Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-54382 | |
Entity Registrant Name | PACIFIC OAK STRATEGIC OPPORTUNITY REIT, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 26-3842535 | |
Entity Address, Address Line One | 11766 Wilshire Blvd., Suite 1670 | |
Entity Address, City or Town | Los Angeles, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90025 | |
City Area Code | 424 | |
Local Phone Number | 208-8100 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 93,896,447 | |
Entity Central Index Key | 0001452936 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Real estate held for investment, net | $ 1,219,531 | $ 1,272,784 |
Real estate held for sale, net | 0 | 140,239 |
Real estate equity securities | 96,403 | 97,903 |
Total real estate and real estate-related investments, net | 1,315,934 | 1,510,926 |
Cash and cash equivalents | 138,037 | 60,335 |
Restricted cash | 28,201 | 13,984 |
Investments in unconsolidated entities | 83,854 | 79,666 |
Rents and other receivables, net | 24,730 | 22,212 |
Above-market leases, net | 2,735 | 3,157 |
Prepaid expenses and other assets | 22,103 | 19,363 |
Goodwill | 13,534 | 16,342 |
Assets related to real estate held for sale, net | 0 | 5,680 |
Total assets | 1,629,128 | 1,731,665 |
Notes and bonds payable, net | ||
Notes and bonds payable related to real estate held for investment, net | 1,023,778 | 1,004,971 |
Note payable related to real estate held for sale, net | 0 | 94,097 |
Notes and bonds payable, net | 1,023,778 | 1,099,068 |
Accounts payable and accrued liabilities | 22,054 | 24,169 |
Due to affiliate | 2,152 | 2,842 |
Below-market leases, net | 4,436 | 5,797 |
Other liabilities | 43,994 | 34,734 |
Redeemable common stock payable | 3,385 | 864 |
Restricted stock payable | 574 | 14,600 |
Liabilities related to real estate held for sale, net | 0 | 669 |
Total liabilities | 1,100,373 | 1,182,743 |
Commitments and contingencies (Note 15) | ||
Mezzanine equity | ||
Restricted stock | 0 | 11,009 |
Noncontrolling cumulative convertible redeemable preferred stock | 15,233 | 15,233 |
Redeemable noncontrolling interest | 2,855 | 2,968 |
Equity | ||
Preferred stock, $.01 par value; 10,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $.01 par value; 1,000,000,000 shares authorized, 94,264,402 and 98,054,582 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 942 | 979 |
Additional paid-in capital | 820,382 | 831,295 |
Cumulative distributions and net income | (322,049) | (325,720) |
Total Pacific Oak Strategic Opportunity REIT, Inc. stockholders’ equity | 499,275 | 506,554 |
Noncontrolling interests | 11,392 | 13,158 |
Total equity | 510,667 | 519,712 |
Total liabilities, mezzanine equity and equity | $ 1,629,128 | $ 1,731,665 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
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 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 94,264,402 | 98,054,582 |
Common stock, shares outstanding (in shares) | 94,264,402 | 98,054,582 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues: | ||||
Rental income | $ 29,504 | $ 23,871 | $ 94,812 | $ 67,808 |
Dividend income from real estate equity securities | 3,189 | 2,986 | 6,693 | 5,339 |
Total revenues | 45,769 | 27,745 | 129,201 | 75,869 |
Expenses: | ||||
Operating, maintenance, and management costs | 10,668 | 7,888 | 31,444 | 22,258 |
Real estate taxes and insurance | 5,262 | 3,791 | 15,949 | 10,570 |
Hotel expenses | 6,483 | 0 | 15,715 | 0 |
Asset management fees to affiliate | 3,422 | 2,426 | 10,802 | 6,867 |
General and administrative expenses | 2,365 | 1,960 | 7,120 | 6,302 |
Foreign currency transaction loss (gain), net | 2,271 | 445 | (568) | (12,338) |
Depreciation and amortization | 13,895 | 9,470 | 45,969 | 27,417 |
Interest expense | 10,092 | 6,274 | 30,713 | 19,055 |
Impairment charges on real estate | 10,971 | 0 | 10,971 | 0 |
Impairment charges on goodwill | 2,808 | 0 | 2,808 | 0 |
Total expenses | 68,237 | 32,254 | 170,923 | 80,131 |
Other income (loss): | ||||
Gain from remeasurement of prior equity interest | 0 | 2,009 | 0 | 2,009 |
Equity in (loss) income of unconsolidated entities | (569) | 519 | (144) | 1,564 |
Casualty-related gain | 27 | 0 | 27 | 51 |
Other interest income | 55 | 19 | 148 | 297 |
(Loss) gain on real estate equity securities | (2,614) | (6,527) | 12,939 | (21,620) |
Change in subordinated performance fee due upon termination to affiliate | (1,545) | 1,121 | (1,745) | 814 |
Gain on sale of real estate | 216 | 0 | 31,385 | 0 |
Gain on extinguishment of debt | 1,352 | 0 | 1,365 | 0 |
Total other (loss) income, net | (3,078) | (2,859) | 43,975 | (16,885) |
Net (loss) income | (25,546) | (7,368) | 2,253 | (21,147) |
Net loss attributable to noncontrolling interests | 1,188 | 43 | 1,949 | 115 |
Net loss attributable to redeemable noncontrolling interest | 33 | 23 | 113 | 23 |
Preferred stock dividends | (191) | (191) | (644) | (788) |
Net (loss) income attributable to common stockholders | $ (24,516) | $ (7,493) | $ 3,671 | $ (21,797) |
Net (loss) income per common share, basic (in dollars per share) | $ (0.25) | $ (0.11) | $ 0.04 | $ (0.32) |
Net (loss) income per common share, diluted (in dollars per share) | $ (0.25) | $ (0.11) | $ 0.04 | $ (0.32) |
Weighted-average number of common shares outstanding, basic (in shares) | 97,659,731 | 69,225,212 | 97,879,983 | 68,179,046 |
Weighted-average number of common shares outstanding, diluted (in shares) | 97,659,731 | 69,225,212 | 97,879,983 | 68,179,046 |
Hotel | ||||
Revenues: | ||||
Other operating income | $ 12,153 | $ 0 | $ 24,578 | $ 0 |
Other operating income | ||||
Revenues: | ||||
Other operating income | $ 923 | $ 888 | $ 3,118 | $ 2,722 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Total Stockholders' Equity | Common Stock | Additional Paid-in Capital | Cumulative Distributions and Net Income (Loss) | Noncontrolling Interests |
Balance (in shares) at Dec. 31, 2019 | 65,866,765 | |||||
Balance at Dec. 31, 2019 | $ 277,388 | $ 276,633 | $ 659 | $ 553,170 | $ (277,196) | $ 755 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (21,912) | (21,797) | (21,797) | (115) | ||
Issuance of common stock (in shares) | 24,645 | |||||
Issuance of common stock | 262 | 262 | 262 | |||
Transfers to redeemable common stock | 567 | 567 | 567 | |||
Redemptions of common stock (in shares) | (78,131) | |||||
Redemptions of common stock | (830) | (830) | (830) | |||
Distributions declared | (596) | (596) | (596) | |||
Other offering costs | (6) | (6) | (6) | |||
Issuance of restricted stock (in shares) | 3,411,737 | |||||
Issuance of restricted stock | 0 | 0 | $ 34 | (34) | ||
Noncontrolling interest contribution | 112 | 0 | 112 | |||
Distribution of noncontrolling interest | (28) | 0 | (28) | |||
Balance (in shares) at Sep. 30, 2020 | 69,225,016 | |||||
Balance at Sep. 30, 2020 | 254,957 | 254,233 | $ 693 | 553,129 | (299,589) | 724 |
Balance (in shares) at Jun. 30, 2020 | 69,225,617 | |||||
Balance at Jun. 30, 2020 | 262,521 | 261,726 | $ 693 | 553,129 | (292,096) | 795 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (7,536) | (7,493) | (7,493) | (43) | ||
Transfers to redeemable common stock | 6 | 6 | 6 | |||
Redemptions of common stock (in shares) | (601) | |||||
Redemptions of common stock | (6) | (6) | (6) | |||
Distribution of noncontrolling interest | (28) | 0 | (28) | |||
Balance (in shares) at Sep. 30, 2020 | 69,225,016 | |||||
Balance at Sep. 30, 2020 | $ 254,957 | 254,233 | $ 693 | 553,129 | (299,589) | 724 |
Balance (in shares) at Dec. 31, 2020 | 98,054,582 | 98,054,582 | ||||
Balance at Dec. 31, 2020 | $ 519,712 | 506,554 | $ 979 | 831,295 | (325,720) | 13,158 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 1,722 | 3,671 | 3,671 | (1,949) | ||
Transfers to redeemable common stock | (2,521) | (2,521) | (2,521) | |||
Redemptions of common stock (in shares) | (3,790,180) | |||||
Redemptions of common stock | (29,552) | (29,552) | $ (37) | (29,515) | ||
Change in classification of restricted stock | 21,123 | 21,123 | 21,123 | |||
Noncontrolling interest contribution | $ 183 | 0 | 183 | |||
Balance (in shares) at Sep. 30, 2021 | 94,264,402 | 94,264,402 | ||||
Balance at Sep. 30, 2021 | $ 510,667 | 499,275 | $ 942 | 820,382 | (322,049) | 11,392 |
Balance (in shares) at Jun. 30, 2021 | 97,906,268 | |||||
Balance at Jun. 30, 2021 | 545,300 | 532,740 | $ 979 | 829,294 | (297,533) | 12,560 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (25,704) | (24,516) | (24,516) | (1,188) | ||
Transfers to redeemable common stock | (1,955) | (1,955) | (1,955) | |||
Redemptions of common stock (in shares) | (3,641,866) | |||||
Redemptions of common stock | (28,117) | (28,117) | $ (37) | (28,080) | ||
Change in classification of restricted stock | 21,123 | 21,123 | 21,123 | |||
Noncontrolling interest contribution | $ 20 | 0 | 20 | |||
Balance (in shares) at Sep. 30, 2021 | 94,264,402 | 94,264,402 | ||||
Balance at Sep. 30, 2021 | $ 510,667 | $ 499,275 | $ 942 | $ 820,382 | $ (322,049) | $ 11,392 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | |||||
Net income (loss) | $ (25,546) | $ (7,368) | $ 2,253 | $ (21,147) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
Change in subordinated performance fee due upon termination to affiliate | 1,545 | (1,121) | 1,745 | (814) | |
Impairment charges on real estate | 10,971 | 0 | 10,971 | 0 | |
Impairment charges on goodwill | 2,808 | 0 | 2,808 | 0 | |
Gain from remeasurement of prior equity interest | 0 | (2,009) | |||
Equity in loss (income) of unconsolidated entities | 144 | (1,151) | |||
Depreciation and amortization | 13,895 | 9,470 | 45,969 | 27,417 | |
(Gain) loss on real estate equity securities | 2,614 | 6,527 | (12,939) | 21,620 | |
Gain on sale of real estate | (216) | 0 | (31,385) | 0 | |
Unrealized loss on interest rate caps | 17 | 10 | |||
Deferred rent | (1,529) | (2,559) | |||
Gain on extinguishment of debt | (1,352) | 0 | (1,365) | 0 | |
Amortization of above- and below-market leases, net | (1,015) | (435) | |||
Amortization of deferred financing costs | 800 | 800 | 2,470 | 2,481 | |
Amortization of discount on bond and notes payable | 500 | 64 | 1,906 | 14 | |
Foreign currency transaction gain, net | 2,271 | 445 | (568) | (12,338) | |
Changes in assets and liabilities: | |||||
Rents and other receivables | (1,898) | (566) | |||
Prepaid expenses and other assets | (4,371) | (2,286) | |||
Accounts payable and accrued liabilities | (984) | (3,471) | |||
Due to affiliates | (726) | 182 | |||
Other liabilities | (190) | (142) | |||
Net cash provided by operating activities | 11,313 | 4,806 | |||
Cash Flows from Investing Activities: | |||||
Acquisitions of real estate, net of cash acquired | (4,107) | (19,034) | |||
Improvements to real estate | (12,923) | (15,946) | |||
Proceeds from sales of real estate, net | 194,528 | 0 | |||
Contributions to unconsolidated entities | (4,769) | (1,708) | |||
Distributions of capital from unconsolidated entities | 0 | 1,225 | |||
Purchase of interest rate cap | (18) | (6) | |||
Investment in real estate equity securities | 0 | (35,510) | |||
Proceeds from the sale of real estate equity securities | 14,439 | 10,964 | |||
Proceeds for future development obligations | 6,203 | 0 | |||
Proceeds from disposition of foreign currency collars | 0 | 14,125 | |||
Net cash provided by (used in) investing activities | 193,353 | (45,890) | |||
Cash Flows from Financing Activities: | |||||
Proceeds from notes and bonds payable | 157,246 | 104,143 | |||
Principal payments on notes and bonds payable | (233,964) | (57,611) | |||
Payments of deferred financing costs | (2,745) | (2,438) | |||
Payments to redeem common stock | (29,552) | (830) | |||
Payment to redeem restricted stock | (5,656) | 0 | |||
Payment of prepaid other offering costs | (164) | (606) | |||
Distributions paid | 0 | (334) | |||
Preferred dividends paid | (644) | (563) | |||
Noncontrolling interests contributions | 183 | 112 | |||
Distributions to noncontrolling interests | 0 | (28) | |||
Other financing proceeds, net | 2,367 | 0 | |||
Net cash (used in) provided by financing activities | (112,929) | 41,845 | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 182 | 83 | |||
Net increase in cash, cash equivalents and restricted cash | 91,919 | 844 | |||
Cash, cash equivalents and restricted cash, beginning of period | 74,319 | 88,494 | $ 88,494 | ||
Cash, cash equivalents and restricted cash, end of period | $ 166,238 | $ 89,338 | $ 166,238 | $ 89,338 | $ 74,319 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Pacific Oak Strategic Opportunity REIT, Inc. (the “Company”) was formed on October 8, 2008 as a Maryland corporation and elected to be taxed as a real estate investment trust (“REIT”) beginning with the taxable year ended December 31, 2010. The Company conducts its business primarily through Pacific Oak SOR (BVI) Holdings, Ltd. (“Pacific Oak SOR BVI”), a private company limited by shares according to the British Virgin Islands Business Companies Act, 2004, which was incorporated on December 18, 2015 and is authorized to issue a maximum of 50,000 common shares with no par value. Upon incorporation, Pacific Oak SOR BVI issued one certificate containing 10,000 common shares with no par value to Pacific Oak Strategic Opportunity Limited Partnership (the “Operating Partnership”), a Delaware limited partnership formed on December 10, 2008. The Company is the sole general partner of, and owns a 0.1% partnership interest in, the Operating Partnership. Pacific Oak Strategic Opportunity Holdings LLC (“REIT Holdings”), a Delaware limited liability company formed on December 9, 2008, owns the remaining 99.9% interest in the Operating Partnership and is its sole limited partner. The Company is the sole member and manager of REIT Holdings. Subject to certain restrictions and limitations, the business of the Company is externally managed by Pacific Oak Advisors, LLC (the “Advisor”), an affiliate of the Company, pursuant to an advisory agreement (the “Advisory Agreement”) which is currently effective through November 1, 2022; however the Company or the Advisor may terminate the Advisory Agreement without cause or penalty upon providing 60 days’ written notice. The Advisor conducts the Company’s operations and manages its portfolio of real estate and other real estate-related investments. On January 8, 2009, the Company filed a registration statement on Form S-11 with the SEC to offer a minimum of 250,000 shares and a maximum of 140,000,000 shares of common stock for sale to the public (the “Offering”), of which 100,000,000 shares were registered in a primary offering and 40,000,000 shares were registered to be sold under the Company’s dividend reinvestment plan. The SEC declared the Company’s registration statement effective on November 20, 2009. The Company ceased offering shares of common stock in its primary offering on November 14, 2012 and continues to offer shares under its dividend reinvestment plan. The Company sold 56,584,976 shares of common stock in its primary offering for gross offering proceeds of $561.7 million. As of September 30, 2021, the Company had sold 6,851,969 shares of common stock under its dividend reinvestment plan for gross offering proceeds of $76.5 million. Also, as of September 30, 2021, the Company had redeemed 27,247,458 shares for $317.3 million. As of September 30, 2021, the Company had issued 25,976,746 shares of common stock in connection with special dividends. Additionally, on December 29, 2011 and October 23, 2012, the Company issued 220,994 shares and 55,249 shares of common stock, respectively, for $2.0 million and $0.5 million, respectively, in private transactions exempt from the registration requirements pursuant to Section 4(2) of the Securities Act of 1933. On March 27, 2020, the Company issued 3,411,737 restricted shares of its common stock (the “Restricted Stock”) to its former external advisor, KBS Capital Advisors LLC (“KBS Capital Advisors”) pursuant to a Restricted Stock Agreement, dated as of March 27, 2020 (the “Restricted Stock Agreement”). On September 1, 2021, the Company repurchased 584,267 shares of the Restricted Stock for $5.7 million and 2,254,289 shares of Restricted Stock were transferred to GKP Holding LLC (“GKP”), a company owned by Keith D. Hall and Peter McMillan III. See Note 10 for further details. On March 2, 2016, Pacific Oak SOR BVI filed a final prospectus with the Israel Securities Authority for a proposed offering of up to 1,000,000,000 Israeli new Shekels of Series A debentures (the “Series A Debentures”) at an annual interest rate not to exceed 4.25%. On March 1, 2016, Pacific Oak SOR BVI commenced the institutional tender of the Series A Debentures and accepted application for 842.5 million Israeli new Shekels. On March 7, 2016, Pacific Oak SOR BVI commenced the public tender of the Series A Debentures and accepted 127.7 million Israeli new Shekels. In the aggregate, Pacific Oak SOR BVI accepted 970.2 million Israeli new Shekels (approximately $249.2 million as of March 8, 2016) in both the institutional and public tenders at an annual interest rate of 4.25%. Pacific Oak SOR BVI issued the Series A Debentures on March 8, 2016. In connection with the above-referenced offering, on March 8, 2016, the Operating Partnership assigned to Pacific Oak SOR BVI all of its interests in the subsidiaries through which the Company indirectly owns all of its real estate and real estate-related investments. The Operating Partnership owns all of the issued and outstanding equity of Pacific Oak SOR BVI. As a result of these transactions, the Company now holds all of its real estate and real estate-related investments indirectly through Pacific Oak SOR BVI. On February 16, 2020, Pacific Oak SOR BVI issued 254.1 million Israeli new Shekels (approximately $74.1 million as of February 16, 2020) of Series B debentures (the “Series B Debentures”) to Israeli investors pursuant to a public offering registered with the Israel Securities Authority. The Series B Debentures bears interest at the rate of 3.93% per year. The Series B Debentures have principal installment payments equal to 33.33% of the face amount of the Series B Debentures on January 31st of each year from 2024 to 2026. On January 22, 2020, the Company filed a registration statement on Form S-11 with the SEC to offer up to $1 billion in additional shares of its common stock. This new registration statement contemplates a proposed conversion of the Company to a perpetual-life net asset value or “NAV” REIT that offers and sells shares of its common stock continuously through a number of distribution channels in ongoing public offerings, and seeks to provide increased liquidity to current and future stockholders through an expansion of the Company’s current share redemption program. On December 18, 2020, the Company filed Amendment No. 1 to the registration statement on Form S-11 with the SEC. On February 19, 2020, the Company, Pacific Oak SOR II, LLC, an indirect subsidiary of the Company’s (“Merger Sub”), and Pacific Oak Strategic Opportunity REIT II, Inc. (“POSOR II”) entered into an Agreement and Plan of Merger (the “Merger Agreement”). On October 5, 2020, pursuant to the Merger Agreement, POSOR II merged with and into Merger Sub, with Merger Sub surviving as an indirect subsidiary of the Company’s (the “Merger”). At such time, in accordance with the applicable provisions of the Maryland General Corporation Law and the Maryland Limited Liability Company Act, the separate existence of POSOR II ceased. At the effective time of the Merger, each issued and outstanding share of POSOR II’s common stock (or a fraction thereof), $0.01 par value per share, converted into 0.9643 shares of the Company’s common stock, $0.01 par value per share, or 28,973,905 shares of the Company’s common stock. The combined company after the Merger retained the name “Pacific Oak Strategic Opportunity REIT, Inc.” The Merger was intended to qualify as a “reorganization” under, and within the meaning of, Section 368(a) of the Internal Revenue Code of 1986, as amended. As a result of the Merger, the Company acquired two hotel properties, three office properties, one apartment building, one consolidated joint venture to develop one office/retail property, two real estate equity securities and two investments in unconsolidated entities. Additionally, the Company assumed $331.8 million of loans related to the acquired properties. On March 4, 2021, Pacific Oak SOR BVI issued additional Series A Debentures in the amount of 250.0 million Israeli new Shekels par value through a private placement. The additional Series A Debentures were issued at a 1.9% discount resulting in total consideration of 245.3 million Israeli new Shekels ($74.2 million as of March 4, 2021). The additional Series A Debentures have an equal level of security, pari passu, amongst themselves and between them and the initial Series A Debentures, which were initially issued, without any right of precedence or preference between any of them. As of September 30, 2021, the Company consolidated eight office properties, one office portfolio consisting of four office buildings and 14 acres of undeveloped land, two apartment properties, two hotel properties, one residential home portfolio consisting of 1,806 single-family homes, three investments in undeveloped land with approximately 800 developable acres, and owned four investments in unconsolidated entities and three investments in real estate equity securities. Additionally, as of September 30, 2021, the Company had entered into a consolidated joint venture to develop one office/retail property. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThere 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, 2020. 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, 2020 included in the Company’s Annual Report on Form 10-K filed with the SEC. Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the FASB Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The consolidated financial statements include the accounts of the Company, REIT Holdings, the Operating Partnership, Pacific Oak SOR BVI and their direct and indirect wholly owned subsidiaries, joint ventures in which the Company has a controlling interest and VIEs in which the Company is the primary beneficiary. All significant intercompany balances and transactions are eliminated in consolidation. Liquidity The Company generally finances its real estate investments using notes payable that are typically structured as non-recourse secured mortgages with maturities of approximately three Use of Estimates The preparation of the consolidated financial statements 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. Restricted Cash Restricted cash is comprised of lender impound reserve accounts on the Company’s borrowings for security deposits, property taxes, insurance, debt service obligations and capital improvements and replacements. Redeemable Common Stock The Company limits the dollar value of shares that may be redeemed under the share redemption program. During the nine months ended September 30, 2021, the Company had redeemed $29.6 million of common stock under the share redemption program. The Company processed all redemption requests received in good order and eligible for redemption through the September 2021 redemption date, except for 13,913,664 shares totaling $128.0 million due to the limitations under the share redemption program. The Company recorded $3.4 million and $0.9 million of redeemable common stock payable on the Company’s balance sheet as of September 30, 2021 and December 31, 2020, respectively, related to unfulfilled redemption requests received in good order under the share redemption program. Based on the twelfth amended and restated share redemption program, the Company has $3.2 million available for redemptions in the remainder of 2021, including shares that are redeemed in connection with a stockholders’ death, “qualifying disability” or “determination of incompetence,” subject to the limitations under the share redemption program. Reclassifications Certain amounts in the Company’s prior period consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications have not changed the results of operations of the prior period. During the nine months ended September 30, 2021, the Company sold one office property. As a result, certain assets and liabilities were reclassified as held for sale on the consolidated balance sheets for the prior period. Segments The Company operates in three reportable business segments: opportunistic real estate and real estate-related investments, single-family homes, and hotels, which is how the Company's management manages the business. In general, the Company intends to hold its investments in opportunistic real estate and other real estate-related assets for capital appreciation. Traditional performance metrics of opportunistic real estate and other real estate-related assets may not be meaningful as these investments are generally non-stabilized and do not provide a consistent stream of interest income or rental revenue. These investments exhibit similar long-term financial performance and have similar economic characteristics. These investments typically involve a higher degree of risk and do not provide a constant stream of ongoing cash flows. As a result, the Company’s management views opportunistic real estate and other real estate-related assets as similar investments and aggregated into one reportable business segment. The Company owns single-family homes in 17 markets and are all aggregated into one reportable business segment due to the homes being stabilized, having high occupancy rates and have similar economic characteristics. Additionally, the Company owns two hotels and are aggregated into one reportable business segment due to the nature of the hotel business with short-term stays. Per Share Data The Company applies the two-class method when computing its earnings per share. Net income per share for each class of stock is calculated by assuming all of the Company’s net income (loss) is distributed to each class of stock based on their contractual rights. Unvested restricted stock that contains non-forfeitable rights to distributions (whether paid or unpaid) are considered participating securities and are included in the computation of earnings per share. Basic earnings (loss) per share of common stock is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted earnings (loss) per share of common stock is computed based on the weighted-average number of shares of common stock outstanding during each period, plus potential common shares considered outstanding during the period, as long as the inclusion of such awards is not anti-dilutive. Potential common shares consist of unvested restricted stock, using the more dilutive of either the two-class method or the treasury stock method. The noncontrolling Pacific Oak Residential Trust, Inc. (“PORT”) Series A convertible redeemable preferred shares are not included as the preferred shares are convertible contingent on the common stock of PORT being publicly traded. If PORT common stock becomes publicly traded, the per-share earnings of PORT will be included in the Company’s EPS computations based on the consolidated holdings of PORT. The Company’s unvested Restricted Stock have been included in the calculation of basic and diluted earnings per share for both of the three and nine months ended September 30, 2021 and 2020, as the restriction is not contingent on any conditions except the passage of time. There were no distributions declared for both of the three and nine months ended September 30, 2021 and 2020, with the exception of distributions declared per share of $0.0086 during the three months ended March 31, 2020. Square Footage, Occupancy and Other Measures Any references to square footage, occupancy or annualized base rent are unaudited 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) (“ASU No. 2020-04”) contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU No. 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the nine months ended September 30, 2021, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. For the period from January 1, 2020 (the earliest date the Company may elect to apply ASU No. 2020-04) through September 30, 2021, the Company did not have any contract modifications that meet the criteria described above, specifically contract modifications that have been modified from LIBOR to an alternative reference rate. The Company’s loan agreements, derivative instruments, and certain lease agreements use LIBOR as the current reference rate. For eligible contract modifications, the Company expects to adopt the temporary optional expedients described in ASU No. 2020-04. The optional expedients for hedging relationships described in ASU No. 2020-04 are not expected to have an impact to the Company, as the Company has elected to not designate its derivative instruments as a hedge. |
