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Document and Entity Information Document	6 Months Ended
Document and Entity Information Document	Jun. 30, 2015	Aug. 07, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	KBS Real Estate Investment Trust, Inc.
Entity Central Index Key	0001330622
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		187,063,080dei_EntityCommonStockSharesOutstanding

CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2015	Dec. 31, 2014
Real estate held for investment:
Land	$ 265,278us-gaap_Land	$ 265,278us-gaap_Land
Buildings and improvements	812,033	800,876
Tenant origination and absorption costs	77,478	79,050
Total real estate held for investment, at cost and net of impairment charges	1,154,789	1,145,204
Less accumulated depreciation and amortization	(196,120)	(175,047)
Total real estate held for investment, net	958,669us-gaap_RealEstateInvestmentPropertyNet	970,157us-gaap_RealEstateInvestmentPropertyNet
Real estate held for sale, net	0us-gaap_RealEstateHeldforsale	148,354us-gaap_RealEstateHeldforsale
Foreclosed real estate held for sale	0	12,045
Total real estate, net	958,669kbsreiti_TotalRealEstate	1,130,556kbsreiti_TotalRealEstate
Real estate loans receivable, net	29,335	28,922
Total real estate and real estate-related investments, net	988,004	1,159,478
Cash and cash equivalents	133,609	58,675
Restricted cash	50,212	62,755
Rents and other receivables, net	35,235us-gaap_AccountsReceivableNet	37,604us-gaap_AccountsReceivableNet
Above-market leases, net	19,582kbsreiti_AboveMarketLeasesNet	21,678kbsreiti_AboveMarketLeasesNet
Assets related to real estate held for sale	0	10,462
Deferred financing costs, prepaid expenses and other assets, net	23,773	25,515
Total assets	1,250,415us-gaap_Assets	1,376,167us-gaap_Assets
Notes payable:
Notes payable	534,744	578,129
Notes payable related to real estate held for sale	0	79,969
Total notes payable	534,744us-gaap_NotesPayable	658,098us-gaap_NotesPayable
Accounts payable and accrued liabilities	23,671	22,579
Due to affiliates	33	444
Distributions payable	0	4,699
Below-market leases, net	32,715us-gaap_OffMarketLeaseUnfavorable	38,075us-gaap_OffMarketLeaseUnfavorable
Liabilities related to real estate held for sale	0	3,087
Other liabilities	30,620us-gaap_OtherLiabilities	36,412us-gaap_OtherLiabilities
Total liabilities	621,783us-gaap_Liabilities	763,394us-gaap_Liabilities
Commitments and contingencies (Note 13)
Redeemable common stock	6,891	10,000
Stockholders’ equity
Preferred stock, $.01 par value; 10,000,000 shares authorized, no shares issued and outstanding	0us-gaap_PreferredStockValue	0us-gaap_PreferredStockValue
Common stock, $.01 par value; 1,000,000,000 shares authorized, 187,157,793 and 187,845,515 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively	1,872us-gaap_CommonStockValue	1,879us-gaap_CommonStockValue
Additional paid-in capital	1,662,490us-gaap_AdditionalPaidInCapital	1,662,483us-gaap_AdditionalPaidInCapital
Cumulative distributions and net losses	(1,042,621)	(1,061,589)
Total stockholders’ equity	621,741us-gaap_StockholdersEquity	602,773us-gaap_StockholdersEquity
Total liabilities and stockholders' equity	$ 1,250,415	$ 1,376,167

CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) (USD $)	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000us-gaap_PreferredStockSharesAuthorized	10,000,000us-gaap_PreferredStockSharesAuthorized
Preferred stock, shares issued	0us-gaap_PreferredStockSharesIssued	0us-gaap_PreferredStockSharesIssued
Preferred stock, shares outstanding	0us-gaap_PreferredStockSharesOutstanding	0us-gaap_PreferredStockSharesOutstanding
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000us-gaap_CommonStockSharesAuthorized	1,000,000,000us-gaap_CommonStockSharesAuthorized
Common stock, shares issued	187,157,793us-gaap_CommonStockSharesIssued	187,845,515us-gaap_CommonStockSharesIssued
Common stock, shares outstanding	187,157,793us-gaap_CommonStockSharesOutstanding	187,845,515us-gaap_CommonStockSharesOutstanding

