBS GI REIT Properties”), the Company’s wholly owned subsidiary. On November 6, 2023, the Company entered into a modification agreement with the lender under the Modified Term Loan and extended the maturity date to May 9, 2024. See Note 10, “Subsequent Events – Modified Term Loan.” (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. On June 7, 2023, the borrower under the 210 W. Chicago Mortgage Loan entered into an early opt-in election and related amendment to the loan agreement with the lender which modified the interest rate to Adjusted Term SOFR plus 220 basis points per annum. (6) As described in Note 3, “Summary of Significant Accounting Policies - Principles of Consolidation and Basis of Presentation,” on April 1, 2023, the Company adopted the liquidation basis of accounting which requires the Company to record notes payable at their contractual amounts.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2023
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. 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 KBS Capital Markets Group LLC (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 or served as the advisor for KBS Real Estate Investment Trust II, Inc. (“KBS REIT II”) (liquidated May 2023) and KBS Real Estate Investment Trust III, Inc. (“KBS REIT III”). The Dealer Manager also served as the dealer manager for KBS REIT II and KBS REIT III. As of January 1, 2022, 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. At renewal on June 30, 2022, due to its liquidation, KBS REIT II elected to cease participation in the program and obtained separate insurance coverage. In connection with the Company’s liquidation, the Company ceased participation in the program as of June 30, 2023 and obtained separate insurance coverage. During the nine months ended September 30, 2023 and 2022, 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 nine months ended September 30, 2023 and 2022, and any related amounts receivable and payable as of September 30, 2023 and December 31, 2022 (in thousands). Incurred Incurred Receivable as of Payable as of Three Months Ended September 30, Nine Months Ended September 30, September 30, December 31, September 30, December 31, 2023 2022 2023 2022 2023 2022 2023 2022 Expensed Asset management fees (1) $ — $ 442 $ — $ 1,308 $ — $ — $ — $ 5,901 Reimbursement of operating expenses (2) 30 26 64 104 — 2 9 5 Property management fees (3) — 24 — 70 — — — — $ 30 $ 492 $ 64 $ 1,482 $ — $ 2 $ 9 $ 5,906 _____________________ (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. For the period from October 2017 through September 2022, the Company had accrued and deferred payment of $8.9 million of asset management fees. In January 2023, the Advisor waived payment of its asset management fees from October 1, 2022 through the Company’s liquidation and waived $3.0 million of accrued asset management fees and as a result, as of September 30, 2023, the Company had $5.9 million of accrued asset management fees payable to the Advisor. For purposes of the consolidated statement of net assets as of September 30, 2023 and consolidated statement of changes in net assets for the period April 1, 2023 to September 30, 2023, the Company has estimated the asset management fee payable to the Advisor to be $0, as the Advisor has informed the Company it will not seek payment for the deferred asset management fees based on the current estimated values of the real estate properties and estimated net assets in liquidation. To the extent the estimated values of the real estate properties and estimated net assets in liquidation are significantly greater than the amounts shown in the liquidation basis condensed consolidated statement of net assets, the Advisor may request payment of some or all of the remaining $5.9 million deferred asset management fees. (2) See “Reimbursable Operating Expenses” below. (3) See “Real Estate Property Co-Management Agreements” below. The Co-Manager has waived payment of its property management fees effective October 1, 2022 through the Company’s liquidation. 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 $29,000 and $60,000 for the three and nine months ended September 30, 2023, respectively, and $26,000 and $99,000 for the three and nine months ended September 30, 2022, 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 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 September 30, 2023 did not exceed the charter-imposed limitation. 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. The Co-Manager has waived payment of its property management fees effective October 1, 2022 through the Company’s liquidation. 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	9 Months Ended
	Sep. 30, 2023
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	9 Months Ended
	Sep. 30, 2023