REAL ESTATE HELD FOR INVESTMENT
REAL ESTATE HELD FOR INVESTMENT | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
REAL ESTATE HELD FOR INVESTMENT | REAL ESTATE HELD FOR INVESTMENT As of September 30, 2021, the Company owned eight office properties, one office portfolio consisting of four office buildings and 14 acres of undeveloped land, encompassing, in the aggregate, approximately 3.3 million rentable square feet. As of September 30, 2021, these properties were 73% occupied. In addition, the Company owned one residential home portfolio consisting of 1,806 single-family homes and encompassing approximately 2.5 million rental square feet and two apartment properties, containing 609 units and encompassing approximately 0.5 million rentable square feet, which was 94% and 96% occupied, respectively as of September 30, 2021. As of September 30, 2021, the Company also owned two hotel properties with an aggregate of 649 rooms and three investments in undeveloped land with approximately 800 developable acres. Additionally, as of September 30, 2021, the Company had entered into a consolidated joint venture to develop one office/retail property. The following table summarizes the Company’s real estate held for investment as of September 30, 2021 and December 31, 2020, respectively (in thousands): September 30, 2021 December 31, 2020 Land $ 275,419 $ 288,514 Buildings and improvements 1,018,850 1,019,329 Tenant origination and absorption costs 44,527 50,881 Total real estate, cost 1,338,796 1,358,724 Accumulated depreciation and amortization (119,265) (85,940) Total real estate, net $ 1,219,531 $ 1,272,784 Operating Leases Certain of the Company’s real estate properties are leased to tenants under operating leases for which the terms and expirations vary. As of September 30, 2021, the leases, excluding options to extend and apartment leases and single-family homes, which have terms that are generally one year or less, had remaining terms of up to 15.5 years with a weighted-average remaining term of 4.5 years. Some of the leases have provisions to extend the lease agreements, options for early termination 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 tenants 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 leases and the creditworthiness of the tenant, but generally are not significant amounts. 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 and assumed in real estate acquisitions related to tenant leases are included in other liabilities in the accompanying consolidated balance sheets totaled $6.0 million and $5.7 million as of September 30, 2021 and December 31, 2020, respectively. During the three and nine months ended September 30, 2021, the Company recognized deferred rent from tenants of $0.4 million and $1.5 million, respectively, net of lease incentive amortization. During the three and nine months ended September 30, 2020, the Company recognized deferred rent from tenants of $0.9 million and $2.6 million, respectively, net of lease incentive amortization. As of September 30, 2021 and December 31, 2020, the cumulative deferred rent receivable balance, including unamortized lease incentive receivables, were $15.7 million and $15.5 million, respectively and is included in rents and other receivables on the accompanying consolidated balance sheets. The cumulative deferred rent balance included $3.1 million and $4.2 million of unamortized lease incentives as of September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021, the future minimum rental income from the Company’s properties, excluding apartment leases and single-family homes, under non-cancelable operating leases was as follows (in thousands): October 1, 2021 through December 31, 2021 $ 16,095 2022 61,448 2023 53,140 2024 45,750 2025 35,726 Thereafter 86,512 $ 298,671 As of September 30, 2021, the Company’s commercial real estate properties were leased to approximately 300 tenants over a diverse range of industries and geographic areas. The Company’s highest tenant industry concentrations (greater than 10% of annualized base rent) were as follows: Industry Number of Tenants Annualized Base Rent (1) (in thousands) Percentage of Computer Systems Design 30 $ 7,080 10.9 % Professional, Scientific, and Technical Services 42 7,078 10.9 % Public Administration 11 6,959 10.7 % Insurance Carriers and Related Activities 16 6,801 10.5 % Health Care and Social Assistance 25 6,799 10.5 % $ 34,717 53.5 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of September 30, 2021, 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. No other tenant industries accounted for more than 10% of annualized base rent. No material tenant credit issues have been identified at this time. During the three and nine months ended September 30, 2021, the Company recorded adjustments to rental income of $0.8 million and $2.5 million, respectively, for lease payments, including apartments and single-family homes that were deemed not probable of collection. During the three and nine months ended September 30, 2020, the Company recorded adjustments to rental income of $0.4 million and $1.1 million, respectively, for lease payments that were deemed not probable of collection. Hotel Properties The following table provides detailed information regarding the Company’s hotel revenues and expenses for its two hotel properties during the three and nine months ended September 30, 2021 (in thousands): Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Hotel revenues: Room $ 9,396 $ 18,508 Food, beverage and convention services 1,452 2,830 Campground 280 792 Other 1,025 2,448 Hotel revenues $ 12,153 $ 24,578 Hotel expenses: Room $ 1,681 $ 3,992 Food, beverage and convention services 946 2,063 General and administrative 752 1,955 Sales and marketing 1,018 2,230 Repairs and maintenance 557 1,551 Utilities 333 824 Property taxes and insurance 566 1,600 Other 630 1,500 Hotel expenses $ 6,483 $ 15,715 Contract Liabilities The following table summarizes the Company’s contract liabilities, which are comprised of hotel advanced deposits and deferred proceeds received from the buyers of the Park Highlands land sales (discussed below) and another developer for the value of land that was contributed to a master association that is consolidated by the Company, which are included in other liabilities in the accompanying consolidated balance sheets, as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Contract liability $ 6,551 $ 3,369 Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ 142 $ — Geographic Concentration Risk As of September 30, 2021, the Company’s real estate investments in California represented 21.9% of the Company’s total assets. As a result, the geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the California real estate markets. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, industry slowdowns, relocations of businesses, changing demographics and other factors, or any decrease in demand for office space resulting from the local business climate, could adversely affect the Company’s operating results and its ability to make distributions to stockholders. Impairment of Real Estate During the three and nine months ended September 30, 2021, the Company recorded impairment charges on real estate in the aggregate of $11.0 million, to write down the carrying value of 210 West 31st Street by $6.6 million, a development property located in New York, New York and Lincoln Court by $4.4 million, an office property located in Campbell, California, to their estimated fair value due to a change in the projected hold period and related decrease in projected cash flows. Recent Real Estate Land Sale On June 3, 2021, the Company sold approximately 193 developable acres of Park Highlands undeveloped land for an aggregate sales price, net of closing credits, of $50.4 million, excluding closing costs. The purchaser is not affiliated with the Company or the Advisor. The Company recognized a gain on sale of $31.1 million related to the land sale, which is net of deferred profit of $2.6 million related to proceeds received from the purchaser for the value of land that was contributed to a master association which is consolidated by the Company. Recent Real Estate Sale On July 27, 2021, the Company, through an indirect wholly owned subsidiary, sold an office building containing 435,177 rentable square feet located on approximately 4.92 acres of land in Orange, California (“City Tower”) to a purchaser unaffiliated with the Company or the Advisor, for $150.5 million, before closing costs and credits. The carrying value of City Tower as of the disposition date was $145.1 million, which was net of $20.5 million of accumulated depreciation and amortization. In connection with the sale of City Tower, t he Company repaid $98.1 million of the outstanding principal balance due under the mortgage loan secured by City Tower. The Company recognized a gain on sale of $0.1 million related to the disposition of City Tower. Recent Real Estate Asset Acquisitions On March 17, 2021, the Company, through a wholly owned subsidiary of PORT OP, LP (“PORT OP”), acquired a single-family home portfolio consisting of 21 homes in Chicago, Illinois for $2.1 million. |
TENANT ORIGINATION AND ABSORPTI
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020, 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 September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Cost $ 44,527 $ 50,881 $ 4,138 $ 4,159 $ (6,718) $ (7,679) Accumulated Amortization (19,107) (13,491) (1,403) (1,002) 2,282 1,882 Net Amount $ 25,420 $ 37,390 $ 2,735 $ 3,157 $ (4,436) $ (5,797) 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 nine months ended September 30, 2021 and 2020 were as follows (in thousands): Tenant Origination and Above-Market Below-Market For the Three Months Ended September 30, For the Three Months Ended September 30, For the Three Months Ended September 30, 2021 2020 2021 2020 2021 2020 Amortization $ (3,253) $ (1,625) $ (94) $ (74) $ 388 $ 194 Tenant Origination and Above-Market Below-Market For the Nine Months Ended September 30, For the Nine Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 2021 2020 Amortization $ (12,397) $ (4,965) $ (421) $ (241) $ 1,436 $ 676 As of September 30, 2021 and December 31, 2020, the Company had recorded a housing subsidy intangible asset, net of amortization, which is included in prepaid expenses and other assets in the accompanying consolidated balance sheets, of $1.9 million and $2.0 million, respectively. As of September 30, 2021, the housing subsidy intangible asset has a remaining amortization period of 27.1 years. During the three and nine months ended September 30, 2021, the Company recorded amortization expense of $18,000 and $54,000, respectively, related to the housing subsidy intangible asset. Additionally, as of September 30, 2021 and December 31, 2020, the Company had recorded tax abatement intangible assets, net of amortization, which are included in prepaid expenses and other assets in the accompanying balance sheets, of $0.8 million and $1.6 million, respectively. During the three and nine months ended September 30, 2021, the Company recorded amortization expense of $0.2 million and $0.8 million, respectively, related to tax abatement intangible assets. During the three and nine months ended September 30, 2020, the Company recorded amortization expense of $0.1 million and $0.5 million, respectively, related to tax abatement intangible assets. As of September 30, 2021, the tax abatement intangible assets had a remaining amortization period of 1.6 years. |
REAL ESTATE EQUITY SECURITIES
REAL ESTATE EQUITY SECURITIES | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
REAL ESTATE EQUITY SECURITIES | REAL ESTATE EQUITY SECURITIES As of September 30, 2021, the Company owned three investments in real estate equity securities. The following table sets forth the number of shares owned by the Company and the related carrying value of the shares as of September 30, 2021 and December 31, 2020 (dollars in thousands): September 30, 2021 December 31, 2020 Real Estate Equity Security Number of Shares Owned Total Carrying Value Number of Shares Owned Total Carrying Value Keppel Pacific Oak US REIT 64,165,352 $ 50,370 64,165,352 $ 44,274 Franklin Street Properties Corp. 6,915,089 32,086 6,915,089 30,219 Plymouth Industrial REIT, Inc. 613,085 13,947 1,560,660 23,410 71,693,526 $ 96,403 72,641,101 $ 97,903 The following summarizes the portion of gain and loss for the period related to real estate equity securities held during the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net (loss) gain recognized during the period on real estate equity securities $ (2,614) $ (6,527) $ 12,939 $ (21,620) Less net gain recognized during the period on real estate equity securities sold during the period — — (225) (711) Unrealized (loss) gain recognized during the reporting period on real estate equity securities held at the end of the period $ (2,614) $ (6,527) $ 12,714 $ (22,331) During the three and nine months ended September 30, 2021, the Company recognized $3.2 million and $6.7 million, respectively, of dividend income from real estate equity securities. During the three and nine months ended September 30, 2020, the Company recognized $2.8 million and $4.4 million, respectively, of dividend income from real estate equity securities. |
REAL ESTATE HELD FOR SALE
REAL ESTATE HELD FOR SALE | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
REAL ESTATE HELD FOR SALE | REAL ESTATE HELD FOR SALE During the nine months ended September 30, 2021, the Company disposed of one office property. There were no material dispositions during the year ended December 31, 2020. On July 27, 2021, the Company, through an indirect wholly owned subsidiary, sold an office building containing 435,177 rentable square feet located on approximately 4.92 acres of land in Orange, California (“City Tower”) to a purchaser unaffiliated with the Company or the Advisor, for $150.5 million, before closing costs and credits. The carrying value of City Tower as of the disposition date was $145.1 million, which was net of $20.5 million of accumulated depreciation and amortization. In connection with the sale of City Tower, the Company repaid $98.1 million of the outstanding principal balance due under the mortgage loan secured by City Tower. The Company recognized a gain on sale of $0.1 million related to disposition of City Tower. The following summary presents the major components of assets and liabilities related to real estate held for sale as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Assets related to real estate held for sale Real estate, cost $ — $ 158,711 Accumulated depreciation and amortization — (18,472) Real estate, net — 140,239 Other assets — 5,680 Total assets related to real estate held for sale $ — $ 145,919 Liabilities related to real estate held for sale Note payable, net — 94,097 Other liabilities — 669 Total liabilities related to real estate held for sale $ — $ 94,766 The operations and gain on sale of City Tower is included in continuing operations on the accompanying statements of operations. The following table summarizes certain revenue and expenses related to these properties for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenues Rental income $ 1,085 $ 3,318 $ 8,660 $ 9,998 Other operating income 51 265 520 792 Total revenues $ 1,136 $ 3,583 $ 9,180 $ 10,790 Expenses Operating, maintenance, and management $ 363 $ 1,004 $ 2,096 $ 2,855 Real estate taxes and insurance 95 389 979 1,258 Asset management fees to affiliate 194 305 807 907 Depreciation and amortization 14 1,769 2,436 5,342 Interest expense 152 518 1,146 1,953 Total expenses $ 818 $ 3,985 $ 7,464 $ 12,315 |
NOTES AND BONDS PAYABLE
NOTES AND BONDS PAYABLE | 9 Months Ended |
Sep. 30, 2021 | |
Notes and Bonds Payable [Abstract] | |
NOTES AND BONDS PAYABLE | NOTES AND BONDS PAYABLE As of September 30, 2021 and December 31, 2020, the Company’s notes and bonds payable, including notes payable related to real estate held for sale, consisted of the following (dollars in thousands): Book Value as of Book Value as of Contractual Interest Rate as of September 30, 2021 Effective Interest Rate at September 30, 2021 (1) Payment Type (2) Maturity Date (3) Richardson Portfolio Mortgage Loan $ 28,685 $ 35,832 One-Month LIBOR + 2.50% 2.58% Principal & Interest 11/01/2021 (4) Park Centre Mortgage Loan 26,185 26,185 One-Month LIBOR + 1.75% 1.83% Interest Only 06/27/2022 1180 Raymond Mortgage Loan (5) 29,548 29,848 One-Month LIBOR + 2.50% (6) 3.50% Principal & Interest 12/01/2021 1180 Raymond Bond Payable 5,705 5,870 6.50% 6.50% Principal & Interest 09/01/2036 Pacific Oak SOR (BVI) Holdings, Ltd. Series A Debentures (7) 197,901 181,198 4.25% 4.25% (7) 03/01/2023 Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures (7) 78,794 79,078 3.93% 3.93% (7) 01/31/2026 Crown Pointe Mortgage Loan (5) 52,508 53,072 One-Month LIBOR + 2.60% 2.70% Principal & Interest 02/13/2022 City Tower Mortgage Loan — 94,167 (8) (8) (8) (8) The Marq Mortgage Loan 62,066 62,257 One-Month LIBOR + 1.55% 1.63% Interest Only 06/06/2022 Eight & Nine Corporate Centre Mortgage Loan 48,695 47,066 One-Month LIBOR + 1.60% 1.68% Principal & Interest 06/08/2022 Georgia 400 Center Mortgage Loan 61,154 59,690 One-Month LIBOR + 1.55% 1.63% Interest Only 05/22/2023 PORT Mortgage Loan 1 51,302 51,362 4.74% 4.74% Interest Only 10/01/2025 PORT Mortgage Loan 2 10,523 10,523 4.72% 4.72% Interest Only 03/01/2026 PORT Mortgage Loan 3 (9) — 12,000 (9) (8) (8) (8) Battery Point Trust Mortgage Loan (9) — 38,608 (8) (8) (8) (8) MetLife Loan (9) 60,000 — 3.90% 3.90% Interest Only 04/10/2026 Springmaid Beach Resort Mortgage Loan 55,839 57,015 One-month LIBOR + 2.25% (10) 5.75% Principal & Interest 08/12/2022 Q&C Hotel Mortgage Loan 25,000 25,000 One-month LIBOR + 2.50% (11) 4.50% Principal & Interest 12/23/2022 Lincoln Court Mortgage Loan (5) 34,723 34,416 One-month LIBOR + 1.75% 1.83% Principal & Interest 12/01/2021 Lofts at NoHo Commons Mortgage Loan 74,536 74,536 One-month LIBOR + 2.18% (12) 3.93% Interest Only 09/09/2022 210 West 31st Street Mortgage Loan (5) 10,275 15,050 One-month LIBOR + 3.00% 3.08% Principal & Interest 06/16/2022 Oakland City Center Mortgage Loan 96,404 96,782 One-month LIBOR + 1.75% 1.83% Principal & Interest 09/01/2022 Madison Square Mortgage Loan (13) 20,891 16,822 One-month LIBOR + 4.05% 5.05% Interest Only 10/09/2021 Total Notes and Bonds Payable principal outstanding 1,030,734 1,106,377 Discount on Notes and Bonds Payable, net (14) (2,249) (2,851) Deferred financing costs, net (4,707) (4,458) Total Notes and Bonds Payable, net $ 1,023,778 $ 1,099,068 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of September 30, 2021. Effective interest rate is calculated as the actual interest rate in effect as of September 30, 2021 (consisting of the contractual interest rate and contractual floor rates), using interest rate indices at September 30, 2021, where applicable. (2) Represents the payment type required under the loan as of September 30, 2021. Certain future monthly payments due under this loan also include amortizing principal payments. For more information of the Company’s contractual obligations under its notes and bonds payable, see five-year maturity table below. (3) Represents the initial maturity date or the maturity date as extended as of September 30, 2021; subject to certain conditions, the maturity dates of certain loans may be extended beyond the date shown. (4) Subsequent to September 30, 2021, the Company extended the maturity of the Richardson Portfolio Mortgage Loan to November 1, 2022. (5) The Company’s notes and bond’s payable are generally non-recourse. These mortgage loans have guarantees over certain balances whereby the Company would be required to make guaranteed payments in the event that the Company turned the property over to the lender. The guarantees are typically 25% of the outstanding loan balance. As of September 30, 2021, the guaranteed amount in the aggregate was $39.5 million. (6) This mortgage loan has a LIBOR floor of 1%. (7) See “ – Israeli Bond Financings” below. (8) On July 27, 2021, in connection with the disposition of City Tower, the Company repaid the $98.1 million outstanding principal balance due under the City Tower Mortgage Loan. (9) On April 6, 2021, the Company refinanced the PORT Mortgage Loan 3 and the Battery Point Trust Mortgage Loan with a mortgage loan from MetLife for borrowings up to $60.0 million. (10) The interest rate is variable at the higher of one-month LIBOR + 2.25% or 5.77%. (11) The interest rate is variable at the higher of one-month LIBOR + 2.5% or 4.5%. Principal payments will commence on January 1, 2022. (12) The LIBOR rate is variable at the higher of one-month LIBOR or 1.75%. (13) On October 7, 2021, the Company refinanced the Madison Square Mortgage Loan with a mortgage loan from an unaffiliated lender for borrowings up to $27.0 million. The new loan matures on October 7, 2024 and has a fixed interest rate of 4.625%. See Note 17, “Subsequent Events” for a further discussion. (14) Represents the unamortized premium/discount on notes and bonds payable due to the above- and below-market interest rates when the debt was assumed. The discount/premium is amortized over the remaining life of the notes and bonds payable. During the three and nine months ended September 30, 2021, the Company incurred $10.1 million and $30.7 million, respectively, of interest expense. Included in interest expense for the three and nine months ended September 30, 2021 was $0.8 million and $2.5 million, respectively, of amortization of deferred financing costs. Included in interest expense for the three and nine months ended September 30, 2021 was $0.5 million and $1.9 million, respectively, of amortization on discount on notes and bonds payable, net. Additionally, during the three and nine months ended September 30, 2021, the Company capitalized $0.5 million and $1.6 million, respectively of interest related to its investments in undeveloped land. During the three and nine months ended September 30, 2020, the Company incurred $6.3 million and $19.1 million, respectively, of interest expense. Included in interest expense for the three and nine months ended September 30, 2020 was $0.8 million and $2.5 million, respectively, of amortization of deferred financing costs. Included in interest expense for the three and nine months ended September 30, 2020 was $64,000 and $14,000, respectively, of amortization of discount on notes and bonds payable, net. Additionally, during the three and nine months ended September 30, 2020, the Company capitalized $0.7 million and $2.4 million, respectively of interest related to its investments in undeveloped land. As of September 30, 2021 and December 31, 2020, the Company’s interest payable was $3.3 million and $6.2 million, respectively. The following is a schedule of maturities, including principal amortization payments, for all notes and bonds payable outstanding as of September 30, 2021 (in thousands): October 1, 2021 through December 31, 2021 $ 116,538 2022 548,061 2023 160,359 2024 26,535 2025 77,858 Thereafter 101,383 $ 1,030,734 As of November 12, 2021, the Company had a total of $518.0 million of debt obligations scheduled to mature over the next 12 months. The Company has extension options with respect to $239.8 million of the debt obligations outstanding that are scheduled to mature over the next 12 months; however, the Company cannot exercise these options if not then in compliance with certain financial covenants in the loans without making a cash payment and there is no assurance that we will be able to meet these requirements. All of the Company’s debt obligations are generally non-recourse, subject to certain limited guaranty payments, as outlined in the table above, except for the Company’s Series A Debentures and Series B Debentures. Subsequent to September 30, 2021, the Company issued additional Series B Debentures, with the intent of using the proceeds and available cash on hand to payoff the outstanding Series A Debentures. See Note 17, “Subsequent Events” for a further discussion on the Series B Debentures issuance. The Company plans to utilize available extension options or refinance the notes payable. The Company may also choose to market the properties for sale or may negotiate a turnover of the secured properties back to the related mortgage lender. The Company’s notes payable contain financial debt covenants, including minimum equity requirements and liquidity ratios. As of September 30, 2021, the Company was in compliance with all of these debt covenants except that the Madison Square Mortgage Loan was not in compliance with the debt yield requirement. Such non-compliance does not constitute an event of default under the loan agreement. As a result of such non-compliance, the Company is required to maintain an interest shortfall reserve and provide cash sweeps. Additionally, the Company was not compliance with the debt service coverage requirement for the Richardson Portfolio Mortgage Loan and Georgia 400 Center Mortgage Loan. As a result of such non-compliance, the Company is required to partially paydown the loan in the case of the Richardson Portfolio Mortgage Loan and provide a cash sweep in the case of the Georgia 400 Center Mortgage Loan. Israeli Bond Financings On March 2, 2016, Pacific Oak SOR BVI, a wholly owned subsidiary of the Company, filed a final prospectus with the Israel Securities Authority for a proposed offering of up to 1,000,000,000 Israeli new Shekels of the Series A Debentures at an annual interest rate not to exceed 4.25%. On March 1, 2016, Pacific Oak SOR BVI commenced the institutional tender of the Series A Debentures and accepted application for 842.5 million Israeli new Shekels. On March 7, 2016, Pacific Oak SOR BVI commenced the public tender of the Series A Debentures and accepted 127.7 million Israeli new Shekels. In the aggregate, Pacific Oak SOR BVI accepted 970.2 million Israeli new Shekels (approximately $249.2 million as of March 8, 2016) in both the institutional and public tenders at an annual interest rate of 4.25%. Pacific Oak SOR BVI issued the Debentures on March 8, 2016. The terms of the Series A Debentures require five equal annual installment principal payments on March 1st of each year from 2019 to 2023. On February 16, 2020, Pacific Oak SOR BVI issued 254.1 million Israeli new Shekels (approximately $74.1 million as of February 16, 2020) of Series B Debentures to Israeli investors pursuant to a public offering registered with the Israel Securities Authority. The Series B Debentures will bear interest at the rate of 3.93% per year. The Series B Debentures have principal installment payments equal to 33.33% of the face amount of the Series B Debentures on January 31st of each year from 2024 to 2026. On March 4, 2021, Pacific Oak SOR BVI issued additional Series A Debentures in the amount of 250.0 million Israeli new Shekels par value through a private placement. The additional Series A Debentures were issued at a 1.9% discount resulting in total consideration of 245.3 million Israeli new Shekels ($74.2 million as of March 4, 2021). The additional Series A Debentures have an equal level of security, pari passu, amongst themselves and between them and the initial Series A Debentures, which were initially issued, without any right of precedence or preference between any of them. The deeds of trust that govern the Series A Debentures and Series B Debentures contain various financial covenants. As of September 30, 2021, the Company was in compliance with all of these financial debt covenants. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2021 | |
