Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 27, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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. | ||
Entity Address, Address Line Two | 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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 103,831,104 | ||
Documents Incorporated by Reference | Registrant incorporates by reference in Part III (Items 10, 11, 12, 13 and 14) of this Form 10-K portions of its Definitive Proxy Statement for its 2023 Annual Meeting of Stockholders. | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Public Float | $ 0 | ||
Entity Central Index Key | 0001452936 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Irvine, California |
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Real estate held for investment, net | $ 1,219,404 | $ 1,118,550 |
Real estate held for sale, net | 0 | 96,249 |
Real estate equity securities | 60,153 | 112,096 |
Total real estate and real estate-related investments, net | 1,279,557 | 1,326,895 |
Cash and cash equivalents | 97,931 | 84,172 |
Restricted cash | 61,113 | 21,259 |
Investments in unconsolidated entities | 70,842 | 88,256 |
Rents and other receivables, net | 21,518 | 21,795 |
Due from affiliate | 0 | 7,039 |
Prepaid expenses and other assets | 22,848 | 20,750 |
Goodwill | 5,436 | 13,534 |
Assets related to real estate held for sale, net | 0 | 919 |
Total assets | 1,559,245 | 1,584,619 |
Liabilities, mezzanine equity and equity | ||
Notes and bonds payable related to real estate held for investment, net | 1,044,709 | 935,073 |
Notes payable related to real estate held for sale, net | 0 | 63,876 |
Notes and bonds payable, net | 1,044,709 | 998,949 |
Accounts payable and accrued liabilities | 25,231 | 23,852 |
Due to affiliates | 2,799 | 1,903 |
Other liabilities | 66,967 | 46,931 |
Redeemable common stock payable | 2,638 | 684 |
Restricted stock payable | 508 | 508 |
Dividends payable | 0 | 11,016 |
Liabilities related to real estate held for sale, net | 0 | 662 |
Total liabilities | 1,142,852 | 1,084,505 |
Commitments and contingencies (Note 14) | ||
Mezzanine equity | ||
Noncontrolling cumulative convertible redeemable preferred stock | 0 | 15,233 |
Redeemable noncontrolling interest | 0 | 2,822 |
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, 103,932,083 and 94,141,251 shares issued and outstanding as of December 31, 2022 and 2021, respectively | 1,039 | 941 |
Additional paid-in capital | 907,044 | 818,440 |
Cumulative distributions and net loss | (495,782) | (347,691) |
Total Pacific Oak Strategic Opportunity REIT, Inc. stockholders’ equity | 412,301 | 471,690 |
Noncontrolling interests | 4,092 | 10,369 |
Total equity | 416,393 | 482,059 |
Total liabilities, mezzanine equity and equity | $ 1,559,245 | $ 1,584,619 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
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) | 103,932,083 | 94,141,251 |
Common stock, shares outstanding (in shares) | 103,932,083 | 94,141,251 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Rental income | $ 121,859,000 | $ 123,436,000 | $ 100,199,000 |
Dividend income from real estate equity securities | 5,591,000 | 9,658,000 | 6,273,000 |
Total revenues | 162,058,000 | 167,927,000 | 114,025,000 |
Expenses: | |||
Operating, maintenance, and management | 44,317,000 | 42,519,000 | 33,882,000 |
Real estate taxes and insurance | 21,132,000 | 20,768,000 | 15,702,000 |
Hotel expenses | 19,252,000 | 20,990,000 | 3,836,000 |
Asset management fees to affiliate | 13,678,000 | 14,012,000 | 9,982,000 |
General and administrative expenses | 10,700,000 | 9,853,000 | 7,664,000 |
Foreign currency transaction (gain) loss, net | (29,038,000) | 7,445,000 | 2,912,000 |
Depreciation and amortization | 51,930,000 | 58,871,000 | 45,041,000 |
Interest expense | 48,130,000 | 40,510,000 | 29,138,000 |
Impairment charges on real estate and related intangibles | 18,493,000 | 10,971,000 | 0 |
Impairment charges on goodwill | 8,098,000 | 2,808,000 | 0 |
Total expenses | 206,692,000 | 228,747,000 | 148,157,000 |
Other income (loss): | |||
Gain from remeasurement of prior equity interest | 0 | 0 | 2,009,000 |
Income from NIP | 0 | 0 | 97,000 |
(Loss) income from unconsolidated entities | (8,019,000) | (1,373,000) | 1,621,000 |
Casualty-related gain | 0 | 27,000 | 51,000 |
Other interest income | 228,000 | 194,000 | 348,000 |
(Loss) gain on real estate equity securities | (51,943,000) | 28,632,000 | (14,814,000) |
Gain (loss) on sale of real estate | 46,513,000 | 30,261,000 | (110,000) |
Gain (loss) on extinguishment of debt | 2,367,000 | (4,757,000) | 415,000 |
Gain from consolidation of previously unconsolidated entity | 18,742,000 | 0 | 0 |
Transaction and related costs | 0 | (2,984,000) | (6,018,000) |
Subordinated performance fee due upon termination to affiliate | 0 | (1,678,000) | 1,720,000 |
Total other income (loss), net | 7,888,000 | 48,322,000 | (14,681,000) |
Net loss before income taxes | (36,746,000) | (12,498,000) | (48,813,000) |
Income tax provision | (4,924,000) | 0 | 0 |
Net loss | (41,670,000) | (12,498,000) | (48,813,000) |
Net (income) loss attributable to noncontrolling interests | (530,000) | 2,310,000 | 738,000 |
Net loss attributable to redeemable noncontrolling interest | 81,000 | 146,000 | 56,000 |
Preferred stock dividends | (1,123,000) | (913,000) | (989,000) |
Net loss attributable to common stockholders | $ (43,242,000) | $ (10,955,000) | $ (49,008,000) |
Net loss per common share, basic (in dollars per share) | $ (0.44) | $ (0.11) | $ (0.65) |
Net loss per common share diluted (in dollars per share) | $ (0.44) | $ (0.11) | $ (0.65) |
Weighted-average number of common shares outstanding, basic (in shares) | 103,522,696 | 96,967,983 | 75,407,976 |
Weighted-average number of common shares outstanding, diluted (in shares) | 103,522,696 | 96,967,983 | 75,407,976 |
Hotel revenues | |||
Revenues: | |||
Revenue from contract with customer | $ 30,749,000 | $ 30,806,000 | $ 3,718,000 |
Other operating income | |||
Revenues: | |||
Revenue from contract with customer | $ 3,859,000 | $ 4,027,000 | $ 3,835,000 |
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 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 | (49,746) | (49,008) | (49,008) | (738) | ||
Issuance of common stock (in shares) | 24,645 | |||||
Issuance of common stock | 262 | 262 | $ 0 | 262 | ||
Adjustment to redemption value of noncontrolling cumulative convertible redeemable preferred stock | 0 | |||||
Transfers to redeemable common stock payable, net | (35) | (35) | (35) | |||
Redemptions of common stock (in shares) | (222,470) | |||||
Redemptions of common stock | (2,230) | (2,230) | $ (3) | (2,227) | ||
Acquisition of noncontrolling interest | 0 | |||||
Distributions declared | (596) | (596) | (596) | |||
Other offering costs | (19) | (19) | (19) | |||
Issuance of restricted stock (in shares) | 3,411,737 | |||||
Issuance of restricted stock | 0 | 0 | $ 34 | (34) | ||
Adjustments to redemption value of mezzanine equity restricted stock | 1,080 | 1,080 | 1,080 | |||
Issuance of common stock in connection with merger, inclusive of acquisition of noncontrolling interests (in shares) | 28,973,905 | |||||
Issuance of common stock in connection with merger, inclusive of acquisition of noncontrolling interests | 292,792 | 280,467 | $ 289 | 280,178 | 12,325 | |
Noncontrolling interest contribution | 844 | 0 | 844 | |||
Noncontrolling interests distributions | (28) | 0 | (28) | |||
Balance (in shares) at Dec. 31, 2020 | 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 | (13,265) | (10,955) | (10,955) | (2,310) | ||
Adjustment to redemption value of noncontrolling cumulative convertible redeemable preferred stock | 0 | |||||
Transfers to redeemable common stock payable, net | 180 | 180 | 180 | |||
Redemptions of common stock (in shares) | (3,329,064) | |||||
Redemptions of common stock | (31,018) | (31,018) | $ (32) | (30,986) | ||
Acquisition of noncontrolling interest | 3,819 | |||||
Distributions declared | (11,016) | (11,016) | (11,016) | |||
Other offering costs | (15) | (15) | (15) | |||
Repurchase and change in classification of restricted stock (Note 15) (in shares) | (584,267) | |||||
Repurchase and change in classification of restricted stock | 21,117 | 21,117 | $ (6) | 21,123 | ||
Noncontrolling interest contribution | 183 | 0 | 183 | |||
Noncontrolling interests distributions | $ (3,819) | (3,157) | (3,157) | (662) | ||
Balance (in shares) at Dec. 31, 2021 | 94,141,251 | 94,141,251 | ||||
Balance at Dec. 31, 2021 | $ 482,059 | 471,690 | $ 941 | 818,440 | (347,691) | 10,369 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (42,712) | (43,242) | (43,242) | 530 | ||
Stock distribution issued (in shares) | 10,421,149 | |||||
Stock distribution issued | 0 | $ 104 | 98,999 | (99,103) | ||
Adjustment to redemption value of redeemable noncontrolling interest | (3,946) | (3,946) | (3,946) | |||
Adjustment to redemption value of noncontrolling cumulative convertible redeemable preferred stock | 1,800 | 1,800 | 1,800 | |||
Transfers to redeemable common stock payable, net | (1,954) | (1,954) | (1,954) | |||
Redemptions of common stock (in shares) | (630,317) | |||||
Redemptions of common stock | (6,016) | (6,016) | $ (6) | (6,010) | ||
Acquisition of noncontrolling interest | 1,125 | 1,125 | ||||
Noncontrolling interest contribution | 300 | 300 | ||||
Noncontrolling interests distributions | $ (10,663) | (2,431) | (2,431) | (8,232) | ||
Balance (in shares) at Dec. 31, 2022 | 103,932,083 | 103,932,083 | ||||
Balance at Dec. 31, 2022 | $ 416,393 | $ 412,301 | $ 1,039 | $ 907,044 | $ (495,782) | $ 4,092 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | |||
Net loss | $ (41,670,000) | $ (12,498,000) | $ (48,813,000) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Impairment charges on real estate and related intangibles | 18,493,000 | 10,971,000 | 0 |
Impairment charges on goodwill | 8,098,000 | 2,808,000 | 0 |
Gain from remeasurement of prior equity interest | 0 | 0 | (2,009,000) |
Gain from consolidation of previously unconsolidated entity | (18,742,000) | 0 | 0 |
Casualty-related gain | 0 | (27,000) | 0 |
Loss (income) from unconsolidated entities | 8,019,000 | 1,373,000 | (1,260,000) |
Depreciation and amortization | 51,930,000 | 58,871,000 | 45,041,000 |
Loss (gain) on real estate equity securities | 51,943,000 | (28,632,000) | 14,814,000 |
(Gain) loss on real estate sale | (46,513,000) | (30,261,000) | 110,000 |
(Gain) loss on extinguishment of debt | (2,367,000) | 4,757,000 | (415,000) |
Subordinated performance fee due upon termination | 0 | 1,678,000 | (1,720,000) |
Unrealized (gain) loss on interest rate caps | (1,530,000) | 11,000 | 27,000 |
Deferred rent | (2,582,000) | (1,890,000) | (3,447,000) |
Amortization of above- and below-market leases, net | (1,007,000) | (1,278,000) | (852,000) |
Amortization of deferred financing costs | 3,727,000 | 3,157,000 | 3,311,000 |
Amortization of discount (premium) on bond and notes payable, net | 4,784,000 | 2,721,000 | 602,000 |
Foreign currency transaction (gain) loss, net | (29,038,000) | 7,445,000 | 2,912,000 |
Changes in assets and liabilities: | |||
Rents and other receivables | 2,589,000 | 1,390,000 | (3,456,000) |
Prepaid expenses and other assets | (2,069,000) | (1,670,000) | (2,465,000) |
Accounts payable and accrued liabilities | (3,159,000) | (207,000) | (3,161,000) |
Due to affiliates | 198,000 | (975,000) | (1,637,000) |
Other liabilities | 9,764,000 | (1,716,000) | 641,000 |
Net cash provided by (used in) operating activities | 10,868,000 | 16,028,000 | (1,777,000) |
Cash Flows from Investing Activities: | |||
Acquisitions of real estate, net of cash acquired | (6,689,000) | (4,818,000) | (18,909,000) |
Cash acquired in connection with the Pacific Oak Strategic Opportunity REIT II merger | 0 | 0 | 12,978,000 |
Cash and restricted cash received upon consolidation of previously unconsolidated entity | 1,834,000 | 0 | 0 |
Improvements to real estate | (31,110,000) | (19,038,000) | (21,807,000) |
Proceeds from sales of real estate | 151,178,000 | 194,711,000 | 332,000 |
Purchase of interest rate caps | (556,000) | (18,000) | (16,000) |
Proceeds from disposition of foreign currency collar | 0 | 1,198,000 | 14,125,000 |
Contributions to unconsolidated entities | (23,780,000) | (10,539,000) | (12,620,000) |
Distribution of capital from unconsolidated entities | 569,000 | 0 | 1,370,000 |
Investment in real estate equity securities | 0 | 0 | (35,971,000) |
Advances to affiliate | (1,200,000) | (7,040,000) | 0 |
Proceeds from advances due from affiliates | 8,239,000 | 0 | 0 |
Proceeds from the sale of real estate equity securities | 0 | 14,439,000 | 10,964,000 |
(Funding) proceeds for future development obligations | (7,934,000) | 6,203,000 | 0 |
Escrow deposits for pending real estate sales | 17,000,000 | 0 | 0 |
Net cash provided by (used in) investing activities | 107,551,000 | 175,098,000 | (49,554,000) |
Cash Flows from Financing Activities: | |||
Proceeds from notes and bonds payable | 188,106,000 | 358,931,000 | 112,480,000 |
Principal and related payments on notes payable | (192,268,000) | (473,133,000) | (70,649,000) |
Payments of deferred financing costs | (4,770,000) | (8,463,000) | (2,556,000) |
Payments to redeem common stock | (6,007,000) | (31,018,000) | (2,230,000) |
Payments to repurchase restricted stock | 0 | (5,656,000) | 0 |
Payment of prepaid other offering costs | 0 | (227,000) | (811,000) |
Payment to redeem noncontrolling interest | (6,687,000) | 0 | 0 |
Distributions paid | (11,016,000) | 0 | (334,000) |
Preferred dividends paid | (1,123,000) | (913,000) | (764,000) |
Acquisition of noncontrolling interest | (1,125,000) | (3,819,000) | 0 |
Noncontrolling interests contributions | 300,000 | 183,000 | 844,000 |
Noncontrolling interests distributions | (9,538,000) | 0 | (28,000) |
Payments to redeem noncontrolling cumulative convertible redeemable preferred stock | (16,934,000) | 0 | 0 |
Other financing proceeds, net | 0 | 2,367,000 | 0 |
Net cash (used in) provided by financing activities | (61,062,000) | (161,748,000) | 35,952,000 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,744,000) | 1,734,000 | 1,204,000 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 53,613,000 | 31,112,000 | (14,175,000) |
Cash, cash equivalents and restricted cash, beginning of period | 105,431,000 | 74,319,000 | 88,494,000 |
Cash, cash equivalents and restricted cash, end of period | 159,044,000 | 105,431,000 | 74,319,000 |
Supplemental Disclosure of Cash Flow Information: | |||
Interest paid, net of capitalized interest of $2,529, $2,055 and $2,923 for the years ended December 31, 2022, 2021 and 2020, respectively | 38,663,000 | 34,240,000 | 23,765,000 |
Supplemental Disclosure of Significant Noncash Transactions: | |||
Accrued improvements to real estate | 3,827,000 | 2,660,000 | 2,733,000 |
Redeemable common stock payable | 2,638,000 | 684,000 | 864,000 |
Restricted stock payable | 508,000 | 508,000 | 14,600,000 |
Dividends declared, but not yet paid | 0 | 11,016,000 | 0 |
PPP notes forgiveness | 2,367,000 | 1,500,000 | 0 |
Adjustment to redemption value of redeemable noncontrolling interest | 3,946,000 | 0 | 0 |
Adjustment to redemption value of noncontrolling cumulative convertible redeemable preferred stock | 1,800,000 | 0 | 0 |
Pacific Oak Strategic Opportunity REIT II, Inc. | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Impairment charges on goodwill | 8,100,000 | 2,800,000 | |
Supplemental Disclosure of Significant Noncash Transactions: | |||
Assets acquired | 0 | 0 | 635,825,000 |
Liabilities assumed | 0 | 0 | 359,375,000 |
Battery Point | |||
Supplemental Disclosure of Significant Noncash Transactions: | |||
Assets acquired | 0 | 0 | 56,572,000 |
Liabilities assumed | 0 | 0 | 37,548,000 |
PORT II | |||
Supplemental Disclosure of Significant Noncash Transactions: | |||
Assets acquired in the consolidation of PORT II | 137,569,000 | 0 | 0 |
Liabilities assumed in the consolidation of PORT II | $ 85,096,000 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Cash Flows [Abstract] | |||
Interest costs capitalized | $ 2,529 | $ 2,055 | $ 2,923 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2022 | |
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 Strategic Opportunity (BVI) Holdings, Ltd. (“Pacific Oak Strategic Opportunity 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 Strategic Opportunity 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, 2023; 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, with the exception of the Company’s residential homes portfolio. The Company’s residential homes portfolio, held through its subsidiary Pacific Oak Residential Trust, Inc. (“ PORT”), is managed by an affiliate of the Advisor . On January 8, 2009, the Company filed a registration statement on Form S-11 with the Securities and Exchange Commission (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 suspended offering shares under its dividend reinvestment plan as of March 28, 2023. The Company sold 56,584,976 shares of common stock in its primary offering for gross offering proceeds of $561.7 million. As of December 31, 2022 , the Company had sold 6,851,969 shares of common stock under its dividend reinvestment plan for gross offering proceeds of $76.5 million. On October 5, 2020, Pacific Oak Strategic Opportunity REIT II ("POSOR II") merged with an indirect subsidiary of the Company (the “Merger”). At the effective time of the Merger, each issued and outstanding share of POSOR II’s common stock converted into 0.9643 shares of the Company’s common stock or 28,973,906 shares. Also, as of December 31, 2021, the Company had redeemed 27,951,857 shares for $324.1 million . As of December 31, 2022 , 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 14 for further details. As of December 31, 2022, the Company consolidated eight office properties, one office portfolio consisting of two office buildings and 25 acres of undeveloped land, two apartment properties, one hotel property, one residential home portfolio consisting of 2,456 residential homes, two investments in undeveloped land with approximately 742 developable acres, one office/retail development property and owned three investments in unconsolidated entities and three investments in real estate equity securities. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, REIT Holdings, the Operating Partnership, Pacific Oak Strategic Opportunity BVI and their direct and indirect wholly owned subsidiaries, and 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. The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC. Liquidity The Company generally finances its real estate investments using notes payable that are typically structured as non-course 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, including fair value estimates for real estate, that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. 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 year ended December 31, 2022, the Company disposed of two office buildings and one hotel. As a result, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets for all periods presented. Revenue Recognition Lessor Accounting The Company recognizes minimum rent, including rental abatements, lease incentives and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related leases when collectibility is determined to be probable and records amounts expected to be received in later years as deferred rent receivable. In accordance with Topic 842, tenant reimbursements for property taxes and insurance are included in the single lease component of the lease contract (the right of the lessee to use the leased space) and therefore are accounted for as variable lease payments and are recorded as rental income on the Company’s statements of operations. In addition, the Company adopted the practical expedient available under Topic 842 to not separate nonlease components from the associated lease component and instead to account for those components as a single component if the nonlease components otherwise would be accounted for under the revenue recognition standard (Topic 606) and if certain conditions are met, specifically related to tenant reimbursements for common area maintenance which would otherwise be accounted for under the revenue recognition standard. The Company believes the two conditions have been met for tenant reimbursements for common area maintenance as (i) the timing and pattern of transfer of the nonlease components and associated lease components are the same and (ii) the lease component would be classified as an operating lease. Accordingly, tenant reimbursements for common area maintenance are also accounted for as variable lease payments and recorded as rental income on the Company’s statements of operations. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that can be taken in the form of cash or a credit against the tenant’s rent) that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. The Company leases apartment units and residential homes under operating leases with terms generally for one year or less. Generally, credit investigations will be performed for prospective residents and security deposits will be obtained. The Company recognizes rental revenue, net of concessions, on a straight-line basis over the term of the lease, when collectibility is determined to be probable. In accordance with Topic 842, the Company makes a determination of whether the collectibility of the lease payments in an operating lease is probable. If the Company determines the lease payments are not probable of collection, the Company would fully reserve for any contractual lease payments, deferred rent receivable, and variable lease payments and would recognize rental income at the lesser of (1) on a straight-line basis or (2) cash received. These changes to the Company’s collectibility assessment are reflected as an adjustment to rental income. The Company, as a lessor, records costs to negotiate or arrange a lease that would have been incurred regardless of whether the lease was obtained, such as legal costs incurred to negotiate an operating lease, as an expense and classify such costs as operating, maintenance, and management expense on the Company’s consolidated statements of operations. Hotel Revenues The Company recognizes revenue for hotels as hotel revenue when earned. Revenues are recorded net of any sales or occupancy tax collected from the Company’s guests. Additionally, some of the Company’s hotel rooms are booked through independent internet travel intermediaries. If the guest pays the independent internet travel intermediary directly, revenue for the room is booked by the Company at the price the Company sold the room to the independent internet travel intermediary, less any discount or commission paid. If the guest pays the Company directly, revenue for the room is booked by the Company on a gross basis. The Company participates in frequent guest programs sponsored by the brand owners of the Company’s hotels and the Company expenses the charges associated with those programs, as incurred. Hotel operating revenues are disaggregated in Note 3 into the categories of rooms revenue, food, beverage and convention services revenue, campground revenue and other revenue to demonstrate how economic factors affect the nature, amount, timing, and uncertainty of revenue and cash flows. Room revenue is generated through contracts with customers whereby the customer agrees to pay a daily rate for the right to use a hotel room. The Company’s contract performance obligations are fulfilled at the end of the day that the customer is provided the room and revenue is recognized daily at the contract rate. The Company records contract liabilities in the form of advanced deposits when a customer or group of customers provides a deposit for a future stay at the Company’s hotels. Advanced deposits for room revenue are included in the balance of other liabilities on the consolidated balance sheets. Advanced deposits are recognized as revenue at the time of the guest’s stay. Food, beverage and convention revenue is generated through contracts with customers whereby the customer agrees to pay a contract rate for restaurant dining services or convention services. The Company’s contract performance obligations are fulfilled at the time that the meal is provided to the customer or when the convention facilities and related dining amenities are provided to the customer. The Company recognizes food and beverage revenue upon the fulfillment of the contract with the customer. The Company records contract liabilities in the form of advanced deposits when a customer or group of customers provides a deposit for a future banquet event at the Company’s hotels. Advanced deposits for food and beverage revenue are included in the balance of other liabilities on the consolidated balance sheets. Advanced deposits for banquet services are recognized as revenue following the completion of the banquet services. Campground revenue is recognized on a straight-line basis over the term of the lease when collectability of the lease payments is probable. Dividend Income from Real Estate Equity Securities Dividend income from real estate equity securities is recognized on an accrual basis based on eligible shares as of the ex-dividend date. Interest Income from Cash and Cash Equivalents The Company recognizes interest income on its cash and cash equivalents as it is earned and records such amounts as other interest income. Real Estate Investments Real Estate Acquisition Valuation The Company records the acquisition of income-producing real estate or real estate that will be used for the production of income as a business combination or an asset acquisition. If substantially all of the fair value of the gross assets acquired are concentrated in a single identifiable asset or group of similar identifiable assets, then the set is not a business. For purposes of this test, land and buildings can be combined along with the intangible assets for any in-place leases and accordingly, most acquisitions of investment properties would not meet the definition of a business and would be accounted for as an asset acquisition. To be considered a business, a set must include an input and a substantive process that together significantly contributes to the ability to create an output. All assets acquired and liabilities assumed in a business combination are measured at their acquisition-date fair values. For asset acquisitions, the cost of the acquisition is allocated to individual assets and liabilities on a relative fair value basis. Acquisition costs associated with business combinations are expensed as incurred. Acquisition costs associated with asset acquisitions are capitalized. Intangible assets include the value of in-place leases, which represents the estimated value of the net cash flows of the in-place leases to be realized, as compared to the net cash flows that would have occurred had the property been vacant at the time of acquisition and subject to lease-up. Acquired in-place lease value will be amortized to expense over the average remaining terms of the respective in-place leases, including any below-market renewal periods. The Company assesses the acquisition date fair values of all tangible assets, identifiable intangibles and assumed liabilities using methods similar to those used by independent appraisers, generally utilizing a discounted cash flow analysis that applies appropriate discount and/or capitalization rates and available market information and/or replacement cost data. Estimates of future cash flows are based on a number of factors, including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it were vacant. The Company records above-market and below-market in-place lease values for acquired properties based on the present value (using a discount that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of above-market in-place leases and for the initial term plus any extended term for any leases with below-market renewal options. The Company amortizes any recorded above-market or below-market lease values as a reduction or increase, respectively, to rental income over the remaining non-cancelable terms of the respective lease, including any below-market renewal periods. The Company estimates the value of tenant origination and absorption costs by considering the estimated carrying costs during hypothetical expected lease up periods, considering current market conditions. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods. The Company records the fair value of debt assumed in an acquisition based on management’s estimates of current market interest rates for instruments with similar characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. The Company amortizes the value of tenant origination and absorption costs to depreciation and amortization expense over the remaining non-cancelable term of the leases. Estimates of the fair values of the tangible assets, identifiable intangibles and assumed liabilities require the Company to make significant assumptions to estimate market lease rates or average daily rates, property-operating expenses, carrying costs during lease-up periods, discount rates, market absorption periods, revenue and expense growth rates, occupancy, and net operating margin. The Company records the fair value of noncontrolling interests based on the estimated noncontrolling interests’ share of fair values of the net assets of the underlying entities, adjusted for lack of marketability and control discount. Direct investments in undeveloped land or properties without leases in place at the time of acquisition are accounted for as an asset acquisition. Acquisition fees and expenses are capitalized into the cost basis of an asset acquisition. Additionally, during the time in which the Company is incurring costs necessary to bring these investments to their intended use, certain costs such as legal fees, real estate taxes and insurance and financing costs are also capitalized. Depreciation and Amortization Real estate costs related to the acquisition and improvement of properties are capitalized and depreciated over the expected useful life of the asset on a straight-line basis. Repair and maintenance costs are charged to expense as incurred and significant replacements and betterments are capitalized. Repair and maintenance costs include all costs that do not extend the useful life of the real estate asset. The Company considers the period of future benefit of an asset to determine its appropriate useful life. Expenditures for tenant improvements are capitalized and amortized over the shorter of the tenant’s lease term or expected useful life. The Company anticipates the estimated useful lives of its assets by class to be generally as follows: Land N/A Buildings 25-40 years Building improvements 10-40 years Tenant improvements Shorter of lease term or expected useful life Tenant origination and absorption costs Remaining term of related leases, including below-market renewal periods Real estate subsidies & tax abatements Remaining term of agreement Furniture, fixtures & equipment 3-12 years Impairment Charges on Real Estate and Related Intangibles The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate and related intangibles may not be recoverable or realized. Such indicators of potential impairment may include an assessment of management's intended hold period and disposition strategy, a significant decrease in market price, expected future undiscounted cash flows, current industry and market trends and other factors including bona fide purchase offers received from third parties in making this assessment. When indicators of potential impairment suggest that the carrying value of real estate and related intangibles may not be recoverable, the Company assesses the recoverability by estimating whether the Company will recover the carrying value of the real estate and related intangibles through its undiscounted future cash flows and its eventual disposition. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of the real estate and related intangibles, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the real estate and related intangibles. The Company recorded an impairment loss of $18.5 million and $11.0 million on its real estate and related intangibles during the years ended December 31, 2022 and 2021, respectively. See Note 9 for further discussion. There were no impairment losses on real estate and related intangibles during the year ended December 31, 2020. Projecting future cash flows involves estimating expected future operating income and expenses related to the real estate and its related intangibles as well as market and other trends. Using inappropriate assumptions to estimate cash flows could result in incorrect fair values of the real estate and its related intangibles and could result in the overstatement of the carrying values of the Company’s real estate and related intangibles and an overstatement of its net income. Real Estate Held for Sale The Company generally considers real estate to be “held for sale” when the following criteria are met: (i) management commits to a plan to sell the property, (ii) the property is available for sale immediately, (iii) the property is actively being marketed for sale at a price that is reasonable in relation to its current fair value, (iv) the sale of the property within one year is considered probable and (v) significant changes to the plan to sell are not expected. Real estate that is held for sale and its related assets are classified as “real estate held for sale” and “assets related to real estate held for sale,” respectively, for all periods presented in the accompanying consolidated financial statements. Notes payable and other liabilities related to real estate held for sale are classified as “notes payable related to real estate held for sale” and “liabilities related to real estate held for sale,” respectively, for all periods presented in the accompanying consolidated financial statements. Real estate classified as held for sale is no longer depreciated and is reported at the lower of its carrying value or its estimated fair value less estimated costs to sell. Operating results and related gains on sale of properties that were disposed of or classified as held for sale in the ordinary course of business are included in continuing operations on the Company’s consolidated statements of operations. Sale of Real Estate The Company’s sales of real estate would be considered a sale of a nonfinancial asset. The Company determines it does not have a controlling financial interest in the entity that holds the asset and the arrangement meets the criteria to be accounted for as a contract, the Company would derecognize the asset and recognize a gain or loss on the sale of the real estate when control of the underlying asset transfers to the buyer. Real Estate Equity Securities These investments are carried at their estimated fair value based on quoted market prices for the security, net of any discounts for restrictions on the sale of the security. Transaction costs that are directly attributable to the acquisition of real estate equity securities are capitalized to its cost basis. The Company records unrealized gains and losses on real estate equity securities are recognized in earnings. Goodwill Goodwill represents the excess of consideration paid over the fair value of underlying identifiable net assets of business acquired. The Company's goodwill has an indeterminate life and is not amortized, but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company takes a qualitative approach to consider whether an impairment of goodwill exists prior to quantitatively determining the fair value of the reporting unit in step one of the impairment test. The Company performs its annual assessment on October 1st. The Company recorded impairment charges on goodwill of $8.1 million and $2.8 million for the years ended December 31, 2022 and 2021, respectively. See Note 9 for further discussion. There were no impairment losses on goodwill during the year December 31, 2020. Investments in Unconsolidated Entities The Company accounts for investments in unconsolidated entities in which the Company may exercise significant influence over, but does not control, using the equity method of accounting. Under the equity method, the investment is initially recorded at cost and subsequently adjusted to reflect additional contributions or distributions and the Company’s proportionate share of equity in the unconsolidated entity’s income (loss). The Company recognizes its proportionate share of the ongoing income or loss of the unconsolidated entity as equity in income (loss) of unconsolidated entity on the consolidated statements of operations. On a quarterly basis, the Company evaluates its investments in the unconsolidated entities for other-than-temporary impairments. The Company did not record any other-than-temporary impairment losses related to its unconsolidated entities accounted for under the equity method during the years ended December 31, 2022, 2021 and 2020. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Cash and cash equivalents are stated at cost, which approximates fair value. There were no restrictions on the use of the Company’s cash and cash equivalents as of December 31, 2022 and 2021. The Company’s cash and cash equivalents balance exceeded federally insurable limits as of December 31, 2022. The Company monitors the cash balances in its operating accounts and adjusts the cash balances as appropriate; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to cash in its operating accounts. 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. Deferred Financing Costs Deferred financing costs represent commitment fees, loan fees, legal fees and other third-party costs associated with obtaining financing and are presented on the balance sheets as a direct deduction from the carrying value of the associated debt liability. These costs are amortized over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity unless specific rules are met that would allow for the carryover of such costs to the refinanced debt. Deferred financing costs incurred before an associated debt liability is recognized are included in prepaid and other assets on the balance sheets. Costs incurred in seeking financing transactions that do not close are expensed in the period in which it is determined that the financing will not close. Fair Value Measurements Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other non-financial and financial assets at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and classifies such items in Level 1 or Level 2. The Company would classify items as Level 3 in instances where the market for a financial instrument is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines that the market for a financial instrument owned by the Company is illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and establishes a fair value by assigning weights to the various valuation sources. Additionally, when determining the fair value of liabilities in circumstances in which a quoted price in an active market for an identical liability is not available, the Company measures fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. The Company considers the following factors to be indicators of an inactive market: (i) there are few recent transactions, (ii) price quotations are not based on current information, (iii) price quotations vary substantially either over time or among market makers (for example, some brokered markets), (iv) indexes that previously were highly correlated with the fair values of the asset or liability are demonstrably uncorrelated with recent indications of fair value for that asset or liability, (v) there is a significant increase in implied liquidity risk premiums, yields, or performance indicators (such as delinquency rates or loss severities) for observed transactions or quoted prices when compared with the Company’s estimate of expected cash flows, considering all available market data about credit and other nonperformance risk for the asset or liability, (vi) there is a wide bid-ask spread or significant increase in the bid-ask spread, (vii) there is a significant decline or absence of a market for new issuances (that is, a primary market) for the asset or liability or similar assets or liabilities, and (viii) little information is released publicly (for example, a principal-to-principal market). The Company considers the following factors to be indicators of non-orderly transactions: (i) there was not adequate exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities under current market conditions, (ii) there was a usual and customary marketing period, but the seller marketed the asset or liability to a single market participant, (iii) the seller is in or near bankruptcy or receivership (that is, distressed), or the seller was required to sell to meet regulatory or legal requirements (that is, forced), and (iv) the transaction price is an outlier when compared with other recent transactions for the same or similar assets or liabilities. Dividend Reinvestment Plan The Company has adopted a dividend reinvestment plan (the “DRP”) through which common stockholders may elect to reinvest an amount equal to the distributions declared on their shares in additional shares of the Company’s common stock in lieu of receiving cash distributions. On December 2, 2021, the Company’s board of directors approved an estimated value per share of the Company’s common stock of $10.68 (unaudited) based on the estimated value of the Company’s assets less the estimated value of the Company’s liabilities, or net asset value, divided by the number of shares outstanding as of September 30, 2021. Subsequently, on December 28, 2021, the Company’s board of directors declared a special dividend of $1.17 per share of the Company’s common stock to the stockholders of record as of the close of business on December 30, 2021. On January 26, 2022, the board of directors approved an updated estimated value per share of $9.51 (unaudited), based on the previous estimated value per share of $10.68 (unaudited), less the special dividend of $1.17. After giving effect to the declaration of the special dividend of $1.17 per share, the purchase price per share under the DRP was $9.51 and commenced in the first quarter of 2022. On December 2, 2022, the Company’s board of directors approved an estimated value per share of the Company’s common stock of $10.50 (unaudited) based on the estimated value of the Company’s assets less the estimated value of the Company’s liabilities, or net asset value, divided by the number of shares outstanding as of September 30, 2022. As such, subsequent to December 2, 2022, the purchase price per share under the DRP was $10.50. The Company does not expect to have any proceeds from the dividend reinvestment plan in 2023. On March 28, 2023, the Company determined to indefinitely suspend the DRP as of March 28, 2023 to minimize administrative costs. Redeemable Common Stock The Company has adopted a share redemption program that may enable stockholders to sell their shares to the Company in limited circumstances. Pursuant to the share redemption program there are several limitations on the Company’s ability to redeem shares: • Unless the shares are being redeemed in connection with a stockholder’s death, “qualifying disability” or “determination of incompetence” (each as defined under the share redemption program), the Company may not redeem shares until the stockholder has held the shares for one year. • During any calendar year, the Company may redeem no more than 5% of the weighted-average number of shares outstanding during the prior calendar year. • The Company has no obligation to redeem shares if the redemption would violate the restrictions on distributions under Maryland law, which prohibits distributions that would cause a corporation to fail to meet statutory tests of solvency. • During any calendar year, the Company may redeem only the number of shares that the Company can purchase with the amount of net proceeds from the sale of shares under its dividend reinvestment plan during the prior calendar year; provided, however, that this limit may be increased or decreased by us upon ten • The Company may not redeem more than $3.0 million of shares in a given quarter (excluding shares redeemed in connection with a stockholder’s death, “qualifying disability” or “determination of incompetence”). To the extent that, in a given fiscal quarter, the Company redeems less than the sum of (a) $3.0 million of shares (excluding shares redeemed in connection with a stockholder’s death, “qualifying disability” or “determination of incompetence”) and (b) any excess capacity carried over to such fiscal quarter from a prior fiscal quarter as described below, any remaining excess capacity to redeem shares in such fiscal quarter will be added to our capacity to otherwise redeem shares (excluding shares redeemed in connection with a stockholder’s death, “qualifying disability” or “determination of incompetence”) du |
REAL ESTATE HELD FOR INVESTMENT
REAL ESTATE HELD FOR INVESTMENT | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
REAL ESTATE HELD FOR INVESTMENT | REAL ESTATE HELD FOR INVESTMENT As of December 31, 2022, the Company consolidated eight office properties, one office portfolio consisting of two office buildings and 25 acres of undeveloped land encompassing, in the aggregate, approximately 3.2 million rentable square feet. As of December 31, 2022, these properties were 69% occupied. In addition, the Company consolidated one residential home portfolio consisting of 2,456 residential homes and encompassing approximately 3.5 million rental square feet and two apartment properties containing 609 units and encompassing approximately 0.5 million rentable square feet, which were 94% and 95% occupied, respectively as of December 31, 2022. The Company also consolidated one hotel property with 196 rooms, two investments in undeveloped land with approximately 742 developable acres, and one office/retail development property. The following table summarizes the Company’s real estate held for investment as of December 31, 2022 and 2021, respectively (in thousands): December 31, 2022 December 31, 2021 Land $ 269,376 $ 245,200 Buildings and improvements 1,063,782 954,851 Tenant origination and absorption costs 27,996 43,375 Total real estate, cost 1,361,154 1,243,426 Accumulated depreciation and amortization (141,750) (124,876) Total real estate, net $ 1,219,404 $ 1,118,550 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 December 31, 2022, the leases, excluding options to extend apartment leases and residential home leases, which have terms that are generally one year or less, had remaining terms of up to 12.6 years with a weighted-average remaining term of 3.7 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 and totaled $6.5 million and $6.0 million as of December 31, 2022 and 2021, respectively. During the years ended December 31, 2022, 2021 and 2020, the Company recognized deferred rent from tenants of $2.6 million, $1.9 million and $3.4 million, respectively, net of lease incentive amortization. As of December 31, 2022 and 2021, the cumulative deferred rent receivable balance, including unamortized lease incentive receivables, was $18.3 million and $16.3 million, respectively, and is included in rents and other receivables on the accompanying balance sheets. The cumulative deferred rent balance included $2.8 million and $3.3 million of unamortized lease incentives as of December 31, 2022 and 2021, respectively. As of December 31, 2022, the future minimum rental income from the Company’s properties, excluding apartment and residential home leases, under non-cancelable operating leases was as follows (in thousands): 2023 $ 61,327 2024 58,093 2025 47,651 2026 33,929 2027 26,146 Thereafter 57,434 $ 284,580 As of December 31, 2022, the Company’s commercial real estate properties were leased to approximately 300 tenants (unaudited) 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 Public Administration 14 $ 7,774 12.7 % Professional, Scientific, and Technical Services 38 7,346 12.0 % Computer Systems Design and Related Services 31 7,056 11.6 % $ 22,176 36.3 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of December 31, 2022, adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term. 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 years ended December 31, 2022 and 2021, the Company recorded adjustments to rental income of $2.6 million and $3.3 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 for its two hotel properties (the Springmaid Beach Resort was sold on September 1, 2022) for the years ended December 31, 2022 and 2021 and October 5, 2020 through December 31, 2020 (due to the Merger) (in thousands): Year Ended December 31, 2022 2021 October 5, 2020 through December 31, 2020 Hotel revenues: Room $ 23,834 $ 22,889 $ 2,545 Food, beverage and convention services 3,641 3,752 420 Campground 807 1,078 270 Other 2,467 3,087 483 Hotel revenues $ 30,749 $ 30,806 $ 3,718 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 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 December 31, 2022 and December 31, 2021 (in thousands): December 31, 2022 December 31, 2021 Contract liability $ 23,904 $ 7,313 Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ 9,215 $ 159 Geographic Concentration Risk As of December 31, 2022, the Company’s real estate held for investment in California and Georgia represented 21.7% and 10.0%, respectively, 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 and Georgia 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 year ended December 31, 2022, the Company recorded impairment charges on real estate in the aggregate of $18.5 million, to write down the carrying value of 210 West 31st Street by $4.4 million, a development property located in New York, New York (“210 West 31st Street”) and Oakland City Center by $11.6 million, an office property located in Oakland, California, to their estimated fair value due to a change in the projected hold period and related decrease in projected cash flows. Additionally, the Company determined that based on the amended sale price of the Springmaid Beach Resort, the book value was not recoverable and the Company wrote down the carrying value of Springmaid Beach Resort by $2.5 million. During the year ended December 31, 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 and Lincoln Court by $4.4 million to their estimated fair value due to a change in the projected hold period and related decrease in projected cash flows. Such amounts were included in the accompanying consolidated statements of operations within impairment charges on real estate and related intangibles . There were no impairment charges during the year ended December 31, 2020. PORT II Consolidation On July 1, 2022 (“consolidation date”), the Company became the primary beneficiary of Pacific Oak Residential Trust II, Inc. (“PORT II”), a related party and consolidated PORT II into the Company's financial statements. As of July 1, 2022, PORT II owned 588 residential homes. Refer to Note 10 for additional details on PORT II and the consolidation. The following table summarizes the components of the PORT II and the gain recognized by the Company (in thousands): PORT II's assets and liabilities, based upon fair values as determined by the Company, as follows: Assets: Real estate held for investment, net $ 135,096 Cash and cash equivalents 1,473 Restricted cash 361 Prepaid expenses and other assets 639 Total Assets 137,569 Liabilities: Notes payable, net (82,646) Accounts payable and accrued liabilities (804) Due to affiliates (147) Other liabilities (1,499) Total Liabilities (85,096) Noncontrolling interest (1,125) Elimination of the Company’s investment in PORT II (32,606) Gain from consolidation of previously unconsolidated entity $ 18,742 |
TENANT ORIGINATION AND ABSORPTI
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract] | |
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES | TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES As of December 31, 2022 and 2021, the Company’s tenant origination and absorption costs (included in total real estate and real estate-related investments, net), 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 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Cost $ 27,995 $ 43,375 $ 4,103 $ 4,138 $ (3,534) $ (6,719) Accumulated Amortization (13,987) (20,738) (1,830) (1,496) 945 2,639 Net Amount $ 14,008 $ 22,637 $ 2,273 $ 2,642 $ (2,589) $ (4,080) 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 years ended December 31, 2022, 2021 and 2020 were as follows (in thousands): Tenant Origination and Above-Market Below-Market For the Years Ended December 31, For the Years Ended December 31, For the Years Ended December 31, 2022 2021 2020 2022 2021 2020 2022 2021 2020 Amortization $ (9,926) $ (15,177) $ (10,453) $ (367) $ (514) $ (476) $ 1,375 $ 1,792 $ 1,382 The remaining unamortized balance for these outstanding intangible assets and liabilities as of December 31, 2022 will be amortized for the years ending December 31 as follows (in thousands): Tenant Origination and Above-Market Below-Market Housing Subsidy Tax Abatements 2023 $ (4,924) $ (356) $ 1,019 $ (71) $ (227) 2024 (3,575) (355) 821 (71) (4) 2025 (2,330) (339) 544 (71) — 2026 (1,047) (309) 138 (71) — 2027 (467) (221) 45 (71) — Thereafter (1,665) (693) 22 (1,465) — $ (14,008) $ (2,273) $ 2,589 $ (1,820) $ (231) Weighted-Average Remaining Amortization Period 4.9 years 7.5 years 2.9 years 25.8 years 0.6 years As of December 31, 2022 and 2021, the Company had recorded a housing subsidy intangible asset, net of amortization, which is included in prepaid expenses and other assets in the accompanying balance sheets, of $1.8 million and $1.9 million, respectively. During the years ended December 31, 2022, 2021 and 2020, the Company recorded amortization expense of $71,000, $71,000 and $17,000, respectively, related to the housing subsidy intangible asset. |
REAL ESTATE EQUITY SECURITIES
REAL ESTATE EQUITY SECURITIES | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
REAL ESTATE EQUITY SECURITIES | REAL ESTATE EQUITY SECURITIES As of December 31, 2022, the Company owned three investments in real estate equity securities. The following summarizes the portion of gain and loss for the period related to real estate equity securities held during the years ended December 31, 2022 and 2021 (in thousands): For the Years Ended December 31, 2022 2021 Net (loss) gain recognized during the period on real estate equity securities $ (51,943) $ 28,632 Less: Net gain recognized during the period on real estate equity securities sold during the period — 3,036 Unrealized (loss) gain recognized during the reporting period on real estate equity securities still held at period end $ (51,943) $ 25,596 |
REAL ESTATE DISPOSITIONS
REAL ESTATE DISPOSITIONS | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
REAL ESTATE DISPOSITIONS | REAL ESTATE DISPOSITIONSDuring the year ended December 31, 2022, the Company disposed of two office buildings, one hotel and approximately 67 developable acres of undeveloped land. During the year ended December 31, 2021, the Company disposed of one office building and approximately 193 developable acres of undeveloped land. There were no material dispositions during the year ended December 31, 2020. On November 30, 2022, the Company sold approximately 67 developable acres of Park Highlands undeveloped land for $55.0 million, before closing costs and credits. The purchaser is not affiliated with the Company or the Advisor. The Company recognized a pre-tax gain on sale of $42.8 million related to the land sale. In addition, the land parcels were held and sold through one of the Company’s taxable REIT subsidiaries (“TRS”) for certain tax planning purposes and to ensure preservation of the Company’s REIT status. For purposes of the determination of U.S. federal and state income taxes, the Company’s TRS’ record current or deferred income taxes based on differences (both permanent and timing) between the determination of their taxable income and net income under GAAP. In connection with the Park Highlands sale, the Company recorded an income tax provision of $4.9 million at the TRS level. There were no state taxes related to this disposition. The following table reconciles the U.S. federal statutory income tax rate to our effective income tax rate for the transaction’s taxable gain: For the Year Ended December 31, 2022 U.S. federal statutory income tax rate 21 % Net capital loss carryforwards utilized (3) % Change in valuation allowance (1) % Effective rate 17 % During the year ended December 31, 2022, the Company fully released its valuation allowance primarily related to its federal net capital loss carryforwards as the Company determined it was more likely than not that these deferred tax assets would be realized. The decision to release the valuation allowance was made after management considered all available evidence, both positive and negative, including but not limited to, anticipated land sales. As of December 31, 2022, the Company had no deferred tax assets or deferred tax liabilities in the Company's property-level TRS. On September 1, 2022, the Company, through an indirect wholly owned subsidiary, sold the Springmaid Beach Resort to a purchaser unaffiliated with the Company or the Advisor for $91.0 million, before closing costs and credits. The carrying value of the Springmaid Beach Resort as of the disposition date was $87.2 million, which was net of $3.4 million of accumulated depreciation and amortization and $2.5 million of impairment charges. In connection with the sale of the Springmaid Beach Resort, the Company repaid $53.0 million of the outstanding principal balance due under the mortgage loan secured by the Springmaid Beach Resort and $1.3 million of the proceeds were held for contingent repairs related to the property. As a result of the sale of the Springmaid Beach Resort, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets as of December 31, 2021. On January 24, 2022, the Company, through an indirect wholly owned subsidiary, sold two office buildings related to the Richardson Portfolio and containing 141,950 rentable square feet in Richardson, Texas (“Greenway Buildings”) to a purchaser unaffiliated with the Company or the Advisor (as defined in Note 10), for $11.0 million, before closing costs and credits. The carrying value of the Greenway Buildings as of the disposition date was $5.6 million, which was net of $3.2 million of accumulated depreciation and amortization. In connection with the sale of the Greenway Buildings, the Company repaid $9.1 million of the outstanding principal balance due under the mortgage loan secured by the Greenway Buildings. The Company recognized a gain on sale of $3.6 million related to the disposition of the Greenway Buildings, net of closing costs and adjustments. As a result of the sale of the Greenway Buildings, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets as of December 31, 2021. 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, as well as a $0.1 million loss on extinguishment of debt related to the disposition of City Tower. 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 $30.0 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. There was no real estate held for sale as of December 31, 2022 and December 31, 2021, except where the Company retrospectively reclassified 2021 real estate as held for sale due to 2022 activity. The operations of real estate properties sold and gain on sales are included in continuing operations on the accompanying statements of operations. The following table summarizes certain revenue and expenses related to these properties for the years ended December 31, 2022, 2021 and 2020 (in thousands): Years Ended December 31, 2022 2021 2020 Revenues Rental income 457 9,971 14,993 Hotel revenues 21,019 25,202 2,541 Other operating income 10 677 1,151 Total revenues $ 21,486 $ 35,850 $ 18,685 Expenses Operating, maintenance, and management 69 3,278 14,173 Real estate taxes and insurance 21 1,362 2,075 Hotel expenses 6,574 8,240 1,403 Asset management fees to affiliate 470 1,533 1,270 Depreciation and amortization 966 4,728 8,004 Interest expense 3,755 6,652 4,958 Total expenses $ 11,855 $ 25,793 $ 31,883 |
NOTES AND BONDS PAYABLE
NOTES AND BONDS PAYABLE | 12 Months Ended |
Dec. 31, 2022 | |
Notes and Bonds Payable [Abstract] | |