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 November 6, 2023, the Company, through the borrower under the Modified Term Loan, entered into a third modification agreement with JP Morgan Chase Bank, N.A. (the “Lender”) to extend the maturity date of the Modified Term Loan to May 9, 2024 (the “Third Modification Agreement”). As of November 6, 2023, the Modified Term Loan had an outstanding balance of $52.3 million, which is the maximum term commitment available under the Modified Term Loan. The Modified Term Loan is secured by the Institute Property and the Offices at Greenhouse. KBS GI REIT Properties is providing a guaranty for the Modified Term Loan (the “Guarantor”). In connection with the Third Modification Agreement, the Company under the Modified Term Loan is prohibited from making any cash distributions. Further, the Guarantor is required to deposit $42,315 into an account controlled by the Lender for the purpose of holding the Guarantor cash (the “Guarantor Cash Collateral Account”) on or prior to November 30, 2023 (such date, referred to as the “Outside Deposit Date”). After the Outside Deposit Date, the Guarantor shall immediately deposit any and all revenues received by the Guarantor and/or cash currently held by the Guarantor into the Guarantor Cash Collateral Account. Purchase and Sale Agreement for the Institute Property On November 7, 2023, the Company, through indirectly wholly owned subsidiary, entered into a purchase and sale agreement and escrow instructions (the “Agreement”) for the sale of the Institute Property to CP 213 Institute, LLC (the “Purchaser”), an affiliate of Coastal Partners, LLC. The Purchaser is unaffiliated with the Company or its advisor. Pursuant to the Agreement, the sale price for the Institute Property is $17.0 million, subject to prorations and adjustments as provided in the Agreement. The closing date is expected by December 4, 2023, provided that the Company or the Purchaser may extend the closing date subject to certain conditions set forth in the Agreement. There can be no assurance that the Company will complete the sale of the Institute Property. The purchaser would be obligated to purchase the Institute Property only after satisfaction of agreed upon closing conditions. In some circumstances, if the Purchaser fails to complete the acquisition, it may forfeit up to $0.2 million.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2023
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”), including Subtopic 205-30, “Liquidation Basis of Accounting,” as indicated, and the rules and regulations of the Securities and Exchange Commission, 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.
Principles of Consolidation	The Company’s consolidated financial statements included its accounts and the accounts of REIT Holdings, the Operating Partnership and their direct and indirect wholly owned subsidiaries. All significant intercompany balances and transactions were eliminated in consolidation.
Use of Estimates	The preparation of the unaudited consolidated financial statements and condensed notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and condensed notes. Actual results could materially differ from those estimates.
Real Estate	Liquidation Basis of Accounting As of April 1, 2023, the Company’s investments in real estate were adjusted to their estimated net realizable value, or liquidation value, to reflect the change to the liquidation basis of accounting. The liquidation value represents the estimated amount of cash or other consideration, such as debt relief, that the Company expects to realize through the disposal of its assets, including any residual value attributable to lease intangibles, as it carries out the Plan of Liquidation. The Company estimated the liquidation value of its investments in real estate generally based on either an offer received on the properties or the amount of debt anticipated to be relieved with the sale or transfer of the properties. The liquidation values of the Company’s investments in real estate are presented on an undiscounted basis and investments in real estate are no longer depreciated. Subsequent to April 1, 2023, all changes in the estimated liquidation value of the investments in real estate are reflected as a change to the Company’s net assets in liquidation.
Rents and Other Receivables	In accordance with the liquidation basis of accounting, as of April 1, 2023, rents and other receivables were adjusted to their net realizable value. The Company periodically evaluates the collectibility of amounts due from tenants. Any changes in the collectibility of the receivables are reflected as a change to the Company’s net assets in liquidation.
Revenue Recognition	Revenue Recognition Liquidation Basis of Accounting Under the liquidation basis of accounting, the Company has accrued all income that it expects to earn through the completion of its liquidation to the extent it has a reasonable basis for estimation. Revenue from tenants is estimated based on the contractual in-place leases and projected leases through the anticipated disposition date of the property. These amounts are presented net of estimated expenses and other liquidation costs and are classified in liabilities for estimated costs in excess of estimated receipts during liquidation on the Consolidated Statement of Net Assets.
Accrued Liquidation Costs	In accordance with the liquidation basis of accounting, the Company accrues for certain estimated liquidation costs to the extent it has a reasonable basis for estimation. These consist of legal fees, dissolution costs, final audit/tax costs, insurance, and transfer agent related costs.