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 and foreign currency exchange rate movements. 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 foreign currency collars to mitigate its exposure to foreign currency exchange rate movements on its bonds payable outstanding denominated in Israeli new Shekels. A foreign currency collar consists of a purchased call option to buy and a sold put option to sell Israeli new Shekels. A foreign currency collar guarantees that the exchange rate of the currency will not fluctuate beyond the range of the options’ strike prices. The following table summarizes the notional amount and other information related to the Company’s foreign currency collars as of September 30, 2021 and December 31, 2020. 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 (currency in thousands): September 30, 2021 December 31, 2020 Strike Price Trade Date Maturity Date Derivative Instruments Number of Instruments Notional Amount Number of Instruments Notional Amount Derivative instruments not designated as hedging instruments Foreign currency collar 1 194,045 ILS — — 3.16 - 3.29 ILS - USD 06/14/2021 11/22/2021 The Company enters into interest rate caps to mitigate its exposure to rising interest rates on its variable rate notes payable. The values of interest rate caps are primarily impacted by interest rates, market expectations about interest rates, and the remaining life of the instrument. In general, increases in interest rates, or anticipated increases in interest rates, will increase the value of interest rate caps. As the remaining life of an interest rate cap decreases, the value of the instrument will generally decrease towards zero. As of September 30, 2021, the Company had entered into four interest rate caps, which were not designated as a hedging instruments. The following table summarizes the notional amounts and other information related to the Company’s derivative instruments as of September 30, 2021. The notional amount is an indication of the extent of the Company’s involvement in the instrument at that time, but does not represent exposure to credit, interest rate or market risks (dollars in thousands): Derivative Instrument Effective Date Maturity Date Notional Value Reference Rate Interest rate cap 10/15/2020 10/15/2021 $ 26,200 One-month LIBOR at 3.00% Interest rate cap 02/12/2021 02/14/2022 $ 47,715 One-month LIBOR at 3.00% Interest rate cap 09/15/2021 09/15/2022 $ 75,950 One-month LIBOR at 3.50% Interest rate cap 06/21/2019 05/22/2023 $ 51,252 One-month LIBOR at 4.00% 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 September 30, 2021 and December 31, 2020 (dollars in thousands): September 30, 2021 December 31, 2020 Derivative Instruments Balance Sheet Location Number of Instruments Fair Value Number of Instruments Fair Value Derivative instruments not designated as hedging instruments Interest rate caps Prepaid expenses and other assets 4 $ 2 7 $ 1 Foreign currency collar Other liabilities 1 $ (44) — $ — The change in fair value of foreign currency collars that are not designated as cash flow hedges are recorded as foreign currency transaction gains or losses in the accompanying consolidated statements of operations. During the three months ended September 30, 2021, the Company recognized a $0.3 million gain related to the foreign currency collar, which is shown combined with $2.6 million of foreign currency transaction loss in the accompanying consolidated statements of operations as foreign currency transaction loss. During the nine months ended September 30, 2021, the Company recognized a $44,000 loss related to the foreign currency collar, which is shown combined with $0.6 million of foreign currency transaction gain in the accompanying consolidated statements of operations as foreign currency transaction gain, net. During the three months ended September 30, 2020, the Company recognized a $2.2 million gain related to the foreign currency collars, which is shown combined with $2.6 million of foreign currency transaction loss in the accompanying consolidated statements of operations as foreign currency transaction loss, net. During the nine months ended September 30, 2020, the Company recognized a $14.3 million gain related to the foreign currency collars, which is shown combined with $2.0 million of foreign currency transaction loss in the accompanying consolidated statements of operations as foreign currency transaction gain, net. On July 29, 2020, the Company terminated the foreign currency collars and as a result received $14.1 million. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES The following were the face values, carrying amounts and fair values of the Company’s financial instruments as of September 30, 2021 and December 31, 2020, which carrying amounts do not approximate the fair values (in thousands): September 30, 2021 December 31, 2020 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities (Level 3): Notes and bond payable $ 754,039 $ 751,064 $ 752,417 $ 846,101 $ 842,112 $ 846,608 Financial liabilities (Level 1): Pacific Oak SOR (BVI) Holdings, Ltd. Series A Debentures $ 197,901 $ 195,428 $ 197,437 $ 181,198 $ 179,786 $ 178,450 Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures $ 78,794 $ 77,286 $ 76,899 $ 79,078 $ 77,170 $ 69,433 Disclosure of the fair value of financial instruments is based on pertinent information available to the Company as of the period end and requires a significant amount of judgment. This has made the estimation of fair values difficult and, therefore, both the actual results and the Company’s estimate of value at a future date could be materially different. As of September 30, 2021, the Company measured the following assets at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Recurring Basis: Real estate equity securities $ 96,403 $ 96,403 $ — $ — Asset derivative - interest rate caps $ 2 $ — $ 2 $ — Liability derivative - foreign currency collar $ (44) $ — $ (44) $ — As of December 31, 2020, the Company measured the following assets and liabilities at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recurring Basis: Real estate equity securities $ 96,403 $ 96,403 $ — $ — Asset derivative - interest rate caps $ 2 $ — $ 2 $ — As of September 30, 2021, the Company measured the following assets at fair value on a nonrecurring basis (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Nonrecurring Basis: Impaired real estate $ 97,600 $ — $ — $ 97,600 Impaired goodwill $ 13,534 $ — $ — $ 13,534 As of September 30, 2021, two of the Company’s real estate properties were measured at their estimated fair value. 210 West 31st Street was based on a sales comparison approach as of September 30, 2021. Lincoln Court was based on an income approach with the significant unobservable inputs used in measuring the estimated fair value of this property include a discount rate of 7.75% and a terminal cap rate of 6.75%. During the three and nine months ended September 30, 2021, the Company recorded impairment charges on real estate in the aggregate of $11.0 million, to write down the carrying value of 210 West 31st Street and Lincoln Court. The Company recorded goodwill in connection with the Merger with Pacific Oak Strategic Opportunity REIT II, Inc. ("POSOR II"). Due to a decline in projected cash flows for real estate held in certain reporting units, the Company determined that the carrying value of certain reporting units exceeded the estimated fair value and recognized impairment charges of $2.8 million. The fair value of the Company's reporting units were measured using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2021, which included discounted cash flows, terminal capitalization rates and discount rates. Balance as of December 31, 2020 $ 16,342 Impairment loss (2,808) Balance as of September 30, 2021 $ 13,534 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS As described further below, the Company has entered into agreements with certain affiliates pursuant to which they provide services to the Company. Keith D. Hall and Peter McMillan III control and indirectly own Pacific Oak Holding Group, LLC (“Pacific Oak Holding”), the Company’s sponsor since November 1, 2019. Pacific Oak Holding is the sole owner of the Advisor, the Company’s advisor since November 1, 2019. Messrs. Hall and McMillan are also two of the Company’s executive officers and directors. Subject to certain restrictions and limitations, the business of the Company is externally managed by the Advisor pursuant to the Advisory Agreement. The Advisory Agreement is currently effective through November 1, 2022; however the Company or the Advisor may terminate the Advisory Agreement without cause or penalty upon providing 60 days’ written notice. The Advisor conducts the Company’s operations and manages its portfolio of real estate and other real estate-related investments. In addition, along with Charles J. Schreiber, Jr., Keith D. Hall and Peter McMillan III control and indirectly own KBS Holdings LLC (“KBS Holdings”), the Company’s sponsor prior to November 1, 2019. KBS Holdings is the sole owner of KBS Capital Advisors, LLC (“KBS Capital Advisors”), the Company’s advisor prior to November 1, 2019, and KBS Capital Markets Group LLC, the entity that acted as the dealer manager of the Company’s now-terminated primary initial public offering. From the Company’s inception through October 31, 2019, KBS Capital Advisors provided day-to-day management of the Company’s business. The advisory agreement with KBS Capital Advisors terminated on October 31, 2019. On March 27, 2020, the Company issued 3,411,737 shares of Restricted Stock to KBS Capital Advisors pursuant to the Restricted Stock Agreement. Refer to paragraph below for further discussion. 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, 2021 and 2020, respectively, and any related amounts payable as of September 30, 2021 and December 31, 2020 (in thousands): Incurred Payable as of Three Months Ended September 30, Nine Months Ended September 30, September 30, 2021 December 31, 2020 Expensed 2021 2020 2021 2020 Asset management fees $ 3,422 $ 2,426 $ 10,802 $ 6,867 $ 2,132 $ 2,837 Property management fees (1) 119 114 362 114 — — Reimbursable operating expenses (2) — 56 — 148 — — Disposition fees (3) 692 — 1,196 — — — Change in subordinated performance fee due upon termination to affiliate (4) 1,545 (1,121) 1,745 (814) (3) (3) Capitalized Acquisition fees on real estate equity securities — — — 122 — 5 Acquisition fees on real estate (5) — — 20 171 20 — Acquisition fee on investment in unconsolidated entities — — 45 — — — $ 5,778 $ 1,475 $ 14,170 $ 6,608 $ 2,152 $ 2,842 _____________________ (1) Property management fees are for single-family homes under PORT and paid to DayMark. These fees are included in the line item “Operating, maintenance, and management cost” in the consolidated statement of operations. (2) The Advisor may seek reimbursement for certain employee costs under the Advisory Agreement. The Company will not reimburse for employee costs in connection with services for which the Advisor earns acquisition, origination or disposition fees (other than reimbursement of travel and communication expenses) or for the salaries or benefits the Advisor or its affiliates may pay to the Company’s executive officers. In addition to the amounts above, the Company reimburses the Advisor for certain of the Company’s direct costs incurred from third parties that were initially paid by the Advisor on behalf of the Company. (3) Disposition fees with respect to real estate sold are included in the gain on sale of real estate in the accompanying consolidated statements of operations. (4) Change in the fair value of the Restricted Stock related to the termination of the former advisory agreement with KBS Capital Advisors. See “Subordinated Performance Fee Due Upon Termination to KBS Capital Advisors”, below, for more details. (5) Acquisition fees associated with asset acquisitions are capitalized, while costs associated with business combinations expensed as incurred. Pacific Oak Opportunity Zone Fund I As of September 30, 2021, the Company owned 124 Class A Units in the Pacific Oak Opportunity Zone Fund I, LLC (“Pacific Oak Opportunity Zone Fund I”), which are included in investments in unconsolidated entities on the consolidated balance sheets. The Advisor is entitled to certain fees in connection with the fund. Pacific Oak Opportunity Zone Fund I will pay an acquisition fee equal to 1.5% of the purchase price of each asset (including any debt incurred or assumed and significant capital improvement costs budgeted as of the date of acquisition) with a purchase price less than or equal to $25.0 million plus 1.0% of the purchase price in excess of $25.0 million; a quarterly asset management fee equal to 0.25% of the total purchase price of all assets (including any debt incurred or assumed and significant capital improvement costs budgeted as of the date of acquisition) as of the end of the applicable quarter; and a financing fee equal to 0.5% of the original principal amount of any indebtedness they incur (reduced by any financing fee previously paid with respect to indebtedness being refinanced). In the case of investments made through joint ventures, the fees above will be determined based on the Company’s proportionate share of the investment. The Advisor is also entitled to certain distributions paid by the Pacific Oak Opportunity Zone Fund I after the Class A Members have received their preferred return. These fees and distributions have been waived for the Company’s investment. In addition, side letter agreements between the Advisor and Pacific Oak Opportunity Zone Fund I were executed on February 28, 2020 and stipulate that any asset management fees allocable to the Company and waived by Pacific Oak Capital Advisors for Pacific Oak Opportunity Zone Fund I will distributed to the Company. During the three and nine months ended September 30, 2021, the Company recorded $0.2 million and $0.5 million, respectively, of waived asset management fees recorded as equity in income of unconsolidated entities, of which $0.7 million was a receivable as of September 30, 2021. PORT II As of September 30, 2021, the Company has contributed $5.5 million in PORT II OP, LLC (“PORT II OP”), a wholly owned subsidiary of Pacific Oak Residential Trust II, Inc. ("PORT II"). On August 31, 2020, PORT II entered into an advisory agreement (as subsequently amended and restated on October 9, 2020, “PORT II Advisory Agreement”) with Pacific Oak Residential Advisors, LLC (“PORA”), an affiliate of the Advisor. Pursuant to the PORT II Advisory Agreement, PORT II has engaged PORA to act as its external advisor with respect to PORT II’s operations and assets. Because the Company has separately engaged the Advisor to manage its operations and assets, including its interests in PORT II, on November 12, 2020, the Company and the Advisor agreed to amend their advisory agreement to provide that PORT II’s operations and assets will be managed by PORA and not by the Advisor. In addition, the amendment provides that the Advisor will rebate or offset its fees under its advisory agreement with the Company to the extent of the Company’s indirect economic interest in fees paid by PORT II to PORA (which will be based on the Company’s indirect ownership of PORT II OP, which is the operating partnership of PORT II and the entity ultimately responsible for PORT II’s administrative expenses). On August 31, 2020, PORT II entered into a property management agreement with DMH Realty, LLC (“DMH”), an affiliate of the Advisor and PORA. Pursuant to the property management agreement, PORT II will pay to DMH a base fee equal to the following: (a) for all rent collections up to $50 million per year, 8%; (b) for all rent collections in excess of $50 million per year, but less than or equal to $75 million per year, 7%; and (c) for all rent collections in excess of $75 million per year, 6%. PORT II will also pay DMH market-based leasing fees that will depend on the type of tenant, shared fees equal to 100% of any application fees collected and 50% of any insufficient funds fees, late fees and certain other fees collected. DMH may also perform additional services at rates that would be payable to unrelated parties. PORT II is a Maryland corporation formed and sponsored by the Advisor to acquire, own and operate single-family homes as rental properties as well as to acquire and own other interests, including mortgages on or securities related to single-family homes. Subordinated Performance Fee Due Upon Termination to KBS Capital Advisors The Company and KBS Capital Advisors agreed to terminate their advisory agreement effective October 31, 2019. In connection with that agreement, the Company agreed to pay KBS Capital Advisors a subordinated performance fee due upon termination in the form of Restricted Stock, to be paid to KBS Capital Advisors upon the filing of its Annual Report on Form 10-K for the year ended December 31, 2019. At that time, GKP Holding LLC, a Delaware limited liability company (“GKP”), was a manager of KBS Capital Advisors and of KBS Holdings LLC (“KBS Holdings”), which wholly owns KBS Capital Advisors. At that time, GKP owned 1/3 of KBS Holdings. Keith D. Hall, the Company’s Chief Executive Officer and a director, and Peter McMillan III, the Company’s President and Chairman of the Board, are the managers of GKP and each own 50% of GKP. The number of shares of Restricted Stock to be awarded was set at 3,411,737 shares and was issued on March 27, 2020. This termination payout value to KBS Capital Advisors (the “KBS Termination Fee Value”) was determined based on the Company’s performance from inception through September 30, 2018. In other words, it was based on the Company’s participation fee potential liability to KBS Capital Advisors calculated with respect to the November 12, 2018 estimated value per share. As a result, when the Company hired the Advisor as the Company’s new advisor on November 1, 2019, the Company agreed to a participation fee that was based on the Company’s performance from September 30, 2018. On September 1, 2021, GKP ceased to be a manager of KBS Capital Advisors and KBS Holdings and ceased to own an interest in KBS Holdings. Also on September 1, 2021, GKP and KBS Capital Advisors entered into Amendment No. 1 (the “Amendment”) to the Restricted Stock Agreement and the Unvested Share Transfer Agreement (the “Unvested Share Agreement”). Pursuant to the Amendment, on September 1, 2021, the Company repurchased 584,267 of the shares of Restricted Stock from KBS Capital Advisors for consideration of $5,655,705 in cash, or $9.68 per share. Pursuant to the terms of the Amendment and the Unvested Share Agreement, on September 1, 2021, KBS Capital Advisors transferred 2,254,289 of the shares of Restricted Stock to GKP (the “GKP Restricted Shares”). KBS Capital Advisors transferred the GKP Restricted Shares as partial consideration for and to effectuate the conclusion of the acquisition of GKP’s 1/3 ownership interest in KBS Holdings by its other owners. On September 1, 2021, upon the transfer of GKP’s 1/3 ownership interest in KBS Holdings, GKP ceased to be a manager of KBS Capital Advisors and KBS Holdings and ceased to have an ownership interest in KBS Holdings. Under the Amendment, the GKP Restricted Shares are nonvested and forfeitable until the earliest of: (i) July 1, 2026 or (ii) immediately before and contingent upon the occurrence of a Change in Control (as defined in the Restricted Stock Agreement) of the Company. Notwithstanding the foregoing, and at the option of either Keith Hall’s estate or Peter McMillan’s estate, in the event of the death of either Keith Hall or Peter McMillan, such event can trigger the vesting of that number of GKP Restricted Shares corresponding to 100% of the deceased party’s proportional economic interest in GKP Restricted Shares. In addition, unvested GKP Restricted Shares will be forfeited in certain instances if GKP fails to comply with certain requirements set forth in the Amendment, which forfeiture may be waived by the Company’s Conflict Committee in certain cases. Non-vested GKP Restricted Shares are not eligible for redemption by the Company under any circumstances unless approved by the Company’s board of directors. |
INVESTMENT IN UNCONSOLIDATED EN
INVESTMENT IN UNCONSOLIDATED ENTITIES | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN UNCONSOLIDATED ENTITIES | INVESTMENT IN UNCONSOLIDATED ENTITIES As of September 30, 2021 and December 31, 2020, the Company’s investments in unconsolidated entities were composed of the following (dollars in thousands): Number of Properties as of September 30, 2021 Investment Balance at Joint Venture Location Ownership % September 30, 2021 December 31, 2020 110 William Joint Venture 1 New York, New York 60.0% $ — — 353 Sacramento Joint Venture 1 San Francisco, California 55.0% 50,769 49,665 Pacific Oak Opportunity Zone Fund I 3 Various N/A 27,638 24,996 PORT II OP LP 117 Various 89.7% 5,447 5,005 $ 83,854 $ 79,666 Investment in 110 William Joint Venture On December 23, 2013, the Company, through an indirect wholly owned subsidiary, entered into an agreement with SREF III 110 William JV, LLC (the “110 William JV Partner”) to form a joint venture (the “110 William Joint Venture”). On May 2, 2014, the 110 William Joint Venture acquired an office property containing 928,157 rentable square feet located on approximately 0.8 acres of land in New York, New York (“110 William Street”). Each of the Company and the 110 William JV Partner hold a 60% and 40% ownership interest in the 110 William Joint Venture, respectively. The Company exercises significant influence over the operations, financial policies and decision making with respect to the 110 William Joint Venture but significant decisions require approval from both members. Accordingly, the Company has accounted for its investment in the 110 William Joint Venture under the equity method of accounting. Income, losses, contributions and distributions are generally allocated based on the members’ respective equity interests. As of September 30, 2021 and December 31, 2020, the book value of the Company’s investment in the 110 William Joint Venture was $0. During the three months ended March 31, 2019, the Company suspended the equity method of accounting and the Company will not record the Company's share of losses and will not record the Company's share of any subsequent income for the 110 William Joint Venture until the Company’s share of net income exceeds the gain recorded and the Company’s share of the net losses not recognized during the period the equity method was suspended. During both of the three and nine months ended September 30, 2021 and September 30, 2020, the Company did not record equity in income from the 110 William Joint venture. Summarized financial information for the 110 William Joint Venture follows (in thousands): September 30, 2021 December 31, 2020 Assets: Real estate assets, net of accumulated depreciation and amortization $ 232,201 $ 246,166 Other assets 34,200 44,004 Total assets $ 266,401 $ 290,170 Liabilities and equity: Notes payable, net $ 318,280 $ 316,421 Other liabilities 3,003 5,532 Partners’ deficit (54,882) (31,783) Total liabilities and equity $ 266,401 $ 290,170 Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenues $ 5,729 $ 10,005 $ 18,721 $ 26,604 Expenses: Operating, maintenance, and management 2,359 2,096 6,212 5,994 Real estate taxes and insurance 1,698 1,935 5,588 5,580 Depreciation and amortization 2,962 3,139 19,071 8,721 Interest expense 3,548 4,125 10,986 12,093 Total expenses 10,567 11,295 41,857 32,388 Total other income 11 12 35 50 Net loss $ (4,827) $ (1,278) $ (23,101) $ (5,734) Company’s share of net loss (1) $ (2,896) $ (767) $ (13,861) $ (3,440) _____________________ (1) The Company suspended the equity method of accounting and did not record the Company's share of losses for both of the three and nine months ended September 30, 2021 and 2020. Investment in 353 Sacramento Joint Venture On July 6, 2017, the Company, through an indirect wholly owned subsidiary, entered into an agreement with the Migdal Members to form a joint venture (the “353 Sacramento Joint Venture”). On July 6, 2017, the Company sold a 45% equity interest in an entity that owns an office building containing 284,751 rentable square feet located on approximately 0.35 acres of land in San Francisco, California (“353 Sacramento”) to the Migdal Members. The sale resulted in 353 Sacramento being owned by the 353 Sacramento Joint Venture, in which the Company indirectly owns 55% of the equity interests and the Migdal Members indirectly own 45% in the aggregate of the equity interests. During the nine months ended September 30, 2021, the Company contributed an additional $1.1 million into the 353 Sacramento Joint Venture. The Company exercises significant influence over the operations, financial policies and decision making with respect to the 353 Sacramento Joint Venture but significant decisions require approval from both members. Accordingly, the Company has accounted for its investment in the 353 Sacramento Joint Venture under the equity method of accounting. Income, losses, contributions and distributions are generally allocated based on the members’ respective equity interests. Summarized financial information for the 353 Sacramento Joint Venture follows (in thousands): September 30, 2021 December 31, 2020 Assets: Real estate assets, net of accumulated depreciation and amortization $ 178,874 $ 182,318 Other assets 27,539 19,810 Total assets $ 206,413 $ 202,128 Liabilities and equity: Notes payable, net $ 110,000 $ 109,783 Other liabilities 6,335 7,639 Partners’ capital 90,078 84,706 Total liabilities and equity $ 206,413 $ 202,128 Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenues $ 3,373 $ 5,520 $ 13,252 $ 15,771 Expenses: Operating, maintenance, and management 862 932 2,490 2,450 Real estate taxes and insurance 848 755 2,768 2,235 Depreciation and amortization 1,850 1,894 5,574 5,135 Interest expense 960 948 2,700 3,290 Total expenses 4,520 4,529 13,532 13,110 Net income $ (1,147) $ 991 (280) $ 2,661 Company’s equity in (loss) income of unconsolidated joint venture $ (592) $ 583 $ (40) $ 1,576 Investment in Pacific Oak Opportunity Zone Fund I During the year ended December 31, 2019, the Company acquired 91 Class A Units for $20.6 million in Pacific Oak Opportunity Zone Fund I. Additionally, with the POSOR II Merger, the Company acquired an additional 13 Class A Units with a fair value of $3.0 million and also acquired 7 Class A Units for $1.5 million during the year ended December 31, 2020. During the nine months ended September 30, 2021, the Company acquired additional 13 Class A Units for $3.1 million. As of September 30, 2021, the book value of the Company’s investment in Pacific Oak Opportunity Zone Fund I was $27.6 million, which includes $0.2 million of acquisition fees. As of September 30, 2021, Pacific Oak Opportunity Zone Fund I consolidated three joint ventures with real estate under development. As of September 30, 2021, the Company has concluded that Pacific Oak Opportunity Zone Fund I qualifies as a Variable Interest Entity (“VIE”) because there is insufficient equity at risk to finance the entity’s activities and the entity is structured with non-substantive voting rights. The Company concluded it is not the primary beneficiary of this VIE since it does not have the power to direct the activities that most significantly impact the entity’s economic performance and will account for its investment under the equity method of accounting. During the three and nine months ended September 30, 2021, the Company recognized $0.1 million and $0.5 million, respectively, of losses related to this investment. The Company’s maximum exposure to loss as a result of its involvement with this VIE is limited to the carrying value of the investment in Pacific Oak Opportunity Zone Fund I which totaled $27.6 million as of September 30, 2021. PORT II PORT II is a Maryland corporation formed and sponsored by the Advisor to acquire, own and operate single-family homes as rental properties as well as to acquire and own other interests, including mortgages on or securities related to single-family homes. As of September 30, 2021, the Company owns 600 shares of common stock of PORT II, of which the Company exercises significant influence over the operations, financial policies and decision making with respect to PORT II, but does not control. In addition, as of September 30, 2021, the Company had contributed $5.5 million in capital to PORT II OP, of which the Company owns 89.7%. The remaining ownership percentage is owned by PORT II. As of September 30, 2021, the Company has concluded that PORT II OP qualifies as a VIE because there is insufficient equity at risk to finance the entity’s activities and the entity is structured with non-substantive voting rights. The Company concluded it is not the primary beneficiary of this VIE since it does not have the power to direct the activities that most significantly impact the entity’s economic performance and will account for its investment under the equity method of accounting. During the three and nine months ended September 30, 2021, the Company recognized $47,000 and $0.1 million of losses related to this investment, respectively. |