NOTES AND BONDS PAYABLE | NOTES AND BONDS PAYABLE As of December 31, 2022 and December 31, 2021, 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 December 31, 2022 (1) Interest Rate at December 31, 2022 (1) Payment Type (2) Maturity Date (3) Richardson Portfolio Mortgage Loan $ 18,844 $ 28,470 SOFR + 2.50% 6.11% Principal & Interest 11/01/2023 Park Centre Mortgage Loan 26,233 26,185 BSBY + 1.75% 6.90% Principal & Interest 06/27/2023 1180 Raymond Mortgage Loan (4) 31,070 31,070 BSBY + 2.25% 6.61% Interest Only 12/01/2023 Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures (6) 331,213 271,978 3.93% 3.93% (6) 01/31/2026 Crown Pointe Mortgage Loan 53,758 52,315 SOFR + 2.30% 6.60% Interest Only 04/01/2025 The Marq Mortgage Loan 60,796 61,874 BSBY + 1.55% 5.91% Principal & Interest 06/06/2023 Eight & Nine Corporate Centre Mortgage Loan 47,945 48,545 BSBY + 1.60% 5.96% Principal & Interest 06/08/2023 Georgia 400 Center Mortgage Loan 44,129 61,154 LIBOR + 1.55% 5.95% Interest Only 05/22/2023 PORT Mortgage Loan 1 51,302 51,302 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 MetLife Loan 60,000 60,000 3.90% 3.90% Interest Only 04/10/2026 PORT II Metlife Loan (7) 93,701 — 3.99% 3.99% Interest Only 04/10/2026 Springmaid Beach Resort Mortgage Loan — 55,491 (5) (5) (5) (5) Q&C Hotel Mortgage Loan 24,784 25,000 LIBOR + 2.50% (8) 6.90% Principal & Interest 01/31/2023 (8) Lincoln Court Mortgage Loan (4) 35,314 34,623 SOFR + 3.25% 7.55% Interest Only 08/07/2025 Lofts at NoHo Commons Mortgage Loan 71,536 74,536 SOFR + 2.18% (9) 6.48% Interest Only 09/09/2023 210 West 31st Street Mortgage Loan — 8,850 (5) (5) (5) (5) Oakland City Center Mortgage Loan (4) 87,000 96,075 BSBY + 3.00% 7.36% Principal & Interest 09/01/2023 Madison Square Mortgage Loan 17,964 17,500 4.63% 4.63% Interest Only 10/07/2024 Total Notes and Bonds Payable principal outstanding 1,066,112 1,015,491 Discount on Notes and Bonds Payable, net (10) (11,964) (8,146) Deferred financing costs, net (9,439) (8,396) Total Notes and Bonds Payable, net $ 1,044,709 $ 998,949 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of December 31, 2022. The interest rate is calculated as the actual interest rate in effect as of December 31, 2022 (consisting of the contractual interest rate and contractual floor rates), using interest rate indices at December 31, 2022, where applicable. (2) Represents the payment type required under the loan as of December 31, 2022. 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 December 31, 2022; subject to certain conditions, the maturity dates of certain loans may be extended beyond the date shown. (4) 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 December 31, 2022, the guaranteed amount in the aggregate was $38.3 million. (5) These loans were paid off during the year ended December 31, 2022. (6) See “Israeli Bond Financing” below. (7) As of December 31, 2022, $93.7 million had been disbursed to the Company and up to $6.3 million was available for future disbursements, subject to certain terms and conditions contained in the loan documents. (8) The interest rate is variable at the higher of one-month LIBOR + 2.5% or 4.5%. Subsequent to December 31, 2022, the Company extended the Q&C Hotel Mortgage Loan to January 31, 2024. Beginning February 1, 2023 through March 31, 2023, the interest rate is 8.25% and thereafter is SOFR + 3.5%. (9) The variable rate is at the higher of one-month SOFR or 1.75%, plus 2.18%. (10) 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 years ended December 31, 2022, 2021 and 2020, the Company incurred $48.1 million, $40.5 million and $29.1 million of interest expense, respectively. Included in interest expense for the years ended December 31, 2022, 2021 and 2020, was $3.7 million, $3.2 million and $3.3 million of amortization of deferred financing costs, respectively and $4.8 million, $2.7 million and $0.6 million of amortization of the debt discount / premium for the years ended December 31, 2022, 2021 and 2020, respectively. Additionally, during the years ended December 31, 2022, 2021 and 2020, the Company capitalized $2.5 million, $2.1 million and $2.9 million of interest, respectively, to its investments in undeveloped land. As of December 31, 2022 and 2021, the Company’s interest payable was $9.1 million and $6.6 million, respectively. The following is a schedule of maturities, including principal amortization payments, for all notes and bonds payable outstanding as of December 31, 2022 (in thousands): 2023 $ 412,338 2024 128,366 2025 250,779 2026 274,629 2027 — Thereafter — $ 1,066,112 The Company had a total of $522.7 million of debt obligations scheduled to mature from January 1, 2023 through 12 months from the report issuance date. The Company has extension options with respect to $166.7 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 the Company 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 B Debentures (as defined below). The Company plans to utilize available extension options or seek to 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 and bonds payable contain various financial debt covenants, including minimum equity requirements and liquidity ratios. As of December 31, 2022, the Company was in compliance with all of these debt covenants with the exception that the Georgia 400 Center Mortgage Loan, Richardson Portfolio Mortgage Loan, Park Centre Mortgage Loan, Lofts at NoHo Commons Mortgage Loan, Lincoln Court Mortgage Loan, and Oakland City Center Mortgage Loan were not in compliance with the debt service coverage requirement. As a result of such non-compliance, the Company is required to provide a cash sweep for the Georgia 400 Center Mortgage Loan and the remaining loans are at-risk of cash sweeps and/or principal pay downs if in non-compliance. Israeli Bond Financings On February 16, 2020, Pacific Oak Strategic Opportunity 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 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. Pacific Oak Strategic Opportunity BVI issued additional Series B Debentures subsequent to the initial issuance and as of December 31, 2022, 1.2 billion Israeli new Shekels (approximately $331.2 million as December 31, 2022) were outstanding. 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. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 and 2021, which carrying amounts do not approximate the fair values (in thousands): December 31, 2022 December 31, 2021 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities (Level 3): Notes payable $ 734,899 $ 728,433 $ 716,813 $ 743,513 $ 740,176 $ 740,347 Financial liabilities (Level 1): Pacific Oak Strategic Opportunity (BVI) Holdings, Ltd. Series B Debentures $ 331,213 $ 316,276 $ 304,758 $ 271,978 $ 258,773 $ 274,697 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 December 31, 2022, 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 $ 60,153 $ 60,153 $ — $ — Asset derivative - interest rate caps $ 2,267 $ — $ 2,267 $ — Liability derivative - foreign currency collar $ 3,115 $ — $ 3,115 $ — Nonrecurring Basis: Impaired real estate (1) $ 212,800 $ — $ — $ 212,800 Impaired goodwill $ 5,436 $ — $ — $ 5,436 _____________________ (1) Amount represents the fair value for a real estate asset impacted by impairment charges during the year ended December 31, 2022, as of the date that the fair value measurement was made. The carrying value for the real estate asset may have subsequently increased or decreased from the fair value reflected due to activity that has occurred since the measurement date. During the year ended December 31, 2022, 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 and Oakland City Center was based on an income approach with the significant unobservable inputs used in measuring the estimated fair value of this property include an initial discount rate of 6.50% and a terminal cap rate of 5.75% and subsequently measured with a discount rate of 6.75% and a terminal cap rate of 6.00%. Additionally, the Springmaid Beach Resort was measured at it’s estimated fair value based on the contractual sale price. During the year ended December 31, 2022, the Company recorded impairment charges on real estate in the aggregate of $18.5 million, to write down the carrying value of 210 West 31st Street, Oakland City Center, and the Springmaid Beach Resort. The fair value of the Company's real estate were measured using significant other observable inputs (Level 2) and significant unobservable inputs (Level 3) for the year ended December 31, 2022, which included contractual sale price, projected cash flows, terminal capitalization rates, and discount rates. As of December 31, 2021, the Company measured the following assets at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Recurring Basis: Real estate equity securities $ 112,096 $ 112,096 $ — $ — Asset derivative - interest rate caps $ 8 $ — $ 8 $ — Nonrecurring Basis: Impaired real estate (1) $ 97,600 $ — $ — $ 97,600 Impaired goodwill $ 13,534 $ — $ — $ 13,534 _____________________ (1) Amount represents the fair value for a real estate asset impacted by impairment charges during the year ended December 31, 2021, as of the date that the fair value measurement was made. The carrying value for the real estate asset may have subsequently increased or decreased from the fair value reflected due to activity that has occurred since the measurement date. During the year ended December 31, 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 and Lincoln Court was based on an income approach with the significant unobservable inputs used in measuring the estimated fair value of this property including a discount rate of 7.75% and a terminal cap rate of 6.75%. During the year ended December 31, 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 to their estimated recoverable amounts. Goodwill Impairment During the year ended December 31, 2022, the Company determined that based on the sale of the Springmaid Beach Resort and a decline in projected cash flows for Oakland City Center, it was more likely than not that the fair value of the reporting units that included Oakland City Center and Springmaid Beach Resort were less than book value. The resulting real estate impairment charge on Oakland City Center and the sale of Springmaid Beach Resort, resulted in the fair value of the reporting units to be below fair value and the entirety of the goodwill associated to the reporting units to be written off. During the year ended December 31, 2022, the Company recorded goodwill impairment charges of $8.1 million in the consolidated statements of operations. During the year ended December 31, 2021, 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 determination of fair value includes numerous estimates and assumptions that are subject to risks and uncertainties. The change in the projected hold period and related decrease in projected cash flows have created additional uncertainty in forecasting the operating results and future cash flows used in our impairment analysis. The Company has made reasonable estimates and judgements. The fair value of the Company's reporting units were measured using significant unobservable inputs (Level 3), which included projected cash flows, terminal capitalization rates and discount rates. The following table summarizes the goodwill impairment activity during years ended December 31, 2022 and 2021 (in thousands): Gross Goodwill Accumulated Impairment Net Goodwill Balance, December 31, 2020 $ 16,342 $ — $ 16,342 Impairment charges on goodwill — (2,808) (2,808) Balance, December 31, 2021 $ 16,342 $ (2,808) $ 13,534 Impairment charges on goodwill — (8,098) (8,098) Balance, December 31, 2022 $ 16,342 $ (10,906) $ 5,436 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Pacific Oak Capital Advisors, LLC 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 Pacific Oak Capital Advisors, LLC (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 an advisory agreement (the “Advisory Agreement”). The Advisory Agreement is currently effective through November 1, 2023; 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 except with respect to the Company’s single family rental property portfolio as described below. Acquisition and Origination Fees The Company pays the Advisor an acquisition and origination fee equal to 1% of the cost of investments acquired, or the amount funded by the Company to acquire or originate mortgage, mezzanine, bridge or other loans, including any acquisition and origination expenses related to such investments and any debt attributable to such investments. Asset Management Fee With respect to investments in loans and any investments other than real estate, the Company pays the Advisor a monthly fee calculated, each month, as one-twelfth of 0.75% or 1.0%, respectively, of the lesser of (i) the amount paid or allocated to acquire or fund the loan or other investment, inclusive of acquisition and origination fees and expenses related thereto and the amount of any debt associated with or used to acquire or fund such investment and (ii) the outstanding principal amount of such loan or other investment, plus the acquisition and origination fees and expenses related to the acquisition or funding of such investment, as of the time of calculation. With respect to investments in real estate, the Company pays the Advisor a monthly asset management fee equal to one-twelfth of 0.75% or 1.0%, respectively, of the amount paid or allocated to acquire the investment, including the cost of subsequent capital improvements, inclusive of acquisition fees and expenses related thereto and the amount of any debt associated with or used to acquire such investment. In the case of investments made through joint ventures, the asset management fee is determined based on the Company’s proportionate share of the underlying investment, inclusive of the Company’s proportionate share of any fees and expenses related thereto. Disposition Fee For substantial assistance in connection with the sale of properties or other investments, the Company pays the Advisor or its affiliates 1.0% of the contract sales price of each property or other investment sold; provided, however, in no event may the disposition fees paid to the Advisor, its affiliates and unaffiliated third parties exceed 6.0% of the contract sales price. Pacific Oak Residential Advisors, LLC Effective September 1, 2022, the Company entered into an advisory agreement (the “PORT Advisory Agreement”) with Pacific Oak Residential Advisors, LLC (“PORA”), an affiliate of the Advisor, pursuant to which PORA will act as a product specialist with respect to the Company’s single family rental property portfolio, held through a wholly owned subsidiary. The PORT Advisory Agreement has an initial two-year term and may be renewed for additional one-year terms. In connection with the PORT Advisory Agreement, the Company amended and restated its advisory agreement with the Advisor, also effective September 1, 2022 (the “Amended Company Advisory Agreement”). Under the Amended Company Advisory Agreement, the Company will no longer pay acquisition fees, asset management fees or disposition fees to the Advisor with respect to the Company’s residential homes portfolio. The Company’s residential homes portfolio will still be considered when computing any potential incentive fees due to the Advisor under the Amended Company Advisory Agreement. Pursuant to the PORT Advisory Agreement, the Company will pay PORA: (1) an acquisition fee equal to 1.0% of the cost of each asset which consists of the price paid for the asset plus any amounts funded or budgeted at the time of acquisition for capital expenditures; and (2) a quarterly asset management fee equal to 0.25% (1.0% annually) on the aggregate value of the Company’s residential homes portfolio assets, as determined in accordance with the Company’s valuation guidelines, as of the end of each quarter. In the case of investments made through a joint venture, the acquisition fee will be based on the Company’s proportionate share of the joint venture. For substantial assistance in connection with the sale of properties or other investments related to the Company’s residential homes portfolio, the Company also pays PORA or its affiliates 1.0% of the contract sales price with a limit to not exceed commission paid to unaffiliated third parties. DMH Realty, LLC Effective September 1, 2022, the Company entered into a property management agreement with DMH Realty, LLC (“DMH Realty”), an affiliate of PORA and the Advisor (the “PORT Property Management Agreement”) for the Company’s residential homes portfolio. The PORT Property Management Agreement has an initial two-year term and may be renewed for additional one-year terms. Pursuant to the PORT Property Management Agreement, the Company will pay DMH Realty a property management fee equal to the following: (a) 8% of Collected Rental Revenues, as defined below, up to $50.0 million per annum; (b) 7% of Collected Rental Revenues in excess of $50.0 million per annum, but less than or equal to $75.0 million per annum; and (c) 6% of Collected Rental Revenues in excess of $75.0 million per annum, “Collected Rental Revenues” means the amount of rental revenue actually collected for each property per the terms of the lease pertaining to each property (including lease breakage fees) or pursuant to any early termination buyouts, but excluding other income items, fees or revenue collected by DMH Realty, including but not limited to: application fees, insufficient funds fees, late fees, move-in fees, pet fees, and security deposits (except to the extent applied to rent per the terms of the lease pertaining to any property). Pacific Oak Capital Markets, LLC On September 9, 2022, the Company, through PORT, commenced a private offering of up to $500 million of common stock in a primary offering and up to $50 million of common stock under its distribution reinvestment plan (the “Private Offering”). PORT engaged Pacific Oak Capital Markets, LLC (“POCM”), an affiliate of the Advisor, PORA and DMH Realty, to be the dealer manager for the Private Offering, pursuant to a dealer manager agreement effective as of September 9, 2022, which was subsequently amended and restated as of January 13, 2023 to reflect the creation of a $5.0 million escrow arrangement (the “PORT Dealer Manager Agreement”). Pursuant to the PORT Dealer Manager Agreement, with respect to Class A shares, PORT will generally pay POCM: (1) selling commissions equal to up to 6.0% of the net asset value (“NAV”) of each share sold in the primary offering, which POCM may reallow in part or in full to participating broker-dealers; (2) a dealer manager fee equal to up to 1.5% of the NAV of each share sold in the primary offering, which POCM may reallow in part or in full to participating broker-dealers; and (3) a placement agent fee equal to up to 1.5% of the NAV of each share sold in the primary offering. With respect to Class T shares, PORT will generally pay POCM: (1) selling commissions equal to up to 3.0% of the NAV of each share sold in the primary offering, which POCM may reallow in part or in full to participating broker-dealers; (2) a dealer manager fee equal to up to 0.75% of the NAV of each share sold in the primary offering, which POCM may reallow in part or in full to participating broker-dealers; and (3) a placement agent fee equal to up to 0.75% of the NAV of each share sold in the primary offering. PORT will not pay any selling commissions, dealer manager or placement agent fees in connection with the sale of shares under the distribution reinvestment plan. The Advisor is the sponsor for the Private Offering and as the sponsor, they will incur reimbursable organization and offering costs on behalf of PORT. PORT will incur an organization and offering expense fee equal to 0.5% of the NAV of each share sold in the Private Offering to help fund the reimbursement to the sponsor. As of December 31, 2022, no fees were incurred related to this arrangement with POCM. Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the years ended December 31, 2022, 2021 and 2020, respectively, and any related amounts payable as of December 31, 2022 and 2021 (in thousands): Incurred Payable as of 2022 2021 2020 2022 2021 Expensed Asset management fees to affiliate $ 13,678 $ 14,012 $ 9,982 $ 2,618 $ 1,903 Property management fees (1) 1,267 479 229 181 — Reimbursable operating expenses — — 148 — — Disposition fees (2) 1,294 1,196 — — — Subordinated performance fee due upon termination to affiliate (3) — 1,678 (1,720) — — Capitalized Acquisition fees on real estate (4) 67 20 171 — — Acquisition fees on real estate equity securities — — 143 — — Acquisition fee on investment in unconsolidated entities — 46 — — — $ 16,306 $ 17,431 $ 8,953 $ 2,799 $ 1,903 _____________________ (1) Property management fees related to DMH Realty are recorded as operating, maintenance, and management expenses on the Company’s consolidated statements of operations. (2) Disposition fees with respect to real estate sold are recorded as gain (loss) on sale of real estate on the Company’s consolidated statements of operations. (3) Change in estimate of fees payable to the Company’s previous advisor, KBS Capital Advisors LLC (“KBS Capital Advisors) due to the termination of the former advisory agreement with KBS Capital Advisors. Subordinated performance fee due upon termination to affiliate are recorded on the Company’s consolidated statements of operations. (4) Acquisition fees associated with asset acquisitions are capitalized, while costs associated with business combinations expensed as incurred. Subordinated Participation in Net Cash Flows (payable only if the Company is not listed on a national exchange) After investors in the Company’s offerings have received, together as a collective group, aggregate distributions (including distributions that may constitute a return of capital for federal income tax purposes) sufficient to provide (i) a return of their net invested capital, or the amount calculated by multiplying the total number of shares purchased by stockholders by the issue price, reduced by any amounts to repurchase shares pursuant to the Company’s share redemption program, (ii) a 7.0% per year cumulative, noncompounded return on such net invested capital, and (iii) $36.3 million, which is the grant date value of the restricted stock issued to the Company’s former advisor, KBS Capital Advisors, LLC, in connection with its termination on October 31, 2019 (the “KBS Termination Fee Payout”), the Advisor is entitled to receive 15.0% of the Company’s net cash flows, whether from continuing operations, net sale proceeds or otherwise. Net sales proceeds means the net cash proceeds realized by the Company after deduction of all expenses incurred in connection with a sale, including disposition fees paid to the Advisor. The 7.0% per year cumulative, noncompounded return on net invested capital is calculated on a daily basis. In making this calculation, the net invested capital is reduced to the extent distributions in excess of a cumulative, noncompounded, annual return of 7.0% are paid (from whatever source), except to the extent such distributions would be required to supplement prior distributions paid in order to achieve a cumulative, noncompounded, annual return of 7.0% (invested capital is only reduced as described in this sentence; it is not reduced simply because a distribution constitutes a return of capital for federal income tax purposes). The 7.0% per year cumulative, noncompounded return is not based on the return provided to any individual stockholder. Accordingly, it is not necessary for each of the Company’s stockholders to have received any minimum return in order for the Advisor to participate in the Company’s net cash flows. In fact, if the Advisor is entitled to participate in the Company’s net cash flows, the returns of the Company’s stockholders will differ, and some may be less than a 7.0% per year cumulative, noncompounded return. This fee is payable only if the Company is not listed on an exchange. Subordinated Incentive Listing Fee (payable only if the Company is listed on a national exchange) Upon listing the Company’s common stock on a national securities exchange, the Advisor is entitled to a fee equal to 15.0% of the amount by which the market value of the Company’s outstanding stock plus distributions paid by the Company (including distributions that may constitute a return of capital for federal income tax purposes) prior to listing exceeds the aggregate of (i) the sum of the Company’s stockholders’ net invested capital, or the amount calculated by multiplying the total number of shares purchased by stockholders by the issue price, reduced by any amounts to repurchase shares pursuant to the Company’s share redemption program, and the amount of cash flow necessary to generate a 7.0% per year cumulative, noncompounded return on such amount and (ii) the KBS Termination Fee Payout. The 7.0% per year cumulative, noncompounded return on net invested capital is calculated on a daily basis. In making this calculation, the net invested capital is reduced to the extent distributions in excess of a cumulative, noncompounded, annual return of 7.0% are paid (from whatever source), except to the extent such distributions would be required to supplement prior distributions paid in order to achieve a cumulative, noncompounded, annual return of 7.0% (invested capital is only reduced as described in this sentence; it is not reduced simply because a distribution constitutes a return of capital for federal income tax purposes). The 7.0% per year cumulative, noncompounded return is not based on the return provided to any individual stockholder. Accordingly, it is not necessary for each of the Company’s stockholders to have received any minimum return in order for the Advisor to receive the listing fee. In fact, if the Advisor is entitled to the listing fee, the returns of the Company’s stockholders will differ, and some may be less than a 7.0% per year cumulative, noncompounded return. Subordinated Performance Fee Due Upon Terminatio n In accordance with the new advisory agreement with the Advisor, if the advisory agreement is terminated or not renewed, other than for cause, the Company’s advisor is entitled to receive a participation fee equal to (A) 15.0% of the Company’s net cash flows, whether from continuing operations, net sale proceeds or otherwise, after the Company’s stockholders have received, together as a collective group, aggregate distributions (including distributions that may constitute a return of capital for federal income tax purposes) sufficient to provide (i) a return of their net invested capital, or the amount calculated by multiplying the total number of shares purchased by stockholders by the issue price, reduced by any amounts to repurchase shares pursuant to the Company’s share redemption program, and (ii) a 7.0% per year cumulative, noncompounded return on such net invested capital from the Company’s inception, less (B) the KBS Termination Fee Payout. Net sales proceeds means the net cash proceeds realized by the Company after deduction of all expenses incurred in connection with a sale, including disposition fees paid to the Company’s advisor. The 7.0% per year cumulative, noncompounded return on net invested capital from the Company’s inception is calculated on a daily basis. In making this calculation, the net invested capital is reduced to the extent distributions in excess of a cumulative, noncompounded, annual return of 7.0% are paid (from whatever source), except to the extent such distributions would be required to supplement prior distributions paid in order to achieve a cumulative, noncompounded, annual return of 7.0% (invested capital is only reduced as described in this sentence; it is not reduced simply because a distribution constitutes a return of capital for federal income tax purposes). The 7.0% per year cumulative, noncompounded return is not based on the return provided to any individual stockholder. Accordingly, it is not necessary for each of the Company’s stockholders to have received any minimum return in order for the Company’s advisor to participate in the Company’s net cash flows. In fact, if the Company’s advisor is entitled to participate in the Company’s net cash flows, the returns of the Company’s stockholders will differ, and some may be less than a 7.0% per year cumulative, noncompounded return. This fee is payable only if the Company is not listed on an exchange. Battery Point Restructuring On October 28, 2016, the Company, through an indirect wholly owned subsidiary, agreed to invest up to $25,000,000 in Battery Point LLC through the purchase of Series B Preferred Units. On May 12, 2017, the Company and Battery Point LLC agreed to limit the Company’s investment to $17,500,000 worth of Series B Preferred Units. The Company invested the full $17,500,000 in stages. During 2018, $4,500,000 was repaid to the Company. On June 29, 2018, Battery Point LLC was converted into Battery Point and the Company’s Series B Preferred Units were converted into shares of Battery Point Series B Preferred Stock. The Battery Point Series B Preferred Stock was entitled to the same rights and protections as were the Series B Preferred Units. The Battery Point Series B Preferred Stock paid a quarterly dividend of 12% and had an outside maturity date of October 28, 2019. On March 20, 2019, the Company, through an indirect wholly owned subsidiary, entered into a redemption agreement for the Battery Point Series B Preferred Stock. The redemption agreement resulted in the redemption of 13,000 shares of Series B Preferred Stock with a per share price of $1,000. The Company received $8.6 million, of which $0.9 million relates to accrued interest and an exit fee. In addition, the Company received 210,000 shares of Battery Point Series A-3 Preferred Stock with a per share price of $25. On March 20, 2019, Pacific Oak BP, a wholly owned subsidiary of the Advisor, acquired all the common equity interests in Battery Point Holdings. Battery Point Holdings owns (a) the common stock in Battery Point, (b) all the service entities that provide advisory, servicing and property management services to Battery Point Holdings generally named “DayMark”, and (c) 40% of additional DayMark entities that purchase, renovate, lease and sell single-family residential homes to Battery Point. As owner of Battery Point Holdings, the Advisor is responsible for funding the ongoing operations of Battery Point Holdings and its subsidiaries. The affiliated DayMark service entities are paid annual asset management fees equal to 1.5% of the gross asset value of Battery Point, annual property management fees equal to 8% of tenants’ rents received by Battery Point, and acquisition fees of 1% of the gross purchase price of properties acquired. The affiliated DayMark service entities also receive fees from tenants upon execution of leases and a 1% commission from sellers of properties into the program, if it acts as the broker for the seller. During the year ended December 31, 2019, the Company purchased additional 430,000 shares of Battery Point Series A-3 Preferred Stock for an aggregate amount of $10.8 million. As of December 31, 2019, the Company had 640,000 shares of Battery Point Series A-3 Preferred Stock. On July 1, 2020, the Company acquired, through its subsidiaries, Battery Point. The Company acquired Battery Point by acquiring all the 1,000,000 outstanding shares of Battery Point common stock from Battery Point Holdings, a wholly owned subsidiary of the Advisor. In exchange, Battery Point 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. As a result of the Battery Point acquisition, the Company’s 640,000 shares of Battery Point Series A-3 Preferred Stock were eliminated in consolidation. Prior to the acquisition date, the Company accounted for its investment in the Battery Point A-3 Preferred Stock as an equity investment without a readily determinable value. The acquisition-date carrying value of the previous equity interest was $14.0 million and is included in the measurement of the consideration transferred. The Company recognized a gain of $2.0 million as a result of remeasuring its prior equity interest in the Battery Point A-3 Preferred Stock held before the acquisition. The gain is included in the line item “Gain from remeasurement of prior equity interest” in the consolidated statements of operations. On July 29, 2020, the Company, through a wholly owned subsidiary of PORT OP, acquired a single-family home portfolio consisting of 12 homes in Alabama, Arkansas, and Illinois. The portfolio was purchased from DayMark and the purchase price was $1.0 million, which includes $10,000 of capitalized acquisition costs. The Company recorded this acquisition as an asset acquisition and recorded $0.2 million to land and $0.8 million to building and improvements. On April 6, 2021, the Company, through a wholly owned subsidiary of PORT OP, acquired a single-family home portfolio consisting of 23 homes in multiple states. The portfolio was purchased from DayMark and the purchase price was $2.0 million. The Company recorded this acquisition as an asset acquisition and recorded $0.4 million to land and $1.6 million to building and improvements. Pacific Oak Opportunity Zone Fund I As of December 31, 2022, 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 years ended December 31, 2022, 2021 and 2020, the Company recorded $0.4 million, $0.6 million, and $0.6 million of waived asset management fees recorded as equity in income of unconsolidated entities, respectively. PORT II As of the consolidation date, the Company had contributed $32.6 million in PORT II OP, LLC (“PORT II OP”), a wholly owned subsidiary of 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 PORA. Pursuant to the PORT II Advisory Agreement, PORT II engaged PORA to act as its external advisor with respect to PORT II’s operations and assets. On August 31, 2020, PORT II entered into a property management agreement with DMH Realty. Pursuant to the property management agreement, PORT II agreed to 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. On July 1, 2022, the Company, through PORT OP, made a tender offer to purchase 76,735 shares of PORT II common stock held by unrelated parties for a price of $14.66 per share. As a result, the Company determined that it became the primary beneficiary of PORT II, which resulted in the consolidation of PORT II into the Company’s consolidated financial statements. On July 29, 2022, the Company consummated the transactions with the unrelated parties and owned 100% of PORT II. Effective September 1, 2022, the PORT II Advisory Agreement and the PORT II property management agreement were terminated. PORT OP LP Share Redemption On June 24, 2022, the Company’s board of directors authorized and approved the redemption of the 510,816 Special Common Units of PORT OP LP, a consolidated subsidiary of the Company (“PORT OP”), representing approximately 3.20% interest, held by BPT Holdings, LLC (“BPT Holdings”), a subsidiary of the Advisor, for a price of $13.09 per unit. In July 2022, the Company redeemed the Special Common Units of PORT OP for $6.7 million. Following the redemption, the Company owned 100% of PORT OP. Loan to 353 Sacramento Joint Venture During the year ended December 31, 2021, the Company funded $7.0 million to the 353 Sacramento Joint Venture for the mortgage loan refinancing fees and was subsequently repaid during the year ended December 31, 2022. |
INVESTMENT IN UNCONSOLIDATED EN
INVESTMENT IN UNCONSOLIDATED ENTITIES | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN UNCONSOLIDATED ENTITIES | INVESTMENT IN UNCONSOLIDATED ENTITIES As of December 31, 2022 and 2021, the Company’s investments in unconsolidated entities were composed of the following (dollars in thousands): Number of Properties at December 31, 2021 Investment Balance at Joint Venture Location Ownership % December 31, 2022 December 31, 2021 110 William Joint Venture (1) 1 New York, New York 60.0% — — 353 Sacramento Joint Venture 1 San Francisco, California 55.0% 45,173 49,916 Pacific Oak Opportunity Zone Fund I 3 Various 46.0% 25,669 27,215 PORT II OP LP (2) (2) (2) — 11,125 $ 70,842 $ 88,256 _____________________ (1) The book value of the Company’s investment in the 110 William Joint Venture was $0 due to historical distributions from the 110 William Joint Venture exceeding the Company’s book value. As such, the Company suspended the equity method of accounting and will not record the Company's share of losses or 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. (2) On July 1, 2022, the Company, through PORT OP, made a tender offer to purchase 76,735 shares of PORT II common stock held by unrelated parties for a price of $14.66 per share. As a result, the Company determined that it became the primary beneficiary of PORT II, which resulted in the consolidation of PORT II into the Company’s consolidated financial statements. On July 29, 2022, the Company consummated the transactions with the unrelated parties and owned 100% of PORT II. See Note 3 for the assessment of the fair value of the assets and liabilities of PORT II. There are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to PORT II. The Company and the aforementioned unrelated parties did not guarantee any debt in connection with the transaction. As of December 31, 2022, PORT II was a disregarded entity for U.S. federal income tax purposes. Summarized financial information for Investment in Unconsolidated Entities follows (in thousands): December 31, 2022 2021 Assets: Real estate held for investment, net $ 471,503 $ 486,251 Total assets $ 546,142 $ 595,340 Liabilities: Notes payable related to real estate held for investment, net $ 490,302 $ 488,966 Total liabilities $ 501,860 $ 510,612 Total equity $ 44,281 $ 84,728 For the Years Ended December 31, 2022 2021 2020 Total revenues $ 46,518 $ 44,901 $ 57,544 Operating loss $ (41,923) $ (30,548) $ (4,739) Net loss $ (41,664) $ (30,499) $ (4,673) |