LIABILITIES FOR ESTIMATED COS_2

LIABILITIES FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION (Tables)	9 Months Ended
	Sep. 30, 2023
Liability during Liquidation [Abstract]
Schedule of Accrued Revenues and Expenses to be Incurred During Liquidation	Upon transition to the liquidation basis of accounting on April 1, 2023, the Company accrued the following revenues and expenses expected to be incurred during liquidation (in thousands): As of April 1, 2023 Rental income $ 9,806 Other operating income 124 Operating, maintenance, and management (2,495) Real estate taxes and insurance (2,066) General and administrative expenses (976) Interest expense (3,866) Liquidating transaction costs (600) Capital expenditures (302) Liabilities for estimated costs in excess of estimated receipts during liquidation $ (375)
Schedule of Changes in Liquidation for Estimated Costs in Excess of Estimated Receipts	The change in the liabilities for estimated costs in excess of estimated receipts during liquidation as of September 30, 2023 is as follows (in thousands): April 1, 2023 Cash Payments Remeasurement of September 30, 2023 Assets: Estimated net inflows from investments in real estate $ 1,503 $ (980) $ (10) $ 513 1,503 (980) (10) 513 Liabilities: Liquidation transaction costs (600) 212 88 (300) Corporate expenditures (976) 808 (510) (678) Capital expenditures (302) 247 (201) (256) (1,878) 1,267 (623) (1,234) Total liabilities for estimated costs in excess of estimated receipts during liquidation $ (375) $ 287 $ (633) $ (721)

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Schedule of Notes Payable	As of September 30, 2023 and December 31, 2022, the Company’s notes payable consisted of the following (dollars in thousands): Book Value as of September 30, 2023 Book Value as of December 31, 2022 Contractual Interest Rate as of September 30, 2023 (1) Effective Interest Rate at September 30, 2023 (1) Payment Type Maturity Date (2) Commonwealth Building Mortgage Loan (3) $ — $ 46,268 (3) (3) (3) (3) Modified Term Loan (4) 52,260 52,260 One-month Term SOFR + 0.10% + 2.50% (4) 7.92% Interest Only 11/09/2023 210 W. Chicago Mortgage Loan (5) 3,595 3,651 One-month Term SOFR + 0.10% + 2.20% 7.68% Principal & Interest (5) 06/28/2024 Notes payable principal outstanding $ 55,855 $ 102,179 Deferred financing costs, net (6) — (80) Notes payable, net $ 55,855 $ 102,099 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of September 30, 2023. Effective interest rate is calculated as the actual interest rate in effect as of September 30, 2023 using interest rate indices as of September 30, 2023. (2) Represents the maturity date as of September 30, 2023. (3) On December 22, 2022, the Commonwealth Borrower defaulted on the loan as a result of a failure to pay the full amount of the outstanding debt service due on the loan. Effective February 13, 2023, the Commonwealth Borrower was in maturity default for failure to pay the amount of the debt outstanding and due to the lender on the February 1, 2023 maturity date. On July 18, 2023, the Commonwealth Building was sold at public auction in a foreclosure sale to a buyer affiliated with the Commonwealth Lender and all interest in the Commonwealth Building was transferred to the buyer. See Note 6, “Real Estate – Foreclosure of the Commonwealth Building.” (4) The Modified Term Loan bore interest at the forward-looking term rate based on Secured Overnight Financing Rate (“SOFR”) with a tenor comparable to the one-month Term SOFR plus 10 basis points (collectively, the “Adjusted Term SOFR”) plus 200 basis points per annum prior to May 9, 2023. On and after May 9, 2023, the Modified Term Loan bears interest at Adjusted Term SOFR plus 250 basis points per annum. 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 Modified Term Loan. 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, capital costs 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 held by the Company exceeding $7.0 million into an account controlled by the lender or apply it to pay down the Modified Term Loan. The Modified Term Loan is full recourse under the guaranty provided by KBSGI REIT Properties, LLC (“KBS GI REIT Properties”), the Company’s wholly owned subsidiary. On November 6, 2023, the Company entered into a modification agreement with the lender under the Modified Term Loan and extended the maturity date to May 9, 2024. See Note 10, “Subsequent Events – Modified Term Loan.” (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. On June 7, 2023, the borrower under the 210 W. Chicago Mortgage Loan entered into an early opt-in election and related amendment to the loan agreement with the lender which modified the interest rate to Adjusted Term SOFR plus 220 basis points per annum. (6) As described in Note 3, “Summary of Significant Accounting Policies - Principles of Consolidation and Basis of Presentation,” on April 1, 2023, the Company adopted the liquidation basis of accounting which requires the Company to record notes payable at their contractual amounts.