SUPPLEMENTAL CASH FLOW AND SIGN
SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow and Significant Noncash Transaction Disclosures [Abstract] | |
SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES | SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES Supplemental cash flow and significant noncash transaction disclosures were as follows (in thousands): Nine Months Ended September 30, 2021 2020 Supplemental Disclosure of Cash Flow Information: Interest paid, net of capitalized interest of $1,579 and $2,368 for the nine months ended September 30, 2021 and 2020, respectively $ 29,220 $ 18,945 Supplemental Disclosure of Significant Noncash Transactions: Accrued improvements to real estate 1,721 2,393 Redeemable common stock payable 3,385 262 Distributions paid to common stockholders through common stock issuances pursuant to the dividend reinvestment plan — 262 Accrued preferred dividends 225 226 PPP notes forgiveness 1,500 — Assets and liabilities assumed in connection with Battery Point acquisition: Real estate — 56,148 Notes payable — 36,003 Other assets — 21 Other liabilities — 355 Redeemable non-controlling interest — 3,024 Series A-3 preferred units payable — 16,000 |
REPORTING SEGMENTS
REPORTING SEGMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
REPORTING SEGMENTS | REPORTING SEGMENTS The Company recognizes three reporting segments for the three and nine months ended September 30, 2021 and consists of strategic opportunistic properties, single-family homes and hotels. All corporate related costs are included in the strategic opportunistic properties segment to align with how financial information is presented to the chief operating decision maker. The Company recognized two reporting segments for the three and nine months ended September 30, 2020. The selected financial information for reporting segments for the three and nine months ended September 30, 2021 and 2020 are as follows (in thousands): Three Months Ended September 30, 2021 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 28,050 $ 5,566 $ 12,153 $ 45,769 Total expenses (52,891) (6,398) (8,948) (68,237) Total other (loss) income (4,435) 81 1,276 (3,078) Net (loss) income $ (29,276) $ (751) $ 4,481 $ (25,546) Nine Months Ended September 30, 2021 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 88,187 $ 16,436 $ 24,578 $ 129,201 Total expenses (128,418) (19,581) (22,924) (170,923) Total other income 42,527 159 1,289 43,975 Net income (loss) $ 2,296 $ (2,986) $ 2,943 $ 2,253 Three Months Ended September 30, 2020 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 22,548 $ 5,197 $ — $ 27,745 Total expenses (26,285) (5,969) — (32,254) Total other (loss) income (2,863) 4 — (2,859) Net loss $ (6,600) $ (768) $ — $ (7,368) Nine Months Ended September 30, 2020 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 64,752 $ 11,117 $ — $ 75,869 Total expenses (66,928) (13,203) — (80,131) Total other (loss) income (16,939) 54 — (16,885) Net loss $ (19,115) $ (2,032) $ — $ (21,147) Total assets and goodwill related to the reporting segments as of September 30, 2021 and December 31, 2020 are as follows (in thousands): September 30, 2021 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total assets $ 1,274,093 $ 202,349 $ 152,686 $ 1,629,128 Goodwill (1) 9,489 — 4,045 13,534 December 31, 2020 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total assets $ 1,404,509 $ 182,486 $ 144,670 $ 1,731,665 Goodwill 12,297 — 4,045 16,342 _____________________ (1) During the three and nine months ended September 30, 2021, the Company recorded impairment charges on goodwill of $2.8 million related to the Strategic Opportunistic Properties segment. |
PORT MEZZANINE EQUITY
PORT MEZZANINE EQUITY | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
PORT MEZZANINE EQUITY | PORT MEZZANINE EQUITY The Company has authorized and issued preferred stock from a subsidiary. The Company has elected to use the measurement method described under ASC 480-10-S99-3A, paragraph 15(b), resulting in the common and preferred stock being classified in mezzanine equity and measured based on the estimated future redemption value as of September 30, 2021. On November 6, 2019, PORT issued 15,000 shares out of its available 25,000,000 shares of Series A Cumulative Convertible Redeemable Preferred Stock for gross proceeds of $1,000 per share resulting in net proceeds of $15.0 million before issuance costs. The shares provide for an annual dividend of 6% payable quarterly, which increases to 12% if all shares are not redeemed by the Company immediately following the redemption date. However, the 12% dividend rate does not apply until the aggregate number of shares selected for redemption do not constitute 10% or more of all outstanding shares. The shares may be redeemed by the holders beginning on November 4, 2021 for $1,000 per share plus all accrued but unpaid dividends through the redemption date, or after November 4, 2022 for $1,120 per share plus all accrued but unpaid dividends through the redemption date. In addition, after November 4, 2020, the shares are redeemable at the Company’s option, at any time or from time to time, at a redemption price of $1,120 per share plus unpaid accrued dividends. Additionally, if the common shares of PORT are publicly traded, the holder may elect to convert its preferred shares into PORT common shares based on a value of the preferred shares of $1,120 per share plus unpaid accrued dividends, and a conversion price of the common shares as stated in the agreement. On November 22, 2019, PORT issued 125 shares of its Series B Cumulative Redeemable Preferred Stock for gross proceeds of $1,000 per share resulting in net proceeds of $0.1 million after issuance costs. The shares provide for an annual dividend of 12.5% payable semiannually. The shares may be redeemed by the holders for $1,050 per share until December 31, 2021 and for $1,000 per share thereafter. The following is a reconciliation of PORT’s noncontrolling cumulative convertible redeemable preferred stock for the nine months ended September 30, 2021 and 2020 (dollars in thousands): Series A Preferred Stock Series B Preferred Stock Shares Amounts Shares Amounts Balance, December 31, 2020 15,000 15,134 125 $ 99 Dividends Available Upon Redemption — 636 — 8 Dividends Paid — (636) — (8) Balance, September 30, 2021 15,000 $ 15,134 125 $ 99 Series A Preferred Stock Series B Preferred Stock Shares Amounts Shares Amounts Balance, December 31, 2019 15,000 $ 14,909 125 $ 99 Dividends Available Upon Redemption — 781 — 7 Dividends Paid — (556) — (7) Balance, September 30, 2020 15,000 $ 15,134 125 $ 99 On July 1, 2020, the Company acquired, through its subsidiaries, Battery Point Trust Inc., a Maryland corporation (“Battery Point”). Battery Point is a real estate investment trust that owned, at the time of acquisition, 559 single-family rental homes throughout the Midwestern and Southeastern United States. All of these assets are held by the Company through its subsidiary, PORT OP. The Company acquired Battery Point by acquiring all the 1,000,000 outstanding shares of Battery Point common stock from BPT Holdings, LLC (“BPT Holdings”), a partially owned subsidiary of the Advisor. The Advisor is the Company’s external advisor and is owned and controlled by Keith D. Hall, the Company’s Chief Executive Officer and a director, and Peter M. McMillan, the Company’s President and Chairman of the Board. In exchange, BPT Holdings received 510,816 common equity units in PORT OP, approximately 4.5% of the outstanding common equity units, as of July 1, 2020. The value of the interests exchanged was estimated by the participants at approximately $3.0 million. The common equity units issued to BPT Holdings are redeemable after one year at the request of BPT Holdings for all or a portion of the common equity units at a redemption price equal to and in the form of cash based on the unit price of PORT OP. The following table summarizes the redeemable non-controlling interest activity related to the PORT OP equity units held by BPT Holdings for the nine months ended September 30, 2021 (in thousands): December 31, 2020 $ 2,968 Net loss attributable to redeemable noncontrolling interest (113) September 30, 2021 $ 2,855 |
RESTRICTED STOCK
RESTRICTED STOCK | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | RESTRICTED STOCKOn March 27, 2020, the Company issued 3,411,737 restricted shares to KBS Capital Advisors in connection with the subordinated performance fee due upon termination (the “Restricted Stock”), which were expected to vest on November 1, 2021. These shares are subject to non-compete provisions, which are treated as clawback contingent features and will be accounted for if and when the Restricted Stock is required to be returned. On September 1, 2021, the Company, KBS Capital Advisors, and GKP entered into amendment no. 1 to the Restricted Stock Agreement (the "Amendment"). Pursuant to the Amendment, 1,157,448 shares of Restricted Stock ("Released Shares") were immediately vested and fully released from all restrictions and requirements of the Restricted Stock Agreement. Of the Released Shares, the Company repurchased 584,267 shares from KBS Capital Advisors for consideration of $5,655,705 in cash, or $9.68 per share. After a one year period, 513,467 of the Released Shares are eligible for redemption under the Company's share redemption program. Within a 60 day period following November 1, 2024, 59,714 of the Released Shares are to be redeemed by the Company, though prior to this date, the shares are eligible for redemption under the Company's share redemption program if all outstanding redemption requests from other stockholders have been satisfied. Additionally, KBS Capital Advisors transferred 2,254,289 shares of Restricted Stock to GKP ("GKP Restricted Shares"). The GKP Restricted Shares vest on the earlier of the following: (i) July 1, 2026 or (ii) a change of control. Upon vesting, 50% of the GKP Restricted Shares are eligible for redemption based on the most recent board approved NAV per share, but requires approval of the Company's conflicts committee of the board of directors. The remaining 50% of the GKP Restricted Shares are eligible for redemption under the Company's share redemption program if all outstanding redemption requests from other stockholders have been satisfied. The 59,714 of the Released Shares are classified as a liability instrument, accounted for as restricted stock payable on the accompanying consolidated balance sheets, and are recorded at the fair value of the shares at each reporting period until settled. The remaining Released Shares and GKP Restricted Shares are classified as an equity instrument and recorded in additional paid-in-capital on the accompanying balance sheet. For the three and nine months ended September 30, 2021, the Company recorded $1.5 million subordinated performance fee due upon termination to affiliate expense to record the Restricted Stock at fair value. The fair value of the Restricted Stock was estimated based on the Company's NAV, adjusted for a lack of marketability discount. As of September 1, 2021, the Company measured the Restricted Stock at its fair value of $9.61 per share. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company owns two hotels, Springmaid Beach Resort and Q&C Hotel. The operation for both hotels are externally managed by third-party hotel operators, in which the Company have contractual obligations under the management agreements. Management Agreement Springmaid Beach Resort The consolidated joint venture entity through which the Company leases the operations for Springmaid Beach Resort has entered into a management agreement with Doubletree Management LLC, an independent third-party hotel operator (the “Operator”) pursuant to which the Operator will manage and operate the Springmaid Beach Resort. The hotel was branded a DoubleTree by Hilton in September 2016 (the “Brand Commencement Date”). The management agreement expires on December 31 of the 20th full year following the Brand Commencement Date. Upon mutual agreement, the parties may extend the term of the agreement for two successive periods of five years each. If an event of default occurs and continues beyond any applicable notice and cure periods set forth in the management agreement, the non-defaulting party generally has, among other remedies, the option of terminating the management agreement upon written notice to the defaulting party with no termination fee payable to Doubletree. In addition, the Company has the right to terminate the management agreement without the payment of a termination fee if Doubletree fails to achieve certain criteria relating to the performance of the hotel for any two consecutive years following the Brand Commencement Date. Under certain circumstances following a casualty or condemnation event, either party may terminate the management agreement provided Doubletree receives a termination fee an amount equal to two years of the base fee. The Company is permitted to terminate the management agreement upon a sale, lease or other transfer of the Springmaid Beach Resort any time so long as the buyer is approved for, and enters into a DoubleTree by Hilton franchise agreement for the balance of the agreement’s term. Finally, the Company is restricted in its ability to assign the management agreement upon a sale, lease or other transfer the Springmaid Beach Resort unless the transferee is approved by Doubletree to assume the management agreement. Pursuant to the management agreement the Operator receives the following fees: • a base fee, which is a percentage of total operating revenue that starts at 2.5% and increases to 2.75% in the second year following the Brand Commencement Date and further increases in the third year following the Brand Commencement Date and thereafter to 3.0%; • a campground area management fee, which is 2% of any campground revenue; • an incentive fee, which is 15% of operating cash flow (after deduction for capital renewals reserve and the joint venture owner’s priority, which is 12% of the joint venture owner’s total investment); • an additional services fee in the amount reasonably determined by the Operator from time to time; and • a brand services fee in the amount of 4% of total rooms revenue, and an other brand services fee in an amount determined by the Operator from time to time. The management agreement contains specific standards for the operation and maintenance of the hotel, which allows the Operator to maintain uniformity in the system created by the Operator’s franchise. Such standards generally regulate the appearance of the hotel, quality and type of goods and services offered, signage and protection of trademarks. Compliance with the management agreement will require the Company to make significant expenditures for capital improvements. During the three and nine months ended September 30, 2021, the Company incurred $0.3 million and $0.6 million, respectively, of fees related to the management agreement, which are included in hotel expenses on the accompanying consolidated statements of operations. Q&C Hotel A wholly owned subsidiary of the joint venture through which the Company leases the operations of the Q&C Hotel (“Q&C Hotel Operations”) has entered into a management agreement with Encore Hospitality, LLC (“Encore Hospitality”), an affiliate of the joint venture partner, pursuant to which Encore Hospitality will manage and operate the Q&C Hotel. The management agreement expires on December 17, 2035. Subject to certain conditions, Encore Hospitality may extend the term of the agreement for a period of five years. Pursuant to the management agreement Encore Hospitality will receive a base fee, which is 4.0% of gross revenue (as defined in the management agreement). During both of the three and nine months ended September 30, 2021, the Company incurred $0.1 million of fees related to the management agreement, which are included in hotel expenses on the accompanying consolidated statements of operations. Q&C Hotel Operations has also entered into a franchise agreement with Marriott International (“Marriott”) pursuant to which Marriott has granted Q&C Hotel Operations a limited, non-exclusive license to establish and operate the Q&C Hotel using certain of Marriott’s proprietary marks and systems and the hotel was branded as a Marriott Autograph Collection hotel on May 25, 2016. The franchise agreement will expire on May 25, 2041. Pursuant to the franchise agreement, Q&C Hotel Operations pays Marriott a monthly franchise fee equal to a percent of gross room sales on a sliding scale that is initially 2% and increases to 5% on May 25, 2019 and a monthly marketing fund contribution fee equal to 1.5% of the Q&C Hotel’s gross room sales. In addition, the franchise agreement requires the maintenance of a reserve account to fund all renovations at the hotel based on a percentage of gross revenues which starts at 2% of gross revenues and increases to 5% of gross revenues on May 25, 2019. Q&C Hotel Operations is also responsible for the payment of certain other fees, charges and costs as set forth in the agreement. During the three and nine months ended September 30, 2021, the Company incurred $0.1 million and $0.3 million, respectively, of fees related to the Marriott franchise agreement, which are included in hotel expenses on the accompanying consolidated statement of operations. In addition, in connection with the execution of the franchise agreement, SOR US Properties II is providing an unconditional guarantee that all Q&C Hotel Operations’ obligations under the franchise agreement will be punctually paid and performed. Finally, certain transfers of the Q&C Hotel or an ownership interest therein are subject to a notice and consent requirement, and the franchise agreement further provides Marriott with a right of first refusal with respect to a sale of the hotel to a competitor of Marriott. Lease Obligations As of September 30, 2021, the Company’s lease and rights to a leasehold interest with respect to 210 West 31st Street, an office/retail building in New York, NY, which was accounted for as a finance lease, are included in the consolidated balance sheet as follows: Right-of-use asset (included in real estate held for investment, net) (1) $ 8,074 Lease obligation (included in other liabilities) 9,339 Remaining lease term 92.5 Discount rate 4.8 % The components of lease expense were as follows: Interest on lease obligation for the nine months ended September 30, 2021 441 _____________________ (1) During the three and nine months ended September 30, 2021, the Company wrote down its right-of-use asset and recorded an impairment charge of $1.2 million on 210 West 31st Street. As of September 30, 2021, the Company had a leasehold interest expiring on 2114. Future minimum lease payments owed by the Company under the finance lease as of September 30, 2021 are as follows (in thousands): October 1, 2021 through December 31, 2021 $ 90 2022 360 2023 360 2024 360 2025 393 Thereafter 52,563 Total expected minimum lease obligations 54,126 Less: Amount representing interest (1) (44,787) Present value of net minimum lease payments (2) $ 9,339 _____________________ (1) Interest includes the amount necessary to reduce the total expected minimum lease obligations to present value calculated at the Company’s incremental borrowing rate at acquisition. (2) The present value of net minimum lease payments are presented in other liabilities in the accompanying consolidated balance sheets. Paycheck Protection Program On February 10, 2021 and March 13, 2021, the Company, through wholly owned subsidiaries of joint ventures, entered into Paycheck Protection Program Promissory (“PPP”) notes for the Q&C Hotel and Springmaid Beach Resort and received funding of $0.6 million and $1.8 million, respectively. The PPP notes are supplementing payroll costs for the third-party managers of the joint ventures. In accordance with the requirements of the CARES Act, at least 60% of the proceeds used to date have been used to pay eligible payroll costs. Under the requirements of the CARES Act, the loan may be fully forgiven if (i) proceeds are used to pay eligible payroll costs, rent, mortgage interest and utilities and (ii) full-time employee headcount and salaries are either maintained during the applicable twenty-four-week period after loan origination. Any forgiveness of the loan will be subject to approval by the U.S. Small Business Administration (the “SBA”) and will require the Company to apply for such treatment in the future. While the Company may apply for forgiveness of the PPP notes in accordance with the requirements and limitations under the CARES Act and the SBA regulations and requirements, no assurance can be given that any portion of the PPP notes will be forgiven. On July 6, 2021, the SBA approved the Company’s application for forgiveness of the Springmaid Beach Resort PPP note of $1.3 million. As of September 30, 2021 and December 31, 2020, the PPP notes balance was $2.4 million and $1.5 million and recorded in other liabilities in the accompanying consolidated balance sheets, respectively. Economic Dependency The Company is dependent on the Advisor for certain services that are essential to the Company, including the identification, evaluation, negotiation, origination, acquisition and disposition of investments; management of the daily operations of the Company’s investment portfolio; and other general and administrative responsibilities. In the event that the Advisor is unable to provide these services, the Company will be required to obtain such services from other sources. Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. Although there can be no assurance, the Company is not aware of any environmental liability that could have a material adverse effect on its financial condition or results of operations as of September 30, 2021. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the properties could result in future environmental liabilities. COVID-19 During the first quarter of 2020 and subsequent periods, efforts to slow the spread of the COVID-19 virus have had a significant impact on the U.S. economy. The Company continues to follow the policies described in Note 2 to the Consolidated Financial Statements contained in our 2020 Annual Report on Form 10-K, including those related to impairments of real estate assets and investments in unconsolidated affiliates and collectability assessments on operating lease receivables. While our current analyses did not result in any material adjustments to amounts as of and during the nine months ended September 30, 2021, circumstances related to the COVID-19 pandemic may result in recording impairments, lease modifications and changes to collectability assessments in future periods. Legal Matters |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company evaluates subsequent events up until the date the consolidated financial statements are issued. Richardson Acquisition On November 22, 2011, the Company, through an indirect wholly owned subsidiary, and JP-Richardson, LLC, an affiliate of JP Realty Partners, LTD., entered into an agreement to form a joint venture (the “Richardson Joint Venture”), and on November 23, 2011, the Richardson Joint Venture acquired a portfolio of office buildings and undeveloped land in Richardson, Texas (the “Richardson Portfolio”). On October 18, 2021, the Company purchased the 10% minority interest in the Richardson Joint Venture, for $4.0 million from JP-Richardson, LLC. As of the date of purchase, the Richardson Portfolio consisted of four office buildings and 14 acres of undeveloped land. Subsequent to the purchase, the Company owned 100% of the Richardson Joint Venture. Bond Offerings Subsequent to September 30, 2021, the Company issued additional Series B Debentures in the amount of 536.4 million Israeli new Shekels par value through a public offering. The public offering Series B Debentures were issued at a 2.6% discount resulting in a total consideration of 522.4 million Israeli new Shekels ($166.8 million as of November 1, 2021). Additionally, the Company also issued 53.6 million Israeli new Shekels par value through a private offering. The private offering Series B Debentures were issued at a 3.1% discount resulting in a total consideration of 52.0 million Israeli new Shekels ($16.6 million as of November 1, 2021). The additional Series B Debentures have an equal level of security, pari passu, amongst themselves and between them and the initial Series B Debentures, which were initially issued, without any right of precedence or preference between any of them. The Series B Debentures were issued with the intent of using the proceeds and available cash on hand to payoff the outstanding Series A Debentures. Notes Payable Refinancing On October 7, 2021, the Company refinanced the Madison Square Mortgage Loan with a mortgage loan from an unaffiliated lender (the “Refinancing”) for borrowings up to $27.0 million. At closing, $17.5 million of the loan was funded and the remaining $9.5 million was available for future disbursements, subject to certain terms and conditions contained in the loan documents. The Refinancing is interest only with a fixed interest rate of 4.625% and has a maturity date of October 7, 2024. In connection with the execution of the Refinancing, Pacific Oak SOR Properties, LLC, a wholly owned subsidiary, is providing an unconditional guarantee and will be held liable, as a primary obligor for our obligations under the Refinancing. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the FASB Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company, REIT Holdings, the Operating Partnership, Pacific Oak SOR BVI and their direct and indirect wholly owned subsidiaries, joint ventures in which the Company has a controlling interest and VIEs in which the Company is the primary beneficiary. All significant intercompany balances and transactions are eliminated in consolidation. Liquidity The Company generally finances its real estate investments using notes payable that are typically structured as non-recourse secured mortgages with maturities of approximately three |