REPORTING SEGMENTS
REPORTING SEGMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
REPORTING SEGMENTS | REPORTING SEGMENTS The Company recognizes three reporting segments for the years ended December 31, 2022, 2021, and 2020 and consists of strategic opportunistic properties and real estate-related investments (“strategic opportunistic properties”), residential 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. During the year ended December 31, 2022, the Company made a prospective name change to the “Single-Family Homes” segment to “Residential Homes” to reflect the Company’s acquisition of PORT II multifamily homes, see Note 3 for further details on the acquisition and as well as a prospective name change to the “Hotel Properties” segment to “Hotel” to reflect the September 1, 2022 disposition of the Springmaid Beach Resort, see Note 3 for further details on the disposition. The selected financial information for the reporting segments for the years ended December 31, 2022, 2021, and 2020 is as follows (in thousands): Year Ended December 31, 2022 Strategic Opportunistic Properties Residential Homes Hotel Total Total revenues $ 102,179 $ 29,130 $ 30,749 $ 162,058 Total expenses (140,162) (35,022) (31,508) (206,692) Total other (loss) income, net (12,646) 18,158 2,376 7,888 Net (loss) income before income taxes $ (50,629) $ 12,266 $ 1,617 (36,746) Year Ended December 31, 2021 Strategic Opportunistic Properties Single-Family Homes Hotel Properties Total Total revenues $ 115,167 $ 21,954 $ 30,806 $ 167,927 Total expenses (172,215) (25,979) (30,553) $ (228,747) Total other income, net 46,959 74 1,289 $ 48,322 Net (loss) income $ (10,089) $ (3,951) $ 1,542 $ (12,498) Year Ended December 31, 2020 Strategic Opportunistic Properties Single-Family Homes Hotel Properties Total Total revenues $ 93,252 $ 17,055 $ 3,718 $ 114,025 Total expenses (122,621) (19,332) (6,204) (148,157) Total other (loss) income, net (15,045) (51) 415 (14,681) Net loss $ (44,414) $ (2,328) $ (2,071) $ (48,813) Total assets related to the three reporting segments as of December 31, 2022 and 2021 are as follows (in thousands): December 31, 2022 Strategic Opportunistic Properties Residential Homes Hotel Total Total assets (1)(2) $ 1,173,481 $ 333,128 $ 52,636 $ 1,559,245 Goodwill (1) 4,220 — 1,216 5,436 _____________________ (1) During the year ended December 31, 2022, the Company recorded impairment charges on goodwill of $5.5 million and $2.6 million related to the Strategic Opportunistic Properties and Hotel segments, respectively. (2) During the year ended December 31, 2022, the Company disposed of real estate assets related to the Strategic Opportunistic Properties and Hotel segments, respectively. See Note 6 for further details on the Company’s dispositions. December 31, 2021 Strategic Opportunistic Properties Single-Family Homes Hotel Properties Total Total assets (1) $ 1,223,122 $ 211,050 $ 150,447 1,584,619 Goodwill (1) 9,489 — 4,045 13,534 _____________________ (1) During the year ended December 31, 2021, the Company recorded impairment charges on real estate and related intangibles and on goodwill of $11.0 million and $2.8 million, respectively, related to the Strategic Opportunistic Properties segment. |
INVESTMENT IN UNCONSOLIDATED ENTITIES | INVESTMENT IN UNCONSOLIDATED ENTITIES As of December 31, 2022 and 2021, the Company’s investments in unconsolidated entities were composed of the following (dollars in thousands): Number of Properties at December 31, 2021 Investment Balance at Joint Venture Location Ownership % December 31, 2022 December 31, 2021 110 William Joint Venture (1) 1 New York, New York 60.0% — — 353 Sacramento Joint Venture 1 San Francisco, California 55.0% 45,173 49,916 Pacific Oak Opportunity Zone Fund I 3 Various 46.0% 25,669 27,215 PORT II OP LP (2) (2) (2) — 11,125 $ 70,842 $ 88,256 _____________________ (1) The book value of the Company’s investment in the 110 William Joint Venture was $0 due to historical distributions from the 110 William Joint Venture exceeding the Company’s book value. As such, the Company suspended the equity method of accounting and will not record the Company's share of losses or 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. (2) On July 1, 2022, the Company, through PORT OP, made a tender offer to purchase 76,735 shares of PORT II common stock held by unrelated parties for a price of $14.66 per share. As a result, the Company determined that it became the primary beneficiary of PORT II, which resulted in the consolidation of PORT II into the Company’s consolidated financial statements. On July 29, 2022, the Company consummated the transactions with the unrelated parties and owned 100% of PORT II. See Note 3 for the assessment of the fair value of the assets and liabilities of PORT II. There are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to PORT II. The Company and the aforementioned unrelated parties did not guarantee any debt in connection with the transaction. As of December 31, 2022, PORT II was a disregarded entity for U.S. federal income tax purposes. Summarized financial information for Investment in Unconsolidated Entities follows (in thousands): December 31, 2022 2021 Assets: Real estate held for investment, net $ 471,503 $ 486,251 Total assets $ 546,142 $ 595,340 Liabilities: Notes payable related to real estate held for investment, net $ 490,302 $ 488,966 Total liabilities $ 501,860 $ 510,612 Total equity $ 44,281 $ 84,728 For the Years Ended December 31, 2022 2021 2020 Total revenues $ 46,518 $ 44,901 $ 57,544 Operating loss $ (41,923) $ (30,548) $ (4,739) Net loss $ (41,664) $ (30,499) $ (4,673) |
PORT MEZZANINE EQUITY
PORT MEZZANINE EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
PORT MEZZANINE EQUITY | PORT MEZZANINE EQUITY The Company has authorized and issued preferred stock from a wholly owned subsidiary. The Company has elected to use the measurement method described under ASC 480-10-S99-3A, paragraph 15(b), resulting in the preferred stock being classified in mezzanine equity and measured based on the estimated future redemption value as of December 31, 2021, 2020, and 2019. 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, 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. During the year ended December 31, 2022, the Company redeemed all 15,000 shares of the Series A Cumulative Convertible Redeemable Preferred Stock at a price of (i) $1,120 per Series A Preferred Share, plus (ii) all accrued but unpaid dividends, through the redemption date. The following is a reconciliation of the Company’s noncontrolling cumulative convertible redeemable preferred stock for the years ended December 31, 2020, 2021 and 2022: Series A Preferred Stock Shares Amounts Balance, December 31, 2019 15,000 14,909 Dividends Available Upon Redemption — 973 Dividends Paid — (748) Balance, December 31, 2020 15,000 15,134 Dividends Available Upon Redemption — 897 Dividends Paid — (897) Balance, December 31, 2021 15,000 $ 15,134 Dividends Available Upon Redemption — 1,123 Dividends Paid — (1,123) Adjustment to redemption value of noncontrolling cumulative convertible redeemable preferred stock — 1,800 Payment to redeem noncontrolling cumulative convertible redeemable preferred stock (15,000) $ (16,934) Balance, December 31, 2022 — $ — 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 residential 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 years ended December 31, 2022 and 2021 (in thousands): December 31, 2020 $ 2,968 Net loss attributable to redeemable noncontrolling interest (146) December 31, 2021 $ 2,822 Net loss attributable to redeemable noncontrolling interest (81) Adjustment to value of redeemable noncontrolling interest (1) 3,946 Payment to redeem noncontrolling interest (6,687) December 31, 2022 $ — _____________________ (1) On June 24, 2022, the Company’s board of directors approved the redemption of the 510,816 PORT OP Special Common Units held by BPT Holdings for a price of $13.09 per unit.and recorded at its fair value. The Company redeemed the noncontrolling interest in PORT OP in July 2022. |
RESTRICTED STOCK
RESTRICTED STOCK | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
RESTRICTED STOCK | RESTRICTED STOCK On 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”) pursuant to the Restricted Stock Agreement. The Restricted Stock was to vest on November 1, 2021. 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 sheets. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Management Agreement 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). 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. 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 December 31, 2022 and 2021, the Company’s lease and rights to a leasehold interest with respect to 210 West 31st Street, which was accounted for as a finance lease, are included in the consolidated balance sheets as follows: December 31, 2022 2021 Right-of-use asset (included in real estate held for investment, net) $ 7,281 $ 8,074 Lease obligation (included in other liabilities 9,446 9,360 Remaining lease term 91.0 years 92.0 years Discount rate 4.8 % 4.8 % The components of lease expense were as follows: Interest on lease obligation 446 501 As of December 31, 2022, the Company had a leasehold interest expiring on 2114. Future minimum lease payments owed by the Company under the finance lease as of December 31, 2022 are as follows (in thousands): 2023 $ 360 2024 360 2025 393 2026 396 2027 396 Thereafter 51,771 Total expected minimum lease obligations 53,676 Less: Amount representing interest (1) (44,230) Present value of net minimum lease payments (2) $ 9,446 _____________________ (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 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 December 31, 2022. 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. Legal Matters |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company evaluates subsequent events up until the date the consolidated financial statements are issued. Park Highlands Land Sales On February 16, 2023, the Company sold approximately 48 developable acres of Park Highlands undeveloped land for $24.0 million, before closing costs and credits. The purchaser is not affiliated with the Company or the Advisor. |
SCHEDULE III REAL ESTATE ASSETS
SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION | SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION December 31, 2022 (dollar amounts in thousands) Initial Cost to Company Gross Amount at which Carried at Close of Period Description Location Ownership Percent Encumbrances Land Building and Improvements (1) Total Cost Capitalized Subsequent to Acquisition (2) Land Building and Improvements (1) Total (3) Accumulated Depreciation and Amortization Original Date of Construction Date Real Estate Investments Richardson Portfolio: Palisades Central I Richardson, TX 100.0% (4) $ 1,037 $ 8,628 $ 9,665 $ 5,733 $ 1,037 $ 14,361 $ 15,398 $ (6,140) 1980 11/23/2011 Palisades Central II Richardson, TX 100.0% (4) 810 17,117 17,927 7,024 810 24,141 24,951 (9,191) 1985 11/23/2011 Undeveloped Land Richardson, TX 100.0% — 1,997 — 1,997 3,065 5,062 — 5,062 — N/A 11/23/2011 Total Richardson Portfolio 18,844 3,844 25,745 29,589 15,822 6,909 38,502 45,411 (15,331) Park Highlands North Las Vegas, NV 100.0% — 17,066 — 17,066 12,481 29,547 — 29,547 — N/A 12/30/2011 Park Centre Austin, TX 100.0% 26,233 3,251 27,941 31,192 7,051 3,251 34,992 38,243 (12,265) 2000 03/28/2013 1180 Raymond Newark, NJ 100.0% 31,070 8,292 37,651 45,943 2,460 8,292 40,111 48,403 (11,515) 1929 08/20/2013 Park Highlands II North Las Vegas, NV 100.0% — 12,075 — 12,075 8,236 20,311 — 20,311 — N/A 12/10/2013 Richardson Land II Richardson, TX 100.0% — 3,096 — 3,096 322 3,418 — 3,418 — N/A 09/04/2014 Crown Pointe Dunwoody, GA 100.0% 53,758 22,590 62,610 85,200 14,656 22,590 77,266 99,856 (20,841) 1985/1989 02/14/2017 The Marq Minneapolis, MN 100.0% 60,796 10,387 75,878 86,265 13,971 10,387 89,849 100,236 (17,181) 1972 03/01/2018 Eight & Nine Corporate Centre Franklin, TN 100.0% 47,945 17,401 58,794 76,195 5,739 17,401 64,533 81,934 (12,785) 2007 06/08/2018 Georgia 400 Center Alpharetta, GA 100.0% 44,129 11,400 72,000 83,400 9,329 11,431 81,298 92,729 (14,492) 2001 05/23/2019 Q&C Hotel New Orleans, LA 90.0% 24,784 2,669 41,431 44,100 374 2,669 41,805 44,474 (2,777) 1913 10/05/2020 Lincoln Court Campbell, CA 100.0% 35,314 16,610 43,083 59,693 (6,839) 15,329 37,525 52,854 (2,350) 1985 10/05/2020 Lofts at NoHo Commons North Hollywood, CA 90.0% 71,536 22,670 93,676 116,346 1,396 22,670 95,072 117,742 (7,513) 2007 10/05/2020 210 West 31st Street (5) New York, NY 80.0% — — 51,358 51,358 (10,802) — 40,556 40,556 — (5) 10/05/2020 Oakland City Center Oakland, CA 100.0% 87,000 24,063 180,973 205,036 (32,897) 22,539 149,600 172,139 — 1985/1990 10/05/2020 Madison Square Phoenix, AZ 90.0% 17,964 11,570 22,544 34,114 (2,213) 11,570 20,331 31,901 (3,680) 1911/2003/2007/2008 10/05/2020 PACIFIC OAK STRATEGIC OPPORTUNITY REIT, INC. SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION (CONTINUED) December 31, 2022 (dollar amounts in thousands) Initial Cost to Company Gross Amount at which Carried at Close of Period Description Number of Homes Ownership Percent Encumbrances Land Building and Improvements (1) Total Cost Capitalized Subsequent to Acquisition (2) Land Building and Improvements (1) Total (3) Accumulated Depreciation and Amortization Original Date of Construction Date Residential Homes Portfolio: Alabama Homes 194 100.0% (6) 3,006 11,907 14,913 1,710 3,006 13,617 16,623 (1,025) Various Various Arkansas Homes 24 100.0% (6) 473 2,000 2,473 31 473 2,031 2,504 (154) Various Various Delaware Homes 4 100.0% (6) 172 727 899 8 172 735 907 (56) Various Various Florida Homes 253 100.0% (6) 6,183 37,577 43,760 6,156 7,648 42,268 49,916 (2,958) Various Various Georgia Homes 70 100.0% (6) 893 5,049 5,942 720 893 5,769 6,662 (411) Various Various Iowa Homes 11 100.0% (6) 147 622 769 9 147 631 778 (48) Various Various Illinois Homes 311 100.0% (6) 5,050 20,553 25,603 1,917 5,050 22,470 27,520 (1,697) Various Various Indiana Homes 96 100.0% (6) 1,811 7,655 9,466 113 1,811 7,768 9,579 (591) Various Various Michigan Homes 331 100.0% (6) 15,076 60,578 75,654 113 15,076 60,691 75,767 (4,672) Various Various Mississippi Homes 25 100.0% (6) 340 1,362 1,702 — 340 1,362 1,702 (25) Various Various Missouri Homes 22 100.0% (6) 324 1,368 1,692 23 324 1,391 1,715 (106) Various Various North Carolina Homes 76 100.0% (6) 1,733 7,325 9,058 87 1,733 7,412 9,145 (564) Various Various Ohio Homes 228 100.0% (6) 5,219 21,422 26,641 152 5,219 21,574 26,793 (1,652) Various Various Oklahoma Homes 128 100.0% (6) 2,360 13,184 15,544 1,180 2,360 14,364 16,724 (1,031) Various Various South Carolina Homes 23 100.0% (6) 633 2,674 3,307 35 633 2,709 3,342 (206) Various Various Tennessee Homes 303 100.0% (6) 7,946 32,981 40,927 1,735 7,946 34,716 42,662 (2,710) Various Various Texas Homes 340 100.0% (6) 9,294 36,650 45,944 1,180 7,844 39,280 47,124 (2,995) Various Various Wisconsin Homes 17 100.0% (6) 362 1,531 1,893 44 387 1,550 1,937 (119) Various Various Total Residential Homes Portfolio 2456 215,526 61,022 265,165 326,187 15,213 61,062 280,338 341,400 (21,020) Total Properties $ 248,006 $ 1,058,849 $ 1,306,855 $ 54,299 $ 269,376 $ 1,091,778 $ 1,361,154 $ (141,750) ____________________ (1) Building and improvements includes tenant origination and absorption costs. (2) Costs capitalized subsequent to acquisition is net of write-offs of fully depreciated/amortized assets. (3) The aggregate cost of real estate for federal income tax purposes was $1.7 billion (unaudited) as of December 31, 2022. (4) As of December 31, 2022, $18.8 million of debt was outstanding secured by the Richardson Portfolio. (5) 210 West 31st Street is a development property. The Company acquired the rights to a leasehold interest with respect to this property. The leasehold interest expires January 31, 2114. (6) The residential homes portfolio, in aggregate are under encumbrance of $215.5 million. SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION (CONTINUED) December 31, 2022 (dollar amounts in thousands) 2022 2021 2020 Real Estate (1) : Balance at the beginning of the year $ 1,345,240 $ 1,517,435 $ 824,860 Acquisitions 142,118 4,838 679,042 Improvements 31,407 18,966 17,103 Write-off of fully depreciated and fully amortized assets (9,454) (5,956) (3,114) Dispositions (111,186) (175,691) (456) Impairments (36,971) (14,352) — Balance at the end of the year $ 1,361,154 $ 1,345,240 $ 1,517,435 Accumulated depreciation and amortization (1) : Balance at the beginning of the year $ 130,441 $ 104,412 $ 65,381 Depreciation and amortization expense 49,190 55,882 42,159 Write-off of fully depreciated and fully amortized assets (10,442) (5,956) (3,114) Dispositions (6,531) (20,516) (14) Impairments (20,908) (3,381) — Balance at the end of the year $ 141,750 $ 130,441 $ 104,412 ____________________ (1) Amounts include real estate held for sale. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | The consolidated financial statements include the accounts of the Company, REIT Holdings, the Operating Partnership, Pacific Oak Strategic Opportunity BVI and their direct and indirect wholly owned subsidiaries, and 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. The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC. |
Use of Estimates | The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions, including fair value estimates for real estate, that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. |
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 year ended December 31, 2022, the Company disposed of two office buildings and one hotel. As a result, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets for all periods presented. |
Revenue Recognition | Lessor Accounting The Company recognizes minimum rent, including rental abatements, lease incentives and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related leases when collectibility is determined to be probable and records amounts expected to be received in later years as deferred rent receivable. In accordance with Topic 842, tenant reimbursements for property taxes and insurance are included in the single lease component of the lease contract (the right of the lessee to use the leased space) and therefore are accounted for as variable lease payments and are recorded as rental income on the Company’s statements of operations. In addition, the Company adopted the practical expedient available under Topic 842 to not separate nonlease components from the associated lease component and instead to account for those components as a single component if the nonlease components otherwise would be accounted for under the revenue recognition standard (Topic 606) and if certain conditions are met, specifically related to tenant reimbursements for common area maintenance which would otherwise be accounted for under the revenue recognition standard. The Company believes the two conditions have been met for tenant reimbursements for common area maintenance as (i) the timing and pattern of transfer of the nonlease components and associated lease components are the same and (ii) the lease component would be classified as an operating lease. Accordingly, tenant reimbursements for common area maintenance are also accounted for as variable lease payments and recorded as rental income on the Company’s statements of operations. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that can be taken in the form of cash or a credit against the tenant’s rent) that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. The Company leases apartment units and residential homes under operating leases with terms generally for one year or less. Generally, credit investigations will be performed for prospective residents and security deposits will be obtained. The Company recognizes rental revenue, net of concessions, on a straight-line basis over the term of the lease, when collectibility is determined to be probable. In accordance with Topic 842, the Company makes a determination of whether the collectibility of the lease payments in an operating lease is probable. If the Company determines the lease payments are not probable of collection, the Company would fully reserve for any contractual lease payments, deferred rent receivable, and variable lease payments and would recognize rental income at the lesser of (1) on a straight-line basis or (2) cash received. These changes to the Company’s collectibility assessment are reflected as an adjustment to rental income. The Company, as a lessor, records costs to negotiate or arrange a lease that would have been incurred regardless of whether the lease was obtained, such as legal costs incurred to negotiate an operating lease, as an expense and classify such costs as operating, maintenance, and management expense on the Company’s consolidated statements of operations. Hotel Revenues The Company recognizes revenue for hotels as hotel revenue when earned. Revenues are recorded net of any sales or occupancy tax collected from the Company’s guests. Additionally, some of the Company’s hotel rooms are booked through independent internet travel intermediaries. If the guest pays the independent internet travel intermediary directly, revenue for the room is booked by the Company at the price the Company sold the room to the independent internet travel intermediary, less any discount or commission paid. If the guest pays the Company directly, revenue for the room is booked by the Company on a gross basis. The Company participates in frequent guest programs sponsored by the brand owners of the Company’s hotels and the Company expenses the charges associated with those programs, as incurred. Hotel operating revenues are disaggregated in Note 3 into the categories of rooms revenue, food, beverage and convention services revenue, campground revenue and other revenue to demonstrate how economic factors affect the nature, amount, timing, and uncertainty of revenue and cash flows. Room revenue is generated through contracts with customers whereby the customer agrees to pay a daily rate for the right to use a hotel room. The Company’s contract performance obligations are fulfilled at the end of the day that the customer is provided the room and revenue is recognized daily at the contract rate. The Company records contract liabilities in the form of advanced deposits when a customer or group of customers provides a deposit for a future stay at the Company’s hotels. Advanced deposits for room revenue are included in the balance of other liabilities on the consolidated balance sheets. Advanced deposits are recognized as revenue at the time of the guest’s stay. Food, beverage and convention revenue is generated through contracts with customers whereby the customer agrees to pay a contract rate for restaurant dining services or convention services. The Company’s contract performance obligations are fulfilled at the time that the meal is provided to the customer or when the convention facilities and related dining amenities are provided to the customer. The Company recognizes food and beverage revenue upon the fulfillment of the contract with the customer. The Company records contract liabilities in the form of advanced deposits when a customer or group of customers provides a deposit for a future banquet event at the Company’s hotels. Advanced deposits for food and beverage revenue are included in the balance of other liabilities on the consolidated balance sheets. Advanced deposits for banquet services are recognized as revenue following the completion of the banquet services. Campground revenue is recognized on a straight-line basis over the term of the lease when collectability of the lease payments is probable. |
Dividend Income from Real Estate Equity Securities | Dividend income from real estate equity securities is recognized on an accrual basis based on eligible shares as of the ex-dividend date. |
Interest Income from Cash and Cash Equivalents | The Company recognizes interest income on its cash and cash equivalents as it is earned and records such amounts as other interest income. |
Real Estate Acquisition Valuation | The Company records the acquisition of income-producing real estate or real estate that will be used for the production of income as a business combination or an asset acquisition. If substantially all of the fair value of the gross assets acquired are concentrated in a single identifiable asset or group of similar identifiable assets, then the set is not a business. For purposes of this test, land and buildings can be combined along with the intangible assets for any in-place leases and accordingly, most acquisitions of investment properties would not meet the definition of a business and would be accounted for as an asset acquisition. To be considered a business, a set must include an input and a substantive process that together significantly contributes to the ability to create an output. All assets acquired and liabilities assumed in a business combination are measured at their acquisition-date fair values. For asset acquisitions, the cost of the acquisition is allocated to individual assets and liabilities on a relative fair value basis. Acquisition costs associated with business combinations are expensed as incurred. Acquisition costs associated with asset acquisitions are capitalized. Intangible assets include the value of in-place leases, which represents the estimated value of the net cash flows of the in-place leases to be realized, as compared to the net cash flows that would have occurred had the property been vacant at the time of acquisition and subject to lease-up. Acquired in-place lease value will be amortized to expense over the average remaining terms of the respective in-place leases, including any below-market renewal periods. The Company assesses the acquisition date fair values of all tangible assets, identifiable intangibles and assumed liabilities using methods similar to those used by independent appraisers, generally utilizing a discounted cash flow analysis that applies appropriate discount and/or capitalization rates and available market information and/or replacement cost data. Estimates of future cash flows are based on a number of factors, including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it were vacant. The Company records above-market and below-market in-place lease values for acquired properties based on the present value (using a discount that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of above-market in-place leases and for the initial term plus any extended term for any leases with below-market renewal options. The Company amortizes any recorded above-market or below-market lease values as a reduction or increase, respectively, to rental income over the remaining non-cancelable terms of the respective lease, including any below-market renewal periods. The Company estimates the value of tenant origination and absorption costs by considering the estimated carrying costs during hypothetical expected lease up periods, considering current market conditions. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods. The Company records the fair value of debt assumed in an acquisition based on management’s estimates of current market interest rates for instruments with similar characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. The Company amortizes the value of tenant origination and absorption costs to depreciation and amortization expense over the remaining non-cancelable term of the leases. Estimates of the fair values of the tangible assets, identifiable intangibles and assumed liabilities require the Company to make significant assumptions to estimate market lease rates or average daily rates, property-operating expenses, carrying costs during lease-up periods, discount rates, market absorption periods, revenue and expense growth rates, occupancy, and net operating margin. The Company records the fair value of noncontrolling interests based on the estimated noncontrolling interests’ share of fair values of the net assets of the underlying entities, adjusted for lack of marketability and control discount. |
Depreciation and Amortization | Depreciation and AmortizationReal estate costs related to the acquisition and improvement of properties are capitalized and depreciated over the expected useful life of the asset on a straight-line basis. Repair and maintenance costs are charged to expense as incurred and significant replacements and betterments are capitalized. Repair and maintenance costs include all costs that do not extend the useful life of the real estate asset. The Company considers the period of future benefit of an asset to determine its appropriate useful life. Expenditures for tenant improvements are capitalized and amortized over the shorter of the tenant’s lease term or expected useful life. |
Impairment Charges on Real Estate and Related Intangibles | The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate and related intangibles may not be recoverable or realized. Such indicators of potential impairment may include an assessment of management's intended hold period and disposition strategy, a significant decrease in market price, expected future undiscounted cash flows, current industry and market trends and other factors including bona fide purchase offers received from third parties in making this assessment. When indicators of potential impairment suggest that the carrying value of real estate and related intangibles may not be recoverable, the Company assesses the recoverability by estimating whether the Company will recover the carrying value of the real estate and related intangibles through its undiscounted future cash flows and its eventual disposition. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of the real estate and related intangibles, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the real estate and related intangibles. The Company recorded an impairment loss of $18.5 million and $11.0 million on its real estate and related intangibles during the years ended December 31, 2022 and 2021, respectively. See Note 9 for further discussion. There were no impairment losses on real estate and related intangibles during the year ended December 31, 2020.Projecting future cash flows involves estimating expected future operating income and expenses related to the real estate and its related intangibles as well as market and other trends. Using inappropriate assumptions to estimate cash flows could result in incorrect fair values of the real estate and its related intangibles and could result in the overstatement of the carrying values of the Company’s real estate and related intangibles and an overstatement of its net income. |
Real Estate Held for Sale | The Company generally considers real estate to be “held for sale” when the following criteria are met: (i) management commits to a plan to sell the property, (ii) the property is available for sale immediately, (iii) the property is actively being marketed for sale at a price that is reasonable in relation to its current fair value, (iv) the sale of the property within one year is considered probable and (v) significant changes to the plan to sell are not expected. Real estate that is held for sale and its related assets are classified as “real estate held for sale” and “assets related to real estate held for sale,” respectively, for all periods presented in the accompanying consolidated financial statements. Notes payable and other liabilities related to real estate held for sale are classified as “notes payable related to real estate held for sale” and “liabilities related to real estate held for sale,” respectively, for all periods presented in the accompanying consolidated financial statements. Real estate classified as held for sale is no longer depreciated and is reported at the lower of its carrying value or its estimated fair value less estimated costs to sell. Operating results and related gains on sale of properties that were disposed of or classified as held for sale in the ordinary course of business are included in continuing operations on the Company’s consolidated statements of operations. |