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Rental income	$ 32,432	$ 38,618	$ 67,797	$ 77,762
Tenant reimbursements	11,133us-gaap_TenantReimbursements	14,073us-gaap_TenantReimbursements	23,688us-gaap_TenantReimbursements	27,131us-gaap_TenantReimbursements
Interest income from real estate loans receivable	741	814	1,467	1,615
Parking revenues and other operating income	660us-gaap_OtherRealEstateRevenue	956us-gaap_OtherRealEstateRevenue	1,592us-gaap_OtherRealEstateRevenue	1,960us-gaap_OtherRealEstateRevenue
Total revenues	44,966us-gaap_Revenues	54,461us-gaap_Revenues	94,544us-gaap_Revenues	108,468us-gaap_Revenues
Expenses:
Operating, maintenance, and management	17,843us-gaap_CostOfRealEstateRevenue	21,431us-gaap_CostOfRealEstateRevenue	39,833us-gaap_CostOfRealEstateRevenue	42,830us-gaap_CostOfRealEstateRevenue
Real estate taxes, property-related taxes, and insurance	5,865us-gaap_RealEstateTaxesAndInsurance	6,758us-gaap_RealEstateTaxesAndInsurance	12,646us-gaap_RealEstateTaxesAndInsurance	14,198us-gaap_RealEstateTaxesAndInsurance
Asset management fees to affiliate	2,346us-gaap_AssetManagementCosts	2,530us-gaap_AssetManagementCosts	4,766us-gaap_AssetManagementCosts	5,029us-gaap_AssetManagementCosts
General and administrative expenses	6,047us-gaap_GeneralAndAdministrativeExpense	3,685us-gaap_GeneralAndAdministrativeExpense	8,277us-gaap_GeneralAndAdministrativeExpense	7,329us-gaap_GeneralAndAdministrativeExpense
Depreciation and amortization	14,205	17,961	29,810	35,884
Interest expense	8,084us-gaap_InterestExpense	13,036us-gaap_InterestExpense	16,816us-gaap_InterestExpense	26,581us-gaap_InterestExpense
Impairment charge on real estate held for investment	0us-gaap_ImpairmentOfRealEstate	939us-gaap_ImpairmentOfRealEstate	0us-gaap_ImpairmentOfRealEstate	2,196us-gaap_ImpairmentOfRealEstate
Provision for Loan and Lease Losses	0us-gaap_ProvisionForLoanAndLeaseLosses	1,973us-gaap_ProvisionForLoanAndLeaseLosses	0us-gaap_ProvisionForLoanAndLeaseLosses	1,973us-gaap_ProvisionForLoanAndLeaseLosses
Total expenses	54,390us-gaap_CostsAndExpenses	68,313us-gaap_CostsAndExpenses	112,148us-gaap_CostsAndExpenses	136,020us-gaap_CostsAndExpenses
Other income and loss
Gain on sales of real estate securities (includes $0.7 million and $4.5 million of unrealized gains reclassified from accumulated other comprehensive income during the three and six months ended June 30, 2014, respectively)	0	662	0	4,410
Gain on sales of real estate, net	35,093kbsreiti_GainLossOnSaleOfRealEstate	2,041kbsreiti_GainLossOnSaleOfRealEstate	49,059kbsreiti_GainLossOnSaleOfRealEstate	2,041kbsreiti_GainLossOnSaleOfRealEstate
Gain on sales of foreclosed real estate held for sale	0	0	2,509	0
Gain from extinguishment of debt	(6,385)	3,297	(6,376)	5,112
Other interest income	120us-gaap_InvestmentIncomeInterest	130us-gaap_InvestmentIncomeInterest	241us-gaap_InvestmentIncomeInterest	297us-gaap_InvestmentIncomeInterest
Other income	354us-gaap_OtherNonoperatingIncomeExpense	62us-gaap_OtherNonoperatingIncomeExpense	349us-gaap_OtherNonoperatingIncomeExpense	365us-gaap_OtherNonoperatingIncomeExpense
Total other income	29,182us-gaap_OtherIncome	6,192us-gaap_OtherIncome	45,782us-gaap_OtherIncome	12,225us-gaap_OtherIncome
Income (loss) from continuing operations	19,758	(7,660)	28,178	(15,327)
Discontinued operations:
Gain on sales of real estate, net	0	89	124	3,006
(Loss) income from discontinued operations	(7)	0	38	234
Impairment charges on discontinued operations	0	(81)	0	(81)
Total (loss) income from discontinued operations	(7)	8	162	3,159
Net income (loss)	$ 19,751us-gaap_ProfitLoss	$ (7,652)us-gaap_ProfitLoss	$ 28,340us-gaap_ProfitLoss	$ (12,168)us-gaap_ProfitLoss
Basic and diluted income (loss) per common share:
Continuing operations (in dollars per share)	$ 0.11	$ (0.04)	$ 0.15	$ (0.08)
Discontinued operations (in dollars per share)	$ 0.00	$ 0.00	$ 0.00	$ 0.02
Net income (loss) per common share (in dollars per share)	$ 0.11us-gaap_EarningsPerShareBasicAndDiluted	$ (0.04)us-gaap_EarningsPerShareBasicAndDiluted	$ 0.15us-gaap_EarningsPerShareBasicAndDiluted	$ (0.06)us-gaap_EarningsPerShareBasicAndDiluted
Weighted-average number of common shares outstanding, basic and diluted	187,389,195	189,152,147	187,552,869	189,316,544