Use of Estimates | The preparation of the consolidated financial statements 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. |
Restricted Cash | Restricted cash is comprised of lender impound reserve accounts on the Company’s borrowings for security deposits, property taxes, insurance, debt service obligations and capital improvements and replacements. |
Redeemable Common Stock | The Company limits the dollar value of shares that may be redeemed under the share redemption program. During the nine months ended September 30, 2021, the Company had redeemed $29.6 million of common stock under the share redemption program. The Company processed all redemption requests received in good order and eligible for redemption through the September 2021 redemption date, except for 13,913,664 shares totaling $128.0 million due to the limitations under the share redemption program. The Company recorded $3.4 million and $0.9 million of redeemable common stock payable on the Company’s balance sheet as of September 30, 2021 and December 31, 2020, respectively, related to unfulfilled redemption requests received in good order under the share redemption program. Based on the twelfth amended and restated share redemption program, the Company has $3.2 million available for redemptions in the remainder of 2021, including shares that are redeemed in connection with a stockholders’ death, “qualifying disability” or “determination of incompetence,” subject to the limitations under the share redemption program. |
Reclassifications | Certain amounts in the Company’s prior period consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications have not changed the results of operations of the prior period. During the nine months ended September 30, 2021, the Company sold one office property. As a result, certain assets and liabilities were reclassified as held for sale on the consolidated balance sheets for the prior period. |
Segments | The Company operates in three reportable business segments: opportunistic real estate and real estate-related investments, single-family homes, and hotels, which is how the Company's management manages the business. In general, the Company intends to hold its investments in opportunistic real estate and other real estate-related assets for capital appreciation. Traditional performance metrics of opportunistic real estate and other real estate-related assets may not be meaningful as these investments are generally non-stabilized and do not provide a consistent stream of interest income or rental revenue. These investments exhibit similar long-term financial performance and have similar economic characteristics. These investments typically involve a higher degree of risk and do not provide a constant stream of ongoing cash flows. As a result, the Company’s management views opportunistic real estate and other real estate-related assets as similar investments and aggregated into one reportable business segment. The Company owns single-family homes in 17 markets and are all aggregated into one reportable business segment due to the homes being stabilized, having high occupancy rates and have similar economic characteristics. Additionally, the Company owns two hotels and are aggregated into one reportable business segment due to the nature of the hotel business with short-term stays. |
Per Share Data | The Company applies the two-class method when computing its earnings per share. Net income per share for each class of stock is calculated by assuming all of the Company’s net income (loss) is distributed to each class of stock based on their contractual rights. Unvested restricted stock that contains non-forfeitable rights to distributions (whether paid or unpaid) are considered participating securities and are included in the computation of earnings per share. Basic earnings (loss) per share of common stock is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted earnings (loss) per share of common stock is computed based on the weighted-average number of shares of common stock outstanding during each period, plus potential common shares considered outstanding during the period, as long as the inclusion of such awards is not anti-dilutive. Potential common shares consist of unvested restricted stock, using the more dilutive of either the two-class method or the treasury stock method. The noncontrolling Pacific Oak Residential Trust, Inc. (“PORT”) Series A convertible redeemable preferred shares are not included as the preferred shares are convertible contingent on the common stock of PORT being publicly traded. If PORT common stock becomes publicly traded, the per-share earnings of PORT will be included in the Company’s EPS computations based on the consolidated holdings of PORT. The Company’s unvested Restricted Stock have been included in the calculation of basic and diluted earnings per share for both of the three and nine months ended September 30, 2021 and 2020, as the restriction is not contingent on any conditions except the passage of time. |
Square Footage, Occupancy and Other Measures | Any references to square footage, occupancy or annualized base rent are unaudited 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) (“ASU No. 2020-04”) contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU No. 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the nine months ended September 30, 2021, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. For the period from January 1, 2020 (the earliest date the Company may elect to apply ASU No. 2020-04) through September 30, 2021, the Company did not have any contract modifications that meet the criteria described above, specifically contract modifications that have been modified from LIBOR to an alternative reference rate. The Company’s loan agreements, derivative instruments, and certain lease agreements use LIBOR as the current reference rate. For eligible contract modifications, the Company expects to adopt the temporary optional expedients described in ASU No. 2020-04. The optional expedients for hedging relationships described in ASU No. 2020-04 are not expected to have an impact to the Company, as the Company has elected to not designate its derivative instruments as a hedge. |
Fair Value Measurement | Disclosure of the fair value of financial instruments is based on pertinent information available to the Company as of the period end and requires a significant amount of judgment. This has made the estimation of fair values difficult and, therefore, both the actual results and the Company’s estimate of value at a future date could be materially different. |
REAL ESTATE HELD FOR INVESTME_2
REAL ESTATE HELD FOR INVESTMENT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Schedule of Real Estate Investments | The following table summarizes the Company’s real estate held for investment as of September 30, 2021 and December 31, 2020, respectively (in thousands): September 30, 2021 December 31, 2020 Land $ 275,419 $ 288,514 Buildings and improvements 1,018,850 1,019,329 Tenant origination and absorption costs 44,527 50,881 Total real estate, cost 1,338,796 1,358,724 Accumulated depreciation and amortization (119,265) (85,940) Total real estate, net $ 1,219,531 $ 1,272,784 |
Schedule of Future Minimum Rental Income for Company's Properties | As of September 30, 2021, the future minimum rental income from the Company’s properties, excluding apartment leases and single-family homes, under non-cancelable operating leases was as follows (in thousands): October 1, 2021 through December 31, 2021 $ 16,095 2022 61,448 2023 53,140 2024 45,750 2025 35,726 Thereafter 86,512 $ 298,671 |
Schedule of Real Estate by Industry | The Company’s highest tenant industry concentrations (greater than 10% of annualized base rent) were as follows: Industry Number of Tenants Annualized Base Rent (1) (in thousands) Percentage of Computer Systems Design 30 $ 7,080 10.9 % Professional, Scientific, and Technical Services 42 7,078 10.9 % Public Administration 11 6,959 10.7 % Insurance Carriers and Related Activities 16 6,801 10.5 % Health Care and Social Assistance 25 6,799 10.5 % $ 34,717 53.5 % |
Schedule of Hotel Revenue and Expense | The following table provides detailed information regarding the Company’s hotel revenues and expenses for its two hotel properties during the three and nine months ended September 30, 2021 (in thousands): Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Hotel revenues: Room $ 9,396 $ 18,508 Food, beverage and convention services 1,452 2,830 Campground 280 792 Other 1,025 2,448 Hotel revenues $ 12,153 $ 24,578 Hotel expenses: Room $ 1,681 $ 3,992 Food, beverage and convention services 946 2,063 General and administrative 752 1,955 Sales and marketing 1,018 2,230 Repairs and maintenance 557 1,551 Utilities 333 824 Property taxes and insurance 566 1,600 Other 630 1,500 Hotel expenses $ 6,483 $ 15,715 |
Schedule of Contract Liability | The following table summarizes the Company’s contract liabilities, which are comprised of hotel advanced deposits and deferred proceeds received from the buyers of the Park Highlands land sales (discussed below) and another developer for the value of land that was contributed to a master association that is consolidated by the Company, which are included in other liabilities in the accompanying consolidated balance sheets, as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Contract liability $ 6,551 $ 3,369 Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ 142 $ — |
TENANT ORIGINATION AND ABSORP_2
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020, 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 September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Cost $ 44,527 $ 50,881 $ 4,138 $ 4,159 $ (6,718) $ (7,679) Accumulated Amortization (19,107) (13,491) (1,403) (1,002) 2,282 1,882 Net Amount $ 25,420 $ 37,390 $ 2,735 $ 3,157 $ (4,436) $ (5,797) |
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 nine months ended September 30, 2021 and 2020 were as follows (in thousands): Tenant Origination and Above-Market Below-Market For the Three Months Ended September 30, For the Three Months Ended September 30, For the Three Months Ended September 30, 2021 2020 2021 2020 2021 2020 Amortization $ (3,253) $ (1,625) $ (94) $ (74) $ 388 $ 194 Tenant Origination and Above-Market Below-Market For the Nine Months Ended September 30, For the Nine Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 2021 2020 Amortization $ (12,397) $ (4,965) $ (421) $ (241) $ 1,436 $ 676 |
REAL ESTATE EQUITY SECURITIES (
REAL ESTATE EQUITY SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Real Estate Equity Securities | The following table sets forth the number of shares owned by the Company and the related carrying value of the shares as of September 30, 2021 and December 31, 2020 (dollars in thousands): September 30, 2021 December 31, 2020 Real Estate Equity Security Number of Shares Owned Total Carrying Value Number of Shares Owned Total Carrying Value Keppel Pacific Oak US REIT 64,165,352 $ 50,370 64,165,352 $ 44,274 Franklin Street Properties Corp. 6,915,089 32,086 6,915,089 30,219 Plymouth Industrial REIT, Inc. 613,085 13,947 1,560,660 23,410 71,693,526 $ 96,403 72,641,101 $ 97,903 |
Gain (Loss) on Investments | The following summarizes the portion of gain and loss for the period related to real estate equity securities held during the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net (loss) gain recognized during the period on real estate equity securities $ (2,614) $ (6,527) $ 12,939 $ (21,620) Less net gain recognized during the period on real estate equity securities sold during the period — — (225) (711) Unrealized (loss) gain recognized during the reporting period on real estate equity securities held at the end of the period $ (2,614) $ (6,527) $ 12,714 $ (22,331) |
REAL ESTATE HELD FOR SALE (Tabl
REAL ESTATE HELD FOR SALE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Assets and Liabilities of Real Estate Held-for-Sale | The following summary presents the major components of assets and liabilities related to real estate held for sale as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Assets related to real estate held for sale Real estate, cost $ — $ 158,711 Accumulated depreciation and amortization — (18,472) Real estate, net — 140,239 Other assets — 5,680 Total assets related to real estate held for sale $ — $ 145,919 Liabilities related to real estate held for sale Note payable, net — 94,097 Other liabilities — 669 Total liabilities related to real estate held for sale $ — $ 94,766 |
Schedule of Revenue and Expenses of Real Estate Held-for-Sale | The following table summarizes certain revenue and expenses related to these properties for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenues Rental income $ 1,085 $ 3,318 $ 8,660 $ 9,998 Other operating income 51 265 520 792 Total revenues $ 1,136 $ 3,583 $ 9,180 $ 10,790 Expenses Operating, maintenance, and management $ 363 $ 1,004 $ 2,096 $ 2,855 Real estate taxes and insurance 95 389 979 1,258 Asset management fees to affiliate 194 305 807 907 Depreciation and amortization 14 1,769 2,436 5,342 Interest expense 152 518 1,146 1,953 Total expenses $ 818 $ 3,985 $ 7,464 $ 12,315 |
NOTES AND BONDS PAYABLE (Tables
NOTES AND BONDS PAYABLE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes and Bonds Payable [Abstract] | |
Schedule of Long-term Debt Instruments | As of September 30, 2021 and December 31, 2020, the Company’s notes and bonds payable, including notes payable related to real estate held for sale, consisted of the following (dollars in thousands): Book Value as of Book Value as of Contractual Interest Rate as of September 30, 2021 Effective Interest Rate at September 30, 2021 (1) Payment Type (2) Maturity Date (3) Richardson Portfolio Mortgage Loan $ 28,685 $ 35,832 One-Month LIBOR + 2.50% 2.58% Principal & Interest 11/01/2021 (4) Park Centre Mortgage Loan 26,185 26,185 One-Month LIBOR + 1.75% 1.83% Interest Only 06/27/2022 1180 Raymond Mortgage Loan (5) 29,548 29,848 One-Month LIBOR + 2.50% (6) 3.50% Principal & Interest 12/01/2021 1180 Raymond Bond Payable 5,705 5,870 6.50% 6.50% Principal & Interest 09/01/2036 Pacific Oak SOR (BVI) Holdings, Ltd. Series A Debentures (7) 197,901 181,198 4.25% 4.25% (7) 03/01/2023 Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures (7) 78,794 79,078 3.93% 3.93% (7) 01/31/2026 Crown Pointe Mortgage Loan (5) 52,508 53,072 One-Month LIBOR + 2.60% 2.70% Principal & Interest 02/13/2022 City Tower Mortgage Loan — 94,167 (8) (8) (8) (8) The Marq Mortgage Loan 62,066 62,257 One-Month LIBOR + 1.55% 1.63% Interest Only 06/06/2022 Eight & Nine Corporate Centre Mortgage Loan 48,695 47,066 One-Month LIBOR + 1.60% 1.68% Principal & Interest 06/08/2022 Georgia 400 Center Mortgage Loan 61,154 59,690 One-Month LIBOR + 1.55% 1.63% Interest Only 05/22/2023 PORT Mortgage Loan 1 51,302 51,362 4.74% 4.74% Interest Only 10/01/2025 PORT Mortgage Loan 2 10,523 10,523 4.72% 4.72% Interest Only 03/01/2026 PORT Mortgage Loan 3 (9) — 12,000 (9) (8) (8) (8) Battery Point Trust Mortgage Loan (9) — 38,608 (8) (8) (8) (8) MetLife Loan (9) 60,000 — 3.90% 3.90% Interest Only 04/10/2026 Springmaid Beach Resort Mortgage Loan 55,839 57,015 One-month LIBOR + 2.25% (10) 5.75% Principal & Interest 08/12/2022 Q&C Hotel Mortgage Loan 25,000 25,000 One-month LIBOR + 2.50% (11) 4.50% Principal & Interest 12/23/2022 Lincoln Court Mortgage Loan (5) 34,723 34,416 One-month LIBOR + 1.75% 1.83% Principal & Interest 12/01/2021 Lofts at NoHo Commons Mortgage Loan 74,536 74,536 One-month LIBOR + 2.18% (12) 3.93% Interest Only 09/09/2022 210 West 31st Street Mortgage Loan (5) 10,275 15,050 One-month LIBOR + 3.00% 3.08% Principal & Interest 06/16/2022 Oakland City Center Mortgage Loan 96,404 96,782 One-month LIBOR + 1.75% 1.83% Principal & Interest 09/01/2022 Madison Square Mortgage Loan (13) 20,891 16,822 One-month LIBOR + 4.05% 5.05% Interest Only 10/09/2021 Total Notes and Bonds Payable principal outstanding 1,030,734 1,106,377 Discount on Notes and Bonds Payable, net (14) (2,249) (2,851) Deferred financing costs, net (4,707) (4,458) Total Notes and Bonds Payable, net $ 1,023,778 $ 1,099,068 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of September 30, 2021. Effective interest rate is calculated as the actual interest rate in effect as of September 30, 2021 (consisting of the contractual interest rate and contractual floor rates), using interest rate indices at September 30, 2021, where applicable. (2) Represents the payment type required under the loan as of September 30, 2021. Certain future monthly payments due under this loan also include amortizing principal payments. For more information of the Company’s contractual obligations under its notes and bonds payable, see five-year maturity table below. (3) Represents the initial maturity date or the maturity date as extended as of September 30, 2021; subject to certain conditions, the maturity dates of certain loans may be extended beyond the date shown. (4) Subsequent to September 30, 2021, the Company extended the maturity of the Richardson Portfolio Mortgage Loan to November 1, 2022. (5) The Company’s notes and bond’s payable are generally non-recourse. These mortgage loans have guarantees over certain balances whereby the Company would be required to make guaranteed payments in the event that the Company turned the property over to the lender. The guarantees are typically 25% of the outstanding loan balance. As of September 30, 2021, the guaranteed amount in the aggregate was $39.5 million. (6) This mortgage loan has a LIBOR floor of 1%. (7) See “ – Israeli Bond Financings” below. (8) On July 27, 2021, in connection with the disposition of City Tower, the Company repaid the $98.1 million outstanding principal balance due under the City Tower Mortgage Loan. (9) On April 6, 2021, the Company refinanced the PORT Mortgage Loan 3 and the Battery Point Trust Mortgage Loan with a mortgage loan from MetLife for borrowings up to $60.0 million. (10) The interest rate is variable at the higher of one-month LIBOR + 2.25% or 5.77%. (11) The interest rate is variable at the higher of one-month LIBOR + 2.5% or 4.5%. Principal payments will commence on January 1, 2022. (12) The LIBOR rate is variable at the higher of one-month LIBOR or 1.75%. (13) On October 7, 2021, the Company refinanced the Madison Square Mortgage Loan with a mortgage loan from an unaffiliated lender for borrowings up to $27.0 million. The new loan matures on October 7, 2024 and has a fixed interest rate of 4.625%. See Note 17, “Subsequent Events” for a further discussion. (14) Represents the unamortized premium/discount on notes and bonds payable due to the above- and below-market interest rates when the debt was assumed. The discount/premium is amortized over the remaining life of the notes and bonds payable. |
Schedule of Maturities of Long-term Debt | The following is a schedule of maturities, including principal amortization payments, for all notes and bonds payable outstanding as of September 30, 2021 (in thousands): October 1, 2021 through December 31, 2021 $ 116,538 2022 548,061 2023 160,359 2024 26,535 2025 77,858 Thereafter 101,383 $ 1,030,734 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The following table summarizes the notional amount and other information related to the Company’s foreign currency collars as of September 30, 2021 and December 31, 2020. 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 (currency in thousands): September 30, 2021 December 31, 2020 Strike Price Trade Date Maturity Date Derivative Instruments Number of Instruments Notional Amount Number of Instruments Notional Amount Derivative instruments not designated as hedging instruments Foreign currency collar 1 194,045 ILS — — 3.16 - 3.29 ILS - USD 06/14/2021 11/22/2021 Derivative Instrument Effective Date Maturity Date Notional Value Reference Rate Interest rate cap 10/15/2020 10/15/2021 $ 26,200 One-month LIBOR at 3.00% Interest rate cap 02/12/2021 02/14/2022 $ 47,715 One-month LIBOR at 3.00% Interest rate cap 09/15/2021 09/15/2022 $ 75,950 One-month LIBOR at 3.50% Interest rate cap 06/21/2019 05/22/2023 $ 51,252 One-month LIBOR at 4.00% |
Schedule of Derivative Instruments in Statement of Financial Position | 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 September 30, 2021 and December 31, 2020 (dollars in thousands): September 30, 2021 December 31, 2020 Derivative Instruments Balance Sheet Location Number of Instruments Fair Value Number of Instruments Fair Value Derivative instruments not designated as hedging instruments Interest rate caps Prepaid expenses and other assets 4 $ 2 7 $ 1 Foreign currency collar Other liabilities 1 $ (44) — $ — |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 financial instruments as of September 30, 2021 and December 31, 2020, which carrying amounts do not approximate the fair values (in thousands): September 30, 2021 December 31, 2020 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities (Level 3): Notes and bond payable $ 754,039 $ 751,064 $ 752,417 $ 846,101 $ 842,112 $ 846,608 Financial liabilities (Level 1): Pacific Oak SOR (BVI) Holdings, Ltd. Series A Debentures $ 197,901 $ 195,428 $ 197,437 $ 181,198 $ 179,786 $ 178,450 Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures $ 78,794 $ 77,286 $ 76,899 $ 79,078 $ 77,170 $ 69,433 |
Fair Value, Assets Measured on Recurring Basis | As of September 30, 2021, the Company measured the following assets at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Recurring Basis: Real estate equity securities $ 96,403 $ 96,403 $ — $ — Asset derivative - interest rate caps $ 2 $ — $ 2 $ — Liability derivative - foreign currency collar $ (44) $ — $ (44) $ — As of December 31, 2020, the Company measured the following assets and liabilities at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recurring Basis: Real estate equity securities $ 96,403 $ 96,403 $ — $ — Asset derivative - interest rate caps $ 2 $ — $ 2 $ — As of September 30, 2021, the Company measured the following assets at fair value on a nonrecurring basis (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Nonrecurring Basis: Impaired real estate $ 97,600 $ — $ — $ 97,600 Impaired goodwill $ 13,534 $ — $ — $ 13,534 |
Schedule of Goodwill | Balance as of December 31, 2020 $ 16,342 Impairment loss (2,808) Balance as of September 30, 2021 $ 13,534 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 and 2020, respectively, and any related amounts payable as of September 30, 2021 and December 31, 2020 (in thousands): Incurred Payable as of Three Months Ended September 30, Nine Months Ended September 30, September 30, 2021 December 31, 2020 Expensed 2021 2020 2021 2020 Asset management fees $ 3,422 $ 2,426 $ 10,802 $ 6,867 $ 2,132 $ 2,837 Property management fees (1) 119 114 362 114 — — Reimbursable operating expenses (2) — 56 — 148 — — Disposition fees (3) 692 — 1,196 — — — Change in subordinated performance fee due upon termination to affiliate (4) 1,545 (1,121) 1,745 (814) (3) (3) Capitalized Acquisition fees on real estate equity securities — — — 122 — 5 Acquisition fees on real estate (5) — — 20 171 20 — Acquisition fee on investment in unconsolidated entities — — 45 — — — $ 5,778 $ 1,475 $ 14,170 $ 6,608 $ 2,152 $ 2,842 _____________________ (1) Property management fees are for single-family homes under PORT and paid to DayMark. These fees are included in the line item “Operating, maintenance, and management cost” in the consolidated statement of operations. (2) The Advisor may seek reimbursement for certain employee costs under the Advisory Agreement. The Company will not reimburse for employee costs in connection with services for which the Advisor earns acquisition, origination or disposition fees (other than reimbursement of travel and communication expenses) or for the salaries or benefits the Advisor or its affiliates may pay to the Company’s executive officers. In addition to the amounts above, the Company reimburses the Advisor for certain of the Company’s direct costs incurred from third parties that were initially paid by the Advisor on behalf of the Company. (3) Disposition fees with respect to real estate sold are included in the gain on sale of real estate in the accompanying consolidated statements of operations. (4) Change in the fair value of the Restricted Stock related to the termination of the former advisory agreement with KBS Capital Advisors. See “Subordinated Performance Fee Due Upon Termination to KBS Capital Advisors”, below, for more details. (5) Acquisition fees associated with asset acquisitions are capitalized, while costs associated with business combinations expensed as incurred. |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments in Unconsolidated Joint Ventures | As of September 30, 2021 and December 31, 2020, the Company’s investments in unconsolidated entities were composed of the following (dollars in thousands): Number of Properties as of September 30, 2021 Investment Balance at Joint Venture Location Ownership % September 30, 2021 December 31, 2020 110 William Joint Venture 1 New York, New York 60.0% $ — — 353 Sacramento Joint Venture 1 San Francisco, California 55.0% 50,769 49,665 Pacific Oak Opportunity Zone Fund I 3 Various N/A 27,638 24,996 PORT II OP LP 117 Various 89.7% 5,447 5,005 $ 83,854 $ 79,666 Summarized financial information for the 110 William Joint Venture follows (in thousands): September 30, 2021 December 31, 2020 Assets: Real estate assets, net of accumulated depreciation and amortization $ 232,201 $ 246,166 Other assets 34,200 44,004 Total assets $ 266,401 $ 290,170 Liabilities and equity: Notes payable, net $ 318,280 $ 316,421 Other liabilities 3,003 5,532 Partners’ deficit (54,882) (31,783) Total liabilities and equity $ 266,401 $ 290,170 Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenues $ 5,729 $ 10,005 $ 18,721 $ 26,604 Expenses: Operating, maintenance, and management 2,359 2,096 6,212 5,994 Real estate taxes and insurance 1,698 1,935 5,588 5,580 Depreciation and amortization 2,962 3,139 19,071 8,721 Interest expense 3,548 4,125 10,986 12,093 Total expenses 10,567 11,295 41,857 32,388 Total other income 11 12 35 50 Net loss $ (4,827) $ (1,278) $ (23,101) $ (5,734) Company’s share of net loss (1) $ (2,896) $ (767) $ (13,861) $ (3,440) _____________________ (1) The Company suspended the equity method of accounting and did not record the Company's share of losses for both of the three and nine months ended September 30, 2021 and 2020. Summarized financial information for the 353 Sacramento Joint Venture follows (in thousands): September 30, 2021 December 31, 2020 Assets: Real estate assets, net of accumulated depreciation and amortization $ 178,874 $ 182,318 Other assets 27,539 19,810 Total assets $ 206,413 $ 202,128 Liabilities and equity: Notes payable, net $ 110,000 $ 109,783 Other liabilities 6,335 7,639 Partners’ capital 90,078 84,706 Total liabilities and equity $ 206,413 $ 202,128 Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenues $ 3,373 $ 5,520 $ 13,252 $ 15,771 Expenses: Operating, maintenance, and management 862 932 2,490 2,450 Real estate taxes and insurance 848 755 2,768 2,235 Depreciation and amortization 1,850 1,894 5,574 5,135 Interest expense 960 948 2,700 3,290 Total expenses 4,520 4,529 13,532 13,110 Net income $ (1,147) $ 991 (280) $ 2,661 Company’s equity in (loss) income of unconsolidated joint venture $ (592) $ 583 $ (40) $ 1,576 |