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Sep. 30, 2023
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 nine months ended September 30, 2023 and 2022, and any related amounts receivable and payable as of September 30, 2023 and December 31, 2022 (in thousands). Incurred Incurred Receivable as of Payable as of Three Months Ended September 30, Nine Months Ended September 30, September 30, December 31, September 30, December 31, 2023 2022 2023 2022 2023 2022 2023 2022 Expensed Asset management fees (1) $ — $ 442 $ — $ 1,308 $ — $ — $ — $ 5,901 Reimbursement of operating expenses (2) 30 26 64 104 — 2 9 5 Property management fees (3) — 24 — 70 — — — — $ 30 $ 492 $ 64 $ 1,482 $ — $ 2 $ 9 $ 5,906 _____________________ (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. For the period from October 2017 through September 2022, the Company had accrued and deferred payment of $8.9 million of asset management fees. In January 2023, the Advisor waived payment of its asset management fees from October 1, 2022 through the Company’s liquidation and waived $3.0 million of accrued asset management fees and as a result, as of September 30, 2023, the Company had $5.9 million of accrued asset management fees payable to the Advisor. For purposes of the consolidated statement of net assets as of September 30, 2023 and consolidated statement of changes in net assets for the period April 1, 2023 to September 30, 2023, the Company has estimated the asset management fee payable to the Advisor to be $0, as the Advisor has informed the Company it will not seek payment for the deferred asset management fees based on the current estimated values of the real estate properties and estimated net assets in liquidation. To the extent the estimated values of the real estate properties and estimated net assets in liquidation are significantly greater than the amounts shown in the liquidation basis condensed consolidated statement of net assets, the Advisor may request payment of some or all of the remaining $5.9 million deferred asset management fees. (2) See “Reimbursable Operating Expenses” 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)		9 Months Ended
	May 09, 2023	Sep. 30, 2023 property shares	Dec. 31, 2022 shares	Jan. 27, 2015 $ / shares shares
Organizational Structure [Line Items]
Plan of liquidation, distribution of net proceeds, period	24 months
Class A Common Stock
Organizational Structure [Line Items]
Common stock, shares issued (in shares)		9,838,569	9,838,569
Common stock, shares outstanding (in shares)		9,838,569	9,838,569
Class T Common Stock
Organizational Structure [Line Items]
Common stock, shares issued (in shares)		307,606	307,606
Common stock, shares outstanding (in shares)		307,606	307,606
Office Building
Organizational Structure [Line Items]
Number of real estate properties | property		3
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%

PLAN OF LIQUIDATION (Details)

PLAN OF LIQUIDATION (Details)	May 09, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Plan of liquidation, distribution of net proceeds, period	24 months

LIABILITIES FOR ESTIMATED COS_3

LIABILITIES FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION - Schedule of Accrued Revenues and Expenses to be Incurred During Liquidation (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Liabilities for estimated costs in excess of estimated receipts during liquidation	$ (721)	$ (375)
Rental income
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues		9,806
Other operating income
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues		124
Operating, maintenance, and management
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Expenses		(2,495)
Real estate taxes and insurance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Expenses		(2,066)
General and administrative expenses
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Expenses		(976)
Interest expense
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Expenses		(3,866)
Liquidating transaction costs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Expenses		(600)
Capital expenditures
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Expenses		$ (302)