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2014
Income Statement [Abstract]
Unrealized gains on real estate securities reclassified from accumulated other comprehensive income	$ 0.7	$ 4.5

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 19,751us-gaap_ProfitLoss	$ (7,652)us-gaap_ProfitLoss	$ 28,340us-gaap_ProfitLoss	$ (12,168)us-gaap_ProfitLoss
Other comprehensive loss
Reclassification of realized gain on real estate securities	0	(669)	0	(4,452)
Unrealized change in market value of real estate securities	0	36	0	(100)
Total other comprehensive loss	0	(633)	0	(4,552)
Total comprehensive income (loss)	$ 19,751	$ (8,285)	$ 28,340	$ (16,720)

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Cumulative Distributions and Net Income (Loss) [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Jan. 26, 2006
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Redemptions of common stock, shares		(12,277,787)
Redemptions of common stock		$ (88,600)
Balance at Jun. 30, 2015		1,872			0
Balance, shares at Jun. 30, 2015		187,157,793
Balance at Dec. 31, 2013	645,893	1,896	1,670,356	(1,030,911)	4,552
Balance, shares at Dec. 31, 2013		189,616,701
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(21,266)us-gaap_ProfitLoss			(21,266)
Other comprehensive income	(4,552)				(4,552)
Redemptions of common stock, shares		(1,771,186)
Redemptions of common stock	(7,890)	(17)	(7,873)
Distributions declared	(9,412)us-gaap_DividendsCommonStock			(9,412)
Balance at Dec. 31, 2014	602,773	1,879	1,662,483	(1,061,589)	0
Balance, shares at Dec. 31, 2014	187,845,515us-gaap_CommonStockSharesOutstanding	187,845,515
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	28,340us-gaap_ProfitLoss			28,340
Other comprehensive income	0
Redemptions of common stock, shares		(687,722)
Redemptions of common stock	(3,108)	(7)	(3,101)
Transfers from redeemable common stock	3,108		3,108
Distributions declared	(9,372)us-gaap_DividendsCommonStock			(9,372)
Balance at Jun. 30, 2015	$ 621,741	$ 1,872	$ 1,662,490	$ (1,042,621)	$ 0
Balance, shares at Jun. 30, 2015	187,157,793us-gaap_CommonStockSharesOutstanding	187,157,793