Sale of Real Estate | The Company’s sales of real estate would be considered a sale of a nonfinancial asset. The Company determines it does not have a controlling financial interest in the entity that holds the asset and the arrangement meets the criteria to be accounted for as a contract, the Company would derecognize the asset and recognize a gain or loss on the sale of the real estate when control of the underlying asset transfers to the buyer. |
Real Estate Equity Securities | These investments are carried at their estimated fair value based on quoted market prices for the security, net of any discounts for restrictions on the sale of the security. Transaction costs that are directly attributable to the acquisition of real estate equity securities are capitalized to its cost basis. The Company records unrealized gains and losses on real estate equity securities are recognized in earnings. |
Goodwill | Goodwill represents the excess of consideration paid over the fair value of underlying identifiable net assets of business acquired. The Company's goodwill has an indeterminate life and is not amortized, but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company takes a qualitative approach to consider whether an impairment of goodwill exists prior to quantitatively determining the fair value of the reporting unit in step one of the impairment test. The Company performs its annual assessment on October 1st. The Company recorded impairment charges on goodwill of $8.1 million and $2.8 million for the years ended December 31, 2022 and 2021, respectively. See Note 9 for further discussion. There were no impairment losses on goodwill during the year December 31, 2020. |
Investment in Unconsolidated Entities | The Company accounts for investments in unconsolidated entities in which the Company may exercise significant influence over, but does not control, using the equity method of accounting. Under the equity method, the investment is initially recorded at cost and subsequently adjusted to reflect additional contributions or distributions and the Company’s proportionate share of equity in the unconsolidated entity’s income (loss). The Company recognizes its proportionate share of the ongoing income or loss of the unconsolidated entity as equity in income (loss) of unconsolidated entity on the consolidated statements of operations. On a quarterly basis, the Company evaluates its investments in the unconsolidated entities for other-than-temporary impairments. |
Cash and Cash Equivalents | The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Cash and cash equivalents are stated at cost, which approximates fair value. There were no restrictions on the use of the Company’s cash and cash equivalents as of December 31, 2022 and 2021. The Company’s cash and cash equivalents balance exceeded federally insurable limits as of December 31, 2022. The Company monitors the cash balances in its operating accounts and adjusts the cash balances as appropriate; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to cash in its operating accounts. |
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. |
Deferred Financing Costs | Deferred financing costs represent commitment fees, loan fees, legal fees and other third-party costs associated with obtaining financing and are presented on the balance sheets as a direct deduction from the carrying value of the associated debt liability. These costs are amortized over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity unless specific rules are met that would allow for the carryover of such costs to the refinanced debt. Deferred financing costs incurred before an associated debt liability is recognized are included in prepaid and other assets on the balance sheets. Costs incurred in seeking financing transactions that do not close are expensed in the period in which it is determined that the financing will not close. |
Fair Value Measurements | Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other non-financial and financial assets at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and classifies such items in Level 1 or Level 2. The Company would classify items as Level 3 in instances where the market for a financial instrument is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines that the market for a financial instrument owned by the Company is illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and establishes a fair value by assigning weights to the various valuation sources. Additionally, when determining the fair value of liabilities in circumstances in which a quoted price in an active market for an identical liability is not available, the Company measures fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. The Company considers the following factors to be indicators of an inactive market: (i) there are few recent transactions, (ii) price quotations are not based on current information, (iii) price quotations vary substantially either over time or among market makers (for example, some brokered markets), (iv) indexes that previously were highly correlated with the fair values of the asset or liability are demonstrably uncorrelated with recent indications of fair value for that asset or liability, (v) there is a significant increase in implied liquidity risk premiums, yields, or performance indicators (such as delinquency rates or loss severities) for observed transactions or quoted prices when compared with the Company’s estimate of expected cash flows, considering all available market data about credit and other nonperformance risk for the asset or liability, (vi) there is a wide bid-ask spread or significant increase in the bid-ask spread, (vii) there is a significant decline or absence of a market for new issuances (that is, a primary market) for the asset or liability or similar assets or liabilities, and (viii) little information is released publicly (for example, a principal-to-principal market). The Company considers the following factors to be indicators of non-orderly transactions: (i) there was not adequate exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities under current market conditions, (ii) there was a usual and customary marketing period, but the seller marketed the asset or liability to a single market participant, (iii) the seller is in or near bankruptcy or receivership (that is, distressed), or the seller was required to sell to meet regulatory or legal requirements (that is, forced), and (iv) the transaction price is an outlier when compared with other recent transactions for the same or similar assets or liabilities. |
Dividend Reinvestment Plan | The Company has adopted a dividend reinvestment plan (the “DRP”) through which common stockholders may elect to reinvest an amount equal to the distributions declared on their shares in additional shares of the Company’s common stock in lieu of receiving cash distributions. On December 2, 2021, the Company’s board of directors approved an estimated value per share of the Company’s common stock of $10.68 (unaudited) based on the estimated value of the Company’s assets less the estimated value of the Company’s liabilities, or net asset value, divided by the number of shares outstanding as of September 30, 2021. Subsequently, on December 28, 2021, the Company’s board of directors declared a special dividend of $1.17 per share of the Company’s common stock to the stockholders of record as of the close of business on December 30, 2021. On January 26, 2022, the board of directors approved an updated estimated value per share of $9.51 (unaudited), based on the previous estimated value per share of $10.68 (unaudited), less the special dividend of $1.17. After giving effect to the declaration of the special dividend of $1.17 per share, the purchase price per share under the DRP was $9.51 and commenced in the first quarter of 2022. |
Redeemable Common Stock | The Company has adopted a share redemption program that may enable stockholders to sell their shares to the Company in limited circumstances. Pursuant to the share redemption program there are several limitations on the Company’s ability to redeem shares: • Unless the shares are being redeemed in connection with a stockholder’s death, “qualifying disability” or “determination of incompetence” (each as defined under the share redemption program), the Company may not redeem shares until the stockholder has held the shares for one year. • During any calendar year, the Company may redeem no more than 5% of the weighted-average number of shares outstanding during the prior calendar year. • The Company has no obligation to redeem shares if the redemption would violate the restrictions on distributions under Maryland law, which prohibits distributions that would cause a corporation to fail to meet statutory tests of solvency. • During any calendar year, the Company may redeem only the number of shares that the Company can purchase with the amount of net proceeds from the sale of shares under its dividend reinvestment plan during the prior calendar year; provided, however, that this limit may be increased or decreased by us upon ten • The Company may not redeem more than $3.0 million of shares in a given quarter (excluding shares redeemed in connection with a stockholder’s death, “qualifying disability” or “determination of incompetence”). To the extent that, in a given fiscal quarter, the Company redeems less than the sum of (a) $3.0 million of shares (excluding shares redeemed in connection with a stockholder’s death, “qualifying disability” or “determination of incompetence”) and (b) any excess capacity carried over to such fiscal quarter from a prior fiscal quarter as described below, any remaining excess capacity to redeem shares in such fiscal quarter will be added to our capacity to otherwise redeem shares (excluding shares redeemed in connection with a stockholder’s death, “qualifying disability” or “determination of incompetence”) during succeeding fiscal quarter. The Company may increase or decrease this limit upon ten • In addition to the capacity from the bullet above, during the year ended December 31, 2022, the Company’s board of directors has made available $8.0 million for redemptions in connection with a stockholder's death, “qualifying disability”, or “determination of incompetence”. As of December 31, 2022, $2.6 million remained available for redemptions in connection with a stockholder's death, “qualifying disability”, or “determination of incompetence” and ordinary redemptions were fully depleted. Therefore, in 2023, the Company may redeem no more than $2.6 million of shares in connection with a stockholder’s death, “qualifying disability” or “determination of incompetence.” Except for redemptions made upon a stockholder’s death, “qualifying disability” or “determination of incompetence”, the price at which the Company will redeem shares is 95% of the Company’s most recent estimated value per share as of the applicable redemption date. Upon the death, “qualifying disability” or “determination of incompetence” of a stockholder, the redemption price continued to be equal to the Company’s most recent estimated value per share. The Company’s board of directors may amend, suspend or terminate the share redemption program with ten The Company records amounts that are redeemable under the share redemption program as redeemable common stock in its consolidated balance sheets because the shares will be mandatorily redeemable at the option of the holder and therefore their redemption will be outside the control of the Company. However, because the amounts that can be redeemed will be determinable and only contingent on an event that is likely to occur (e.g., the passage of time), the Company presents the net proceeds from the current year and prior year DRP, net of current year redemptions, as redeemable common stock in its consolidated balance sheets. The Company classifies as liabilities financial instruments that represent a mandatory obligation of the Company to redeem shares. The Company’s redeemable common shares are contingently redeemable at the option of the holder. When the Company determines it has a mandatory obligation to repurchase shares under the share redemption program, it will reclassify such obligations from temporary equity to a liability based upon their respective settlement values. |
Related Party Transactions | Pursuant to its advisory agreement with the Advisor, the Company is obligated to pay the Advisor and PORA specified fees upon the provision of certain services related to the investment of funds in real estate and real estate-related investments, management of the Company’s investments and for other services (including, but not limited to, the disposition of investments). The Company is or was obligated to reimburse the Advisor for acquisition and origination expenses and certain operating expenses incurred on behalf of the Company or incurred in connection with providing services to the Company. In addition, the Advisor is entitled to certain other fees, including an incentive fee upon achieving certain performance goals, as detailed in the applicable advisory agreement. See Note 9 for further details. The Company records all related party fees as incurred, subject to any limitations described in the advisory agreement. The Company had not incurred any subordinated participation in net cash flows or subordinated incentive listing fees payable to the Advisor through December 31, 2022. |
Foreign Currency Transactions | The U.S. Dollar is the Company’s functional currency. Transactions denominated in currency other than the Company’s functional currency are recorded upon initial recognition at the exchange rate on the date of the transaction. After initial recognition, monetary assets and liabilities denominated in foreign currency are remeasured at each reporting date into the foreign currency at the exchange rate on that date. Exchange rate differences, other than those accounted for as hedging transactions, are recognized as foreign currency transaction gain or loss included in the Company’s consolidated statements of operations. |
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 on its variable rate notes payable. Additionally, the Company enters into derivative instruments such as cross currency swaps, puts or calls for risk management purposes to hedge its exposure to variability in foreign currency exchange rates of the Israeli new Shekel versus the U.S. Dollar. Pursuant to these agreements, the Company may deposit collateral with a counterparty and may pay a fee equal to a fixed percentage of the value of the underlying security (notional amount). The Company may be required to deposit additional collateral equal to the unrealized appreciation or depreciation on the underlying asset. The Company records these derivative instruments at fair value on the accompanying consolidated balance sheets. The changes in fair value for derivative instruments that are not designated as a hedge or that do not meet the hedge accounting criteria are recorded as gain or loss on derivative instruments and included in earnings in the accompanying consolidated statements of operations. |
Income Taxes | The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the Company’s annual REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to federal income tax to the extent it distributes qualifying dividends to its stockholders. The Company conducts certain business activities through taxable REIT subsidiaries. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially and adversely affect the Company’s net income and net cash available for distribution to stockholders. However, the Company intends to organize and operate in such a manner as to qualify for treatment as a REIT. The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and for net operating loss, capital loss and tax credit carryforwards. The deferred tax assets and liabilities are measured using the enacted income tax rates in effect for the year in which those temporary differences are expected to be realized or settled. The effect on the deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. Neither the Company nor its subsidiaries have been assessed interest or penalties by any major tax jurisdictions. The Company’s evaluations were performed for all open tax years through December 31, 2022. As of December 31, 2022, returns for the calendar year 2018 through 2021 remain subject to examination by major tax jurisdictions. |
Segments | The Company operates in three reportable business segments: opportunistic real estate and real estate-related investments, residential homes, and hotel, 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 residential homes in 18 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 owned one hotel as of December 31, 2022 and is a separate 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 basic and diluted earnings per share. Net loss is allocated to the unvested restricted stock payable outstanding during each year, as the restricted stock contains non-forfeitable rights to distributions and is therefore considered a participating security. The Company's unvested restricted stock payable have been included in the calculation of basic and diluted earnings per share for the years ended December 31, 2022, 2021 and 2020, as the restriction is not contingent on any conditions except the passage of time. Potential common shares consist of unvested restricted stock, using the more dilutive of either the two-class method or the treasury stock method.Basic and diluted loss per share of common stock is calculated by dividing net 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. |
Square Footage, Occupancy and Other Measures | Square footage, acres, units, number of homes, markets, occupancy, average revenue per available room, average daily rate, number of tenants and other measures including annualized base rents and annualized base rents per square foot used to describe real estate and real-estate related investments included in these Notes to Consolidated Financial Statements are presented on an unaudited basis. |
Recently Adopted Accounting Pronouncements | Reference Rate Reform — In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional relief to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference London Inter-Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. Additionally, in January 2021, the FASB issued ASU No. 2021-01, which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The Company adopted Topic 848 during the year ended December 31, 2022 and the related prospective optional expedients for its variable rate debt and related derivatives is not expected to have a material impact to the Company. In December 2022, the FASB issued ASU 2022-06, Topic 848 , Deferral of the Sunset Date of Topic 848 which defers the sunset date of ASU 2022-04, Topic 848: Facilitation of the Effects of Reference Rate Reform to December 31, 2024. ASU 2022-06 is effective immediately for all companies. ASU 2022-06 did not have an impact on our consolidated financial statements for the year ended December 31, 2022. There have been no other recent accounting pronouncements, changes in accounting pronouncements or recently adopted accounting guidance during the year ended December 31, 2022 that are of significance or potential significance to the Company. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Life | The Company anticipates the estimated useful lives of its assets by class to be generally as follows: Land N/A Buildings 25-40 years Building improvements 10-40 years Tenant improvements Shorter of lease term or expected useful life Tenant origination and absorption costs Remaining term of related leases, including below-market renewal periods Real estate subsidies & tax abatements Remaining term of agreement Furniture, fixtures & equipment 3-12 years |
Schedule of Earnings Per Share | The following table summarizes the computation of basic and diluted net loss per common share for the years ended December 31, 2022, 2021 and 2020 (in thousands, except per share data): Years Ended December 31, 2022 2021 2020 Numerator: Net loss $ (41,670) $ (12,498) $ (48,813) Net (income) loss attributable to noncontrolling interests (530) 2,310 738 Net loss attributable to redeemable noncontrolling interest 81 146 56 Preferred stock dividends (1,123) (913) (989) Adjustment to redemption value of noncontrolling cumulative convertible redeemable preferred stock (1,800) — — Net loss attributable to common stockholders (for net loss per common share, basic and diluted) $ (45,042) $ (10,955) $ (49,008) Denominator: Weighted-average number of common shares outstanding, basic and diluted 103,522,696 96,967,983 75,407,976 Net loss per common share, basic and diluted $ (0.44) $ (0.11) $ (0.65) |
REAL ESTATE HELD FOR INVESTME_2
REAL ESTATE HELD FOR INVESTMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Schedule of Real Estate Investments | The following table summarizes the Company’s real estate held for investment as of December 31, 2022 and 2021, respectively (in thousands): December 31, 2022 December 31, 2021 Land $ 269,376 $ 245,200 Buildings and improvements 1,063,782 954,851 Tenant origination and absorption costs 27,996 43,375 Total real estate, cost 1,361,154 1,243,426 Accumulated depreciation and amortization (141,750) (124,876) Total real estate, net $ 1,219,404 $ 1,118,550 |
Schedule of Future Minimum Rental Income for Company's Properties | As of December 31, 2022, the future minimum rental income from the Company’s properties, excluding apartment and residential home leases, under non-cancelable operating leases was as follows (in thousands): 2023 $ 61,327 2024 58,093 2025 47,651 2026 33,929 2027 26,146 Thereafter 57,434 $ 284,580 |
Schedules of Concentration of Risk, by Risk Factor | As of December 31, 2022, the Company’s commercial real estate properties were leased to approximately 300 tenants (unaudited) 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 Public Administration 14 $ 7,774 12.7 % Professional, Scientific, and Technical Services 38 7,346 12.0 % Computer Systems Design and Related Services 31 7,056 11.6 % $ 22,176 36.3 % _____________________ |
Schedule of Hotel Revenue and Expense | Year Ended December 31, 2022 2021 October 5, 2020 through December 31, 2020 Hotel revenues: Room $ 23,834 $ 22,889 $ 2,545 Food, beverage and convention services 3,641 3,752 420 Campground 807 1,078 270 Other 2,467 3,087 483 Hotel revenues $ 30,749 $ 30,806 $ 3,718 |
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 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 December 31, 2022 and December 31, 2021 (in thousands): December 31, 2022 December 31, 2021 Contract liability $ 23,904 $ 7,313 Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ 9,215 $ 159 |
Schedule of Variable Interest Entities | The following table summarizes the components of the PORT II and the gain recognized by the Company (in thousands): PORT II's assets and liabilities, based upon fair values as determined by the Company, as follows: Assets: Real estate held for investment, net $ 135,096 Cash and cash equivalents 1,473 Restricted cash 361 Prepaid expenses and other assets 639 Total Assets 137,569 Liabilities: Notes payable, net (82,646) Accounts payable and accrued liabilities (804) Due to affiliates (147) Other liabilities (1,499) Total Liabilities (85,096) Noncontrolling interest (1,125) Elimination of the Company’s investment in PORT II (32,606) Gain from consolidation of previously unconsolidated entity $ 18,742 |
TENANT ORIGINATION AND ABSORP_2
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract] | |
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities | As of December 31, 2022 and 2021, the Company’s tenant origination and absorption costs (included in total real estate and real estate-related investments, net), 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 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Cost $ 27,995 $ 43,375 $ 4,103 $ 4,138 $ (3,534) $ (6,719) Accumulated Amortization (13,987) (20,738) (1,830) (1,496) 945 2,639 Net Amount $ 14,008 $ 22,637 $ 2,273 $ 2,642 $ (2,589) $ (4,080) |
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 years ended December 31, 2022, 2021 and 2020 were as follows (in thousands): Tenant Origination and Above-Market Below-Market For the Years Ended December 31, For the Years Ended December 31, For the Years Ended December 31, 2022 2021 2020 2022 2021 2020 2022 2021 2020 Amortization $ (9,926) $ (15,177) $ (10,453) $ (367) $ (514) $ (476) $ 1,375 $ 1,792 $ 1,382 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The remaining unamortized balance for these outstanding intangible assets and liabilities as of December 31, 2022 will be amortized for the years ending December 31 as follows (in thousands): Tenant Origination and Above-Market Below-Market Housing Subsidy Tax Abatements 2023 $ (4,924) $ (356) $ 1,019 $ (71) $ (227) 2024 (3,575) (355) 821 (71) (4) 2025 (2,330) (339) 544 (71) — 2026 (1,047) (309) 138 (71) — 2027 (467) (221) 45 (71) — Thereafter (1,665) (693) 22 (1,465) — $ (14,008) $ (2,273) $ 2,589 $ (1,820) $ (231) Weighted-Average Remaining Amortization Period 4.9 years 7.5 years 2.9 years 25.8 years 0.6 years |
REAL ESTATE EQUITY SECURITIES (
REAL ESTATE EQUITY SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of 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 years ended December 31, 2022 and 2021 (in thousands): For the Years Ended December 31, 2022 2021 Net (loss) gain recognized during the period on real estate equity securities $ (51,943) $ 28,632 Less: Net gain recognized during the period on real estate equity securities sold during the period — 3,036 Unrealized (loss) gain recognized during the reporting period on real estate equity securities still held at period end $ (51,943) $ 25,596 |
REAL ESTATE DISPOSITIONS (Table
REAL ESTATE DISPOSITIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The following table reconciles the U.S. federal statutory income tax rate to our effective income tax rate for the transaction’s taxable gain: For the Year Ended December 31, 2022 U.S. federal statutory income tax rate 21 % Net capital loss carryforwards utilized (3) % Change in valuation allowance (1) % Effective rate 17 % |
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 years ended December 31, 2022, 2021 and 2020 (in thousands): Years Ended December 31, 2022 2021 2020 Revenues Rental income 457 9,971 14,993 Hotel revenues 21,019 25,202 2,541 Other operating income 10 677 1,151 Total revenues $ 21,486 $ 35,850 $ 18,685 Expenses Operating, maintenance, and management 69 3,278 14,173 Real estate taxes and insurance 21 1,362 2,075 Hotel expenses 6,574 8,240 1,403 Asset management fees to affiliate 470 1,533 1,270 Depreciation and amortization 966 4,728 8,004 Interest expense 3,755 6,652 4,958 Total expenses $ 11,855 $ 25,793 $ 31,883 |
NOTES AND BONDS PAYABLE (Tables
NOTES AND BONDS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes and Bonds Payable [Abstract] | |
Schedule of Long-term Debt Instruments | As of December 31, 2022 and December 31, 2021, 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 December 31, 2022 (1) Interest Rate at December 31, 2022 (1) Payment Type (2) Maturity Date (3) Richardson Portfolio Mortgage Loan $ 18,844 $ 28,470 SOFR + 2.50% 6.11% Principal & Interest 11/01/2023 Park Centre Mortgage Loan 26,233 26,185 BSBY + 1.75% 6.90% Principal & Interest 06/27/2023 1180 Raymond Mortgage Loan (4) 31,070 31,070 BSBY + 2.25% 6.61% Interest Only 12/01/2023 Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures (6) 331,213 271,978 3.93% 3.93% (6) 01/31/2026 Crown Pointe Mortgage Loan 53,758 52,315 SOFR + 2.30% 6.60% Interest Only 04/01/2025 The Marq Mortgage Loan 60,796 61,874 BSBY + 1.55% 5.91% Principal & Interest 06/06/2023 Eight & Nine Corporate Centre Mortgage Loan 47,945 48,545 BSBY + 1.60% 5.96% Principal & Interest 06/08/2023 Georgia 400 Center Mortgage Loan 44,129 61,154 LIBOR + 1.55% 5.95% Interest Only 05/22/2023 PORT Mortgage Loan 1 51,302 51,302 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 MetLife Loan 60,000 60,000 3.90% 3.90% Interest Only 04/10/2026 PORT II Metlife Loan (7) 93,701 — 3.99% 3.99% Interest Only 04/10/2026 Springmaid Beach Resort Mortgage Loan — 55,491 (5) (5) (5) (5) Q&C Hotel Mortgage Loan 24,784 25,000 LIBOR + 2.50% (8) 6.90% Principal & Interest 01/31/2023 (8) Lincoln Court Mortgage Loan (4) 35,314 34,623 SOFR + 3.25% 7.55% Interest Only 08/07/2025 Lofts at NoHo Commons Mortgage Loan 71,536 74,536 SOFR + 2.18% (9) 6.48% Interest Only 09/09/2023 210 West 31st Street Mortgage Loan — 8,850 (5) (5) (5) (5) Oakland City Center Mortgage Loan (4) 87,000 96,075 BSBY + 3.00% 7.36% Principal & Interest 09/01/2023 Madison Square Mortgage Loan 17,964 17,500 4.63% 4.63% Interest Only 10/07/2024 Total Notes and Bonds Payable principal outstanding 1,066,112 1,015,491 Discount on Notes and Bonds Payable, net (10) (11,964) (8,146) Deferred financing costs, net (9,439) (8,396) Total Notes and Bonds Payable, net $ 1,044,709 $ 998,949 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of December 31, 2022. The interest rate is calculated as the actual interest rate in effect as of December 31, 2022 (consisting of the contractual interest rate and contractual floor rates), using interest rate indices at December 31, 2022, where applicable. (2) Represents the payment type required under the loan as of December 31, 2022. 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 December 31, 2022; subject to certain conditions, the maturity dates of certain loans may be extended beyond the date shown. (4) 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 December 31, 2022, the guaranteed amount in the aggregate was $38.3 million. (5) These loans were paid off during the year ended December 31, 2022. (6) See “Israeli Bond Financing” below. (7) As of December 31, 2022, $93.7 million had been disbursed to the Company and up to $6.3 million was available for future disbursements, subject to certain terms and conditions contained in the loan documents. (8) The interest rate is variable at the higher of one-month LIBOR + 2.5% or 4.5%. Subsequent to December 31, 2022, the Company extended the Q&C Hotel Mortgage Loan to January 31, 2024. Beginning February 1, 2023 through March 31, 2023, the interest rate is 8.25% and thereafter is SOFR + 3.5%. (9) The variable rate is at the higher of one-month SOFR or 1.75%, plus 2.18%. (10) 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 December 31, 2022 (in thousands): 2023 $ 412,338 2024 128,366 2025 250,779 2026 274,629 2027 — Thereafter — $ 1,066,112 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Face Value, Carrying Amounts and Fair Value | The following were the face values, carrying amounts and fair values of the Company’s financial instruments as of December 31, 2022 and 2021, which carrying amounts do not approximate the fair values (in thousands): December 31, 2022 December 31, 2021 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities (Level 3): Notes payable $ 734,899 $ 728,433 $ 716,813 $ 743,513 $ 740,176 $ 740,347 Financial liabilities (Level 1): Pacific Oak Strategic Opportunity (BVI) Holdings, Ltd. Series B Debentures $ 331,213 $ 316,276 $ 304,758 $ 271,978 $ 258,773 $ 274,697 |
Fair Value, Assets Measured on Recurring Basis | As of December 31, 2022, 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 $ 60,153 $ 60,153 $ — $ — Asset derivative - interest rate caps $ 2,267 $ — $ 2,267 $ — Liability derivative - foreign currency collar $ 3,115 $ — $ 3,115 $ — Nonrecurring Basis: Impaired real estate (1) $ 212,800 $ — $ — $ 212,800 Impaired goodwill $ 5,436 $ — $ — $ 5,436 _____________________ (1) Amount represents the fair value for a real estate asset impacted by impairment charges during the year ended December 31, 2022, as of the date that the fair value measurement was made. The carrying value for the real estate asset may have subsequently increased or decreased from the fair value reflected due to activity that has occurred since the measurement date. As of December 31, 2021, the Company measured the following assets at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Recurring Basis: Real estate equity securities $ 112,096 $ 112,096 $ — $ — Asset derivative - interest rate caps $ 8 $ — $ 8 $ — Nonrecurring Basis: Impaired real estate (1) $ 97,600 $ — $ — $ 97,600 Impaired goodwill $ 13,534 $ — $ — $ 13,534 _____________________ (1) Amount represents the fair value for a real estate asset impacted by impairment charges during the year ended December 31, 2021, as of the date that the fair value measurement was made. The carrying value for the real estate asset may have subsequently increased or decreased from the fair value reflected due to activity that has occurred since the measurement date. |