LIABILITIES FOR ESTIMATED COS_4

LIABILITIES FOR ESTIMATED COSTS IN EXCESS OF ESTIMATED RECEIPTS DURING LIQUIDATION - Schedule of Changes in Liquidation for Estimated Costs in Excess of Estimated Receipts (Details) $ in Thousands	6 Months Ended
	Sep. 30, 2023 USD ($)
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	$ (375)
Cash Payments (Receipts)	287
Remeasurement of Assets and Liabilities	(633)
Ending balance	(721)
Assets:
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	1,503
Cash Payments (Receipts)	(980)
Remeasurement of Assets and Liabilities	(10)
Ending balance	513
Estimated net inflows from investments in real estate
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	1,503
Cash Payments (Receipts)	(980)
Remeasurement of Assets and Liabilities	(10)
Ending balance	513
Liabilities:
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	(1,878)
Cash Payments (Receipts)	1,267
Remeasurement of Assets and Liabilities	(623)
Ending balance	(1,234)
Liquidation transaction costs
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	(600)
Cash Payments (Receipts)	212
Remeasurement of Assets and Liabilities	88
Ending balance	(300)
Corporate expenditures
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	(976)
Cash Payments (Receipts)	808
Remeasurement of Assets and Liabilities	(510)
Ending balance	(678)
Capital expenditures
Movement in Liquidation Accrual [Roll Forward]
Beginning balance	(302)
Cash Payments (Receipts)	247
Remeasurement of Assets and Liabilities	(201)
Ending balance	$ (256)

NET ASSETS IN LIQUIDATION (Deta

NET ASSETS IN LIQUIDATION (Details)	Sep. 30, 2023 $ / shares
Assets in Liquidation [Abstract]
Common stock, additional estimated liquidation distribution (usd per share)	$ 0.10

REAL ESTATE (Details)

REAL ESTATE (Details) $ in Millions	Sep. 30, 2023 USD ($) ft² property
Real Estate Properties [Line Items]
Real estate liquidation value | $	$ 54.2
Office Building
Real Estate Properties [Line Items]
Number of real estate properties | property	3
Rentable square feet | ft²	374,908
Percentage of real estate occupied	85.50%

NOTES PAYABLE - Schedule of Not

NOTES PAYABLE - Schedule of Notes Payable (Details) - USD ($) $ in Thousands				9 Months Ended
	Jun. 07, 2023	May 09, 2023	May 08, 2023	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Notes payable principal outstanding				$ 55,855	$ 102,179
Deferred financing costs, net				0	(80)
Notes payable, net				55,855	102,099
Restricted cash				1,781	1,252
Mortgage | Commonwealth Building Mortgage Loan
Debt Instrument [Line Items]
Notes payable principal outstanding				0	46,268
Mortgage | 210 W. Chicago Mortgage Loan
Debt Instrument [Line Items]
Notes payable principal outstanding				$ 3,595	3,651
Effective interest rate				7.68%
Amortization schedule				25 years
Stated percentage				6%
Mortgage | 210 W. Chicago Mortgage Loan | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate	2.20%			2.20%
Secured Debt | Modified Term Loan
Debt Instrument [Line Items]
Notes payable principal outstanding				$ 52,260	$ 52,260
Effective interest rate				7.92%
Secured Debt | Modified Term Loan | Minimum
Debt Instrument [Line Items]
Restricted cash				$ 7,000
Secured Debt | Modified Term Loan | Adjusted Term SOFR
Debt Instrument [Line Items]
Basis spread on variable rate			0.10%	0.10%
Secured Debt | Modified Term Loan | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate		2.50%	2%	2.50%
Secured Debt | 210 W. Chicago Mortgage Loan | Adjusted Term SOFR
Debt Instrument [Line Items]
Basis spread on variable rate				0.10%