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows from Operating Activities:
Net income (loss)	$ 28,340us-gaap_ProfitLoss	$ (12,168)us-gaap_ProfitLoss
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	29,810	35,884
Impairment charge on real estate - continuing operations	0us-gaap_ImpairmentOfRealEstate	2,196us-gaap_ImpairmentOfRealEstate
Impairment charge on real estate - discontinued operations	0	81
Noncash interest income on real estate-related investments	(491)	(504)
Increase (decrease) in provision for loan losses	0	1,973
Deferred rent	(935)us-gaap_RecognitionOfDeferredRevenue	(1,731)us-gaap_RecognitionOfDeferredRevenue
Bad debt expense	368us-gaap_ProvisionForDoubtfulAccounts	1,617us-gaap_ProvisionForDoubtfulAccounts
Amortization of deferred financing costs	1,259us-gaap_AmortizationOfFinancingCosts	756us-gaap_AmortizationOfFinancingCosts
Deferred interest	0kbsreiti_DeferredInterestPayable	597kbsreiti_DeferredInterestPayable
Amortization of above- and below-market leases, net	(4,081)	(4,267)
Gain on sales of foreclosed real estate held for sale	(2,509)	0
Gain on sales of real estate, net	(49,183)	(5,047)
Gain on sales of real estate securities	0	(4,410)
Loss (gain) on extinguishment of debt	6,376	(5,112)
Amortization of discounts and premiums on notes payable, net	867	2,137
Changes in operating assets and liabilities:
Restricted cash for operational expenditures	8,030	9,559
Rents and other receivables	3,020	(4,008)
Prepaid expenses and other assets	(575)	(1,642)
Accounts payable and accrued liabilities	3,454	(815)
Due to affiliates	(12)	0
Other liabilities	(5,693)	(4,060)
Net cash provided by operating activities	18,045	11,036
Cash Flows from Investing Activities:
Improvements to real estate	(19,024)us-gaap_PaymentsForCapitalImprovements	(10,331)us-gaap_PaymentsForCapitalImprovements
Proceeds from sales of real estate, net	204,943us-gaap_ProceedsFromSaleOfRealEstate	86,753us-gaap_ProceedsFromSaleOfRealEstate
Proceeds from sales of foreclosed real estate held for sale	14,155	0
Principal repayments on real estate loans receivable	78	70
Proceeds from sale of real estate securities	0	7,831
Net change in restricted cash for capital expenditures	3,735	(248)
Net cash provided by investing activities	203,887	84,075
Cash Flows from Financing Activities:
Proceeds from notes payable	0us-gaap_ProceedsFromNotesPayable	42,500us-gaap_ProceedsFromNotesPayable
Principal payments on notes payable	(126,207)us-gaap_RepaymentsOfNotesPayable	(251,799)us-gaap_RepaymentsOfNotesPayable
Prepayment premium on the repayment of debt	(4,390)	0
Net change in restricted cash for debt service obligations	778	587
Payments of deferred financing costs	0us-gaap_PaymentsOfFinancingCosts	(1,730)us-gaap_PaymentsOfFinancingCosts
Payments to redeem common stock	(3,108)	(3,152)
Distributions paid to common stockholders	(14,071)us-gaap_PaymentsOfDividendsCommonStock	0us-gaap_PaymentsOfDividendsCommonStock
Net cash used in financing activities	(146,998)	(213,594)
Net increase (decrease) in cash and cash equivalents	74,934	(118,483)
Cash and cash equivalents, beginning of period	58,675	211,391
Cash and cash equivalents, end of period	$ 133,609	$ 92,908