Schedule of Goodwill | The following table summarizes the goodwill impairment activity during years ended December 31, 2022 and 2021 (in thousands): Gross Goodwill Accumulated Impairment Net Goodwill Balance, December 31, 2020 $ 16,342 $ — $ 16,342 Impairment charges on goodwill — (2,808) (2,808) Balance, December 31, 2021 $ 16,342 $ (2,808) $ 13,534 Impairment charges on goodwill — (8,098) (8,098) Balance, December 31, 2022 $ 16,342 $ (10,906) $ 5,436 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Costs | Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the years ended December 31, 2022, 2021 and 2020, respectively, and any related amounts payable as of December 31, 2022 and 2021 (in thousands): Incurred Payable as of 2022 2021 2020 2022 2021 Expensed Asset management fees to affiliate $ 13,678 $ 14,012 $ 9,982 $ 2,618 $ 1,903 Property management fees (1) 1,267 479 229 181 — Reimbursable operating expenses — — 148 — — Disposition fees (2) 1,294 1,196 — — — Subordinated performance fee due upon termination to affiliate (3) — 1,678 (1,720) — — Capitalized Acquisition fees on real estate (4) 67 20 171 — — Acquisition fees on real estate equity securities — — 143 — — Acquisition fee on investment in unconsolidated entities — 46 — — — $ 16,306 $ 17,431 $ 8,953 $ 2,799 $ 1,903 _____________________ (1) Property management fees related to DMH Realty are recorded as operating, maintenance, and management expenses on the Company’s consolidated statements of operations. (2) Disposition fees with respect to real estate sold are recorded as gain (loss) on sale of real estate on the Company’s consolidated statements of operations. (3) Change in estimate of fees payable to the Company’s previous advisor, KBS Capital Advisors LLC (“KBS Capital Advisors) due to the termination of the former advisory agreement with KBS Capital Advisors. Subordinated performance fee due upon termination to affiliate are recorded on the Company’s consolidated statements of operations. (4) 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) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments in Unconsolidated Joint Ventures | As of December 31, 2022 and 2021, the Company’s investments in unconsolidated entities were composed of the following (dollars in thousands): Number of Properties at December 31, 2021 Investment Balance at Joint Venture Location Ownership % December 31, 2022 December 31, 2021 110 William Joint Venture (1) 1 New York, New York 60.0% — — 353 Sacramento Joint Venture 1 San Francisco, California 55.0% 45,173 49,916 Pacific Oak Opportunity Zone Fund I 3 Various 46.0% 25,669 27,215 PORT II OP LP (2) (2) (2) — 11,125 $ 70,842 $ 88,256 _____________________ (1) The book value of the Company’s investment in the 110 William Joint Venture was $0 due to historical distributions from the 110 William Joint Venture exceeding the Company’s book value. As such, the Company suspended the equity method of accounting and will not record the Company's share of losses or 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. (2) On July 1, 2022, the Company, through PORT OP, made a tender offer to purchase 76,735 shares of PORT II common stock held by unrelated parties for a price of $14.66 per share. As a result, the Company determined that it became the primary beneficiary of PORT II, which resulted in the consolidation of PORT II into the Company’s consolidated financial statements. On July 29, 2022, the Company consummated the transactions with the unrelated parties and owned 100% of PORT II. See Note 3 for the assessment of the fair value of the assets and liabilities of PORT II. There are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to PORT II. The Company and the aforementioned unrelated parties did not guarantee any debt in connection with the transaction. As of December 31, 2022, PORT II was a disregarded entity for U.S. federal income tax purposes. Summarized financial information for Investment in Unconsolidated Entities follows (in thousands): December 31, 2022 2021 Assets: Real estate held for investment, net $ 471,503 $ 486,251 Total assets $ 546,142 $ 595,340 Liabilities: Notes payable related to real estate held for investment, net $ 490,302 $ 488,966 Total liabilities $ 501,860 $ 510,612 Total equity $ 44,281 $ 84,728 For the Years Ended December 31, 2022 2021 2020 Total revenues $ 46,518 $ 44,901 $ 57,544 Operating loss $ (41,923) $ (30,548) $ (4,739) Net loss $ (41,664) $ (30,499) $ (4,673) |
REPORTING SEGMENTS (Tables)
REPORTING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The selected financial information for the reporting segments for the years ended December 31, 2022, 2021, and 2020 is as follows (in thousands): Year Ended December 31, 2022 Strategic Opportunistic Properties Residential Homes Hotel Total Total revenues $ 102,179 $ 29,130 $ 30,749 $ 162,058 Total expenses (140,162) (35,022) (31,508) (206,692) Total other (loss) income, net (12,646) 18,158 2,376 7,888 Net (loss) income before income taxes $ (50,629) $ 12,266 $ 1,617 (36,746) Year Ended December 31, 2021 Strategic Opportunistic Properties Single-Family Homes Hotel Properties Total Total revenues $ 115,167 $ 21,954 $ 30,806 $ 167,927 Total expenses (172,215) (25,979) (30,553) $ (228,747) Total other income, net 46,959 74 1,289 $ 48,322 Net (loss) income $ (10,089) $ (3,951) $ 1,542 $ (12,498) Year Ended December 31, 2020 Strategic Opportunistic Properties Single-Family Homes Hotel Properties Total Total revenues $ 93,252 $ 17,055 $ 3,718 $ 114,025 Total expenses (122,621) (19,332) (6,204) (148,157) Total other (loss) income, net (15,045) (51) 415 (14,681) Net loss $ (44,414) $ (2,328) $ (2,071) $ (48,813) Total assets related to the three reporting segments as of December 31, 2022 and 2021 are as follows (in thousands): December 31, 2022 Strategic Opportunistic Properties Residential Homes Hotel Total Total assets (1)(2) $ 1,173,481 $ 333,128 $ 52,636 $ 1,559,245 Goodwill (1) 4,220 — 1,216 5,436 _____________________ (1) During the year ended December 31, 2022, the Company recorded impairment charges on goodwill of $5.5 million and $2.6 million related to the Strategic Opportunistic Properties and Hotel segments, respectively. (2) During the year ended December 31, 2022, the Company disposed of real estate assets related to the Strategic Opportunistic Properties and Hotel segments, respectively. See Note 6 for further details on the Company’s dispositions. December 31, 2021 Strategic Opportunistic Properties Single-Family Homes Hotel Properties Total Total assets (1) $ 1,223,122 $ 211,050 $ 150,447 1,584,619 Goodwill (1) 9,489 — 4,045 13,534 _____________________ (1) During the year ended December 31, 2021, the Company recorded impairment charges on real estate and related intangibles and on goodwill of $11.0 million and $2.8 million, respectively, related to the Strategic Opportunistic Properties segment. |
PORT MEZZANINE EQUITY (Tables)
PORT MEZZANINE EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following is a reconciliation of the Company’s noncontrolling cumulative convertible redeemable preferred stock for the years ended December 31, 2020, 2021 and 2022: Series A Preferred Stock Shares Amounts Balance, December 31, 2019 15,000 14,909 Dividends Available Upon Redemption — 973 Dividends Paid — (748) Balance, December 31, 2020 15,000 15,134 Dividends Available Upon Redemption — 897 Dividends Paid — (897) Balance, December 31, 2021 15,000 $ 15,134 Dividends Available Upon Redemption — 1,123 Dividends Paid — (1,123) Adjustment to redemption value of noncontrolling cumulative convertible redeemable preferred stock — 1,800 Payment to redeem noncontrolling cumulative convertible redeemable preferred stock (15,000) $ (16,934) Balance, December 31, 2022 — $ — |
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 years ended December 31, 2022 and 2021 (in thousands): December 31, 2020 $ 2,968 Net loss attributable to redeemable noncontrolling interest (146) December 31, 2021 $ 2,822 Net loss attributable to redeemable noncontrolling interest (81) Adjustment to value of redeemable noncontrolling interest (1) 3,946 Payment to redeem noncontrolling interest (6,687) December 31, 2022 $ — _____________________ (1) On June 24, 2022, the Company’s board of directors approved the redemption of the 510,816 PORT OP Special Common Units held by BPT Holdings for a price of $13.09 per unit.and recorded at its fair value. The Company redeemed the noncontrolling interest in PORT OP in July 2022. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease Cost | December 31, 2022 2021 Right-of-use asset (included in real estate held for investment, net) $ 7,281 $ 8,074 Lease obligation (included in other liabilities 9,446 9,360 Remaining lease term 91.0 years 92.0 years Discount rate 4.8 % 4.8 % The components of lease expense were as follows: Interest on lease obligation 446 501 |
Schedule of Finance Lease, Liability, Fiscal Year Maturity | Future minimum lease payments owed by the Company under the finance lease as of December 31, 2022 are as follows (in thousands): 2023 $ 360 2024 360 2025 393 2026 396 2027 396 Thereafter 51,771 Total expected minimum lease obligations 53,676 Less: Amount representing interest (1) (44,230) Present value of net minimum lease payments (2) $ 9,446 _____________________ (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 |
ORGANIZATION (Details)
ORGANIZATION (Details) | 12 Months Ended | 145 Months Ended | 157 Months Ended | |||||||||||
Sep. 01, 2021 USD ($) shares | Oct. 05, 2020 shares | Mar. 27, 2020 shares | Nov. 01, 2019 | Mar. 20, 2019 USD ($) | Dec. 31, 2022 USD ($) a unit portfolio property investment shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2022 USD ($) a unit portfolio property investment shares | Dec. 18, 2015 certificate shares | Oct. 23, 2012 USD ($) shares | Dec. 29, 2011 USD ($) shares | Jan. 08, 2009 shares | |
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) | 103,932,083 | 94,141,251 | 94,141,251 | 103,932,083 | 55,249 | 220,994 | ||||||||
Period of termination of advisory agreement without cause or penalty | 60 days | 60 days | ||||||||||||
Issuance of common stock | $ | $ 262,000 | |||||||||||||
Shares of common stock sold under dividend reinvestment plan | $ | $ 76,500,000 | |||||||||||||
Redemptions of common stock | $ | $ 8,600,000 | $ 6,016,000 | $ 31,018,000 | $ 2,230,000 | $ 324,100,000 | |||||||||
Common stock, special dividends, amount of shares issued | 25,976,746 | 25,976,746 | ||||||||||||
Common stock, value, issued | $ | $ 1,039,000 | $ 941,000 | $ 941,000 | $ 1,039,000 | $ 500,000 | $ 2,000,000 | ||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | 0 | ||||||||||
Number of investments in unconsolidated joint venture | investment | 3 | 3 | ||||||||||||
Number of investments in equity securities | investment | 3 | 3 | ||||||||||||
Office Properties | ||||||||||||||
Organizational Structure [Line Items] | ||||||||||||||
Number of real estate properties | property | 8 | 8 | ||||||||||||
Office Portfolio | ||||||||||||||
Organizational Structure [Line Items] | ||||||||||||||
Number of real estate properties | portfolio | 1 | 1 | ||||||||||||
Office Buildings, Portfolio | ||||||||||||||
Organizational Structure [Line Items] | ||||||||||||||
Number of real estate properties | property | 2 | 2 | ||||||||||||
Undeveloped Land, Portfolio | ||||||||||||||
Organizational Structure [Line Items] | ||||||||||||||
Real estate area of undeveloped land | a | 25 | 25 | ||||||||||||
Apartment Properties, Portfolio | ||||||||||||||
Organizational Structure [Line Items] | ||||||||||||||
Number of real estate properties | property | 2 | 2 | ||||||||||||
Hotel Property | ||||||||||||||
Organizational Structure [Line Items] | ||||||||||||||
Number of real estate properties | property | 1 | 1 | ||||||||||||
Undeveloped Land | ||||||||||||||
Organizational Structure [Line Items] | ||||||||||||||
Real estate area of undeveloped land | a | 742 | 742 | ||||||||||||
Number of investments in real estate | investment | 2 | 2 | ||||||||||||
Office/ Retail Property | ||||||||||||||
Organizational Structure [Line Items] | ||||||||||||||
Number of real estate properties | property | 1 | 1 | ||||||||||||
Residential Home Portfolio | ||||||||||||||
Organizational Structure [Line Items] | ||||||||||||||
Number of real estate properties | portfolio | 1 | 1 | ||||||||||||
Number of units in real estate property | unit | 2,456 | 2,456 | ||||||||||||
Restricted Stock | ||||||||||||||
Organizational Structure [Line Items] | ||||||||||||||
Stock repurchased during period (in shares) | 584,267 | |||||||||||||
Stock repurchased during period | $ | $ 5,655,705 | |||||||||||||
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 | ||||||||||||
Issuance of common stock | $ | $ 0 | $ 561,700,000 | ||||||||||||
Shares of common stock sold under dividend reinvestment plan (in shares) | 6,851,969 | |||||||||||||
Redemptions of common stock (in shares) | 630,317 | 3,329,064 | 222,470 | 27,951,857 | ||||||||||
Redemptions of common stock | $ | $ 6,000 | $ 32,000 | $ 3,000 | |||||||||||
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 | |||||||||||||
POSOR II Merger | ||||||||||||||
Organizational Structure [Line Items] | ||||||||||||||
Issuance of common stock (in shares) | 28,973,906 | |||||||||||||
Common stock conversion ratio | 96.43% | |||||||||||||
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 | |||||||||||||
Number of certificates issued | certificate | 1 | |||||||||||||
Pacific Oak Strategic Opportunity BVI | Pacific Oak Strategic Opportunity Limited 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_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) property | Dec. 31, 2021 USD ($) property | Dec. 31, 2020 USD ($) | Mar. 29, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Debt obligations coming due over the next 12-month period | $ 412,338,000 | |||
Impairment charges on real estate and related intangibles | 18,493,000 | $ 10,971,000 | $ 0 | |
Impairment charges on goodwill | 8,098,000 | 2,808,000 | 0 | |
Other than temporary impairment losses | 0 | 0 | $ 0 | |
Restricted cash and cash equivalents | $ 0 | $ 0 | ||
Office Properties | Disposed of by Sale | ||||
Segment Reporting Information [Line Items] | ||||
Number of real estate properties disposed | property | 2 | 1 | ||
Hotel Property | Disposed of by Sale | ||||
Segment Reporting Information [Line Items] | ||||
Number of real estate properties disposed | property | 1 | 1 | ||
Subsequent Event | ||||
Segment Reporting Information [Line Items] | ||||
Debt obligations coming due over the next 12-month period | $ 522,700,000 | |||
Mortgages | Minimum | ||||
Segment Reporting Information [Line Items] | ||||
Long-term debt, term | 3 years | |||
Mortgages | Maximum | ||||
Segment Reporting Information [Line Items] | ||||
Long-term debt, term | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Useful Life) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 25 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Building improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Building improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Tenant improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Shorter of lease term or expected useful life |
Tenant origination and absorption costs | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Remaining term of related leases, including below-market renewal periods |
Real estate subsidies & tax abatements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Remaining term of agreement |
Furniture, fixtures & equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Furniture, fixtures & equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 12 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Dividend Reinvestment Plan) (Details) - $ / shares | 3 Months Ended | |||||
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 02, 2022 | Jan. 26, 2022 | Dec. 28, 2021 | Dec. 02, 2021 | |
Accounting Policies [Abstract] | ||||||
Updated primary offering price (in dollars per share) | $ 10.50 | $ 10.50 | $ 9.51 | $ 10.68 | ||
Special dividends declared (in dollars per share) | $ 1.17 | $ 1.17 | $ 1.17 | |||
Purchase price (in dollars per share) | $ 9.51 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Redeemable Common Stock) (Details) - USD ($) $ in Thousands | 12 Months Ended | 145 Months Ended | ||||
Mar. 20, 2019 | Dec. 30, 2016 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | |
Summary of Significant Accounting Policies [Line Items] | ||||||
Share holding term | 1 year | |||||
Maximum percentage of weighted-average shares outstanding available for redemption during any calendar year | 5% | |||||
Share redemption program, termination period | 10 days | 10 days | ||||
Maximum number of shares redeemable per year, value | $ 1,000 | |||||
Maximum number of shares redeemable per quarter, value | 3,000 | |||||
Redemption price percentage of most recent estimated value per share | 95% | |||||
Redemptions of common stock | $ 8,600 | 6,016 | $ 31,018 | $ 2,230 | $ 324,100 | |
Redeemable common stock payable | 2,638 | 684 | 864 | $ 684 | ||
Common Stock | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Redemptions of common stock | 6 | $ 32 | $ 3 | |||
Share Redemption Program | Common Stock | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Redemptions of common stock | $ 6,000 | |||||
Number of shares non-redeemable do to limitation, shares | 14,738,800 | |||||
Number of shares non-redeemable do to limitation, value | $ 147,100 | |||||
Reserved Exclusively for Stockholder’s Death, “Qualifying Disability" or “Determination of Incompetence” | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Funds available for redemption of shares | 1,000 | |||||
Stockholder’s Death, Qualifying Disability or Determination of Incompetence | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Funds available for redemption of shares | 8,000 | |||||
Funds remained available for redemption of shares | $ 2,600 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Fees and Segments) (Details) | 12 Months Ended | ||||
Dec. 31, 2022 property | Dec. 31, 2022 segment property | Dec. 31, 2022 market property | Dec. 31, 2021 segment | Dec. 31, 2020 segment | |
Summary of Significant Accounting Policies [Line Items] | |||||
Number of reportable segments | 3 | 3 | 3 | 3 | |
KBS Capital Advisors LLC | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Monthly asset management fee, percent of acquisition expense | 0.00063% | 0.00063% | 0.00063% | ||
Hotel Property | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Number of real estate properties | property | 1 | 1 | 1 | ||
Residential Homes | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Number of markets in which the company owns single-family homes | market | 18 | ||||
Number of reportable segments | segment | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Net loss | $ (41,670) | $ (12,498) | $ (48,813) |
Net (income) loss attributable to noncontrolling interests | (530) | 2,310 | 738 |
Net loss attributable to redeemable noncontrolling interest | 81 | 146 | 56 |
Preferred stock dividends | (1,123) | (913) | (989) |
Adjustment to redemption value of noncontrolling cumulative convertible redeemable preferred stock | (1,800) | 0 | 0 |
Net loss attributable to common stockholders (for net loss per common share, basic) | (45,042) | (10,955) | (49,008) |
Net loss attributable to common stockholders (for net loss per common share, diluted) | $ (45,042) | $ (10,955) | $ (49,008) |
Weighted-average number of common shares outstanding, basic (in shares) | 103,522,696 | 96,967,983 | 75,407,976 |
Weighted-average number of common shares outstanding, diluted (in shares) | 103,522,696 | 96,967,983 | 75,407,976 |
Net (loss) income per common share, basic (in dollars per share) | $ (0.44) | $ (0.11) | $ (0.65) |
Net (loss) income per common share, diluted (in dollars per share) | $ (0.44) | $ (0.11) | $ (0.65) |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (EPS) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Distributions declared per common share (in dollars per share) | $ 0 | $ 1.17 | $ 0.009 |
REAL ESTATE HELD FOR INVESTME_3
REAL ESTATE HELD FOR INVESTMENT (Narrative) (Details) ft² in Millions | Dec. 31, 2022 a ft² unit portfolio property room investment |
Real Estate Properties [Line Items] | |
Percentage of portfolio occupied | 69% |
Office Properties | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 8 |
Office Portfolio | |
Real Estate Properties [Line Items] | |
Number of real estate properties | portfolio | 1 |
Undeveloped Land, Portfolio | |
Real Estate Properties [Line Items] | |
Undeveloped land, encompassing rentable space | a | 25 |
Rentable square feet | ft² | 3.2 |
Real estate area of undeveloped land | a | 25 |
Residential Home Portfolio | |
Real Estate Properties [Line Items] | |
Number of real estate properties | portfolio | 1 |
Rentable square feet | ft² | 3.5 |
Percentage of portfolio occupied | 94% |
Number of units in real estate property | unit | 2,456 |
Apartment Building | |
Real Estate Properties [Line Items] | |
Number of real estate properties consolidated | 2 |
Rentable square feet | ft² | 0.5 |
Percentage of portfolio occupied | 95% |
Number of units in real estate property | unit | 609 |
Hotel Property | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 1 |
Number of rooms | room | 196 |
Undeveloped Land | |
Real Estate Properties [Line Items] | |
Number of investments in real estate | investment | 2 |
Real estate area of undeveloped land | a | 742 |
Office Buildings, Portfolio | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 2 |
Number of real estate properties consolidated | 2 |
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 | Dec. 31, 2022 | Dec. 31, 2021 |
Real Estate Properties [Line Items] | ||
Total real estate, cost | $ 1,361,154 | $ 1,243,426 |
Accumulated depreciation and amortization | (141,750) | (124,876) |
Total real estate, net | 1,219,404 | 1,118,550 |
Land | ||
Real Estate Properties [Line Items] | ||
Total real estate, cost | 269,376 | 245,200 |
Buildings and improvements | ||
Real Estate Properties [Line Items] | ||
Total real estate, cost | 1,063,782 | 954,851 |
Tenant origination and absorption costs | ||
Real Estate Properties [Line Items] | ||
Total real estate, cost | $ 27,996 | $ 43,375 |
REAL ESTATE HELD FOR INVESTME_5
REAL ESTATE HELD FOR INVESTMENT (Operating Leases) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Leased Assets [Line Items] | |||
Security deposit liability | $ 6.5 | $ 6 | |
Deferred rent recognized | 2.6 | 1.9 | $ 3.4 |
Deferred rent receivables | 18.3 | 16.3 | |
Incentive to lessee | 2.8 | 3.3 | |
Adjustments to rental income | $ 2.6 | $ 3.3 | |
Maximum | |||
Operating Leased Assets [Line Items] | |||
Operating lease, term | 12 years 7 months 6 days | ||
Weighted Average | |||
Operating Leased Assets [Line Items] | |||
Operating lease, term | 3 years 8 months 12 days | ||
Apartment Building | |||
Operating Leased Assets [Line Items] | |||
Operating lease, term | 1 year |
REAL ESTATE HELD FOR INVESTME_6
REAL ESTATE HELD FOR INVESTMENT (Future Minimum Rental Income) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Real Estate [Abstract] | |
2023 | $ 61,327 |
2024 | 58,093 |
2025 | 47,651 |
2026 | 33,929 |
2027 | 26,146 |
Thereafter | 57,434 |
Total | $ 284,580 |
REAL ESTATE HELD FOR INVESTME_7
REAL ESTATE HELD FOR INVESTMENT (Highest Tenant Industry Concentrations- Grater than 10% of Annual Base Rent) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) tenant | |
Concentration Risk [Line Items] | |
Number of Tenants | tenant | 300 |
Annualized Base Rent | $ | $ 22,176 |
Industry | Product Concentration Risk | Revenue Benchmark | |
Concentration Risk [Line Items] | |
Percentage of Annualized Base Rent | 36.30% |
Public Administration | |
Concentration Risk [Line Items] | |
Number of Tenants | tenant | 14 |
Annualized Base Rent | $ | $ 7,774 |
Public Administration | Product Concentration Risk | Revenue Benchmark | |
Concentration Risk [Line Items] | |
Percentage of Annualized Base Rent | 12.70% |
Public Administration | |
Concentration Risk [Line Items] | |
Number of Tenants | tenant | 38 |
Annualized Base Rent | $ | $ 7,346 |
Public Administration | Product Concentration Risk | Revenue Benchmark | |
Concentration Risk [Line Items] | |
Percentage of Annualized Base Rent | 12% |
Computer Systems Design and Related Services | |
Concentration Risk [Line Items] | |
Number of Tenants | tenant | 31 |
Annualized Base Rent | $ | $ 7,056 |
Computer Systems Design and Related Services | Product Concentration Risk | Revenue Benchmark | |
Concentration Risk [Line Items] | |
Percentage of Annualized Base Rent | 11.60% |
REAL ESTATE HELD FOR INVESTME_8
REAL ESTATE HELD FOR INVESTMENT (Hotel Revenue and Expenses) (Details) - Hotel Property - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | |||
Revenue from contract with customer | $ 3,718 | $ 30,749 | $ 30,806 |
Room | |||
Revenues | |||
Revenue from contract with customer | 2,545 | 23,834 | 22,889 |
Food, beverage and convention services | |||
Revenues | |||
Revenue from contract with customer | 420 | 3,641 | 3,752 |
Campground | |||
Revenues | |||
Revenue from contract with customer | 270 | 807 | 1,078 |
Other | |||
Revenues | |||
Revenue from contract with customer | $ 483 | $ 2,467 | $ 3,087 |
REAL ESTATE HELD FOR INVESTME_9
REAL ESTATE HELD FOR INVESTMENT (Contract Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Product Liability Contingency [Line Items] | |||
Amounts included in contract liability at the beginning of the period | $ 2,582 | $ 1,890 | $ 3,447 |
Other Liabilities | |||
Product Liability Contingency [Line Items] | |||
Amounts included in contract liability at the beginning of the period | 9,215 | 159 | |
Other Liabilities | Park Highlands | |||
Product Liability Contingency [Line Items] | |||
Contract with customer, liability | $ 23,904 | $ 7,313 |
REAL ESTATE HELD FOR INVESTM_10
REAL ESTATE HELD FOR INVESTMENT (Geographic Concentration Risk) (Details) - Assets, Total - Geographic Concentration Risk | 12 Months Ended |
Dec. 31, 2022 | |
California | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 21.70% |
Georgia | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 10% |
REAL ESTATE HELD FOR INVESTM_11
REAL ESTATE HELD FOR INVESTMENT (Impairment of Real Estate) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Real Estate Properties [Line Items] | |||
Impairment charges on real estate and related intangibles | $ 18,493,000 | $ 10,971,000 | $ 0 |
210 West 31st Street | |||
Real Estate Properties [Line Items] | |||
Impairment charges on real estate and related intangibles | 4,400,000 | 6,600,000 | |
Oakland City Center | |||
Real Estate Properties [Line Items] | |||
Impairment charges on real estate and related intangibles | 11,600,000 | ||
Springmaid Beach Resort | |||
Real Estate Properties [Line Items] | |||
Impairment charges on real estate and related intangibles | $ 2,500,000 | ||
Lincoln Court | |||
Real Estate Properties [Line Items] | |||
Impairment charges on real estate and related intangibles | $ 4,400,000 |
REAL ESTATE HELD FOR INVESTM_12
REAL ESTATE HELD FOR INVESTMENT (Components Of Primary Beneficiary) (Details) $ in Thousands | Jul. 01, 2022 USD ($) property | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Assets: | |||
Real estate held for investment, net | $ 1,219,404 | $ 1,118,550 | |
Cash and cash equivalents | 97,931 | 84,172 | |
Restricted cash | 61,113 | 21,259 | |
Prepaid expenses and other assets | 22,848 | 20,750 | |
Total Assets | 1,559,245 | 1,584,619 | |
Liabilities: | |||
Accounts payable and accrued liabilities | (25,231) | (23,852) | |
Other liabilities | (66,967) | (46,931) | |
Total Liabilities | (1,142,852) | (1,084,505) | |
Noncontrolling interest | (4,092) | (10,369) | |
Residential Homes | |||
Assets: | |||
Total Assets | $ 333,128 | $ 211,050 | |
PORT II OP LP | Residential Homes | |||
Real Estate [Line Items] | |||
Number of units in real estate property | property | 588 | ||
Variable Interest Entity, Primary Beneficiary | |||
Assets: | |||
Real estate held for investment, net | $ 135,096 | ||
Cash and cash equivalents | 1,473 | ||
Restricted cash | 361 | ||
Prepaid expenses and other assets | 639 | ||
Total Assets | 137,569 | ||
Liabilities: | |||
Notes payable, net | (82,646) | ||
Accounts payable and accrued liabilities | (804) | ||
Due to affiliates | (147) | ||
Other liabilities | (1,499) | ||
Total Liabilities | (85,096) | ||
Noncontrolling interest | (1,125) | ||
Elimination of the Company’s investment in PORT II | (32,606) | ||
Gain from consolidation of previously unconsolidated entity | $ 18,742 |
TENANT ORIGINATION AND ABSORP_3
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Schedules) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract] | |||
Tenant Origination and Absorption Costs, Cost | $ 27,995 | $ 43,375 | |
Tenant Origination and Absorption Costs, Accumulated Amortization | (13,987) | (20,738) | |
Tenant Origination and Absorption Costs, Net Amount | 14,008 | 22,637 | |
Above-Market Lease Assets, Cost | 4,103 | 4,138 | |
Above-Market Lease Assets, Accumulated Amortization | (1,830) | (1,496) | |
Above-Market Lease Assets, Net Amount | 2,273 | 2,642 | |
Below-Market Lease Liabilities, Cost | (3,534) | (6,719) | |
Below-Market Lease Liabilities, Accumulated Amortization | 945 | 2,639 | |
Below-Market Lease Liabilities, Net Amount | (2,589) | (4,080) | |
Tenant Origination and Absorption Costs, Amortization | (9,926) | (15,177) | $ (10,453) |
Above-Market Lease Assets, Amortization | (367) | (514) | (476) |
Below-Market Lease Liabilities, Amortization | $ 1,375 | $ 1,792 | $ 1,382 |
TENANT ORIGINATION AND ABSORP_4
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Remaining Unamortized Balance) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Below Market Lease, Net, Amortization Income, Fiscal Year Maturity | ||
Net Amount | $ 2,589 | $ 4,080 |
Housing subsidy intangible asset | ||
Assets, Expected Amortization | ||
2023 | (71) | |
2024 | (71) | |
2025 | (71) | |
2026 | (71) | |
2027 | (71) | |
Thereafter | (1,465) | |
Net amount | $ (1,820) | |
Weighted-Average Remaining Amortization Period | 25 years 9 months 18 days | |
Property tax abatement intangible assets | ||
Assets, Expected Amortization | ||
2023 | $ (227) | |
2024 | (4) | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 0 | |
Net amount | $ (231) | |
Weighted-Average Remaining Amortization Period | 7 months 6 days | |
Tenant origination and absorption costs | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
2023 | $ (4,924) | |
2024 | (3,575) | |
2025 | (2,330) | |
2026 | (1,047) | |
2027 | (467) | |
Thereafter | (1,665) | |
Net Amount | $ (14,008) | |
Assets, Expected Amortization | ||
Weighted-Average Remaining Amortization Period | 4 years 10 months 24 days | |
Above-Market Lease Assets | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
2023 | $ (356) | |
2024 | (355) | |
2025 | (339) | |
2026 | (309) | |
2027 | (221) | |
Thereafter | (693) | |
Net Amount | $ (2,273) | |
Assets, Expected Amortization | ||
Weighted-Average Remaining Amortization Period | 7 years 6 months | |
Below-Market Lease Liabilities | ||
Below Market Lease, Net, Amortization Income, Fiscal Year Maturity | ||
2023 | $ 1,019 | |
2024 | 821 | |
2025 | 544 | |
2026 | 138 | |
2027 | 45 | |
Thereafter | 22 | |
Net Amount | $ 2,589 | |
Assets, Expected Amortization | ||
Weighted-Average Remaining Amortization Period | 2 years 10 months 24 days |
TENANT ORIGINATION AND ABSORP_5
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Line Items] | |||
Housing subsidy intangible asset | $ 1,800 | $ 1,900 | |
Amortization expense | 51,930 | 58,871 | $ 45,041 |
Housing subsidy intangible asset | |||
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Line Items] | |||
Amortization expense | 71 | 71 | 17 |
Prepaid Expenses and Other Current Assets | |||
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Line Items] | |||
Tax abatement intangible assets | 200 | 700 | |
Property tax abatement intangible assets | |||
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Line Items] | |||
Amortization expense | $ 500 | $ 900 | $ 700 |
REAL ESTATE EQUITY SECURITIES_2
REAL ESTATE EQUITY SECURITIES (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) investment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Number of investments in equity securities | investment | 3 | ||
Interest and dividend income | $ | $ 5.6 | $ 9.7 | $ 5.3 |
REAL ESTATE EQUITY SECURITIES_3