NOTES PAYABLE - Additional Info

NOTES PAYABLE - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2023	Dec. 31, 2022
Derivative [Line Items]
Interest expense	$ 2,244	$ 1,243	$ 2,384
Interest payable, current				$ 400	$ 600
Amortization of deferred financing costs	$ 27	100	166
Interest Rate Swap
Derivative [Line Items]
Decrease in interest expense as a result of derivatives		$ 7	$ 200

RELATED PARTY TRANSACTIONS - Sc

RELATED PARTY TRANSACTIONS - Schedule of Related Party Costs (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended	9 Months Ended
	Jan. 31, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Related Party Transaction [Line Items]
Receivable as of							$ 2
Payable as of		$ 9		$ 9	$ 9		5,906
Advisor and Dealer Manager
Related Party Transaction [Line Items]
Incurred		30	$ 492		64	$ 1,482
Advisor and Dealer Manager | Related Party
Related Party Transaction [Line Items]
Receivable as of		0		0	0		2
Payable as of		9		9	$ 9		5,906
Property management fee, percent fee					1%
Advisor and Dealer Manager | Asset management fees
Related Party Transaction [Line Items]
Incurred		0	442		$ 0	1,308
Advisor and Dealer Manager | Asset management fees | Related Party
Related Party Transaction [Line Items]
Receivable as of		0		0	0		0
Payable as of		0		0	0		5,901
Advisor and Dealer Manager | Reimbursement of operating expenses
Related Party Transaction [Line Items]
Incurred		30	26		64	104
Advisor and Dealer Manager | Reimbursement of operating expenses | Related Party
Related Party Transaction [Line Items]
Receivable as of		0		0	0		2
Payable as of		9		9	9		5
Advisor and Dealer Manager | Property management fees
Related Party Transaction [Line Items]
Incurred		0	24		0	70
Advisor and Dealer Manager | Property management fees | Related Party
Related Party Transaction [Line Items]
Receivable as of		0		0	0		0
Payable as of		0		0	0		$ 0
Advisor and Dealer Manager | Asset management fees, accrued and deferred from October 2017 to September 2022 | Related Party
Related Party Transaction [Line Items]
Payable as of			$ 8,900			$ 8,900
Advisor and Dealer Manager | Waived accrued asset management fees
Related Party Transaction [Line Items]
Incurred	$ 3,000			0
Advisor and Dealer Manager | Asset management fees accrued | Related Party
Related Party Transaction [Line Items]
Payable as of		$ 5,900		$ 5,900	$ 5,900

RELATED PARTY TRANSACTIONS - Ad

RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Advisor and Dealer Manager
Related Party Transaction [Line Items]
Related party transaction amount	$ 30	$ 492	$ 64	$ 1,482
Limit of total operating expenses as a percent of average invested assets (percent)	2%		2%
Limit of total operating expenses as a percent of net income (percent)	25%		25%
KBS Management Group, LLC
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
Employee Costs Reimbursed Under the Advisory Agreement | Advisor and Dealer Manager
Related Party Transaction [Line Items]
Related party transaction amount	$ 29	$ 26	$ 60	$ 99

RELATED PARTY TRANSACTIONS - _2

RELATED PARTY TRANSACTIONS - Schedule of Annual Fee Percentage (Details) - KBS Management Group, LLC - Related Party	9 Months Ended
	Sep. 30, 2023
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	Nov. 07, 2023	Nov. 06, 2023	Sep. 30, 2023	Dec. 31, 2022
Subsequent Event [Line Items]
Amount outstanding			$ 55,855	$ 102,099
Subsequent Event | Held-for-Sale | Institute Property
Subsequent Event [Line Items]
Sales price	$ 17,000
Failed acquisition, maximum forfeited amount	$ 200
Modified Term Loan | Line of Credit | Subsequent Event
Subsequent Event [Line Items]
Amount outstanding		$ 52,300
Debt instrument, guarantor cash collateral		$ 42,315