ORGANIZATION	6 Months Ended
ORGANIZATION	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	ORGANIZATION KBS Real Estate Investment Trust, Inc. (the “Company”) was formed on June 13, 2005 as a Maryland corporation and has elected to be taxed as a real estate investment trust (“REIT”). Substantially all of the Company’s assets are held by, and the Company conducts substantially all of its operations through, KBS Limited Partnership, a Delaware limited partnership (the “Operating Partnership”), and its subsidiaries. The Company is the sole general partner of and directly owns a 99% partnership interest in the Operating Partnership. The Company’s wholly owned subsidiary, KBS REIT Holdings LLC, a Delaware limited liability company (“KBS REIT Holdings”), owns the remaining 1% partnership interest in the Operating Partnership and is its sole limited partner. The Company invested in a diverse portfolio of real estate and real estate-related investments. As of June 30, 2015, the Company owned or, with respect to a limited number of properties, held a leasehold interest in, 392 real estate properties, including the GKK Properties (defined below). In addition, as of June 30, 2015, the Company owned four real estate loans receivable and a participation interest with respect to a real estate joint venture. On September 1, 2011, the Company, through indirect wholly owned subsidiaries (collectively, “KBS”), entered into a Collateral Transfer and Settlement Agreement (the “Settlement Agreement”) with, among other parties, GKK Stars Acquisition LLC (“GKK Stars”), the wholly owned subsidiary of Gramercy Property Trust, Inc. (“Gramercy”) that indirectly owned the Gramercy real estate portfolio, to effect the orderly transfer of certain assets and liabilities of the Gramercy real estate portfolio to KBS in satisfaction of certain debt obligations under a mezzanine loan owed by wholly owned subsidiaries of Gramercy to KBS (the “GKK Mezzanine Loan”). The Settlement Agreement resulted in the transfer of the equity interests in certain subsidiaries of Gramercy (the “Equity Interests”) that indirectly owned or, with respect to a limited number of properties, held a leasehold interest in, 867 properties (the “GKK Properties”), consisting of 576 bank branch properties and 291 office buildings, operations centers and other properties. As of December 15, 2011, GKK Stars had transferred all of the Equity Interests to the Company, giving the Company title to or, with respect to a limited number of GKK Properties, a leasehold interest in, 867 GKK Properties as of that date. Subject to certain restrictions and limitations, the business of the Company is managed by KBS Capital Advisors LLC (the “Advisor”), an affiliate of the Company, pursuant to an advisory agreement with the Company (as amended, the “Advisory Agreement”) in effect through November 8, 2015. The Advisory Agreement may be renewed for an unlimited number of one-year periods upon the mutual consent of the Advisor and the Company. Either party may terminate the Advisory Agreement upon 60 days written notice. The Advisor owns 20,000 shares of the Company’s common stock. Upon commencing its initial public offering (the “Offering”), the Company retained KBS Capital Markets Group LLC (the “Dealer Manager”), an affiliate of the Advisor, to serve as the dealer manager of the Offering pursuant to a dealer manager agreement dated January 27, 2006 (the “Dealer Manager Agreement”). The Company ceased offering shares of common stock in its primary offering on May 30, 2008. The Company terminated its dividend reinvestment plan effective April 10, 2012. The Company sold 171,109,494 shares of common stock in its primary offering for gross offering proceeds of $1.7 billion. The Company sold 28,306,086 shares of common stock under its dividend reinvestment plan for gross offering proceeds of $233.7 million. As of June 30, 2015, the Company had redeemed 12,277,787 of the shares sold in the Offering for $88.6 million. Asset Management Services Agreement Related to the GKK Properties On December 19, 2013, the Company, through an indirect wholly owned subsidiary (“KBS Acquisition Sub”), entered into an amended and restated asset management services agreement (the “Amended Services Agreement”) with GKK Realty Advisors LLC (the “Property Manager”), an affiliate of Gramercy, with respect to the GKK Properties. The effective date of the Amended Services Agreement was December 1, 2013. Pursuant to the Amended Services Agreement, the Property Manager agreed to provide, among other services: standard asset management services, assistance related to dispositions, accounting services and budgeting and business plans for the GKK Properties (the “Services”). The Property Manager is not affiliated with the Company or KBS Acquisition Sub. As compensation for the Services, the Company agreed to pay the Property Manager: (i) an annual fee of $7.5 million plus all GKK Property-related expenses incurred by the Property Manager, (ii) subject to certain terms and conditions in the Amended Services Agreement, a profit participation interest based on a percentage (ranging from 10% to 30%) of the amount by which the gross fair market value or gross sales price of certain identified portfolios of GKK Properties exceeds the sum of (a) an agreed-upon baseline value for such GKK Property portfolios plus (b) new capital expended to increase the value of GKK Properties within the portfolios and expenditures made to pay for tenant improvements and leasing commissions related to these GKK Properties as of the measurement date, and (iii) a monthly construction oversight fee equal to a percentage of construction costs for certain construction projects at the GKK Properties overseen by the Property Manager. The Amended Services Agreement will terminate on December 31, 2016, with a one-year extension option at the Company’s option, subject to certain terms and conditions contained in the Amended Services Agreement. The Amended Services Agreement supersedes and replaces all prior agreements related to the Services among the Company and its affiliates and the Property Manager and its affiliates.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Jun. 30, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES There have been no significant changes to the Company’s accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2014. For further information about the Company’s accounting policies, refer to the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC. Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The consolidated financial statements include the accounts of the Company, KBS REIT Holdings, the Operating Partnership and their direct and indirect wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements and condensed notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and 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 prior periods. During the six months ended June 30, 2015, the Company sold six properties (of which four were GKK Properties), two of which were held for sale as of December 31, 2014. As a result, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets for all periods presented. Operating results of properties that were classified as held for sale in financial statements prior to January 1, 2014 will remain in discontinued operations on the Company’s consolidated statements of operations. Operating results of properties that were disposed of or classified as held for sale in the ordinary course of business subsequent to January 1, 2014 that had not been classified as held for sale in financial statements issued for the reporting periods prior to January 1, 2014 are included in continuing operations on the Company’s consolidated statements of operations. Per Share Data Basic net income (loss) per share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock equals basic net income (loss) per share of common stock as there were no potentially dilutive securities outstanding during the three and six months ended June 30, 2015 and 2014, respectively. Distributions declared per share of common stock were $0.025 and $0.050 for the three and six months ended June 30, 2015, respectively. On March 6, 2015, the Company’s board of directors declared a distribution in the amount of $0.025 per share of common stock to stockholders of record as of the close of business on March 20, 2015. On May 13, 2015, the Company’s board of directors declared a distribution in the amount of $0.025 per share of common stock to stockholders of record as of the close of business on June 19, 2015. No distributions were declared during the three and six months ended June 30, 2014. Segments The Company’s segments are based on the Company’s method of internal reporting, which classifies its operations by investment type: (i) real estate, (ii) real estate-related and (iii) commercial properties primarily leased to financial institutions received under the Settlement Agreement, the GKK Properties. For financial data by segment, see Note 12, “Segment Information.” Recently Issued Accounting Standards Update In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”). ASU No. 2014-09 requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU No. 2014-09 supersedes the revenue requirements in Revenue Recognition (Topic 605) and most industry-specific guidance throughout the Industry Topics of the Codification. ASU No. 2014-09 does not apply to lease contracts within the scope of Leases (Topic 840). ASU No. 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. On July 9, 2015, the FASB voted to defer the effective date of ASU No. 2014-09 by one year. Early adoption is permitted but not before the original effective date. The Company is still evaluating the impact of adopting ASU No. 2014-09 on its financial statements, but does not expect the adoption of ASU No. 2014-09 to have a material impact on its financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU No. 2014-15”). The amendments in ASU No. 2014-15 require management to evaluate, for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or are available to be issued when applicable) and, if so, provide related disclosures. ASU No. 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not expect the adoption of ASU No. 2014-15 to have a significant impact on its financial statements. In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU No. 2015-01”). The amendments in ASU No. 2015-01 eliminate from GAAP the concept of extraordinary items. Although the amendments will eliminate the requirements in Subtopic 225-20 for reporting entities to consider whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ASU No. 2015-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of ASU No. 2015-01 to have a significant impact on its financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs (“ASU No. 2015-03”). The amendments in ASU No. 2015-03 require debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. ASU No. 2015-03 is limited to the presentation of debt issuance costs and does not affect the recognition and measurement of debt issuance costs. ASU No. 2015-03 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and is to be applied retrospectively. Early adoption is permitted for financial statements that have not been previously issued. The adoption of ASU No. 2015-03 would change the presentation of debt issuance costs as the Company presents debt issuance costs as deferred financing costs, prepaid expenses and other assets, net on the accompanying consolidated balance sheets.