REAL ESTATE EQUITY SECURITIES (Portion of Gain and Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net (loss) gain recognized during the period on real estate equity securities | $ (51,943) | $ 28,632 | $ (14,814) |
Less: Net gain recognized during the period on real estate equity securities sold during the period | 0 | 3,036 | |
Unrealized (loss) gain recognized during the reporting period on real estate equity securities still held at period end | $ (51,943) | $ 25,596 |
REAL ESTATE DISPOSITIONS (Narra
REAL ESTATE DISPOSITIONS (Narrative) (Details) $ in Thousands | 12 Months Ended | |||||||
Nov. 30, 2022 USD ($) a | Sep. 01, 2022 USD ($) | Jan. 24, 2022 USD ($) ft² property | Jul. 27, 2021 USD ($) ft² | Jun. 03, 2021 USD ($) a | Dec. 31, 2022 USD ($) a property | Dec. 31, 2021 USD ($) a property | Dec. 31, 2020 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain on sale of real estate, net | $ 46,513 | $ 30,261 | $ (110) | |||||
Income tax provision | 4,924 | 0 | 0 | |||||
Real estate held for sale, net | 0 | 96,249 | ||||||
Accumulated depreciation and amortization | 141,750 | 124,876 | ||||||
Impairment charges | 11,000 | |||||||
Real estate held for investment, net | 1,219,404 | 1,118,550 | ||||||
Gain (loss) on extinguishment of debt | (2,367) | $ 4,757 | $ (415) | |||||
Springmaid Beach Resort Mortgage Loan | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Extinguishment of debt | $ 53,000 | |||||||
City Tower Mortgage Loan | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Extinguishment of debt | $ 98,100 | |||||||
Gain (loss) on extinguishment of debt | 100 | |||||||
Greenway Buildings Mortgage Loan | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Extinguishment of debt | $ 9,100 | |||||||
Office Properties | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Number of real estate properties | property | 8 | |||||||
Office Properties | Greenway Buildings | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Real estate held for sale, net | 5,600 | |||||||
Accumulated depreciation and amortization | $ 3,200 | |||||||
Hotel Property | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Number of real estate properties | property | 1 | |||||||
Hotel Property | Springmaid Beach Resort | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Real estate held for sale, net | $ 87,200 | |||||||
Impairment charges | 2,500 | |||||||
Undeveloped Land | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Real estate area of undeveloped land | a | 742 | |||||||
Disposed of by Sale | Office Properties | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Number of real estate properties disposed | property | 2 | 1 | ||||||
Disposed of by Sale | Office Properties | Greenway Buildings | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Number of real estate properties disposed | property | 2 | |||||||
Consideration | $ 11,000 | |||||||
Gain on sale of real estate, net | $ 3,600 | |||||||
Net rentable area | ft² | 141,950 | |||||||
Disposed of by Sale | Office Properties | City Tower | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Consideration | 150,500 | |||||||
Accumulated depreciation and amortization | $ 20,500 | |||||||
Net rentable area | ft² | 435,177 | |||||||
Area of land (in acres) | ft² | 4.92 | |||||||
Real estate held for investment, net | $ 145,100 | |||||||
Gain (loss) on disposition | $ 100 | |||||||
Disposed of by Sale | Hotel Property | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Number of real estate properties disposed | property | 1 | 1 | ||||||
Disposed of by Sale | Hotel Property | Springmaid Beach Resort | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Consideration | 91,000 | |||||||
Accumulated depreciation and amortization | 3,400 | |||||||
Held for contingent repairs | $ 1,300 | |||||||
Disposed of by Sale | Undeveloped Land | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Real estate area of undeveloped land | a | 67 | 193 | ||||||
Disposed of by Sale | Undeveloped Land | Park Highlands | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Real estate area of undeveloped land | a | 67 | 193 | ||||||
Consideration | $ 55,000 | $ 50,400 | ||||||
Gain on sale of real estate, net | $ 42,800 | 30,000 | ||||||
Deferred profit | $ 2,600 | |||||||
Held-for-sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Number of real estate properties | property | 0 | 0 |
REAL ESTATE DISPOSITIONS (Reven
REAL ESTATE DISPOSITIONS (Revenue and Expenses for Real Estate Held-for-Sale) (Details) - Disposed of by Sale - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Rental income | $ 457 | $ 9,971 | $ 14,993 |
Hotel revenues | 21,019 | 25,202 | 2,541 |
Other operating income | 10 | 677 | 1,151 |
Total revenues | 21,486 | 35,850 | 18,685 |
Total revenues | |||
Operating, maintenance, and management | 69 | 3,278 | 14,173 |
Real estate taxes and insurance | 21 | 1,362 | 2,075 |
Hotel expenses | 6,574 | 8,240 | 1,403 |
Asset management fees to affiliate | 470 | 1,533 | 1,270 |
Depreciation and amortization | 966 | 4,728 | 8,004 |
Interest expense | 3,755 | 6,652 | 4,958 |
Total expenses | $ 11,855 | $ 25,793 | $ 31,883 |
REAL ESTATE DISPOSITIONS (Incom
REAL ESTATE DISPOSITIONS (Income Tax Rate) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
U.S. federal statutory income tax rate | 21% |
Net capital loss carryforwards utilized | (3.00%) |
Change in valuation allowance | (1.00%) |
Effective rate | 17% |
NOTES AND BONDS PAYABLE (Schedu
NOTES AND BONDS PAYABLE (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Total Notes and Bonds Payable principal outstanding | $ 1,066,112 | $ 1,015,491 |
Discount on Notes and Bonds Payable, net | (11,964) | (8,146) |
Deferred financing costs, net | (9,439) | (8,396) |
Notes and bonds payable, net | 1,044,709 | 998,949 |
PORT II Metlife Loan (7) | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 6,300 | |
Oakland City Center Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Interest rate, effective percentage | 2.18% | |
Mortgages | Richardson Portfolio Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 18,844 | 28,470 |
Interest rate, effective percentage | 6.11% | |
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 | $ 26,233 | 26,185 |
Interest rate, effective percentage | 6.90% | |
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 | $ 31,070 | 31,070 |
Interest rate, effective percentage | 6.61% | |
Mortgages | 1180 Raymond Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Mortgages | Crown Pointe Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 53,758 | 52,315 |
Interest rate, effective percentage | 6.60% | |
Guarantees as percent of outstanding loan balance | 25% | |
Amount under guarantees | $ 38,300 | |
Mortgages | Crown Pointe Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.30% | |
Mortgages | The Marq Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 60,796 | 61,874 |
Interest rate, effective percentage | 5.91% | |
Mortgages | The Marq 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 | $ 47,945 | 48,545 |
Interest rate, effective percentage | 5.96% | |
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 | $ 44,129 | 61,154 |
Interest rate, effective percentage | 5.95% | |
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 | $ 51,302 | 51,302 |
Contractual interest rate, percentage | 4.74% | |
Interest rate, effective percentage | 4.74% | |
Mortgages | PORT Mortgage Loan 2 | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 10,523 | 10,523 |
Contractual interest rate, percentage | 4.72% | |
Interest rate, effective percentage | 4.72% | |
Mortgages | PORT MetLife Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 60,000 | 60,000 |
Contractual interest rate, percentage | 390% | |
Interest rate, effective percentage | 390% | |
Mortgages | PORT II Metlife Loan (7) | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 93,701 | 0 |
Contractual interest rate, percentage | 399% | |
Interest rate, effective percentage | 399% | |
Mortgages | Springmaid Beach Resort Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 0 | 55,491 |
Mortgages | Q&C Hotel Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 24,784 | 25,000 |
Interest rate, effective percentage | 6.90% | |
Mortgages | Q&C Hotel Mortgage Loan | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate, effective percentage | 4.50% | |
Mortgages | Q&C Hotel Mortgage Loan | Beginning February 1, 2023 through March 31, 2023 | ||
Debt Instrument [Line Items] | ||
Contractual interest rate, percentage | 8.25% | |
Mortgages | Q&C Hotel Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% | |
Mortgages | Q&C Hotel Mortgage Loan | SOFR | Beginning April 1, 2023 and Thereafter | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.50% | |
Mortgages | Lincoln Court Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 35,314 | 34,623 |
Interest rate, effective percentage | 7.55% | |
Mortgages | Lincoln Court Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.25% | |
Mortgages | Lofts at NoHo Commons Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 71,536 | 74,536 |
Interest rate, effective percentage | 6.48% | |
Mortgages | Lofts at NoHo Commons Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.18% | |
Mortgages | Lofts at NoHo Commons Mortgage Loan | SOFR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Mortgages | 210 West 31st Street Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 0 | 8,850 |
Mortgages | Oakland City Center Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 87,000 | 96,075 |
Interest rate, effective percentage | 7.36% | |
Mortgages | Oakland City Center Mortgage Loan | One-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3% | |
Mortgages | Madison Square Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 17,964 | 17,500 |
Contractual interest rate, percentage | 4.63% | |
Interest rate, effective percentage | 4.63% | |
Bonds Payable | Pacific Oak SOR (BVI) Holdings, Ltd. Series B | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 331,213 | $ 271,978 |
Contractual interest rate, percentage | 3.93% | |
Interest rate, effective percentage | 3.93% |
NOTES AND BONDS PAYABLE (Narrat
NOTES AND BONDS PAYABLE (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 29, 2023 | |
Notes and Bonds Payable [Abstract] | ||||
Interest expense | $ 48,130 | $ 40,510 | $ 29,138 | |
Amortization of deferred financing costs | 3,727 | 3,157 | 3,311 | |
Amortization of discount (premium) on bond and notes payable, net | 4,784 | 2,721 | 602 | |
Interest payable | 9,100 | 6,600 | ||
Real Estate [Line Items] | ||||
Interest costs capitalized | 2,529 | 2,055 | 2,923 | |
2023 | 412,338 | |||
Subsequent Event | ||||
Real Estate [Line Items] | ||||
2023 | $ 522,700 | |||
Maturity with extension options | $ 166,700 | |||
Undeveloped Land | ||||
Real Estate [Line Items] | ||||
Interest costs capitalized | $ 2,500 | $ 2,100 | $ 2,900 |
NOTES AND BONDS PAYABLE (Sche_2
NOTES AND BONDS PAYABLE (Schedule of Maturities of Long-term Debt) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Notes and Bonds Payable [Abstract] | |
2023 | $ 412,338 |
2024 | 128,366 |
2025 | 250,779 |
2026 | 274,629 |
2027 | 0 |
Thereafter | 0 |
Notes and bond payable outstanding | $ 1,066,112 |
NOTES AND BONDS PAYABLE (Israel
NOTES AND BONDS PAYABLE (Israeli Bond Financing) (Details) - Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures $ in Thousands | Feb. 16, 2020 ILS (₪) | Dec. 31, 2022 ILS (₪) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Feb. 16, 2020 USD ($) |
Pacific Oak SOR (BVI) Holdings, Ltd. Series B | Level 1 | |||||
Debt Instrument [Line Items] | |||||
Financial liabilities, face value | $ | $ 331,213 | $ 271,978 | |||
Bonds Payable | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | ₪ 254,100,000 | $ 74,100 | |||
Contractual interest rate, percentage | 3.93% | 3.93% | |||
Principal of installment payments as percent of face amount | 33.33% | ||||
Bonds Payable | Public Offering | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | ₪ | ₪ 1,200,000,000 |
FAIR VALUE DISCLOSURES (Schedul
FAIR VALUE DISCLOSURES (Schedule of Face Value, Carrying Amounts and Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face amount | $ 734,899 | $ 743,513 |
Level 3 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial liabilities, Value | 728,433 | 740,176 |
Level 3 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial liabilities, Value | 716,813 | 740,347 |
Level 1 | Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures | Pacific Oak SOR (BVI) Holdings, Ltd. Series B | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face amount | 331,213 | 271,978 |
Level 1 | Carrying Amount | Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures | Pacific Oak SOR (BVI) Holdings, Ltd. Series B | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial liabilities, Value | 316,276 | 258,773 |
Level 1 | Fair Value | Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures | Pacific Oak SOR (BVI) Holdings, Ltd. Series B | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial liabilities, Value | $ 304,758 | $ 274,697 |
FAIR VALUE DISCLOSURES (Sched_2
FAIR VALUE DISCLOSURES (Schedule of Assets at Fair Value) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired real estate | $ 18,493,000 | $ 10,971,000 | $ 0 |
Impaired goodwill | 8,098,000 | 2,808,000 | $ 0 |
Recurring Basis | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Real estate equity securities | 60,153,000 | 112,096,000 | |
Asset derivative - interest rate caps | 2,267,000 | 8,000 | |
Liability derivative - foreign currency collar | 3,115,000 | ||
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 | 60,153,000 | 112,096,000 | |
Asset derivative - interest rate caps | 0 | 0 | |
Liability derivative - foreign currency collar | 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 | |
Asset derivative - interest rate caps | 2,267,000 | 8,000 | |
Liability derivative - foreign currency collar | 3,115,000 | ||
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 | |
Asset derivative - interest rate caps | 0 | 0 | |
Liability derivative - foreign currency collar | 0 | ||
Nonrecurring Basis | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired real estate | 212,800,000 | 97,600,000 | |
Impaired goodwill | 5,436,000 | 13,534,000 | |
Nonrecurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired real estate | 0 | 0 | |
Impaired goodwill | 0 | 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 | 0 | |
Impaired goodwill | 0 | 0 | |
Nonrecurring Basis | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired real estate | 212,800,000 | 97,600,000 | |
Impaired goodwill | $ 5,436,000 | $ 13,534,000 |
FAIR VALUE DISCLOSURES (Additio
FAIR VALUE DISCLOSURES (Additional Information) (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) property | Dec. 31, 2021 USD ($) property | Dec. 31, 2020 USD ($) | Mar. 29, 2023 | |
Fair Value Disclosures [Abstract] | ||||
Number of real estate investment property with write down carrying value | property | 2 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Number of real estate properties measured at fair value | property | 2 | |||
Number of real estate investment property with write down carrying value | property | 2 | |||
Impairment charges on real estate and related intangibles | $ 18,493,000 | $ 10,971,000 | $ 0 | |
Impaired goodwill | 8,098,000 | 2,808,000 | $ 0 | |
Pacific Oak Strategic Opportunity REIT II, Inc. | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Impaired goodwill | $ 8,100,000 | 2,800,000 | ||
Lincoln Court | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Impairment charges on real estate and related intangibles | $ 4,400,000 | |||
Discount Rate | Lincoln Court | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Real estate properties, measurement input | 6.50% | |||
Discount Rate | Lincoln Court | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Real estate properties, measurement input | 7.75% | |||
Discount Rate | Subsequent Event | Lincoln Court | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Real estate properties, measurement input | 6.75% | |||
Terminal Cap Rate | Lincoln Court | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Real estate properties, measurement input | 6.75% | |||
Measurement Input Terminal Cap Rate Member | Lincoln Court | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Real estate properties, measurement input | 5.75% | |||
Measurement Input Terminal Cap Rate Member | Subsequent Event | Lincoln Court | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Real estate properties, measurement input | 6% |
FAIR VALUE DISCLOSURES (Goodwil
FAIR VALUE DISCLOSURES (Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | |||
Gross Goodwill | $ 16,342 | $ 16,342 | $ 16,342 |
Goodwill, Impairment Loss, Gross | 0 | 0 | |
Impairment charges on goodwill | (8,098) | (2,808) | 0 |
Accumulated Impairment | (10,906) | (2,808) | 0 |
Net Goodwill | $ 5,436 | $ 13,534 | $ 16,342 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Sep. 09, 2022 | Sep. 01, 2022 | Nov. 01, 2019 | Dec. 31, 2022 | Jan. 13, 2023 | |
Related Party Transaction [Line Items] | |||||
Period of termination of advisory agreement without cause or penalty | 60 days | 60 days | |||
Acquisition fee, percent of purchase price fee | 1% | ||||
Selling commissions fees paid, percent of sales price | 1% | ||||
KBS Capital Advisors LLC, Affiliates or Unaffiliated Third Parties | |||||
Related Party Transaction [Line Items] | |||||
Selling commissions fees paid, percent of sales price | 6% | ||||
353 Sacramento Joint Venture | |||||
Related Party Transaction [Line Items] | |||||
Investments in unconsolidated entities | $ 7,000,000 | ||||
Tier 1 | DMH Realty, LLC | |||||
Related Party Transaction [Line Items] | |||||
Base fee, percent of rent collections per year | 8% | ||||
Tier 1 | DMH Realty, LLC | Maximum | |||||
Related Party Transaction [Line Items] | |||||
Base fee, benchmark of rent collections per year | $ 50,000,000 | ||||
Tier 2 | DMH Realty, LLC | |||||
Related Party Transaction [Line Items] | |||||
Base fee, percent of rent collections per year | 7% | ||||
Tier 2 | DMH Realty, LLC | Maximum | |||||
Related Party Transaction [Line Items] | |||||
Base fee, benchmark of rent collections per year | $ 75,000,000 | ||||
Tier 2 | DMH Realty, LLC | Minimum | |||||
Related Party Transaction [Line Items] | |||||
Base fee, benchmark of rent collections per year | $ 50,000,000 | ||||
Tier 3 | DMH Realty, LLC | |||||
Related Party Transaction [Line Items] | |||||
Base fee, percent of rent collections per year | 6% | ||||
Tier 3 | DMH Realty, LLC | Minimum | |||||
Related Party Transaction [Line Items] | |||||
Base fee, benchmark of rent collections per year | $ 75,000,000 | ||||
Pacific Oak Residential Advisors, LLC | |||||
Related Party Transaction [Line Items] | |||||
Management agreement term | 2 years | ||||
Management agreement, renewal term | 1 year | ||||
Acquisition fee, percent of purchase price fee | 1% | ||||
Asset management fee, percent | 0.25% | ||||
Asset management fee per annum, percent | 1% | ||||
Selling commissions fees paid, percent of sales price | 1% | ||||
DMH Realty, LLC | |||||
Related Party Transaction [Line Items] | |||||
Management agreement term | 2 years | ||||
Management agreement, renewal term | 1 year | ||||
Pacific Oak Capital Markets | |||||
Related Party Transaction [Line Items] | |||||
Sale of stock, consideration received on transaction | $ 500,000,000 | ||||
Offering expense fee percent | 0.50% | ||||
Expensed | $ 0 | ||||
Pacific Oak Capital Markets | Common Class A | |||||
Related Party Transaction [Line Items] | |||||
Selling commissions fee , percent | 6% | ||||
Dealer manager fee, percent | 1.50% | ||||
Placement agent fee, percent | 1.50% | ||||
Pacific Oak Capital Markets | Common Class T | |||||
Related Party Transaction [Line Items] | |||||
Selling commissions fee , percent | 3% | ||||
Dealer manager fee, percent | 0.75% | ||||
Placement agent fee, percent | 0.75% | ||||
Pacific Oak Capital Markets | Private Offering | |||||
Related Party Transaction [Line Items] | |||||
Sale of stock, consideration received on transaction | $ 50,000,000 | ||||
PORT Dealer Manager Agreement | Subsequent Event | |||||
Related Party Transaction [Line Items] | |||||
Escrow | $ 5,000,000 | ||||
Pacific Oak Capital Advisors LLC | Investments Other Than Real Estate | |||||
Related Party Transaction [Line Items] | |||||
Asset management fee, monthly, percent | 8.33% | ||||
Asset management fee, percent | 1% | ||||
Asset management fee, monthly, benchmark, percent | 0.75% | ||||
Pacific Oak Capital Advisors LLC | Investments In Real Estate | |||||
Related Party Transaction [Line Items] | |||||
Asset management fee, monthly, percent | 8.33% | ||||
Asset management fee, monthly, benchmark, percent | 0.75% | ||||
Pacific Oak Capital Advisors LLC | Investments In Real Estate | Minimum | |||||
Related Party Transaction [Line Items] | |||||
Asset management fee, percent | 1% |
RELATED PARTY TRANSACTIONS (Cos
RELATED PARTY TRANSACTIONS (Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Payable as of | $ 2,799 | $ 1,903 | |
Pacific Oak Capital Advisors LLC | |||
Related Party Transaction [Line Items] | |||
Incurred | 16,306 | 17,431 | $ 8,953 |
Payable as of | 2,799 | 1,903 | |
Pacific Oak Capital Advisors LLC | Asset management fees to affiliate | |||
Related Party Transaction [Line Items] | |||
Expensed | 13,678 | 14,012 | 9,982 |
Payable as of | 2,618 | 1,903 | |
Pacific Oak Capital Advisors LLC | Property management fees (1) | |||
Related Party Transaction [Line Items] | |||
Expensed | 1,267 | 479 | 229 |
Payable as of | 181 | 0 | |
Pacific Oak Capital Advisors LLC | Reimbursable operating expenses | |||
Related Party Transaction [Line Items] | |||
Expensed | 0 | 0 | 148 |
Payable as of | 0 | 0 | |
Pacific Oak Capital Advisors LLC | Disposition fees | |||
Related Party Transaction [Line Items] | |||
Expensed | 1,294 | 1,196 | 0 |
Payable as of | 0 | 0 | |
Pacific Oak Capital Advisors LLC | Acquisition fees on real estate | |||
Related Party Transaction [Line Items] | |||
Incurred | 67 | 20 | 171 |
Payable as of | 0 | 0 | |
Pacific Oak Capital Advisors LLC | Acquisition fees on real estate equity securities | |||
Related Party Transaction [Line Items] | |||
Incurred | 0 | 0 | 143 |
Payable as of | 0 | 0 | |
Pacific Oak Capital Advisors LLC | Acquisition fee on investment in unconsolidated entities | |||
Related Party Transaction [Line Items] | |||
Incurred | 0 | 46 | 0 |
Payable as of | 0 | 0 | |
KBS Capital Advisors LLC | Subordinated performance fee due upon termination to affiliate | |||
Related Party Transaction [Line Items] | |||
Expensed | 0 | 1,678 | $ (1,720) |
Payable as of | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS (Sub
RELATED PARTY TRANSACTIONS (Subordinated Performance Fee Due Upon Termination to KBS Capital Advisors) (Details) - KBS Capital Advisors LLC $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Subordinated Participation in Net Cash Flows | |
Related Party Transaction [Line Items] | |
Noncompounded return on invested capital as percent per year, percent | 7% |
Percent of net cash flows to be received by related party, percent | 15% |
Distributions paid from operating cash flows, annual return, percent | 7% |
Subordinated Incentive Listing Fee | |
Related Party Transaction [Line Items] | |
Noncompounded return on invested capital as percent per year, percent | 7% |
Percent of net cash flows to be received by related party, percent | 15% |
Distributions paid from operating cash flows, annual return, percent | 7% |
Subordinated Performance Fee Due Upon Termination | |
Related Party Transaction [Line Items] | |
Noncompounded return on invested capital as percent per year, percent | 7% |
Percent of net cash flows to be received by related party, percent | 15% |
Distributions paid from operating cash flows, annual return, percent | 7% |
Restricted Stock | |
Related Party Transaction [Line Items] | |
Grant date fair value | $ 36.3 |
RELATED PARTY TRANSACTIONS (Bat
RELATED PARTY TRANSACTIONS (Battery Point Restructuring) (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 06, 2021 USD ($) property | Jul. 29, 2020 USD ($) property | Jul. 01, 2020 USD ($) property shares | Oct. 29, 2019 | Mar. 20, 2019 USD ($) $ / shares shares | Jun. 30, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2019 USD ($) shares | Dec. 31, 2021 USD ($) | Dec. 31, 2018 USD ($) | May 12, 2017 USD ($) | Oct. 28, 2016 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Acquisition fee, percent of purchase price fee | 1% | |||||||||||
Investments in unconsolidated entities | $ 70,842,000 | $ 88,256,000 | ||||||||||
Battery Point | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of securities received (in shares) | shares | 210,000 | |||||||||||
Price per share (in dollars per share) | $ / shares | $ 25 | |||||||||||
BPT Holdings, LLC | Subsidiaries | Battery Point Trust Inc. | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Common equity units received in transaction | shares | 510,816 | |||||||||||
Percent of outstanding common equity units received in transaction | 4.50% | |||||||||||
Common equity units received in transaction | $ 3,000,000 | |||||||||||
Battery Point Trust Inc. | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Common stock, shares acquired (in shares) | shares | 1,000,000 | |||||||||||
Battery Point Trust Inc. | Single Family | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of homes | property | 559 | |||||||||||
Single-Family Home 2 | Single Family | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of homes | property | 12 | |||||||||||
Payments to acquire assets | $ 1,000,000 | |||||||||||
Capitalized acquisition costs | 10,000 | |||||||||||
Land | 200,000 | |||||||||||
Building and improvements | $ 800,000 | |||||||||||
Single Family Home Portfolio | Single Family | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Payments to acquire assets | $ 2,000,000 | |||||||||||
Land | 400,000 | |||||||||||
Building and improvements | $ 1,600,000 | |||||||||||
Number of real estate properties acquired | property | 23 | |||||||||||
Battery Point Holdings | DayMark | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Noncontrolling interest | 40% | |||||||||||
DayMark Service Entities | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Property management fee, percent of gross asset value fee | 1.50% | |||||||||||
Annual property management fee, percent of tenants rent received fee | 8% | |||||||||||
Acquisition fee, percent of purchase price fee | 1% | |||||||||||
Commission fee from sales as broker | 1% | |||||||||||
Series B Preferred Units | Battery Point | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Redemptions of common stock (in shares) | shares | 13,000 | |||||||||||
Stock redeemed (in dollars per share) | $ / shares | $ 1,000 | |||||||||||
Principal paydown | $ 900,000 | |||||||||||
Series A-3 Preferred Units | Battery Point | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of securities eliminated in consolidation because of acquisition | shares | 640,000 | |||||||||||
Battery Point | Series B Preferred Units | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Investments to be made | $ 17,500,000 | |||||||||||
Investments | $ 4,500,000 | |||||||||||
Dividend rate, percentage | 12% | |||||||||||
Battery Point | Series B Preferred Units | Maximum | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Investments to be made | $ 25,000,000 | |||||||||||
Battery Point | Series A-3 Preferred Units | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of securities received (in shares) | shares | 640,000 | |||||||||||
Stock repurchased during period (in shares) | shares | 430,000 | |||||||||||
Stock repurchased during period | $ 10,800,000 | |||||||||||
Battery Point Series A-3 Preferred Units | Series A-3 Preferred Units | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Investments in unconsolidated entities | $ 14,000,000 | |||||||||||
Gains (losses) on investment of real estate prior to acquisition | $ 2,000,000 |
RELATED PARTY TRANSACTIONS (Inv
RELATED PARTY TRANSACTIONS (Investment in Pacific Oak Opportunity Zone Fund I) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) unit | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Acquisition fee, percent of purchase price fee | 1% | ||
Pacific Oak Opportunity Zone Fund I | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of units in real estate property | unit | 124 | ||
Acquisition fee, percent of purchase price fee | 1.50% | ||
Investment, purchase price, benchmark | $ 25 | ||
Acquisition fee of purchase price fee in excess of benchmark purchase price | 1% | ||
Asset management fee, percent | 0.25% | ||
Financing fee as percent of original principal amount of any indebtedness | 0.50% | ||
Waived asset management fees | $ 0.4 | $ 0.6 | $ 0.6 |
RELATED PARTY TRANSACTIONS (POR
RELATED PARTY TRANSACTIONS (PORT II) (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 01, 2022 | Aug. 31, 2020 | Jul. 29, 2022 |
PORT II OP LP | |||
Schedule of Equity Method Investments [Line Items] | |||
Stock repurchased during period (in shares) | 76,735 | ||
Stock repurchased during period, price per share (in dollars per share) | $ 14.66 | ||
PORT II OP LP | PORT II OP LP | |||
Schedule of Equity Method Investments [Line Items] | |||
Noncontrolling interest, ownership percentage by parent | 100% | 100% | |
PORT II OP LP | |||
Schedule of Equity Method Investments [Line Items] | |||
Insufficient fund fees, percent | 50% | ||
Application fee collected, percent | 100% | ||
PORT II OP LP | Tier 1 | |||
Schedule of Equity Method Investments [Line Items] | |||
Base fee, percent of rent collections per year | 8% | ||
PORT II OP LP | Tier 1 | Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Base fee, benchmark of rent collections per year | $ 50 | ||
PORT II OP LP | Tier 2 | |||
Schedule of Equity Method Investments [Line Items] | |||
Base fee, percent of rent collections per year | 7% | ||
PORT II OP LP | Tier 2 | Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Base fee, benchmark of rent collections per year | $ 75 | ||
PORT II OP LP | Tier 2 | Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Base fee, benchmark of rent collections per year | $ 50 | ||
PORT II OP LP | Tier 3 | |||
Schedule of Equity Method Investments [Line Items] | |||
Base fee, percent of rent collections per year | 6% | ||
PORT II OP LP | Tier 3 | Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Base fee, benchmark of rent collections per year | $ 75 | ||
PORT II OP LP | PORT II OP LP | |||
Schedule of Equity Method Investments [Line Items] | |||
Payments to acquire investments | $ 32.6 |
RELATED PARTY TRANSACTIONS (P_2
RELATED PARTY TRANSACTIONS (PORT OP LP Share Redemption) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 145 Months Ended | ||||
Jun. 24, 2022 | Mar. 20, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Redemptions of common stock | $ 8,600 | $ 6,016 | $ 31,018 | $ 2,230 | $ 324,100 | |
Subsidiaries | BPT Holdings, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Common equity units received in transaction | 510,816 | |||||
Share price (in dollars per share) | $ 13.09 | |||||
Redemptions of common stock | $ 6,700 | |||||
Subsidiaries | BPT Holdings, LLC | PORT OP | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest | 3.20% | |||||
Noncontrolling interest, ownership percentage by parent | 100% |
INVESTMENT IN UNCONSOLIDATED _3
INVESTMENT IN UNCONSOLIDATED ENTITIES (Investments) (Details) $ / shares in Units, $ in Thousands | Jul. 01, 2022 $ / shares shares | Dec. 31, 2022 USD ($) property | Jul. 29, 2022 | Dec. 31, 2021 USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||
Investments in unconsolidated entities | $ 70,842 | $ 88,256 | ||
PORT II OP LP | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Stock repurchased during period (in shares) | shares | 76,735 | |||
Stock repurchased during period, price per share (in dollars per share) | $ / shares | $ 14.66 | |||
PORT II OP LP | PORT II OP LP | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Noncontrolling interest, ownership percentage by parent | 100% | 100% | ||
110 William Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of Properties | property | 1 | |||
Ownership % | 60% | |||
Investments in unconsolidated entities | $ 0 | 0 | ||
353 Sacramento Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of Properties | property | 1 | |||
Ownership % | 55% | |||
Investments in unconsolidated entities | $ 45,173 | 49,916 | ||
Pacific Oak Opportunity Zone Fund I | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of Properties | property | 3 | |||
Ownership % | 46% | |||
Investments in unconsolidated entities | $ 25,669 | 27,215 | ||
PORT II OP LP | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in unconsolidated entities | $ 11,125 |