SUPPLEMENTAL CASH FLOW AND SI_2
SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow and Significant Noncash Transaction Disclosures [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow and significant noncash transaction disclosures were as follows (in thousands): Nine Months Ended September 30, 2021 2020 Supplemental Disclosure of Cash Flow Information: Interest paid, net of capitalized interest of $1,579 and $2,368 for the nine months ended September 30, 2021 and 2020, respectively $ 29,220 $ 18,945 Supplemental Disclosure of Significant Noncash Transactions: Accrued improvements to real estate 1,721 2,393 Redeemable common stock payable 3,385 262 Distributions paid to common stockholders through common stock issuances pursuant to the dividend reinvestment plan — 262 Accrued preferred dividends 225 226 PPP notes forgiveness 1,500 — Assets and liabilities assumed in connection with Battery Point acquisition: Real estate — 56,148 Notes payable — 36,003 Other assets — 21 Other liabilities — 355 Redeemable non-controlling interest — 3,024 Series A-3 preferred units payable — 16,000 |
REPORTING SEGMENTS (Tables)
REPORTING SEGMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The selected financial information for reporting segments for the three and nine months ended September 30, 2021 and 2020 are as follows (in thousands): Three Months Ended September 30, 2021 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 28,050 $ 5,566 $ 12,153 $ 45,769 Total expenses (52,891) (6,398) (8,948) (68,237) Total other (loss) income (4,435) 81 1,276 (3,078) Net (loss) income $ (29,276) $ (751) $ 4,481 $ (25,546) Nine Months Ended September 30, 2021 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 88,187 $ 16,436 $ 24,578 $ 129,201 Total expenses (128,418) (19,581) (22,924) (170,923) Total other income 42,527 159 1,289 43,975 Net income (loss) $ 2,296 $ (2,986) $ 2,943 $ 2,253 Three Months Ended September 30, 2020 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 22,548 $ 5,197 $ — $ 27,745 Total expenses (26,285) (5,969) — (32,254) Total other (loss) income (2,863) 4 — (2,859) Net loss $ (6,600) $ (768) $ — $ (7,368) Nine Months Ended September 30, 2020 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 64,752 $ 11,117 $ — $ 75,869 Total expenses (66,928) (13,203) — (80,131) Total other (loss) income (16,939) 54 — (16,885) Net loss $ (19,115) $ (2,032) $ — $ (21,147) Total assets and goodwill related to the reporting segments as of September 30, 2021 and December 31, 2020 are as follows (in thousands): September 30, 2021 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total assets $ 1,274,093 $ 202,349 $ 152,686 $ 1,629,128 Goodwill (1) 9,489 — 4,045 13,534 December 31, 2020 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total assets $ 1,404,509 $ 182,486 $ 144,670 $ 1,731,665 Goodwill 12,297 — 4,045 16,342 _____________________ (1) During the three and nine months ended September 30, 2021, the Company recorded impairment charges on goodwill of $2.8 million related to the Strategic Opportunistic Properties segment. |
PORT MEZZANINE EQUITY (Tables)
PORT MEZZANINE EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following is a reconciliation of PORT’s noncontrolling cumulative convertible redeemable preferred stock for the nine months ended September 30, 2021 and 2020 (dollars in thousands): Series A Preferred Stock Series B Preferred Stock Shares Amounts Shares Amounts Balance, December 31, 2020 15,000 15,134 125 $ 99 Dividends Available Upon Redemption — 636 — 8 Dividends Paid — (636) — (8) Balance, September 30, 2021 15,000 $ 15,134 125 $ 99 Series A Preferred Stock Series B Preferred Stock Shares Amounts Shares Amounts Balance, December 31, 2019 15,000 $ 14,909 125 $ 99 Dividends Available Upon Redemption — 781 — 7 Dividends Paid — (556) — (7) Balance, September 30, 2020 15,000 $ 15,134 125 $ 99 |
Schedule of Redeemable Non-controlling Interest Activities | The following table summarizes the redeemable non-controlling interest activity related to the PORT OP equity units held by BPT Holdings for the nine months ended September 30, 2021 (in thousands): December 31, 2020 $ 2,968 Net loss attributable to redeemable noncontrolling interest (113) September 30, 2021 $ 2,855 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease Cost | As of September 30, 2021, the Company’s lease and rights to a leasehold interest with respect to 210 West 31st Street, an office/retail building in New York, NY, which was accounted for as a finance lease, are included in the consolidated balance sheet as follows: Right-of-use asset (included in real estate held for investment, net) (1) $ 8,074 Lease obligation (included in other liabilities) 9,339 Remaining lease term 92.5 Discount rate 4.8 % The components of lease expense were as follows: Interest on lease obligation for the nine months ended September 30, 2021 441 _____________________ (1) During the three and nine months ended September 30, 2021, the Company wrote down its right-of-use asset and recorded an impairment charge of $1.2 million on 210 West 31st Street. |
Schedule of Finance Lease, Liability, Fiscal Year Maturity | As of September 30, 2021, the Company had a leasehold interest expiring on 2114. Future minimum lease payments owed by the Company under the finance lease as of September 30, 2021 are as follows (in thousands): October 1, 2021 through December 31, 2021 $ 90 2022 360 2023 360 2024 360 2025 393 Thereafter 52,563 Total expected minimum lease obligations 54,126 Less: Amount representing interest (1) (44,787) Present value of net minimum lease payments (2) $ 9,339 _____________________ (1) Interest includes the amount necessary to reduce the total expected minimum lease obligations to present value calculated at the Company’s incremental borrowing rate at acquisition. (2) The present value of net minimum lease payments are presented in other liabilities in the accompanying consolidated balance sheets. |
ORGANIZATION (Details)
ORGANIZATION (Details) | Sep. 01, 2021USD ($)shares | Mar. 04, 2021USD ($) | Mar. 04, 2021ILS (₪) | Oct. 05, 2020$ / sharesshares | Mar. 27, 2020shares | Feb. 16, 2020USD ($) | Jan. 22, 2020USD ($) | Nov. 01, 2019 | Mar. 08, 2016ILS (₪) | Mar. 08, 2016USD ($) | Mar. 08, 2016ILS (₪) | Mar. 07, 2016ILS (₪) | Mar. 01, 2016ILS (₪) | Sep. 30, 2021USD ($)apropertyinvestmentportfoliounit$ / sharesshares | Sep. 30, 2020USD ($)shares | Sep. 30, 2021USD ($)apropertyinvestmentportfoliounit$ / sharesshares | Sep. 30, 2020USD ($)shares | Nov. 14, 2012USD ($)shares | Sep. 30, 2021USD ($)apropertyinvestmentportfoliounit$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Feb. 19, 2020USD ($)propertyinstrumentinvestment | Feb. 16, 2020ILS (₪) | Mar. 02, 2016ILS (₪) | Dec. 18, 2015shares | Oct. 23, 2012USD ($)shares | Dec. 29, 2011USD ($)shares | Jan. 08, 2009shares |
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||||||||||||||||||||
Common stock, shares issued (in shares) | 94,264,402 | 94,264,402 | 94,264,402 | 98,054,582 | 55,249 | 220,994 | |||||||||||||||||||||
Period of termination of advisory agreement without cause or penalty | 60 days | ||||||||||||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||||||||
Issuance of common stock | $ | $ 262,000 | $ 561,700,000 | |||||||||||||||||||||||||
Shares of common stock sold under dividend reinvestment plan, value | $ | $ 76,500,000 | ||||||||||||||||||||||||||
Redemptions of common stock | $ | $ 28,117,000 | $ 6,000 | $ 29,552,000 | 830,000 | 317,300,000 | ||||||||||||||||||||||
Common stock, value, issued | $ | $ 942,000 | $ 942,000 | $ 942,000 | $ 979,000 | $ 500,000 | $ 2,000,000 | |||||||||||||||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Number of investments in unconsolidated joint venture | investment | 4 | 4 | 4 | ||||||||||||||||||||||||
Number of investments in equity securities | investment | 3 | 3 | 3 | ||||||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||||||
Conversion of stock, shares issued (in shares) | 28,973,905 | ||||||||||||||||||||||||||
Real estate loans acquired | $ | $ 0 | $ 56,148,000 | $ 0 | $ 56,148,000 | $ 0 | ||||||||||||||||||||||
POSOR II | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Number of investments in unconsolidated joint venture | instrument | 2 | ||||||||||||||||||||||||||
Number of investments in equity securities | investment | 2 | ||||||||||||||||||||||||||
Number of investments in consolidated joint venture | instrument | 1 | ||||||||||||||||||||||||||
Real estate loans acquired | $ | $ 331,800,000 | ||||||||||||||||||||||||||
Office Properties | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Number of real estate properties consolidated | property | 8 | 8 | 8 | ||||||||||||||||||||||||
Number of real estate properties | property | 8 | 8 | 8 | ||||||||||||||||||||||||
Office Properties | POSOR II | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Number of real estate properties consolidated | property | 3 | ||||||||||||||||||||||||||
Office Portfolio | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Number of real estate properties consolidated | portfolio | 1 | 1 | 1 | ||||||||||||||||||||||||
Office Buildings, Portfolio | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Number of real estate properties consolidated | property | 4 | 4 | 4 | ||||||||||||||||||||||||
Undeveloped Land, Portfolio | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Real estate area of undeveloped land | a | 14 | 14 | 14 | ||||||||||||||||||||||||
Apartment Property | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Number of real estate properties consolidated | property | 2 | 2 | 2 | ||||||||||||||||||||||||
Apartment Property | POSOR II | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Number of real estate properties consolidated | property | 1 | ||||||||||||||||||||||||||
Undeveloped Land | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Real estate area of undeveloped land | a | 800 | 800 | 800 | ||||||||||||||||||||||||
Number of investments in real estate | investment | 3 | 3 | 3 | ||||||||||||||||||||||||
Residential Home Portfolio | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Number of real estate properties | portfolio | 1 | 1 | 1 | ||||||||||||||||||||||||
Number of units in real estate property | unit | 1,806 | 1,806 | 1,806 | ||||||||||||||||||||||||
Hotel | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Number of real estate properties | property | 2 | 2 | 2 | ||||||||||||||||||||||||
Hotel | POSOR II | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Number of real estate properties | property | 2 | ||||||||||||||||||||||||||
Office/ Retail Property | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Number of real estate properties | property | 1 | 1 | 1 | ||||||||||||||||||||||||
Office/ Retail Property | POSOR II | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Number of real estate properties | property | 1 | ||||||||||||||||||||||||||
Series A Debentures | Bonds Payable | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Maximum borrowing capacity | ₪ | ₪ 250,000,000 | ₪ 1,000,000,000 | |||||||||||||||||||||||||
Contractual interest rate, percentage | 4.25% | ||||||||||||||||||||||||||
Proceeds from issuance of debt | $ 74,200,000 | ₪ 245,300,000 | ₪ 970,200,000 | $ 249,200,000 | ₪ 970,200,000 | ₪ 127,700,000 | ₪ 842,500,000 | ||||||||||||||||||||
Contractual Interest Rate | 4.25% | ||||||||||||||||||||||||||
Series B Debentures | Bonds Payable | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Maximum borrowing capacity | $ 74,100,000 | ₪ 254,100,000 | |||||||||||||||||||||||||
Contractual interest rate, percentage | 3.93% | 3.93% | |||||||||||||||||||||||||
Contractual Interest Rate | 3.93% | 3.93% | |||||||||||||||||||||||||
Principal of installment payments as percent of face amount | 33.33% | ||||||||||||||||||||||||||
Percent of discount at issuance | 1.90% | ||||||||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Number of shares purchased (in shares) | 584,267 | ||||||||||||||||||||||||||
Stock repurchased during period | $ | $ 5,655,705 | ||||||||||||||||||||||||||
Special Dividends | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Common stock, shares issued (in shares) | 25,976,746 | 25,976,746 | 25,976,746 | ||||||||||||||||||||||||
Maximum | Series A Debentures | Bonds Payable | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Contractual interest rate, percentage | 4.25% | ||||||||||||||||||||||||||
Contractual Interest Rate | 4.25% | ||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Shares registered in primary offering (in shares) | 100,000,000 | ||||||||||||||||||||||||||
Shares registered for sale under dividend reinvestment plan (in shares) | 40,000,000 | ||||||||||||||||||||||||||
Issuance of common stock (in shares) | 24,645 | 56,584,976 | |||||||||||||||||||||||||
Shares of common stock sold under dividend reinvestment plan, (in shares) | 6,851,969 | ||||||||||||||||||||||||||
Redemptions of common stock (in shares) | 3,641,866 | 601 | 3,790,180 | 78,131 | 27,247,458 | ||||||||||||||||||||||
Redemptions of common stock | $ | $ 37,000 | $ 37,000 | |||||||||||||||||||||||||
Common Stock | Minimum | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Stock offering, shares authorized for issuance (in shares) | 250,000 | ||||||||||||||||||||||||||
Common Stock | Maximum | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Stock offering, shares authorized for issuance (in shares) | 140,000,000 | ||||||||||||||||||||||||||
Stock offering, shares authorized for issuance | $ | $ 1,000,000,000 | ||||||||||||||||||||||||||
POSOR II | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Merger, common stock conversion ratio | 96.43% | ||||||||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||||||||||||||||||||||
KBS Capital Advisors LLC | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Preferred stock, shares issued (in shares) | 3,411,737 | ||||||||||||||||||||||||||
KBS Capital Advisors LLC | Restricted Stock | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Issuance of common stock (in shares) | 3,411,737 | ||||||||||||||||||||||||||
Operating Partnership | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Partnership interest in Operating Partnership | 0.10% | ||||||||||||||||||||||||||
Partnership interest in the Operating Partnership and is its sole limited partner | 99.90% | ||||||||||||||||||||||||||
Pacific Oak Strategic Opportunity BVI | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Common stock, shares authorized (in shares) | 50,000 | ||||||||||||||||||||||||||
Pacific Oak Strategic Opportunity BVI | Operating Partnership | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Common stock, shares issued (in shares) | 10,000 | ||||||||||||||||||||||||||
GKP Holding LLC | Restricted Stock | |||||||||||||||||||||||||||
Organizational Structure [Line Items] | |||||||||||||||||||||||||||
Number of shares transferred (in shares) | 2,254,289 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Redeemable Common Stock and Reclassification (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 142 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | |
Summary of Significant Accounting Policies [Line Items] | ||||||
Redemptions of common stock | $ 28,117 | $ 6 | $ 29,552 | $ 830 | $ 317,300 | |
Number of shares non-redeemable due to limitation (in shares) | 13,913,664 | |||||
Other liabilities | 43,994 | $ 43,994 | 43,994 | $ 34,734 | ||
Remaining authorized repurchase amount | 3,200 | 3,200 | 3,200 | |||
Unfulfilled Redemption Request | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Other liabilities | 3,400 | 3,400 | $ 3,400 | $ 900 | ||
Common Stock | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Redemptions of common stock | $ 37 | 37 | ||||
Number of shares non-redeemable due to limitation | 128,000 | |||||
Common Stock | Share Redemption Program | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Redemptions of common stock | $ 29,600 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2021USD ($)propertysegment$ / shares | Sep. 30, 2020$ / shares | Mar. 31, 2020$ / shares | Sep. 30, 2021USD ($)property | Sep. 30, 2021USD ($)propertysegment | Sep. 30, 2021USD ($)marketproperty | Sep. 30, 2021USD ($)property$ / shares | Sep. 30, 2020$ / shares | Nov. 12, 2021USD ($) | |
Segment Reporting Information [Line Items] | |||||||||
Distributions declared per common share (in dollars per share) | $ / shares | $ 0 | $ 0 | $ 0.0086 | $ 0 | $ 0 | ||||
Debt obligations, next twelve months | $ | $ 548,061 | $ 548,061 | $ 548,061 | $ 548,061 | $ 548,061 | ||||
Number of reportable segments | 3 | 3 | 3 | ||||||
Disposed of by Sale | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Number of real estate properties disposed | 0 | ||||||||
Office Properties | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Number of real estate properties | 8 | 8 | 8 | 8 | 8 | ||||
Office Properties | Disposed of by Sale | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Number of real estate properties disposed | 1 | ||||||||
Hotel | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Number of real estate properties | 2 | 2 | 2 | 2 | 2 | ||||
Subsequent Event | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Debt obligations, next twelve months | $ | $ 518,000 | ||||||||
Mortgages | Minimum | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Long-term debt, term | 3 years | 3 years | 3 years | 3 years | 3 years | ||||
Mortgages | Maximum | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Long-term debt, term | 5 years | 5 years | 5 years | 5 years | 5 years | ||||
Single-Family Homes | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Number of reportable segments | segment | 1 | ||||||||
Single family home markets | market | 17 | ||||||||
Hotels | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Number of reportable segments | segment | 1 |
REAL ESTATE HELD FOR INVESTME_3
REAL ESTATE HELD FOR INVESTMENT - Additional Information (Details) ft² in Millions | Sep. 30, 2021aft²propertyportfolioinvestmentunitroom |
Real Estate Properties [Line Items] | |
Percentage of portfolio occupied | 73.00% |
Office Properties | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 8 |
Number of real estate properties consolidated | 8 |
Office Portfolio | |
Real Estate Properties [Line Items] | |
Number of real estate properties consolidated | portfolio | 1 |
Office Buildings, Portfolio | |
Real Estate Properties [Line Items] | |
Number of real estate properties consolidated | 4 |
Undeveloped Land, Portfolio | |
Real Estate Properties [Line Items] | |
Real estate area of undeveloped land | a | 14 |
Rentable square feet | ft² | 3.3 |
Residential Home Portfolio | |
Real Estate Properties [Line Items] | |
Number of real estate properties | portfolio | 1 |
Rentable square feet | ft² | 2.5 |
Percentage of portfolio occupied | 94.00% |
Number of units in real estate property | unit | 1,806 |
Apartment Property | |
Real Estate Properties [Line Items] | |
Number of real estate properties consolidated | 2 |
Apartment Building | |
Real Estate Properties [Line Items] | |
Rentable square feet | ft² | 0.5 |
Percentage of portfolio occupied | 96.00% |
Number of units in real estate property | unit | 609 |
Hotel | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 2 |
Number of rooms | room | 649 |
Undeveloped Land | |
Real Estate Properties [Line Items] | |
Real estate area of undeveloped land | a | 800 |
Number of investments in real estate | investment | 3 |
Office/ Retail Property | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 1 |
REAL ESTATE HELD FOR INVESTME_4
REAL ESTATE HELD FOR INVESTMENT - Schedule of Real Estate Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Real Estate Properties [Line Items] | ||
Total real estate, cost | $ 1,338,796 | $ 1,358,724 |
Accumulated depreciation and amortization | (119,265) | (85,940) |
Total real estate, net | 1,219,531 | 1,272,784 |
Land | ||
Real Estate Properties [Line Items] | ||
Total real estate, cost | 275,419 | 288,514 |
Buildings and improvements | ||
Real Estate Properties [Line Items] | ||
Total real estate, cost | 1,018,850 | 1,019,329 |
Tenant origination and absorption costs | ||
Real Estate Properties [Line Items] | ||
Total real estate, cost | $ 44,527 | $ 50,881 |
REAL ESTATE HELD FOR INVESTME_5
REAL ESTATE HELD FOR INVESTMENT - Operating Leases, Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)tenant | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)tenant | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Operating Leased Assets [Line Items] | |||||
Recognition of deferred revenue, net of discontinued operations | $ 400 | $ 900 | $ 1,500 | $ 2,600 | |
Deferred rent receivables | 15,700 | 15,700 | $ 15,500 | ||
Incentive to lessee | $ 3,100 | $ 3,100 | 4,200 | ||
Number of tenants | tenant | 300 | 300 | |||
Adjustments to rental income | $ 800 | $ 400 | $ 2,500 | $ 1,100 | |
Other liabilities | |||||
Operating Leased Assets [Line Items] | |||||
Security deposit liability | $ 6,000 | $ 6,000 | $ 5,700 | ||
Maximum | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease, term | 15 years 6 months | 15 years 6 months | |||
Weighted Average | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease, term | 4 years 6 months | 4 years 6 months | |||
Apartment Building | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease, term | 1 year | 1 year |
REAL ESTATE HELD FOR INVESTME_6
REAL ESTATE HELD FOR INVESTMENT - Future Minimum Rental Income (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Real Estate [Abstract] | |
October 1, 2021 through December 31, 2021 | $ 16,095 |
2022 | 61,448 |
2023 | 53,140 |
2024 | 45,750 |
2025 | 35,726 |
Thereafter | 86,512 |
Future minimum rental income | $ 298,671 |
REAL ESTATE HELD FOR INVESTME_7
REAL ESTATE HELD FOR INVESTMENT - Highest Tenant Industry Concentrations - Greater than 10% of Annual Base Rent (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($)tenant | |
Concentration Risk [Line Items] | |
Number of tenants | tenant | 300 |
Annualized Base Rent | $ | $ 34,717 |
Industry | Industry | Revenue Benchmark | |
Concentration Risk [Line Items] | |
Percentage of Annualized Base Rent | 53.50% |
Computer Systems Design | |
Concentration Risk [Line Items] | |
Number of tenants | tenant | 30 |
Annualized Base Rent | $ | $ 7,080 |
Computer Systems Design | Industry | Revenue Benchmark | |
Concentration Risk [Line Items] | |
Percentage of Annualized Base Rent | 10.90% |
Professional, Scientific, and Technical Services | |
Concentration Risk [Line Items] | |
Number of tenants | tenant | 42 |
Annualized Base Rent | $ | $ 7,078 |
Professional, Scientific, and Technical Services | Industry | Revenue Benchmark | |
Concentration Risk [Line Items] | |
Percentage of Annualized Base Rent | 10.90% |
Public Administration | |
Concentration Risk [Line Items] | |
Number of tenants | tenant | 11 |
Annualized Base Rent | $ | $ 6,959 |
Public Administration | Industry | Revenue Benchmark | |
Concentration Risk [Line Items] | |
Percentage of Annualized Base Rent | 10.70% |
Insurance Carriers and Related Activities | |
Concentration Risk [Line Items] | |
Number of tenants | tenant | 16 |
Annualized Base Rent | $ | $ 6,801 |
Insurance Carriers and Related Activities | Industry | Revenue Benchmark | |
Concentration Risk [Line Items] | |
Percentage of Annualized Base Rent | 10.50% |
Health Care and Social Assistance | |
Concentration Risk [Line Items] | |
Number of tenants | tenant | 25 |
Annualized Base Rent | $ | $ 6,799 |
Health Care and Social Assistance | Industry | Revenue Benchmark | |
Concentration Risk [Line Items] | |
Percentage of Annualized Base Rent | 10.50% |
REAL ESTATE HELD FOR INVESTME_8
REAL ESTATE HELD FOR INVESTMENT - Hotel Revenue and Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Hotel expenses: | ||||
General and administrative | $ 2,365 | $ 1,960 | $ 7,120 | $ 6,302 |
Hotel | ||||
Revenues: | ||||
Other operating income | 12,153 | 24,578 | ||
Hotel expenses: | ||||
Expenses | 6,483 | 15,715 | ||
General and administrative | 752 | 1,955 | ||
Sales and marketing | 1,018 | 2,230 | ||
Repairs and maintenance | 557 | 1,551 | ||
Property taxes and insurance | 566 | 1,600 | ||
Hotel | Room | ||||
Revenues: | ||||
Other operating income | 9,396 | 18,508 | ||
Hotel expenses: | ||||
Expenses | 1,681 | 3,992 | ||
Hotel | Food, beverage and convention services | ||||
Revenues: | ||||
Other operating income | 1,452 | 2,830 | ||
Hotel expenses: | ||||
Expenses | 946 | 2,063 | ||
Hotel | Campground | ||||
Revenues: | ||||
Other operating income | 280 | 792 | ||
Hotel | Utilities | ||||
Hotel expenses: | ||||
Expenses | 333 | 824 | ||
Hotel | Other | ||||
Revenues: | ||||
Other operating income | 1,025 | 2,448 | ||
Hotel expenses: | ||||
Expenses | $ 630 | $ 1,500 |
REAL ESTATE HELD FOR INVESTME_9
REAL ESTATE HELD FOR INVESTMENT - Contract Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Product Liability Contingency [Line Items] | |||
Amounts included in contract liability at the beginning of the period | $ 1,529 | $ 2,559 | |
Other liabilities | |||
Product Liability Contingency [Line Items] | |||
Contract liability | 6,551 | $ 3,369 | |
Amounts included in contract liability at the beginning of the period | $ 142 | $ 0 |
REAL ESTATE HELD FOR INVESTM_10
REAL ESTATE HELD FOR INVESTMENT - Geographic Concentration Risk (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Assets, Total | Geographic Concentration Risk | California | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 21.90% |
REAL ESTATE HELD FOR INVESTM_11
REAL ESTATE HELD FOR INVESTMENT - Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Real Estate Properties [Line Items] | ||||
Impairment charges on real estate | $ 10,971 | $ 0 | $ 10,971 | $ 0 |
210 West 31st | ||||
Real Estate Properties [Line Items] | ||||
Impairment charges on real estate | 6,600 | 6,600 | ||
Lincoln Court | ||||
Real Estate Properties [Line Items] | ||||
Impairment charges on real estate | $ 4,400 | $ 4,400 |
REAL ESTATE HELD FOR INVESTM_12
REAL ESTATE HELD FOR INVESTMENT - Recent Real Estate Land Sale (Details) $ in Thousands | Jun. 03, 2021USD ($)a | Sep. 30, 2021USD ($)a | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)a | Sep. 30, 2020USD ($) |