REAL ESTATE HELD FOR INVESTMENT

6 Months Ended

Jun. 30, 2015

Real Estate Held for Investment [Abstract]

REAL ESTATE HELD FOR INVESTMENT

As of June 30, 2015, the Company’s portfolio of real estate held for investment, including the GKK Properties, was composed of approximately 9.2 million rentable square feet and was 80% occupied. These properties are located in 31 states and include office properties, industrial properties and bank branch properties. Included in the Company’s portfolio of real estate held for investment was 5.7 million rentable square feet related to the GKK Properties held for investment, which were 81% occupied as of June 30, 2015.

The following table summarizes the Company’s investments in real estate as of June 30, 2015 and December 31, 2014 (in thousands):



	Land		Buildings and Improvements			Tenant Origination and Absorption Costs			Total Real Estate Held for Investment
As of June 30, 2015:
Office	$	68,178	$	410,719		$	1,563		$	480,460
Industrial	16,787		82,667			2,244			101,698
GKK Properties	180,313		318,647			73,671			572,631
Real estate held for investment, at cost and net of impairment charges	265,278		812,033			77,478			1,154,789
Accumulated depreciation/amortization	—		(158,793		)	(37,327		)	(196,120		)
Real estate held for investment, net	$	265,278	$	653,240		$	40,151		$	958,669
As of December 31, 2014:
Office	$	68,178	$	401,083		$	1,825		$	471,086
Industrial	16,787		80,565			3,137			100,489
GKK Properties	180,313		319,228			74,088			573,629
Real estate held for investment, at cost and net of impairment charges	265,278		800,876			79,050			1,145,204
Accumulated depreciation/amortization	—		(141,306		)	(33,741		)	(175,047		)
Real estate held for investment, net	$	265,278	$	659,570		$	45,309		$	970,157

Operating Leases

The Company’s real estate assets are leased to tenants under operating leases for which the terms and expirations vary. As of June 30, 2015, the Company’s leases, including the GKK Properties held for investment and excluding options to extend, had remaining terms of up to 11.7 years with a weighted-average remaining term of 4.6 years. As of June 30, 2015, leases related to the GKK Properties, excluding options to extend, had remaining terms of up to 11.7 years with a weighted-average remaining term of 4.6 years. Some of the Company’s leases have provisions to extend the term of the leases, options for early termination for all or a part of the leased premises after paying a specified penalty, rights of first refusal to purchase the property at competitive market rates, and other terms and conditions as negotiated. Additionally, the Company assumed several leases related to the GKK Properties which contain shedding rights provisions. As of June 30, 2015, these shedding rights totaled approximately 33,000 square feet and can be exercised at various dates during the remainder of 2015 through 2016. Pursuant to these rights, as of June 30, 2015, a tenant had notified the Company of its intent to shed 30,000 square feet from its leased premises in September 2015. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires a security deposit from the tenant in the form of a cash deposit and/or a letter of credit. The amount required as a security deposit varies depending upon the terms of the respective lease and the creditworthiness of the tenant, but generally is not a significant amount. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in other liabilities in the accompanying consolidated balance sheets and totaled $2.9 million and $3.0 million as of June 30, 2015 and December 31, 2014, respectively.