INVESTMENT IN UNCONSOLIDATED _4
INVESTMENT IN UNCONSOLIDATED ENTITIES (Summarized Financial Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | ||||
Real estate held for investment, net | $ 1,219,404 | $ 1,118,550 | ||
Total assets | 1,559,245 | 1,584,619 | ||
Liabilities: | ||||
Notes payable, net | 0 | 63,876 | ||
Total liabilities | 1,142,852 | 1,084,505 | ||
Total equity | 416,393 | 482,059 | $ 519,712 | $ 277,388 |
Total revenues | 162,058 | 167,927 | 114,025 | |
Operating loss | 7,888 | 48,322 | (14,681) | |
Net loss | (41,670) | (12,498) | (48,813) | |
Unconsolidated Entities | ||||
Assets | ||||
Real estate held for investment, net | 471,503 | 486,251 | ||
Total assets | 546,142 | 595,340 | ||
Liabilities: | ||||
Notes payable, net | 490,302 | 488,966 | ||
Total liabilities | 501,860 | 510,612 | ||
Total equity | 44,281 | 84,728 | ||
Total revenues | 46,518 | 44,901 | 57,544 | |
Operating loss | (41,923) | (30,548) | (4,739) | |
Net loss | $ (41,664) | $ (30,499) | $ (4,673) |
REPORTING SEGMENTS (Details)
REPORTING SEGMENTS (Details) | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) property | Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) segment | Dec. 31, 2020 USD ($) segment | |
Segment Reporting [Abstract] | |||||
Number of reportable segments | 3 | 3 | 3 | 3 | |
Income Statement | |||||
Total revenues | $ 162,058,000 | $ 167,927,000 | $ 114,025,000 | ||
Total expenses | (206,692,000) | (228,747,000) | (148,157,000) | ||
Total other (loss) income, net | 7,888,000 | 48,322,000 | (14,681,000) | ||
Net (loss) income before income taxes | (36,746,000) | (12,498,000) | (48,813,000) | ||
Balance Sheets | |||||
Total assets | 1,559,245,000 | $ 1,559,245,000 | $ 1,559,245,000 | 1,584,619,000 | |
Goodwill | 5,436,000 | 5,436,000 | 5,436,000 | 13,534,000 | 16,342,000 |
Impairment charges on goodwill | 8,098,000 | 2,808,000 | 0 | ||
Impairment charges on real estate and related intangibles | 18,493,000 | 10,971,000 | 0 | ||
Impairment charges | 11,000,000 | ||||
Strategic Opportunistic Properties | |||||
Income Statement | |||||
Total revenues | 102,179,000 | 115,167,000 | 93,252,000 | ||
Total expenses | (140,162,000) | (172,215,000) | (122,621,000) | ||
Total other (loss) income, net | (12,646,000) | 46,959,000 | (15,045,000) | ||
Net (loss) income before income taxes | (50,629,000) | (10,089,000) | (44,414,000) | ||
Balance Sheets | |||||
Total assets | 1,173,481,000 | 1,173,481,000 | 1,173,481,000 | 1,223,122,000 | |
Goodwill | 4,220,000 | 4,220,000 | $ 4,220,000 | 9,489,000 | |
Impairment charges on goodwill | 5,500,000 | ||||
Impairment charges | 2,800,000 | ||||
Residential Homes | |||||
Segment Reporting [Abstract] | |||||
Number of reportable segments | segment | 1 | ||||
Income Statement | |||||
Total revenues | 29,130,000 | 21,954,000 | 17,055,000 | ||
Total expenses | (35,022,000) | (25,979,000) | (19,332,000) | ||
Total other (loss) income, net | 18,158,000 | 74,000 | (51,000) | ||
Net (loss) income before income taxes | 12,266,000 | (3,951,000) | (2,328,000) | ||
Balance Sheets | |||||
Total assets | 333,128,000 | 333,128,000 | $ 333,128,000 | 211,050,000 | |
Goodwill | 0 | 0 | 0 | 0 | |
Hotel | |||||
Income Statement | |||||
Total revenues | 30,749,000 | 30,806,000 | 3,718,000 | ||
Total expenses | (31,508,000) | (30,553,000) | (6,204,000) | ||
Total other (loss) income, net | 2,376,000 | 1,289,000 | 415,000 | ||
Net (loss) income before income taxes | 1,617,000 | 1,542,000 | $ (2,071,000) | ||
Balance Sheets | |||||
Total assets | 52,636,000 | 52,636,000 | 52,636,000 | 150,447,000 | |
Goodwill | 1,216,000 | $ 1,216,000 | $ 1,216,000 | $ 4,045,000 | |
Impairment charges on goodwill | $ 2,600,000 |
PORT MEZZANINE EQUITY (Narrativ
PORT MEZZANINE EQUITY (Narrative) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Jul. 01, 2020 USD ($) property shares | Nov. 06, 2019 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) | Dec. 31, 2022 shares | Nov. 04, 2022 $ / shares | Dec. 31, 2021 shares | |
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | ||||
Issuance of common stock | $ | $ 262 | |||||
Battery Point Trust Inc. | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares acquired (in shares) | 1,000,000 | |||||
Single Family | Battery Point Trust Inc. | ||||||
Class of Stock [Line Items] | ||||||
Number of homes | property | 559 | |||||
Pacific Oak Residential Trust, Inc. | Series A Cumulative Convertible Redeemable Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Issuance of common stock (in shares) | 15,000 | |||||
Preferred stock, shares authorized (in shares) | 25,000,000 | |||||
Price per share (in dollars per share) | $ / shares | $ 1,000 | $ 1,120 | ||||
Issuance of common stock | $ | $ 15,000 | |||||
Dividend rate, percentage | 6% | |||||
Percent of outstanding shares as benchmark for redemption | 10% | |||||
Redemption price (in dollars per share) | $ / shares | $ 15,000 | $ 1,120 | ||||
Conversion price of preferred stock into common stock (in dollars pr share) | $ / shares | $ 1,120 | |||||
Pacific Oak Residential Trust, Inc. | Series A Cumulative Convertible Redeemable Preferred Stock | If All Shares are Not Redeemed | ||||||
Class of Stock [Line Items] | ||||||
Dividend rate, percentage | 12% | |||||
BPT Holdings, LLC | Subsidiaries | Battery Point Trust Inc. | ||||||
Class of Stock [Line Items] | ||||||
Common equity units received in transaction | 510,816 | |||||
Percent of outstanding common equity units received in transaction | 4.50% | |||||
Common equity units received in transaction | $ | $ 3,000 | |||||
Common equity units, redemption period | 1 year |
PORT MEZZANINE EQUITY (Reconcil
PORT MEZZANINE EQUITY (Reconciliation) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | ||||
Balance (in shares) | 103,932,083 | 94,141,251 | ||
Balance | $ 482,059,000 | $ 519,712,000 | $ 277,388,000 | |
Adjustment to redemption value of noncontrolling cumulative convertible redeemable preferred stock | 1,800,000 | 0 | 0 | |
Balance | $ 416,393,000 | $ 482,059,000 | $ 519,712,000 | |
Balance (in shares) | 103,932,083 | 94,141,251 | ||
Preferred Stock | Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Balance (in shares) | 0 | 15,000 | 15,000 | 15,000 |
Balance | $ 15,134,000 | $ 15,134,000 | $ 14,909,000 | |
Dividends Available Upon Redemption | $ 1,123,000 | 897,000 | 973,000 | |
Dividends Paid | (897,000) | (748,000) | ||
Payment to redeem noncontrolling cumulative convertible redeemable preferred stock (in shares) | (15,000) | |||
Payment to redeem noncontrolling cumulative convertible redeemable preferred stock | $ (16,934,000) | |||
Balance | $ 0 | $ 15,134,000 | $ 15,134,000 | |
Balance (in shares) | 0 | 15,000 | 15,000 |
PORT MEZZANINE EQUITY (Redeemab
PORT MEZZANINE EQUITY (Redeemable Non-controlling Interest Activities) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 24, 2022 | Jul. 01, 2020 | |
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount [Roll Forward] | |||||
Payment to redeem noncontrolling interest | $ (6,687) | $ 0 | $ 0 | ||
Subsidiaries | Battery Point Trust Inc. | BPT Holdings, LLC | |||||
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount [Roll Forward] | |||||
Beginning balance | 2,822 | 2,968 | |||
Net loss attributable to redeemable noncontrolling interest | (81) | (146) | |||
Adjustment to value of redeemable noncontrolling interest | 3,946 | ||||
Payment to redeem noncontrolling interest | (6,687) | ||||
Ending balance | $ 0 | $ 2,822 | $ 2,968 | ||
Common equity units received in transaction | 510,816 | ||||
Subsidiaries | BPT Holdings, LLC | |||||
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount [Roll Forward] | |||||
Common equity units received in transaction | 510,816 | ||||
Share price (in dollars per share) | $ 13.09 |
RESTRICTED STOCK (Details)
RESTRICTED STOCK (Details) - USD ($) | 12 Months Ended | ||||
Sep. 01, 2021 | Mar. 27, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Subordinated performance fee due upon termination to affiliate | $ 0 | $ 1,678,000 | $ (1,720,000) | ||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares vested (in shares) | 1,157,448 | ||||
Stock repurchased during period (in shares) | 584,267 | ||||
Stock repurchased during period | $ 5,655,705 | ||||
Stock repurchased during period, price per share (in dollars per share) | $ 9.68 | ||||
Fair value (in dollars per share) | $ 9.45 | ||||
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% | ||||
Percent of shares available for redemption upon outstanding redemption requests | 50% | ||||
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_2
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - Q&C Hotel | 12 Months Ended |
Dec. 31, 2022 | |
Encore Hospitality, LLC | |
Loss Contingencies [Line Items] | |
Term agreement, extension period | 5 years |
Base fee as percentage of gross revenue | 4% |
Marriott International | |
Loss Contingencies [Line Items] | |
Brand services fee as percent of total room revenue | 2% |
Brand services fee as percent of total room revenue, after three years | 5% |
Monthly marketing fund contribution fees as percent of gross room sales | 1.50% |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Lease Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other assets | Prepaid expenses and other assets |
Right-of-use asset (included in real estate held for investment, net) | $ 7,281 | $ 8,074 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Lease obligation (included in other liabilities) | $ 9,446 | $ 9,360 |
Remaining lease term | 91 years | 92 years |
Discount rate | 4.80% | 4.80% |
Interest on lease obligation | $ 446 | $ 501 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Future Minimum Lease Payments) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
2023 | $ 360 | |
2024 | 360 | |
2025 | 393 | |
2026 | 396 | |
2027 | 396 | |
Thereafter | 51,771 | |
Total expected minimum lease obligations | 53,676 | |
Less: Amount representing interest | (44,230) | |
Present value of net minimum lease payments | $ 9,446 | $ 9,360 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Undeveloped Land - Disposed of by Sale - Park Highlands $ in Millions | Feb. 23, 2023 USD ($) a | Feb. 16, 2023 USD ($) a | Nov. 30, 2022 USD ($) | Jun. 03, 2021 USD ($) |
Subsequent Event [Line Items] | ||||
Consideration | $ 55 | $ 50.4 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Area of land (in acres) | a | 23 | 48 | ||
Consideration | $ 15.9 | $ 24 |
SCHEDULE III REAL ESTATE ASSE_2
SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION (Schedule) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) property | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Real Estate and Accumulated Depreciation [Line Items] | ||||
Gross Amount at which Carried at Close of Period, Total | $ 1,361,154 | $ 1,345,240 | $ 1,517,435 | $ 824,860 |
Accumulated Depreciation and Amortization | (141,750) | $ (130,441) | $ (104,412) | $ (65,381) |
Aggregate cost of real estate for federal income tax purposes | 1,700,000 | |||
Debt, outstanding amount | $ 1,066,112 | |||
Single-Family Homes Portfolio | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 2,456 | |||
Real Estate Investments | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Land | $ 248,006 | |||
Building and Improvements | 1,058,849 | |||
Initial Cost to Company, Total | 1,306,855 | |||
Cost Capitalized Subsequent to Acquisition | 54,299 | |||
Land | 269,376 | |||
Building and Improvements | 1,091,778 | |||
Gross Amount at which Carried at Close of Period, Total | 1,361,154 | |||
Accumulated Depreciation and Amortization | (141,750) | |||
Real Estate Investments | Total Richardson Portfolio | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 18,844 | |||
Land | 3,844 | |||
Building and Improvements | 25,745 | |||
Initial Cost to Company, Total | 29,589 | |||
Cost Capitalized Subsequent to Acquisition | 15,822 | |||
Land | 6,909 | |||
Building and Improvements | 38,502 | |||
Gross Amount at which Carried at Close of Period, Total | 45,411 | |||
Accumulated Depreciation and Amortization | (15,331) | |||
Debt, outstanding amount | $ 18,800 | |||
Real Estate Investments | Palisades Central I | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Ownership Percent | 100% | |||
Land | $ 1,037 | |||
Building and Improvements | 8,628 | |||
Initial Cost to Company, Total | 9,665 | |||
Cost Capitalized Subsequent to Acquisition | 5,733 | |||
Land | 1,037 | |||
Building and Improvements | 14,361 | |||
Gross Amount at which Carried at Close of Period, Total | 15,398 | |||
Accumulated Depreciation and Amortization | $ (6,140) | |||
Original Date of Construction | 1980 | |||
Date Acquired or Foreclosed on | Nov. 23, 2011 | |||
Real Estate Investments | Palisades Central II | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Ownership Percent | 100% | |||
Land | $ 810 | |||
Building and Improvements | 17,117 | |||
Initial Cost to Company, Total | 17,927 | |||
Cost Capitalized Subsequent to Acquisition | 7,024 | |||
Land | 810 | |||
Building and Improvements | 24,141 | |||
Gross Amount at which Carried at Close of Period, Total | 24,951 | |||
Accumulated Depreciation and Amortization | $ (9,191) | |||
Original Date of Construction | 1985 | |||
Date Acquired or Foreclosed on | Nov. 23, 2011 | |||
Real Estate Investments | Undeveloped Land | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Ownership Percent | 100% | |||
Encumbrances | $ 0 | |||
Land | 1,997 | |||
Building and Improvements | 0 | |||
Initial Cost to Company, Total | 1,997 | |||
Cost Capitalized Subsequent to Acquisition | 3,065 | |||
Land | 5,062 | |||
Building and Improvements | 0 | |||
Gross Amount at which Carried at Close of Period, Total | 5,062 | |||
Accumulated Depreciation and Amortization | $ 0 | |||
Date Acquired or Foreclosed on | Nov. 23, 2011 | |||
Real Estate Investments | Park Highlands | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Ownership Percent | 10,000% | |||
Encumbrances | $ 0 | |||
Land | 17,066 | |||
Building and Improvements | 0 | |||
Initial Cost to Company, Total | 17,066 | |||
Cost Capitalized Subsequent to Acquisition | 12,481 | |||
Land | 29,547 | |||
Building and Improvements | 0 | |||
Gross Amount at which Carried at Close of Period, Total | 29,547 | |||
Accumulated Depreciation and Amortization | $ 0 | |||
Date Acquired or Foreclosed on | Dec. 30, 2011 | |||
Real Estate Investments | Park Centre | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Ownership Percent | 100% | |||
Encumbrances | $ 26,233 | |||
Land | 3,251 | |||
Building and Improvements | 27,941 | |||
Initial Cost to Company, Total | 31,192 | |||
Cost Capitalized Subsequent to Acquisition | 7,051 | |||
Land | 3,251 | |||
Building and Improvements | 34,992 | |||
Gross Amount at which Carried at Close of Period, Total | 38,243 | |||
Accumulated Depreciation and Amortization | $ (12,265) | |||
Original Date of Construction | 2000 | |||
Date Acquired or Foreclosed on | Mar. 28, 2013 | |||
Real Estate Investments | 1180 Raymond | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Ownership Percent | 100% | |||
Encumbrances | $ 31,070 | |||
Land | 8,292 | |||
Building and Improvements | 37,651 | |||
Initial Cost to Company, Total | 45,943 | |||
Cost Capitalized Subsequent to Acquisition | 2,460 | |||
Land | 8,292 | |||
Building and Improvements | 40,111 | |||
Gross Amount at which Carried at Close of Period, Total | 48,403 | |||
Accumulated Depreciation and Amortization | $ (11,515) | |||
Original Date of Construction | 1929 | |||
Date Acquired or Foreclosed on | Aug. 20, 2013 | |||
Real Estate Investments | Park Highlands II | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Ownership Percent | 10,000% | |||
Encumbrances | $ 0 | |||
Land | 12,075 | |||
Building and Improvements | 0 | |||
Initial Cost to Company, Total | 12,075 | |||
Cost Capitalized Subsequent to Acquisition | 8,236 | |||
Land | 20,311 | |||
Building and Improvements | 0 | |||
Gross Amount at which Carried at Close of Period, Total | 20,311 | |||
Accumulated Depreciation and Amortization | $ 0 | |||
Date Acquired or Foreclosed on | Dec. 10, 2013 | |||
Real Estate Investments | Richardson Land II | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Ownership Percent | 100% | |||
Encumbrances | $ 0 | |||
Land | 3,096 | |||
Building and Improvements | 0 | |||
Initial Cost to Company, Total | 3,096 | |||
Cost Capitalized Subsequent to Acquisition | 322 | |||
Land | 3,418 | |||
Building and Improvements | 0 | |||
Gross Amount at which Carried at Close of Period, Total | 3,418 | |||
Accumulated Depreciation and Amortization | $ 0 | |||
Date Acquired or Foreclosed on | Sep. 04, 2014 | |||
Real Estate Investments | Crown Pointe | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Ownership Percent | 100% | |||
Encumbrances | $ 53,758 | |||
Land | 22,590 | |||
Building and Improvements | 62,610 | |||
Initial Cost to Company, Total | 85,200 | |||
Cost Capitalized Subsequent to Acquisition | 14,656 | |||
Land | 22,590 | |||
Building and Improvements | 77,266 | |||
Gross Amount at which Carried at Close of Period, Total | 99,856 | |||
Accumulated Depreciation and Amortization | $ (20,841) | |||
Date Acquired or Foreclosed on | Feb. 14, 2017 | |||
Original Date of Construction | 1985/1989 | |||
Real Estate Investments | The Marq | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Ownership Percent | 100% | |||
Encumbrances | $ 60,796 | |||
Land | 10,387 | |||
Building and Improvements | 75,878 | |||
Initial Cost to Company, Total | 86,265 | |||
Cost Capitalized Subsequent to Acquisition | 13,971 | |||
Land | 10,387 | |||
Building and Improvements | 89,849 | |||
Gross Amount at which Carried at Close of Period, Total | 100,236 | |||
Accumulated Depreciation and Amortization | $ (17,181) | |||
Original Date of Construction | 1972 | |||
Date Acquired or Foreclosed on | Mar. 01, 2018 | |||
Real Estate Investments | Eight & Nine Corporate Centre | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Ownership Percent | 100% | |||
Encumbrances | $ 47,945 | |||
Land | 17,401 | |||
Building and Improvements | 58,794 | |||
Initial Cost to Company, Total | 76,195 | |||
Cost Capitalized Subsequent to Acquisition | 5,739 | |||
Land | 17,401 | |||
Building and Improvements | 64,533 | |||
Gross Amount at which Carried at Close of Period, Total | 81,934 | |||
Accumulated Depreciation and Amortization | $ (12,785) | |||
Original Date of Construction | 2007 | |||
Date Acquired or Foreclosed on | Jun. 08, 2018 | |||
Real Estate Investments | Georgia 400 Center | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Ownership Percent | 100% | |||
Encumbrances | $ 44,129 | |||
Land | 11,400 | |||
Building and Improvements | 72,000 | |||
Initial Cost to Company, Total | 83,400 | |||
Cost Capitalized Subsequent to Acquisition | 9,329 | |||
Land | 11,431 | |||
Building and Improvements | 81,298 | |||
Gross Amount at which Carried at Close of Period, Total | 92,729 | |||
Accumulated Depreciation and Amortization | $ (14,492) | |||
Original Date of Construction | 2001 | |||
Date Acquired or Foreclosed on | May 23, 2019 | |||
Real Estate Investments | Q&C Hotel | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Ownership Percent | 90% | |||
Encumbrances | $ 24,784 | |||
Land | 2,669 | |||
Building and Improvements | 41,431 | |||
Initial Cost to Company, Total | 44,100 | |||
Cost Capitalized Subsequent to Acquisition | 374 | |||
Land | 2,669 | |||
Building and Improvements | 41,805 | |||
Gross Amount at which Carried at Close of Period, Total | 44,474 | |||
Accumulated Depreciation and Amortization | $ (2,777) | |||
Original Date of Construction | 1913 | |||
Date Acquired or Foreclosed on | Oct. 05, 2020 | |||
Real Estate Investments | Lincoln Court | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Ownership Percent | 100% | |||
Encumbrances | $ 35,314 | |||
Land | 16,610 | |||
Building and Improvements | 43,083 | |||
Initial Cost to Company, Total | 59,693 | |||
Cost Capitalized Subsequent to Acquisition | (6,839) | |||
Land | 15,329 | |||
Building and Improvements | 37,525 | |||
Gross Amount at which Carried at Close of Period, Total | 52,854 | |||
Accumulated Depreciation and Amortization | $ (2,350) | |||
Original Date of Construction | 1985 | |||
Date Acquired or Foreclosed on | Oct. 05, 2020 | |||
Real Estate Investments | Lofts at NoHo Commons | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Ownership Percent | 90% | |||
Encumbrances | $ 71,536 | |||
Land | 22,670 | |||
Building and Improvements | 93,676 | |||
Initial Cost to Company, Total | 116,346 | |||
Cost Capitalized Subsequent to Acquisition | 1,396 | |||
Land | 22,670 | |||
Building and Improvements | 95,072 | |||
Gross Amount at which Carried at Close of Period, Total | 117,742 | |||
Accumulated Depreciation and Amortization | $ (7,513) | |||
Original Date of Construction | 2007 | |||
Date Acquired or Foreclosed on | Oct. 05, 2020 | |||
Real Estate Investments | 210 West 31st Street | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Ownership Percent | 80% | |||
Encumbrances | $ 0 | |||
Land | 0 | |||
Building and Improvements | 51,358 | |||
Initial Cost to Company, Total | 51,358 | |||
Cost Capitalized Subsequent to Acquisition | (10,802) | |||
Land | 0 | |||
Building and Improvements | 40,556 | |||
Gross Amount at which Carried at Close of Period, Total | 40,556 | |||
Accumulated Depreciation and Amortization | $ 0 | |||
Date Acquired or Foreclosed on | Oct. 05, 2020 | |||
Real Estate Investments | Oakland City Center | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Ownership Percent | 100% | |||
Encumbrances | $ 87,000 | |||
Land | 24,063 | |||
Building and Improvements | 180,973 | |||
Initial Cost to Company, Total | 205,036 | |||
Cost Capitalized Subsequent to Acquisition | (32,897) | |||
Land | 22,539 | |||
Building and Improvements | 149,600 | |||
Gross Amount at which Carried at Close of Period, Total | 172,139 | |||
Accumulated Depreciation and Amortization | $ 0 | |||
Date Acquired or Foreclosed on | Oct. 05, 2020 | |||
Original Date of Construction | 1985/1990 | |||
Real Estate Investments | Madison Square | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Ownership Percent | 90% | |||
Encumbrances | $ 17,964 | |||
Land | 11,570 | |||
Building and Improvements | 22,544 | |||
Initial Cost to Company, Total | 34,114 | |||
Cost Capitalized Subsequent to Acquisition | (2,213) | |||
Land | 11,570 | |||
Building and Improvements | 20,331 | |||
Gross Amount at which Carried at Close of Period, Total | 31,901 | |||
Accumulated Depreciation and Amortization | $ (3,680) | |||
Date Acquired or Foreclosed on | Oct. 05, 2020 | |||
Original Date of Construction | 1911/2003/2007/2008 | |||
Real Estate Investments | Single-Family Homes Portfolio | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 215,526 | |||
Land | 61,022 | |||
Building and Improvements | 265,165 | |||
Initial Cost to Company, Total | 326,187 | |||
Cost Capitalized Subsequent to Acquisition | 15,213 | |||
Land | 61,062 | |||
Building and Improvements | 280,338 | |||
Gross Amount at which Carried at Close of Period, Total | 341,400 | |||
Accumulated Depreciation and Amortization | $ (21,020) | |||
Real Estate Investments | Alabama Homes | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 194 | |||
Ownership Percent | 100% | |||
Land | $ 3,006 | |||
Building and Improvements | 11,907 | |||
Initial Cost to Company, Total | 14,913 | |||
Cost Capitalized Subsequent to Acquisition | 1,710 | |||
Land | 3,006 | |||
Building and Improvements | 13,617 | |||
Gross Amount at which Carried at Close of Period, Total | 16,623 | |||
Accumulated Depreciation and Amortization | $ (1,025) | |||
Real Estate Investments | Arkansas Homes | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 24 | |||
Ownership Percent | 100% | |||
Land | $ 473 | |||
Building and Improvements | 2,000 | |||
Initial Cost to Company, Total | 2,473 | |||
Cost Capitalized Subsequent to Acquisition | 31 | |||
Land | 473 | |||
Building and Improvements | 2,031 | |||
Gross Amount at which Carried at Close of Period, Total | 2,504 | |||
Accumulated Depreciation and Amortization | $ (154) | |||
Real Estate Investments | Delaware Homes | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 4 | |||
Ownership Percent | 100% | |||
Land | $ 172 | |||
Building and Improvements | 727 | |||
Initial Cost to Company, Total | 899 | |||
Cost Capitalized Subsequent to Acquisition | 8 | |||
Land | 172 | |||
Building and Improvements | 735 | |||
Gross Amount at which Carried at Close of Period, Total | 907 | |||
Accumulated Depreciation and Amortization | $ (56) | |||
Real Estate Investments | Florida Homes | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 253 | |||
Ownership Percent | 100% | |||
Land | $ 6,183 | |||
Building and Improvements | 37,577 | |||
Initial Cost to Company, Total | 43,760 | |||
Cost Capitalized Subsequent to Acquisition | 6,156 | |||
Land | 7,648 | |||
Building and Improvements | 42,268 | |||
Gross Amount at which Carried at Close of Period, Total | 49,916 | |||
Accumulated Depreciation and Amortization | $ (2,958) | |||
Real Estate Investments | Georgia Homes | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 70 | |||
Ownership Percent | 100% | |||
Land | $ 893 | |||
Building and Improvements | 5,049 | |||
Initial Cost to Company, Total | 5,942 | |||
Cost Capitalized Subsequent to Acquisition | 720 | |||
Land | 893 | |||
Building and Improvements | 5,769 | |||
Gross Amount at which Carried at Close of Period, Total | 6,662 | |||
Accumulated Depreciation and Amortization | $ (411) | |||
Real Estate Investments | Iowa Homes | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 11 | |||
Ownership Percent | 100% | |||
Land | $ 147 | |||
Building and Improvements | 622 | |||
Initial Cost to Company, Total | 769 | |||
Cost Capitalized Subsequent to Acquisition | 9 | |||
Land | 147 | |||
Building and Improvements | 631 | |||
Gross Amount at which Carried at Close of Period, Total | 778 | |||
Accumulated Depreciation and Amortization | $ (48) | |||
Real Estate Investments | Illinois Homes | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 311 | |||
Ownership Percent | 100% | |||
Land | $ 5,050 | |||
Building and Improvements | 20,553 | |||
Initial Cost to Company, Total | 25,603 | |||
Cost Capitalized Subsequent to Acquisition | 1,917 | |||
Land | 5,050 | |||
Building and Improvements | 22,470 | |||
Gross Amount at which Carried at Close of Period, Total | 27,520 | |||
Accumulated Depreciation and Amortization | $ (1,697) | |||
Real Estate Investments | Indiana Homes | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 96 | |||
Ownership Percent | 100% | |||
Land | $ 1,811 | |||
Building and Improvements | 7,655 | |||
Initial Cost to Company, Total | 9,466 | |||
Cost Capitalized Subsequent to Acquisition | 113 | |||
Land | 1,811 | |||
Building and Improvements | 7,768 | |||
Gross Amount at which Carried at Close of Period, Total | 9,579 | |||
Accumulated Depreciation and Amortization | $ (591) | |||
Real Estate Investments | Michigan Homes | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 331 | |||
Ownership Percent | 100% | |||
Land | $ 15,076 | |||
Building and Improvements | 60,578 | |||
Initial Cost to Company, Total | 75,654 | |||
Cost Capitalized Subsequent to Acquisition | 113 | |||
Land | 15,076 | |||
Building and Improvements | 60,691 | |||
Gross Amount at which Carried at Close of Period, Total | 75,767 | |||
Accumulated Depreciation and Amortization | $ (4,672) | |||
Real Estate Investments | Mississippi Homes | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 25 | |||
Ownership Percent | 100% | |||
Land | $ 340 | |||
Building and Improvements | 1,362 | |||
Initial Cost to Company, Total | 1,702 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Land | 340 | |||
Building and Improvements | 1,362 | |||
Gross Amount at which Carried at Close of Period, Total | 1,702 | |||
Accumulated Depreciation and Amortization | $ (25) | |||
Real Estate Investments | Missouri Homes | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 22 | |||
Ownership Percent | 100% | |||
Land | $ 324 | |||
Building and Improvements | 1,368 | |||
Initial Cost to Company, Total | 1,692 | |||
Cost Capitalized Subsequent to Acquisition | 23 | |||
Land | 324 | |||
Building and Improvements | 1,391 | |||
Gross Amount at which Carried at Close of Period, Total | 1,715 | |||
Accumulated Depreciation and Amortization | $ (106) | |||
Real Estate Investments | North Carolina Homes | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 76 | |||
Ownership Percent | 100% | |||
Land | $ 1,733 | |||
Building and Improvements | 7,325 | |||
Initial Cost to Company, Total | 9,058 | |||
Cost Capitalized Subsequent to Acquisition | 87 | |||
Land | 1,733 | |||
Building and Improvements | 7,412 | |||
Gross Amount at which Carried at Close of Period, Total | 9,145 | |||
Accumulated Depreciation and Amortization | $ (564) | |||
Real Estate Investments | Ohio Homes | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 228 | |||
Ownership Percent | 100% | |||
Land | $ 5,219 | |||
Building and Improvements | 21,422 | |||
Initial Cost to Company, Total | 26,641 | |||
Cost Capitalized Subsequent to Acquisition | 152 | |||
Land | 5,219 | |||
Building and Improvements | 21,574 | |||
Gross Amount at which Carried at Close of Period, Total | 26,793 | |||
Accumulated Depreciation and Amortization | $ (1,652) | |||
Real Estate Investments | Oklahoma Homes | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 128 | |||
Ownership Percent | 100% | |||
Land | $ 2,360 | |||
Building and Improvements | 13,184 | |||
Initial Cost to Company, Total | 15,544 | |||
Cost Capitalized Subsequent to Acquisition | 1,180 | |||
Land | 2,360 | |||
Building and Improvements | 14,364 | |||
Gross Amount at which Carried at Close of Period, Total | 16,724 | |||
Accumulated Depreciation and Amortization | $ (1,031) | |||
Real Estate Investments | South Carolina Homes | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 23 | |||
Ownership Percent | 100% | |||
Land | $ 633 | |||
Building and Improvements | 2,674 | |||
Initial Cost to Company, Total | 3,307 | |||
Cost Capitalized Subsequent to Acquisition | 35 | |||
Land | 633 | |||
Building and Improvements | 2,709 | |||
Gross Amount at which Carried at Close of Period, Total | 3,342 | |||
Accumulated Depreciation and Amortization | $ (206) | |||
Real Estate Investments | Tennessee Homes | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 303 | |||
Ownership Percent | 100% | |||
Land | $ 7,946 | |||
Building and Improvements | 32,981 | |||
Initial Cost to Company, Total | 40,927 | |||
Cost Capitalized Subsequent to Acquisition | 1,735 | |||
Land | 7,946 | |||
Building and Improvements | 34,716 | |||
Gross Amount at which Carried at Close of Period, Total | 42,662 | |||
Accumulated Depreciation and Amortization | $ (2,710) | |||
Real Estate Investments | Texas Homes | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 340 | |||
Ownership Percent | 100% | |||
Land | $ 9,294 | |||
Building and Improvements | 36,650 | |||
Initial Cost to Company, Total | 45,944 | |||
Cost Capitalized Subsequent to Acquisition | 1,180 | |||
Land | 7,844 | |||
Building and Improvements | 39,280 | |||
Gross Amount at which Carried at Close of Period, Total | 47,124 | |||
Accumulated Depreciation and Amortization | $ (2,995) | |||
Real Estate Investments | Wisconsin Homes | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of Homes | property | 17 | |||
Ownership Percent | 100% | |||
Land | $ 362 | |||
Building and Improvements | 1,531 | |||
Initial Cost to Company, Total | 1,893 | |||
Cost Capitalized Subsequent to Acquisition | 44 | |||
Land | 387 | |||
Building and Improvements | 1,550 | |||
Gross Amount at which Carried at Close of Period, Total | 1,937 | |||
Accumulated Depreciation and Amortization | $ (119) |
SCHEDULE III REAL ESTATE ASSE_3
SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION (Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Real Estate | |||
Balance at the beginning of the year | $ 1,345,240 | $ 1,517,435 | $ 824,860 |
Acquisitions | 142,118 | 4,838 | 679,042 |
Improvements | 31,407 | 18,966 | 17,103 |
Write-off of fully depreciated and fully amortized assets | (9,454) | (5,956) | (3,114) |
Dispositions | (111,186) | (175,691) | (456) |
Impairments | (36,971) | (14,352) | 0 |
Balance at the end of the year | 1,361,154 | 1,345,240 | 1,517,435 |
Accumulated depreciation and amortization: | |||
Balance at the beginning of the year | 130,441 | 104,412 | 65,381 |
Depreciation and amortization expense | 49,190 | 55,882 | 42,159 |
Write-off of fully depreciated and fully amortized assets | (10,442) | (5,956) | (3,114) |
Dispositions | (6,531) | (20,516) | (14) |
Impairments | (20,908) | (3,381) | 0 |
Balance at the end of the year | $ 141,750 | $ 130,441 | $ 104,412 |