Real Estate Properties [Line Items] | |||||
Gain on sale of real estate | $ 216 | $ 0 | $ 31,385 | $ 0 | |
Undeveloped Land | |||||
Real Estate Properties [Line Items] | |||||
Real estate area of undeveloped land | a | 800 | 800 | |||
Park Highlands | Undeveloped Land | Disposed of by Sale | |||||
Real Estate Properties [Line Items] | |||||
Real estate area of undeveloped land | a | 193 | ||||
Sale price | $ 50,400 | ||||
Gain on sale of real estate | 31,100 | ||||
Deferred profit | $ 2,600 |
REAL ESTATE HELD FOR INVESTM_13
REAL ESTATE HELD FOR INVESTMENT - Recent Real Estate Sale (Details) $ in Thousands | Jul. 27, 2021USD ($)ft² | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
Real Estate Properties [Line Items] | ||||||
Real estate held for sale, net | $ 0 | $ 0 | $ 140,239 | |||
Accumulated depreciation and amortization | 119,265 | 119,265 | $ 85,940 | |||
Gain on sale of real estate | 216 | $ 0 | 31,385 | $ 0 | ||
City Tower Mortgage Loan | ||||||
Real Estate Properties [Line Items] | ||||||
Extinguishment of debt | $ 98,100 | |||||
Office Properties | City Tower | ||||||
Real Estate Properties [Line Items] | ||||||
Real estate held for sale, net | 145,100 | 145,100 | ||||
Accumulated depreciation and amortization | $ 20,500 | $ 20,500 | ||||
City Tower | Office Properties | Disposed of by Sale | ||||||
Real Estate Properties [Line Items] | ||||||
Net rentable area (in sq feet) | ft² | 435,177 | |||||
Area of land (in acres) | ft² | 4.92 | |||||
Consideration | $ 150,500 | |||||
Accumulated depreciation and amortization | 20,500 | |||||
Gain on sale of real estate | $ 100 |
REAL ESTATE HELD FOR INVESTM_14
REAL ESTATE HELD FOR INVESTMENT - Recent Real Estate Acquisitions (Details) - Single-family Home - Single Family Home Portfolio $ in Millions | Apr. 06, 2021USD ($)property | Mar. 17, 2021USD ($)property |
Business Acquisition [Line Items] | ||
Number of real estate properties acquired | property | 23 | 21 |
Purchase price | $ | $ 2 | $ 2.1 |
TENANT ORIGINATION AND ABSORP_3
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES - Cost and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract] | |||||
Tenant Origination And Absorption Costs, Cost | $ 44,527 | $ 44,527 | $ 50,881 | ||
Tenant Origination and Absorption Costs, Accumulated Amortization | (19,107) | (19,107) | (13,491) | ||
Tenant Origination and Absorption Costs, Net Amount | 25,420 | 25,420 | 37,390 | ||
Tenant Origination and Absorption Costs, Amortization | (3,253) | $ (1,625) | (12,397) | $ (4,965) | |
Above-Market Lease Assets, Cost | 4,138 | 4,138 | 4,159 | ||
Above-Market Lease Assets, Accumulated Amortization | (1,403) | (1,403) | (1,002) | ||
Above-Market Lease Assets, Net Amount | 2,735 | 2,735 | 3,157 | ||
Above-Market Lease Assets, Amortization | (94) | (74) | (421) | (241) | |
Below-Market Lease Liabilities, Cost | (6,718) | (6,718) | (7,679) | ||
Below-Market Lease Liabilities, Accumulated Amortization | 2,282 | 2,282 | 1,882 | ||
Below-Market Lease Liabilities, Net Amount | (4,436) | (4,436) | $ (5,797) | ||
Below-Market Lease Liabilities, Amortization | $ 388 | $ 194 | $ 1,436 | $ 676 |
TENANT ORIGINATION AND ABSORP_4
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract] | |||||
Housing subsidy intangible asset | $ 1,900 | $ 1,900 | $ 2,000 | ||
Tax abatement asset | 800 | 800 | $ 1,600 | ||
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Line Items] | |||||
Depreciation and amortization | 13,895 | $ 9,470 | $ 45,969 | $ 27,417 | |
Housing Subsidy Intangible Asset | |||||
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Line Items] | |||||
Remaining amortization period | 27 years 1 month 6 days | ||||
Depreciation and amortization | 18 | $ 54 | |||
Property Tax Abatement Intangible Asset | |||||
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Line Items] | |||||
Remaining amortization period | 1 year 7 months 6 days | ||||
Depreciation and amortization | $ 200 | $ 100 | $ 800 | $ 500 |
REAL ESTATE EQUITY SECURITIES -
REAL ESTATE EQUITY SECURITIES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Purchase price | $ 14,439 | $ 10,964 | ||
Dividend income from real estate equity securities | $ 3,200 | $ 2,800 | $ 6,700 | $ 4,400 |
REAL ESTATE EQUITY SECURITIES_2
REAL ESTATE EQUITY SECURITIES - Shares Owned (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Number of Shares Owned (in shares) | 71,693,526 | 72,641,101 |
Total Carrying Value | $ 96,403 | $ 97,903 |
Kepple Pacific Oak US REIT | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Shares Owned (in shares) | 64,165,352 | 64,165,352 |
Total Carrying Value | $ 50,370 | $ 44,274 |
Franklin Street Properties Corp. | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Shares Owned (in shares) | 6,915,089 | 6,915,089 |
Total Carrying Value | $ 32,086 | $ 30,219 |
Plymouth Industrial REIT, Inc. | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Shares Owned (in shares) | 613,085 | 1,560,660 |
Total Carrying Value | $ 13,947 | $ 23,410 |
REAL ESTATE EQUITY SECURITIES_3
REAL ESTATE EQUITY SECURITIES - Portion of Gain and Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net (loss) gain recognized during the period on real estate equity securities | $ (2,614) | $ (6,527) | $ 12,939 | $ (21,620) |
Less net gain recognized during the period on real estate equity securities sold during the period | 0 | 0 | (225) | (711) |
Unrealized (loss) gain recognized during the reporting period on real estate equity securities held at the end of the period | $ (2,614) | $ (6,527) | $ 12,714 | $ (22,331) |
REAL ESTATE HELD FOR SALE - Add
REAL ESTATE HELD FOR SALE - Additional Information (Details) $ in Thousands | Jul. 27, 2021USD ($)ft² | Sep. 30, 2021USD ($)property | Dec. 31, 2020USD ($) |
Real Estate Properties [Line Items] | |||
Real estate held for investment, net | $ 1,219,531 | $ 1,272,784 | |
Accumulated depreciation and amortization | $ 119,265 | $ 85,940 | |
City Tower Mortgage Loan | |||
Real Estate Properties [Line Items] | |||
Extinguishment of debt | $ 98,100 | ||
Disposed of by Sale | |||
Real Estate Properties [Line Items] | |||
Number of real estate properties disposed | property | 0 | ||
Office Properties | Disposed of by Sale | |||
Real Estate Properties [Line Items] | |||
Number of real estate properties disposed | property | 1 | ||
Office Properties | Disposed of by Sale | City Tower | |||
Real Estate Properties [Line Items] | |||
Net rentable area (in sq feet) | ft² | 435,177 | ||
Area of land (in acres) | ft² | 4.92 | ||
Consideration | $ 150,500 | ||
Real estate held for investment, net | 145,100 | ||
Accumulated depreciation and amortization | 20,500 | ||
Gain on disposition | $ 100 |
REAL ESTATE HELD FOR SALE - Ass
REAL ESTATE HELD FOR SALE - Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets related to real estate held for sale | ||
Real estate, cost | $ 0 | $ 158,711 |
Accumulated depreciation and amortization | 0 | (18,472) |
Real estate, net | 0 | 140,239 |
Other assets | 0 | 5,680 |
Total assets related to real estate held for sale | 0 | 145,919 |
Liabilities related to real estate held for sale | ||
Note payable, net | 0 | 94,097 |
Other liabilities | 0 | 669 |
Total liabilities related to real estate held for sale | $ 0 | $ 94,766 |
REAL ESTATE HELD FOR SALE - Sch
REAL ESTATE HELD FOR SALE - Schedule of Certain Revenue and Expenses (Details) - Disposed of by Sale - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | ||||
Rental income | $ 1,085 | $ 3,318 | $ 8,660 | $ 9,998 |
Other operating income | 51 | 265 | 520 | 792 |
Total revenues | 1,136 | 3,583 | 9,180 | 10,790 |
Expenses | ||||
Operating, maintenance, and management | 363 | 1,004 | 2,096 | 2,855 |
Real estate taxes and insurance | 95 | 389 | 979 | 1,258 |
Asset management fees to affiliate | 194 | 305 | 807 | 907 |
Depreciation and amortization | 14 | 1,769 | 2,436 | 5,342 |
Interest expense | 152 | 518 | 1,146 | 1,953 |
Total expenses | $ 818 | $ 3,985 | $ 7,464 | $ 12,315 |
NOTES AND BONDS PAYABLE - Sched
NOTES AND BONDS PAYABLE - Schedule of Long-term Debt Instruments (Details) - USD ($) | Jul. 27, 2021 | Sep. 30, 2021 | Oct. 07, 2021 | Apr. 06, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||||
Total Notes and Bonds Payable principal outstanding | $ 1,030,734,000 | $ 1,106,377,000 | |||
Discount on Notes and Bonds Payable, net | (2,249,000) | (2,851,000) | |||
Deferred financing costs, net | (4,707,000) | (4,458,000) | |||
Notes and bonds payable, net | 1,023,778,000 | 1,099,068,000 | |||
City Tower Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Extinguishment of debt | $ 98,100,000 | ||||
Mortgages | Richardson Portfolio Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 28,685,000 | 35,832,000 | |||
Interest rate, effective percentage | 2.58% | ||||
Mortgages | Richardson Portfolio Mortgage Loan | One-month LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.50% | ||||
Mortgages | Park Centre Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 26,185,000 | 26,185,000 | |||
Interest rate, effective percentage | 1.83% | ||||
Mortgages | Park Centre Mortgage Loan | One-month LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Mortgages | 1180 Raymond Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 29,548,000 | 29,848,000 | |||
Interest rate, effective percentage | 3.50% | ||||
Mortgages | 1180 Raymond Mortgage Loan | One-month LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.50% | ||||
Mortgages | 1180 Raymond Bond | |||||
Debt Instrument [Line Items] | |||||
Bonds payable | $ 5,705,000 | 5,870,000 | |||
Contractual interest rate, percentage | 6.50% | ||||
Interest rate, effective percentage | 6.50% | ||||
Mortgages | Pacific Oak SOR (BVI) Holdings, Ltd. Series A Debentures | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 197,901,000 | 181,198,000 | |||
Contractual interest rate, percentage | 4.25% | ||||
Interest rate, effective percentage | 4.25% | ||||
Mortgages | Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 78,794,000 | 79,078,000 | |||
Contractual interest rate, percentage | 3.93% | ||||
Interest rate, effective percentage | 3.93% | ||||
Mortgages | Crown Pointe Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 52,508,000 | 53,072,000 | |||
Interest rate, effective percentage | 2.70% | ||||
Guarantees as percent of outstanding loan balance | 25.00% | ||||
Amount under guarantees | $ 39,500,000 | ||||
Mortgages | Crown Pointe Mortgage Loan | One-month LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.60% | ||||
Mortgages | City Tower Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 0 | 94,167,000 | |||
Extinguishment of debt | $ 98,100,000 | ||||
Mortgages | Marquette Plaza Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 62,066,000 | 62,257,000 | |||
Interest rate, effective percentage | 1.63% | ||||
Mortgages | Marquette Plaza Mortgage Loan | One-month LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.55% | ||||
Mortgages | Eight & Nine Corporate Centre Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 48,695,000 | 47,066,000 | |||
Interest rate, effective percentage | 1.68% | ||||
Mortgages | Eight & Nine Corporate Centre Mortgage Loan | One-month LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.60% | ||||
Mortgages | Georgia 400 Center Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 61,154,000 | 59,690,000 | |||
Interest rate, effective percentage | 1.63% | ||||
Mortgages | Georgia 400 Center Mortgage Loan | One-month LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.55% | ||||
Mortgages | PORT Mortgage Loan 1 | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 51,302,000 | 51,362,000 | |||
Contractual interest rate, percentage | 4.74% | ||||
Interest rate, effective percentage | 4.74% | ||||
Mortgages | PORT Mortgage Loan 2 | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 10,523,000 | 10,523,000 | |||
Contractual interest rate, percentage | 4.72% | ||||
Interest rate, effective percentage | 4.72% | ||||
Mortgages | PORT Mortgage Loan 3 | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 0 | 12,000,000 | |||
Mortgages | Battery Point Trust Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 0 | 38,608,000 | |||
Mortgages | Battery Point Trust Mortgage Loan | One-month LIBOR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Mortgages | MetLife Loan | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 60,000,000 | 0 | |||
Contractual interest rate, percentage | 3.90% | ||||
Interest rate, effective percentage | 3.90% | ||||
Face amount | $ 60,000,000 | ||||
Mortgages | Springmaid Beach Resort Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 55,839,000 | 57,015,000 | |||
Contractual interest rate, percentage | 5.77% | ||||
Interest rate, effective percentage | 5.75% | ||||
Mortgages | Springmaid Beach Resort Mortgage Loan | One-month LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.25% | ||||
Mortgages | Q and C Hotel Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 25,000,000 | 25,000,000 | |||
Interest rate, effective percentage | 4.50% | ||||
Mortgages | Q and C Hotel Mortgage Loan | One-month LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.50% | ||||
Mortgages | Lincoln Court Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 34,723,000 | 34,416,000 | |||
Interest rate, effective percentage | 1.83% | ||||
Mortgages | Lincoln Court Mortgage Loan | One-month LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Mortgages | Lofts at NoHo Commons Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 74,536,000 | 74,536,000 | |||
Interest rate, effective percentage | 3.93% | ||||
Mortgages | Lofts at NoHo Commons Mortgage Loan | One-month LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.18% | ||||
Mortgages | 210 West 31st Street Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 10,275,000 | 15,050,000 | |||
Interest rate, effective percentage | 3.08% | ||||
Mortgages | 210 West 31st Street Mortgage Loan | One-month LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.00% | ||||
Mortgages | Oakland City Center Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 96,404,000 | 96,782,000 | |||
Interest rate, effective percentage | 1.83% | ||||
Mortgages | Oakland City Center Mortgage Loan | One-month LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Mortgages | Madison Square Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 20,891,000 | $ 16,822,000 | |||
Interest rate, effective percentage | 5.05% | ||||
Mortgages | Madison Square Mortgage Loan | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Contractual interest rate, percentage | 4.625% | ||||
Face amount | $ 27,000,000 | ||||
Mortgages | Madison Square Mortgage Loan | One-month LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 4.05% |
NOTES AND BONDS PAYABLE - Addit
NOTES AND BONDS PAYABLE - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Nov. 12, 2021 | May 07, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||||
Interest expense | $ 10,092 | $ 6,274 | $ 30,713 | $ 19,055 | |||
Amortization of deferred financing costs | 800 | 800 | 2,470 | 2,481 | |||
Amortization of discount on bond and notes payable | 500 | 64 | 1,906 | 14 | |||
Interest capitalized | 1,579 | 2,368 | |||||
Interest payable | 3,300 | 3,300 | $ 6,200 | ||||
Debt obligations, next twelve months | 548,061 | 548,061 | |||||
Extension options of debt obligations outstanding that are scheduled to mature over the next 12 months | $ 239,800 | ||||||
Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Debt obligations, next twelve months | $ 518,000 | ||||||
Undeveloped Land | |||||||
Debt Instrument [Line Items] | |||||||
Interest capitalized | $ 500 | $ 700 | $ 1,600 | $ 2,400 |
NOTES AND BONDS PAYABLE - Sch_2
NOTES AND BONDS PAYABLE - Schedule of Maturities of Long-term Debt (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Notes and Bonds Payable [Abstract] | |
October 1, 2021 through December 31, 2021 | $ 116,538 |
2022 | 548,061 |
2023 | 160,359 |
2024 | 26,535 |
2025 | 77,858 |
Thereafter | 101,383 |
Notes and bond payable outstanding | $ 1,030,734 |
NOTES AND BONDS PAYABLE - Israe
NOTES AND BONDS PAYABLE - Israeli Bond Financing (Details) - Bonds Payable $ in Millions | Mar. 04, 2021ILS (₪) | Mar. 04, 2021USD ($) | Feb. 16, 2020ILS (₪) | Mar. 08, 2016ILS (₪) | Mar. 08, 2016ILS (₪) | Mar. 08, 2016USD ($) | Mar. 07, 2016ILS (₪) | Mar. 02, 2016ILS (₪) | Mar. 01, 2016ILS (₪) | Feb. 16, 2020USD ($) |
Series A Debentures | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | ₪ 250,000,000 | ₪ 1,000,000,000 | ||||||||
Interest rate during period | 4.25% | 4.25% | ||||||||
Proceeds from issuance of debt | ₪ 245,300,000 | $ 74.2 | ₪ 970,200,000 | ₪ 970,200,000 | $ 249.2 | ₪ 127,700,000 | ₪ 842,500,000 | |||
Contractual interest rate, percentage | 4.25% | |||||||||
Series A Debentures | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate during period | 4.25% | |||||||||
Contractual interest rate, percentage | 4.25% | |||||||||
Series B Debentures | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | ₪ 254,100,000 | $ 74.1 | ||||||||
Contractual interest rate, percentage | 3.93% | 3.93% | ||||||||
Principal of installment payments as percent of face amount | 33.33% | |||||||||
Percent of discount at issuance | 1.90% |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details) | Jul. 29, 2020USD ($) | Sep. 30, 2021USD ($)instrument | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)instrument | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)instrument |
Derivative [Line Items] | ||||||
Gain on terminated derivatives | $ 14,100,000 | |||||
Foreign currency collar | ||||||
Derivative [Line Items] | ||||||
Gain (loss) recognized on derivatives | $ 300,000 | $ 2,200,000 | $ (44,000,000) | $ 14,300,000 | ||
Foreign currency transaction gain (loss) | (2,600,000) | $ (2,600,000) | 600,000 | $ (2,000,000) | ||
Interest Rate Cap 1 | ||||||
Derivative [Line Items] | ||||||
Notional Amount | $ 26,200,000 | $ 26,200,000 | ||||
Interest Rate Cap 1 | One-month LIBOR | ||||||
Derivative [Line Items] | ||||||
Reference Rate | 3.00% | 3.00% | ||||
Interest Rate Cap 2 | ||||||
Derivative [Line Items] | ||||||
Notional Amount | $ 47,715,000 | $ 47,715,000 | ||||
Interest Rate Cap 2 | One-month LIBOR | ||||||
Derivative [Line Items] | ||||||
Reference Rate | 3.00% | 3.00% | ||||
Interest Rate Cap 3 | ||||||
Derivative [Line Items] | ||||||
Notional Amount | $ 75,950,000 | $ 75,950,000 | ||||
Interest Rate Cap 3 | One-month LIBOR | ||||||
Derivative [Line Items] | ||||||
Reference Rate | 3.50% | 3.50% | ||||
Interest Rate Cap 4 | ||||||
Derivative [Line Items] | ||||||
Notional Amount | $ 51,252,000 | $ 51,252,000 | ||||
Interest Rate Cap 4 | One-month LIBOR | ||||||
Derivative [Line Items] | ||||||
Reference Rate | 4.00% | 4.00% | ||||
Not Designated as Hedging Instrument | Foreign currency collar | ||||||
Derivative [Line Items] | ||||||
Number of Instruments | instrument | 1 | 1 | 0 | |||
Notional Amount | $ 194,045 | $ 194,045 | $ 0 | |||
Not Designated as Hedging Instrument | Foreign currency collar | Other liabilities | ||||||
Derivative [Line Items] | ||||||
Number of Instruments | instrument | 1 | 1 | 0 | |||
Derivative Liability, Fair Value | $ (44,000) | $ (44,000) | $ 0 | |||
Not Designated as Hedging Instrument | Foreign currency collar | Minimum | ||||||
Derivative [Line Items] | ||||||
Exchange rate cap | 3.16 | 3.16 | ||||
Not Designated as Hedging Instrument | Foreign currency collar | Maximum | ||||||
Derivative [Line Items] | ||||||
Exchange rate cap | 3.29 | 3.29 | ||||
Not Designated as Hedging Instrument | Interest rate caps | ||||||
Derivative [Line Items] | ||||||
Number of Instruments | instrument | 4 | 4 | ||||
Not Designated as Hedging Instrument | Interest rate caps | Prepaid expenses and other assets | ||||||
Derivative [Line Items] | ||||||
Number of Instruments | instrument | 4 | 4 | 7 | |||
Derivative Asset, Fair Value | $ 2,000 | $ 2,000 | $ 1,000 |
FAIR VALUE DISCLOSURES - Schedu
FAIR VALUE DISCLOSURES - Schedule of Face Value, Carrying Amounts and Fair Value (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Face Value | $ 754,039,000 | $ 846,101,000 |
Series A Debentures | Pacific Oak SOR (BVI) Holdings, Ltd. Series A Debentures | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Face Value | 197,901,000 | 181,198,000 |
Series B Debentures | Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Face Value | 78,794,000 | 79,078,000 |
Carrying Amount | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Value | 751,064,000 | 842,112,000 |
Carrying Amount | Series A Debentures | Pacific Oak SOR (BVI) Holdings, Ltd. Series A Debentures | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Value | 195,428,000 | 179,786,000 |
Carrying Amount | Series B Debentures | Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Value | 77,286,000 | 77,170,000 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Value | 752,417,000 | 846,608,000 |
Fair Value | Series A Debentures | Pacific Oak SOR (BVI) Holdings, Ltd. Series A Debentures | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Value | 197,437,000 | 178,450,000 |
Fair Value | Series B Debentures | Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Value | $ 76,899,000 | $ 69,433,000 |
FAIR VALUE DISCLOSURES - Sche_2
FAIR VALUE DISCLOSURES - Schedule of Assets and Liabilities at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired real estate | $ 10,971 | $ 0 | $ 10,971 | $ 0 | |
Impaired goodwill | 2,808 | $ 0 | 2,808 | $ 0 | |
Significant Unobservable Inputs (Level 3) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired goodwill | 2,808 | ||||
Recurring Basis | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Real estate equity securities | 96,403 | 96,403 | $ 96,403 | ||
Asset derivative | 2 | ||||
Recurring Basis | Interest rate caps | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset derivative | 2 | 2 | |||
Recurring Basis | Foreign currency collar | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Liability derivative | (44) | (44) | |||
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Real estate equity securities | 96,403 | 96,403 | 96,403 | ||
Asset derivative | 0 | ||||
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate caps | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset derivative | 0 | 0 | |||
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency collar | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Liability derivative | 0 | 0 | |||
Recurring Basis | Significant Other Observable Inputs (Level 2) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Real estate equity securities | 0 | 0 | 0 | ||
Asset derivative | 2 | ||||
Recurring Basis | Significant Other Observable Inputs (Level 2) | Interest rate caps | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset derivative | 2 | 2 | |||
Recurring Basis | Significant Other Observable Inputs (Level 2) | Foreign currency collar | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Liability derivative | (44) | (44) | |||
Recurring Basis | Significant Unobservable Inputs (Level 3) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Real estate equity securities | 0 | 0 | 0 | ||
Asset derivative | $ 0 | ||||
Recurring Basis | Significant Unobservable Inputs (Level 3) | Interest rate caps | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset derivative | 0 | 0 | |||
Recurring Basis | Significant Unobservable Inputs (Level 3) | Foreign currency collar | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Liability derivative | $ 0 | 0 | |||
Nonrecurring Basis | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired real estate | 97,600 | ||||
Impaired goodwill | 13,534 | ||||
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 | ||||
Impaired goodwill | 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 | ||||
Impaired goodwill | 0 | ||||
Nonrecurring Basis | Significant Unobservable Inputs (Level 3) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired real estate | 97,600 | ||||
Impaired goodwill | $ 13,534 |
FAIR VALUE DISCLOSURES - Additi
FAIR VALUE DISCLOSURES - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)property | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)property | Sep. 30, 2020USD ($) | |
Fair Value Disclosures [Abstract] | ||||
Number of real estate investment property with write down carrying value | property | 2 | 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Impairment charges on real estate | $ 10,971 | $ 0 | $ 10,971 | $ 0 |
Impairment charges on goodwill | 2,808 | $ 0 | 2,808 | $ 0 |
POSOR II | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Impairment charges on goodwill | 2,800 | |||
Lincoln Court | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Impairment charges on real estate | 4,400 | 4,400 | ||
210 West 31st | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Impairment charges on real estate | $ 6,600 | $ 6,600 | ||
Discount Rate | Lincoln Court | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Real estate properties, measurement input | 7.75% | 7.75% | ||
Terminal Cap Rate | Lincoln Court | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Real estate properties, measurement input | 6.75% | 6.75% |
FAIR VALUE DISCLOSURES - Goodwi
FAIR VALUE DISCLOSURES - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | $ 16,342 | |||
Impairment loss | $ (2,808) | $ 0 | (2,808) | $ 0 |
Ending balance | 13,534 | 13,534 | ||
Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance | 16,342 | |||
Impairment loss | (2,808) | |||
Ending balance | $ 13,534 | 13,534 | ||
Nonrecurring Basis | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment loss | (13,534) | |||
Nonrecurring Basis | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment loss | $ (13,534) |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - shares | Nov. 01, 2019 | Sep. 30, 2021 | Dec. 31, 2020 | Mar. 27, 2020 |
Related Party Transactions [Abstract] | ||||
Period of termination of advisory agreement without cause or penalty | 60 days | |||
Related Party Transaction [Line Items] | ||||
Preferred stock, shares issued (in shares) | 0 | 0 | ||
KBS Capital Advisors LLC | ||||
Related Party Transaction [Line Items] | ||||
Preferred stock, shares issued (in shares) | 3,411,737 |
RELATED PARTY TRANSACTIONS - Co
RELATED PARTY TRANSACTIONS - Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Payable as of | $ 2,152 | $ 2,152 | $ 2,842 | ||
Pacific Oak Capital Advisors LLC | |||||
Related Party Transaction [Line Items] | |||||
Capitalized | 5,778 | $ 1,475 | 14,170 | $ 6,608 | |
Payable as of | 2,152 | 2,152 | 2,842 | ||
Pacific Oak Capital Advisors LLC | Asset management fees | |||||
Related Party Transaction [Line Items] | |||||
Expensed | 3,422 | 2,426 | 10,802 | 6,867 | |
Payable as of | 2,132 | 2,132 | 2,837 | ||
Pacific Oak Capital Advisors LLC | Property management fee | |||||
Related Party Transaction [Line Items] | |||||
Expensed | 119 | 114 | 362 | 114 | |
Payable as of | 0 | 0 | 0 | ||
Pacific Oak Capital Advisors LLC | Reimbursable operating expenses | |||||
Related Party Transaction [Line Items] | |||||
Expensed | 0 | 56 | 0 | 148 | |
Payable as of | 0 | 0 | 0 | ||
Pacific Oak Capital Advisors LLC | Disposition fees | |||||
Related Party Transaction [Line Items] | |||||
Expensed | 692 | 0 | 1,196 | 0 | |
Payable as of | 0 | 0 | 0 | ||
Pacific Oak Capital Advisors LLC | Subordinated performance fee due upon termination to affiliate | |||||
Related Party Transaction [Line Items] | |||||
Capitalized | 1,545 | (1,121) | 1,745 | (814) | |
Pacific Oak Capital Advisors LLC | Acquisition fees on real estate equity securities | |||||
Related Party Transaction [Line Items] | |||||