During the six months ended June 30, 2015 and 2014, the Company recognized deferred rent from tenants of $0.9 million and $1.7 million, respectively. These excess amounts for the six months ended June 30, 2015 and 2014 were net of $0.7 million and $0.7 million of lease incentive amortization, respectively. As of June 30, 2015 and December 31, 2014, the cumulative deferred rent balance was $29.5 million and $27.4 million, respectively, and is included in rents and other receivables on the accompanying balance sheets. The cumulative deferred rent balance included $6.2 million and $5.7 million of unamortized lease incentives as of June 30, 2015 and December 31, 2014, respectively. The Company records property operating expense reimbursements due from tenants for common area maintenance, real estate taxes and other recoverable costs in the period the related expenses are incurred.

The future minimum rental income from the Company’s properties under non-cancelable operating leases, including leases subject to shedding rights and excluding options to extend, as of June 30, 2015 for the years ending December 31 is as follows (in thousands):



July 1, 2015 through December 31, 2015	$	56,749
2016	113,907
2017	105,101
2018	92,065
2019	77,383
Thereafter	198,008
	$	643,213

As of June 30, 2015, the Company’s highest tenant industry concentration (greater than 10% of annualized base rent) was as follows:



Industry	Number of Tenants	Annualized Base Rent ⁽¹⁾ (in thousands)		Percentage of Annualized Base Rent
Finance	72	$	56,839	48.6	%

_____________________

⁽¹⁾Annualized base rent represents annualized contractual base rental income as of June 30, 2015, adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease's inception through the balance of the lease term.

As of June 30, 2015, no other tenant industries accounted for more than 10% of the Company’s annualized base rent. The Company currently has approximately 350 tenants over a diverse range of industries and geographical regions. As of June 30, 2015 and December 31, 2014, the Company had a bad debt expense reserve of $1.2 million and $1.1 million, respectively. The Company’s bad debt expense reserve as of June 30, 2015 and December 31, 2014 included $0.8 million and $0.9 million related to the GKK Properties, respectively. During the six months ended June 30, 2015 and 2014, the Company recorded bad debt expense related to its tenant receivables of $0.4 million and $1.5 million, respectively.

As of June 30, 2015, the Company had a concentration of credit risk related to leases with the following tenant that represented more than 10% of the Company’s annualized base rent:

Annualized Base Rent Statistics

Tenant

Property

Tenant

Industry

Rentable Square Feet

% of

Portfolio Rentable Square Feet

Annualized Base Rent ⁽¹⁾

(in thousands)

% of Portfolio Annualized Base Rent

Annualized Base Rent per Square Foot

Lease Expirations

Bank of America, N.A.

Various

Finance

2,811,855

30.7

%

$

22,494

19.2

%

$

8.00

⁽²⁾

_____________________

⁽¹⁾ Annualized base rent represents annualized contractual base rental income as of June 30, 2015, 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.

⁽²⁾ As of June 30, 2015, lease expiration dates ranged from the remainder of 2015 through 2026 with a weighted-average remaining term of 4.6 years.

Bank of America Corporation is the guarantor of various leases that its subsidiary, Bank of America, N.A., has with the Company. The condensed consolidated financial information of Bank of America Corporation has been included herein because of the significant credit concentration the Company has with this guarantor. Bank of America Corporation currently files its financial statements in reports filed with the SEC, and the following unaudited summary financial data regarding Bank of America Corporation is taken from its previously filed public reports. For more detailed financial information regarding Bank of America Corporation, please refer to its financial statements, which are publicly available with the SEC at http:// www.sec.gov.



	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Consolidated Statements of Income (in millions)
Total revenue, net of interest expense	$	22,117	$	21,747	$	43,319	$	44,313
Income before income taxes	7,519		2,795		12,261		2,114
Net income (loss)	5,320		2,291		8,677		2,015

	As of
	June 30, 2015		December 31, 2014
Consolidated Balance Sheets (in millions)
Total assets	$	2,149,034	$	2,104,534
Total liabilities	1,897,375		1,861,063
Total stockholders’ equity	251,659		243,471

No other tenant represented more than 10% of the Company’s annualized base rent.