Capitalized | 0 | 0 | 0 | 122 | |
Payable as of | 0 | 0 | 5 | ||
Pacific Oak Capital Advisors LLC | Acquisition fees on real estate | |||||
Related Party Transaction [Line Items] | |||||
Capitalized | 0 | 0 | 20 | 171 | |
Payable as of | 20 | 20 | 0 | ||
Pacific Oak Capital Advisors LLC | Acquisition fee on investment in unconsolidated entities | |||||
Related Party Transaction [Line Items] | |||||
Capitalized | 0 | $ 0 | 45 | $ 0 | |
Payable as of | $ 0 | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS - In
RELATED PARTY TRANSACTIONS - Investment in Pacific Oak Opportunity Zone Fund I (Details) - Pacific Oak Opportunity Zone Fund I $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)unit | Sep. 30, 2021USD ($)unit | Dec. 31, 2020USD ($)unit | Dec. 31, 2019USD ($)unit | Sep. 30, 2019unit | |
Schedule of Equity Method Investments [Line Items] | |||||
Number of units in real estate property | unit | 124 | 124 | 7 | 91 | 13 |
Investments | $ 27,600 | ||||
Investments, fair value | $ 1,500 | ||||
Acquisition fee, percent of purchase price fee | 1.50% | ||||
Investment, purchase price, benchmark | $ 25,000 | ||||
Acquisition fee of purchase price fee in excess of benchmark purchase price | 1.00% | ||||
Asset management fee, percent | 0.25% | 0.25% | |||
Financing fee as percent of original principal amount of any indebtedness | 0.50% | 0.50% | |||
Waived asset management fees | $ 200 | $ 500 | |||
Asset management fees receivable | $ 700 | $ 700 | |||
POSOR II Merger | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of units in real estate property | unit | 13 | ||||
Investments, fair value | $ 3,000 |
RELATED PARTY TRANSACTIONS - PO
RELATED PARTY TRANSACTIONS - PORT II (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Sep. 30, 2021 | Dec. 31, 2019 |
PORT II OP LP | |||
Schedule of Equity Method Investments [Line Items] | |||
Payments to acquire investments | $ 5,500 | ||
Insufficient fund fees, percent | 50.00% | ||
Application fee collected, percent | 100.00% | ||
Ownership % | 89.70% | ||
PORT II OP LP | Tier 1 | |||
Schedule of Equity Method Investments [Line Items] | |||
Base fee, percent of rent collections per year | 8.00% | ||
PORT II OP LP | Tier 1 | Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Base fee, benchmark of rent collections per year | $ 50,000 | ||
PORT II OP LP | Tier 2 | |||
Schedule of Equity Method Investments [Line Items] | |||
Base fee, percent of rent collections per year | 7.00% | ||
PORT II OP LP | Tier 2 | Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Base fee, benchmark of rent collections per year | $ 75,000 | ||
PORT II OP LP | Tier 2 | Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Base fee, benchmark of rent collections per year | $ 50,000 | ||
PORT II OP LP | Tier 3 | |||
Schedule of Equity Method Investments [Line Items] | |||
Base fee, percent of rent collections per year | 6.00% | ||
PORT II OP LP | Tier 3 | Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Base fee, benchmark of rent collections per year | $ 75,000 | ||
PORT II OP LP | PORT II OP LP | |||
Schedule of Equity Method Investments [Line Items] | |||
Payments to acquire investments | $ 5,500 | ||
Pacific Oak Opportunity Zone Fund I | |||
Schedule of Equity Method Investments [Line Items] | |||
Payments to acquire investments | $ 3,100 | $ 20,600 | |
Financing fee as percent of original principal amount of any indebtedness | 0.50% |
RELATED PARTY TRANSACTIONS - Su
RELATED PARTY TRANSACTIONS - Subordinated Performance Fee Due Upon Termination to KBS Capital Advisors (Details) - USD ($) | Sep. 01, 2021 | Mar. 27, 2020 | Dec. 31, 2019 |
Restricted Stock | |||
Related Party Transaction [Line Items] | |||
Issuance of restricted stock (in shares) | 3,411,737 | ||
Number of shares purchased (in shares) | 584,267 | ||
Stock repurchased during period | $ 5,655,705 | ||
Stock repurchased during period, price per share (in dollars per share) | $ 9.68 | ||
GKP Holding LLC | Restricted Stock | |||
Related Party Transaction [Line Items] | |||
Number of shares transferred (in shares) | 2,254,289 | ||
Percent of decrease in ownership interest due to death | 100.00% | ||
Period of notice for redemption | 60 days | ||
Percent of redemption | 50.00% | ||
GKP Holding LLC | Restricted Stock | After November 1, 2024 | |||
Related Party Transaction [Line Items] | |||
Period of notice for redemption | 60 days | ||
GKP Holding LLC | Chief Executive Officer | |||
Related Party Transaction [Line Items] | |||
Percent of ownership | 50.00% | ||
GKP Holding LLC | Board of Directors Chairman | |||
Related Party Transaction [Line Items] | |||
Percent of ownership | 50.00% | ||
KBS Capital Advisors LLC | GKP Holding LLC | Restricted Stock | |||
Related Party Transaction [Line Items] | |||
Stock repurchased during period, additional shares (in shares) | 59,714 | ||
KBS Holdings | GKP Holding LLC | |||
Related Party Transaction [Line Items] | |||
Percent of ownership | 33.33% | ||
Percent of ownership acquired | 33.33% | ||
Percent of ownership transferred | 33.33% | ||
Affiliates of KBS Capital Advisors | GKP Holding LLC | Restricted Stock | |||
Related Party Transaction [Line Items] | |||
Stock repurchased during period, additional shares (in shares) | 513,467 |
INVESTMENT IN UNCONSOLIDATED _3
INVESTMENT IN UNCONSOLIDATED ENTITIES - Investments in Unconsolidated Joint Ventures (Details) $ in Thousands | Sep. 30, 2021USD ($)property | Dec. 31, 2020USD ($) |
Schedule of Equity Method Investments [Line Items] | ||
Investment Balance | $ 83,854 | $ 79,666 |
110 William Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership % | 60.00% | |
Investment Balance | $ 0 | 0 |
Number of real estate properties | property | 1 | |
353 Sacramento Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership % | 55.00% | |
Investment Balance | $ 50,769 | 49,665 |
Number of real estate properties | property | 1 | |
Pacific Oak Opportunity Zone Fund I | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment Balance | $ 27,638 | 24,996 |
Number of real estate properties | property | 3 | |
Pacific Oak Residential Trust II, Inc. | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership % | 89.70% | |
Investment Balance | $ 5,447 | $ 5,005 |
Number of real estate properties | property | 117 |
INVESTMENT IN UNCONSOLIDATED _4
INVESTMENT IN UNCONSOLIDATED ENTITIES - Investments - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021USD ($)unit | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)unit | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)unit | Dec. 31, 2019USD ($)unit | Sep. 30, 2019unit | May 02, 2014ft² | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Investments in unconsolidated entities | $ 83,854,000 | $ 83,854,000 | $ 79,666,000 | |||||
Equity in income of unconsolidated joint venture | (144,000) | $ 1,151,000 | ||||||
Equity in (loss) income of unconsolidated entities | (569,000) | $ 519,000 | (144,000) | 1,564,000 | ||||
110 William JV Partner | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Income from unconsolidated joint venture | $ 0 | $ 0 | $ 0 | $ 0 | ||||
110 William Joint Venture | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | 60.00% | 60.00% | ||||||
Rentable square feet | ft² | 928,157 | |||||||
Area of land (in acres) | ft² | 0.8 | |||||||
Investments in unconsolidated entities | $ 0 | $ 0 | 0 | |||||
110 William Joint Venture | 110 William JV Partner | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | 60.00% | |||||||
110 William Joint Venture | 110 William JV Partner | 110 William Joint Venture | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Noncontrolling interest | 40.00% | |||||||
Pacific Oak Opportunity Zone Fund I | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Investments in unconsolidated entities | $ 27,638,000 | $ 27,638,000 | $ 24,996,000 | |||||
Investments | $ 27,600,000 | |||||||
Number of units in real estate property | unit | 124 | 124 | 7 | 91 | 13 | |||
Acquisition related costs | $ 200,000 |
INVESTMENT IN UNCONSOLIDATED _5
INVESTMENT IN UNCONSOLIDATED ENTITIES - Summarized Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |||||
Real estate assets, net of accumulated depreciation and amortization | $ 1,219,531 | $ 1,219,531 | $ 1,272,784 | ||
Total assets | 1,629,128 | 1,629,128 | 1,731,665 | ||
Other liabilities | 43,994 | 43,994 | 34,734 | ||
Total liabilities, mezzanine equity and equity | 1,629,128 | 1,629,128 | 1,731,665 | ||
Income Statement [Abstract] | |||||
Revenues | 45,769 | $ 27,745 | 129,201 | $ 75,869 | |
Real estate taxes and insurance | 5,262 | 3,791 | 15,949 | 10,570 | |
Depreciation and amortization | 13,895 | 9,470 | 45,969 | 27,417 | |
Interest expense | 10,092 | 6,274 | 30,713 | 19,055 | |
Total expenses | 68,237 | 32,254 | 170,923 | 80,131 | |
Net (loss) income attributable to common stockholders | (24,516) | (7,493) | 3,671 | (21,797) | |
Equity in (loss) income of unconsolidated entities | (569) | 519 | (144) | 1,564 | |
110 William Joint Venture | |||||
Balance Sheet Related Disclosures [Abstract] | |||||
Real estate assets, net of accumulated depreciation and amortization | 232,201 | 232,201 | 246,166 | ||
Other assets | 34,200 | 34,200 | 44,004 | ||
Total assets | 266,401 | 266,401 | 290,170 | ||
Notes payable, net | 318,280 | 318,280 | 316,421 | ||
Other liabilities | 3,003 | 3,003 | 5,532 | ||
Partners’ deficit | (54,882) | (54,882) | (31,783) | ||
Total liabilities, mezzanine equity and equity | 266,401 | 266,401 | 290,170 | ||
Income Statement [Abstract] | |||||
Revenues | 5,729 | 10,005 | 18,721 | 26,604 | |
Real estate taxes and insurance | 1,698 | 1,935 | 5,588 | 5,580 | |
Depreciation and amortization | 2,962 | 3,139 | 19,071 | 8,721 | |
Interest expense | 3,548 | 4,125 | 10,986 | 12,093 | |
Total expenses | 10,567 | 11,295 | 41,857 | 32,388 | |
Total other income | 11 | 12 | 35 | 50 | |
Net (loss) income attributable to common stockholders | (4,827) | (1,278) | (23,101) | (5,734) | |
Company’s share of net loss | (2,896) | (767) | (13,861) | (3,440) | |
110 William Joint Venture | Operating, maintenance, and management costs | |||||
Income Statement [Abstract] | |||||
Expenses | 2,359 | 2,096 | 6,212 | 5,994 | |
353 Sacramento Joint Venture | |||||
Balance Sheet Related Disclosures [Abstract] | |||||
Real estate assets, net of accumulated depreciation and amortization | 178,874 | 178,874 | 182,318 | ||
Other assets | 27,539 | 27,539 | 19,810 | ||
Total assets | 206,413 | 206,413 | 202,128 | ||
Notes payable, net | 110,000 | 110,000 | 109,783 | ||
Other liabilities | 6,335 | 6,335 | 7,639 | ||
Partners’ deficit | 90,078 | 90,078 | 84,706 | ||
Total liabilities, mezzanine equity and equity | 206,413 | 206,413 | $ 202,128 | ||
Income Statement [Abstract] | |||||
Revenues | 3,373 | 5,520 | 13,252 | 15,771 | |
Real estate taxes and insurance | 848 | 755 | 2,768 | 2,235 | |
Depreciation and amortization | 1,850 | 1,894 | 5,574 | 5,135 | |
Interest expense | 960 | 948 | 2,700 | 3,290 | |
Total expenses | 4,520 | 4,529 | 13,532 | 13,110 | |
Net (loss) income attributable to common stockholders | (1,147) | 991 | (280) | 2,661 | |
Equity in (loss) income of unconsolidated entities | (592) | 583 | (40) | 1,576 | |
353 Sacramento Joint Venture | Operating, maintenance, and management costs | |||||
Income Statement [Abstract] | |||||
Expenses | $ 862 | $ 932 | $ 2,490 | $ 2,450 |
INVESTMENT IN UNCONSOLIDATED _6
INVESTMENT IN UNCONSOLIDATED ENTITIES - Investment in 353 Sacramento Joint Venture (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2021USD ($) | Jul. 06, 2017aft² | |
Migdal Members | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 45.00% | |
Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 55.00% | |
353 Sacramento Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 55.00% | |
353 Sacramento Joint Venture | Office Properties | Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Payments to acquire investments | $ | $ 1.1 | |
353 Sacramento Joint Venture | Office Properties | Disposed of by Sale | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 45.00% | |
Net rentable area (in sq feet) | ft² | 284,751 | |
Area of land (in acres) | a | 0.35 |
INVESTMENT IN UNCONSOLIDATED _7
INVESTMENT IN UNCONSOLIDATED ENTITIES - Investment in Pacific Oak Opportunity Zone Fund I (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($)unitproperty | Sep. 30, 2021USD ($)unitproperty | Dec. 31, 2019USD ($)unit | Dec. 31, 2020USD ($)unit | Sep. 30, 2019unit | |
Schedule of Equity Method Investments [Line Items] | |||||
Investments in unconsolidated entities | $ 83,854 | $ 83,854 | $ 79,666 | ||
Pacific Oak Opportunity Zone Fund I | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of units in real estate property | unit | 124 | 124 | 91 | 7 | 13 |
Payments to acquire investments | $ 3,100 | $ 20,600 | |||
Investments, fair value | $ 1,500 | ||||
Investments | $ 27,600 | ||||
Acquisition related costs | 200 | ||||
Investments in unconsolidated entities | $ 27,638 | $ 27,638 | $ 24,996 | ||
Number of joint ventures with real estate under development | property | 3 | 3 | |||
Gain (loss) on investments | $ (100) | $ (500) | |||
Pacific Oak Opportunity Zone Fund I | POSOR II Merger | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of units in real estate property | unit | 13 | ||||
Investments, fair value | $ 3,000 |
INVESTMENT IN UNCONSOLIDATED _8
INVESTMENT IN UNCONSOLIDATED ENTITIES - PORT II (Details) - PORT II OP LP $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021USD ($)shares | Sep. 30, 2021USD ($)shares | |
Schedule of Equity Method Investments [Line Items] | ||
Investment acquired (in shares) | shares | 600 | 600 |
Payments to acquire investments | $ 5,500 | |
Ownership % | 89.70% | |
Gain (loss) on investments | $ (47) | $ (100) |
SUPPLEMENTAL CASH FLOW AND SI_3
SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Supplemental Disclosure of Cash Flow Information: | ||
Interest paid, net of capitalized interest of $1,579 and $2,368 for the nine months ended September 30, 2021 and 2020, respectively | $ 29,220 | $ 18,945 |
Interest capitalized | 1,579 | 2,368 |
Supplemental Disclosure of Significant Noncash Transactions: | ||
Accrued improvements to real estate | 1,721 | 2,393 |
Redeemable common stock payable | 3,385 | 262 |
Distributions paid to common stockholders through common stock issuances pursuant to the dividend reinvestment plan | 0 | 262 |
Accrued preferred dividends | 225 | 226 |
PPP notes forgiveness | 1,500 | 0 |
Assets and liabilities assumed in connection with Battery Point acquisition: | ||
Real estate | 0 | 56,148 |
Notes payable | 0 | 36,003 |
Other assets | 0 | 21 |
Other liabilities | 0 | 355 |
Redeemable non-controlling interest | 0 | 3,024 |
Series A-3 preferred units payable | $ 0 | $ 16,000 |
REPORTING SEGMENTS (Details)
REPORTING SEGMENTS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($)property | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment Reporting [Abstract] | |||||||
Number of reportable segments | 3 | 3 | 3 | ||||
Income Statement [Abstract] | |||||||
Revenues | $ 45,769 | $ 27,745 | $ 129,201 | $ 75,869 | |||
Total expenses | (68,237) | (32,254) | (170,923) | (80,131) | |||
Total other (loss) income | (3,078) | (2,859) | 43,975 | (16,885) | |||
Net loss | (25,546) | (7,368) | 2,253 | (21,147) | |||
Assets and Liabilities held for Sale | |||||||
Assets | 1,629,128 | 1,629,128 | $ 1,629,128 | $ 1,629,128 | $ 1,731,665 | ||
Goodwill | 13,534 | 13,534 | 13,534 | 13,534 | 16,342 | ||
Impairment charges on real estate | 10,971 | 0 | 10,971 | 0 | |||
Strategic Opportunistic Properties | |||||||
Income Statement [Abstract] | |||||||
Revenues | 28,050 | 22,548 | 88,187 | 64,752 | |||
Total expenses | (52,891) | (26,285) | (128,418) | (66,928) | |||
Total other (loss) income | (4,435) | (2,863) | 42,527 | (16,939) | |||
Net loss | (29,276) | (6,600) | 2,296 | (19,115) | |||
Assets and Liabilities held for Sale | |||||||
Assets | 1,274,093 | 1,274,093 | 1,274,093 | 1,274,093 | 1,404,509 | ||
Goodwill | 9,489 | 9,489 | 9,489 | $ 9,489 | 12,297 | ||
Impairment charges on real estate | 2,800 | 2,800 | |||||
Single-Family Homes | |||||||
Segment Reporting [Abstract] | |||||||
Number of reportable segments | segment | 1 | ||||||
Income Statement [Abstract] | |||||||
Revenues | 5,566 | 5,197 | 16,436 | 11,117 | |||
Total expenses | (6,398) | (5,969) | (19,581) | (13,203) | |||
Total other (loss) income | 81 | 4 | 159 | 54 | |||
Net loss | (751) | (768) | (2,986) | (2,032) | |||
Assets and Liabilities held for Sale | |||||||
Assets | 202,349 | 202,349 | 202,349 | $ 202,349 | 182,486 | ||
Goodwill | 0 | 0 | 0 | $ 0 | 0 | ||
Hotels | |||||||
Segment Reporting [Abstract] | |||||||
Number of reportable segments | segment | 1 | ||||||
Income Statement [Abstract] | |||||||
Revenues | 12,153 | 0 | 24,578 | 0 | |||
Total expenses | (8,948) | 0 | (22,924) | 0 | |||
Total other (loss) income | 1,276 | 0 | 1,289 | 0 | |||
Net loss | 4,481 | $ 0 | 2,943 | $ 0 | |||
Assets and Liabilities held for Sale | |||||||
Assets | 152,686 | 152,686 | 152,686 | $ 152,686 | 144,670 | ||
Goodwill | $ 4,045 | $ 4,045 | $ 4,045 | $ 4,045 | $ 4,045 |
PORT MEZZANINE EQUITY - Additio
PORT MEZZANINE EQUITY - Additional Information (Details) $ / shares in Units, $ in Thousands | Jul. 01, 2020USD ($)propertyshares | Nov. 22, 2019USD ($)$ / sharesshares | Nov. 06, 2019USD ($)$ / sharesshares | Sep. 30, 2020USD ($) | Nov. 14, 2012USD ($) | Dec. 31, 2022$ / shares | Nov. 04, 2022$ / shares | Dec. 31, 2021$ / shares | Nov. 04, 2021$ / shares | Sep. 30, 2021shares | Dec. 31, 2020shares | Nov. 04, 2020$ / shares |
Class of Stock [Line Items] | ||||||||||||
Preferred stock, shares authorized (in shares) | shares | 10,000,000 | 10,000,000 | ||||||||||
Issuance of common stock | $ | $ 262 | $ 561,700 | ||||||||||
Battery Point | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares acquired during period (in shares) | shares | 1,000,000 | |||||||||||
Single-family Home | Battery Point | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Number of homes | property | 559 | |||||||||||
BPT Holdings, LLC | PORT OP LP | Battery Point | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common equity units received in transaction (in units) | shares | 510,816 | |||||||||||
Percent of outstanding common equity units received in transaction | 4.50% | |||||||||||
Common equity units received in transaction | $ | $ 3,000 | |||||||||||
Redemption period | 1 year | |||||||||||
Preferred Class A | Pacific Oak Residential Trust, Inc. | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Issuance of common stock (in shares) | shares | 15,000 | |||||||||||
Preferred stock, shares authorized (in shares) | shares | 25,000,000 | |||||||||||
Issuance of common stock (in dollars per share) | $ / shares | $ 1,000 | |||||||||||
Issuance of common stock | $ | $ 15,000 | |||||||||||
Dividend rate, percentage | 6.00% | |||||||||||
Percent of outstanding shares as benchmark for redemption | 10.00% | |||||||||||
Preferred stock, redemption price (in dollars per share) | $ / shares | $ 1,120 | |||||||||||
Conversion price of preferred stock into common stock (in dollars per share) | $ / shares | $ 1,120 | |||||||||||
Preferred Class A | Pacific Oak Residential Trust, Inc. | Forecast | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Issuance of common stock (in dollars per share) | $ / shares | $ 1,120 | $ 1,000 | ||||||||||
Preferred Class A | Pacific Oak Residential Trust, Inc. | If All Shares are Not Redeemed | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Dividend rate, percentage | 12.00% | |||||||||||
Preferred Class B | Pacific Oak Residential Trust, Inc. | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Issuance of common stock (in shares) | shares | 125 | |||||||||||
Issuance of common stock (in dollars per share) | $ / shares | $ 1,000 | |||||||||||
Issuance of common stock | $ | $ 100 | |||||||||||
Dividend rate, percentage | 12.50% | |||||||||||
Preferred Class B | Pacific Oak Residential Trust, Inc. | Forecast | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Issuance of common stock (in dollars per share) | $ / shares | $ 1,000 | $ 1,050 |
PORT MEZZANINE EQUITY - Reconci
PORT MEZZANINE EQUITY - Reconciliation (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amounts | ||||
Balance | $ 519,712 | $ 277,388 | ||
Balance | $ 510,667 | 254,957 | ||
Common stock, shares outstanding (in shares) | 94,264,402 | 98,054,582 | ||
Preferred Stock | Preferred Class A | ||||
Amounts | ||||
Balance | $ 15,134 | 14,909 | ||
Dividends Available Upon Redemption | 636 | 781 | ||
Dividends Paid | (636) | (556) | ||
Balance | $ 15,134 | $ 15,134 | ||
Common stock, shares outstanding (in shares) | 15,000 | 15,000 | 15,000 | 15,000 |
Preferred Stock | Preferred Class B | ||||
Amounts | ||||
Balance | $ 99 | $ 99 | ||
Dividends Available Upon Redemption | 8 | 7 | ||
Dividends Paid | (8) | (7) | ||
Balance | $ 99 | $ 99 | ||
Common stock, shares outstanding (in shares) | 125 | 125 | 125 | 125 |
PORT MEZZANINE EQUITY - Redeema
PORT MEZZANINE EQUITY - Redeemable Non-controlling Interest Activities (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount [Roll Forward] | |
Beginning balance | $ 2,968 |
Ending balance | 2,855 |
PORT OP LP | Battery Point | BPT Holdings, LLC | |
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount [Roll Forward] | |
Beginning balance | 2,968 |
Net loss attributable to redeemable noncontrolling interest | (113) |
Ending balance | $ 2,855 |
RESTRICTED STOCK (Details)
RESTRICTED STOCK (Details) - USD ($) | Sep. 01, 2021 | Mar. 27, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Change in subordinated performance fee due upon termination to affiliate | $ 1,545,000 | $ (1,121,000) | $ 1,745,000 | $ (814,000) | ||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares vested (in shares) | 1,157,448 | |||||
Number of shares purchased (in shares) | 584,267 | |||||
Stock repurchased during period | $ 5,655,705 | |||||
Stock repurchased during period, price per share (in dollars per share) | $ 9.68 | |||||
Change in subordinated performance fee due upon termination to affiliate | $ 1,500,000 | $ 1,500,000 | ||||
Fair value (in dollars per share) | $ 9.61 | $ 9.61 | ||||
Restricted Stock | After a One Year Period | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for redemption (in shares) | 513,467 | |||||
Restricted Stock | Within a 60 Day Period | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for redemption (in shares) | 59,714 | |||||
Restricted Stock | KBS Capital Advisors LLC | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Issuance of common stock (in shares) | 3,411,737 | |||||
Restricted Stock | GKP Holding LLC | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percent of shares available for redemption upon vesting | 50.00% | |||||
Percent of shares available for redemption upon outstanding redemption requests | 50.00% | |||||
Restricted Stock | GKP Holding LLC | KBS Capital Advisors LLC | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares transferred (in shares) | 2,254,289 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021USD ($)property | Sep. 30, 2021USD ($)property | |
Loss Contingencies [Line Items] | ||
Remaining lease term | 92 years 6 months | 92 years 6 months |
Encore Hospitality, LLC | Q and C Hotel | ||
Loss Contingencies [Line Items] | ||
Term agreement, extension period | 5 years | |
Base fee as percentage of gross revenue | 4.00% | |
Management agreement, fees accrued | $ 0.1 | $ 0.1 |
Marriott International | Q and C Hotel | ||
Loss Contingencies [Line Items] | ||
Brand services fee as percent of total room revenue | 2.00% | |
Fees incurred to management agreement | 0.1 | $ 0.3 |
Brand services fee as percent of total room revenue, after three years | 5.00% | |
Monthly marketing fund contribution fees as percent of gross room sales | 1.50% | |
Doubletree Management LLC | Springmaid Beach Resort | ||
Loss Contingencies [Line Items] | ||
Base fee as percentage of total operating revenue in year one | 2.50% | |
Base fee as percentage of total operating revenue in year two | 2.75% | |
Base fee as percentage of total operating revenue, thereafter | 3.00% | |
Management fee as percent of any campground revenue | 2.00% | |
Incentive fee as percent of operating cash flow | 15.00% | |
Percent of total investments | 12.00% | |
Brand services fee as percent of total room revenue | 4.00% | |
Fees incurred to management agreement | $ 0.3 | $ 0.6 |
Hotel | ||
Loss Contingencies [Line Items] | ||
Number of real estate properties | property | 2 | 2 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Lease Cost (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Right-of-use asset (included in real estate held for investment, net) | $ 8,074 | $ 8,074 |
Lease obligation (included in other liabilities) | $ 9,339 | $ 9,339 |
Remaining lease term | 92 years 6 months | 92 years 6 months |
Discount rate | 4.80% | 4.80% |
Interest on lease obligation for the nine months ended September 30, 2021 | $ 441 | |
210 West 31st | ||
Real Estate Properties [Line Items] | ||
Right-of-use asset impairment | $ 1,200 | $ 1,200 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Future Minimum Lease Payments (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
October 1, 2021 through December 31, 2021 | $ 90 |
2022 | 360 |
2023 | 360 |
2024 | 360 |
2025 | 393 |
Thereafter | 52,563 |
Total expected minimum lease obligations | 54,126 |
Less: Amount representing interest | (44,787) |
Present value of net minimum lease payments | $ 9,339 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Paycheck Protection Program (Details) - USD ($) $ in Millions | Mar. 13, 2021 | Feb. 10, 2021 | Sep. 30, 2021 | Jul. 06, 2021 | Dec. 31, 2020 |
Other liabilities | |||||
Real Estate [Line Items] | |||||
PPP balance | $ 2.4 | $ 1.5 | |||
Springmaid Beach Resort | |||||
Real Estate [Line Items] | |||||
PPP note, amount approved for forgiveness | $ 1.3 | ||||
Hotel | Q and C Hotel | |||||
Real Estate [Line Items] | |||||
Funding received | $ 0.6 | ||||
Hotel | Springmaid Beach Resort | |||||
Real Estate [Line Items] | |||||
Funding received | $ 1.8 |
SUBSEQUENT EVENTS - Acquisition
SUBSEQUENT EVENTS - Acquisition (Details) - Subsequent Event - Richardson Portfolio $ in Millions | Oct. 18, 2021USD ($)ft² |
Subsequent Event [Line Items] | |
Interests acquired | 10.00% |
Payments to acquire interest | $ | $ 4 |
Area of land (in acres) | ft² | 14 |
Ownership percentage | 100.00% |
SUBSEQUENT EVENTS - Bond Offeri
SUBSEQUENT EVENTS - Bond Offering (Details) - Series B Debentures - Bonds Payable $ in Millions | 1 Months Ended | ||||
Nov. 01, 2021ILS (₪) | Nov. 01, 2021USD ($) | Mar. 04, 2021 | Feb. 16, 2020ILS (₪) | Feb. 16, 2020USD ($) | |
Subsequent Event [Line Items] | |||||
Maximum borrowing capacity | ₪ 254,100,000 | $ 74.1 | |||
Percent of discount at issuance | 1.90% | ||||
Subsequent Event | Public Offering | |||||
Subsequent Event [Line Items] | |||||
Maximum borrowing capacity | ₪ 536,400,000 | ||||
Percent of discount at issuance | 2.60% | ||||
Proceeds from issuance of debt | ₪ 522,400,000 | $ 166.8 | |||
Subsequent Event | Private Offering | |||||
Subsequent Event [Line Items] | |||||
Maximum borrowing capacity | ₪ 53,600,000 | ||||
Percent of discount at issuance | 3.10% | ||||
Proceeds from issuance of debt | ₪ 52,000,000 | $ 16.6 |
SUBSEQUENT EVENTS - Refinancing
SUBSEQUENT EVENTS - Refinancing (Details) - Subsequent Event - Madison Square Mortgage Loan - Mortgages | Oct. 07, 2021USD ($) |
Subsequent Event [Line Items] | |
Face amount | $ 27,000,000 |
Long-term debt | 17,500,000 |
Unused borrowing capacity, amount | $ 9,500,000 |
Contractual Interest Rate | 4.625% |