Geographic Concentration Risk

As of June 30, 2015, the Company’s net investments in real estate in Virginia represented 10.3% 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 Virginia’s real estate market. Any adverse economic or real estate developments in this market, such as business layoffs or downsizing, industry slowdowns, relocations of businesses, changing demographics and other factors, or any decrease in demand for office or bank branch space resulting from the local business climate, could adversely affect the Company’s operating results.

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES

6 Months Ended

Jun. 30, 2015

Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES

As of June 30, 2015 and December 31, 2014, the Company’s tenant origination and absorption costs, above-market lease assets, and below-market lease liabilities (excluding fully amortized assets and liabilities and accumulated amortization) were as follows (in thousands):



	Tenant Origination and Absorption Costs						Above-Market Lease Assets						Below-Market Lease Liabilities
	June 30, 2015			December 31, 2014			June 30, 2015			December 31, 2014			June 30, 2015			December 31, 2014
Cost, net of impairments	$	77,478		$	79,050		$	32,685		$	32,796		$	(70,667	)	$	(71,141	)
Accumulated amortization	(37,327		)	(33,741		)	(13,103		)	(11,118		)	37,952			33,066
Net Amount	$	40,151		$	45,309		$	19,582		$	21,678		$	(32,715	)	$	(38,075	)

Increases (decreases) in net income as a result of amortization of the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities for the three and six months ended June 30, 2015 and 2014 were as follows (in thousands):



	Tenant Origination and Absorption Costs						Above-Market Lease Assets						Below-Market Lease Liabilities
	For the Three Months Ended June 30,						For the Three Months Ended June 30,						For the Three Months Ended June 30,
	2015			2014			2015			2014			2015		2014
Amortization	$	(2,581	)	$	(3,993	)	$	(1,303	)	$	(1,001	)	$	3,594	$	3,094



	Tenant Origination and Absorption Costs						Above-Market Lease Assets						Below-Market Lease Liabilities
	For the Six Months Ended June 30,						For the Six Months Ended June 30,						For the Six Months Ended June 30,
	2015			2014			2015			2014			2015		2014
Amortization	$	(5,405	)	$	(7,827	)	$	(2,158	)	$	(2,009	)	$	6,239	$	6,115

REAL ESTATE LOANS RECEIVABLE

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

REAL ESTATE LOANS RECEIVABLE

As of June 30, 2015 and December 31, 2014, the Company, through indirect wholly owned subsidiaries, had invested in or originated real estate loans receivable as follows (dollars in thousands):



Loan Name Location of Related Property or Collateral	Date Acquired/ Originated	Property Type	Loan Type	Outstanding Principal Balance as of June 30, 2015⁽¹⁾		Book Value as of June 30, 2015 ⁽²⁾			Book Value as of December 31, 2014 ⁽²⁾			Contractual Interest Rate ⁽³⁾	Annualized Effective Interest Rate ⁽³⁾		Maturity Date
Sandmar Mezzanine Loan Southeast U.S. ⁽⁴⁾	01/09/2007	Retail	Mezzanine	$	5,110	$	5,132		$	5,181		5.4%	—	%	01/01/2017
Lawrence Village Plaza Loan Origination New Castle, Pennsylvania	08/06/2007	Retail	Mortgage	6,917		6,917			6,920			8.0%	8.1	%	09/01/2015
San Diego Office Portfolio B-Note San Diego, California ⁽⁵⁾	10/26/2007	Office	B-Note	20,000		17,849			17,450			5.8%	11.2	%	10/11/2017
4929 Wilshire B-Note Los Angeles, California	11/19/2007	Office	B-Note	3,860		3,431			3,365			6.1%	12.4	%	07/11/2017
				$	35,887	$	33,329		$	32,916
Reserve for Loan Losses ⁽⁶⁾				—		(3,994		)	(3,994		)
				$	35,887	$	29,335		$	28,922

_____________________

⁽¹⁾ Outstanding principal balance as of June 30, 2015 represents original principal balance outstanding under the loan, increased for any subsequent fundings and reduced for any principal paydowns.

⁽²⁾ Book value represents outstanding principal balance, adjusted for unamortized acquisition discounts, origination fees and direct origination and acquisition costs. Loan balances are presented gross of any asset-specific reserves.

⁽³⁾ Contractual interest rate is the stated interest rate on the face of the loan. Annualized effective interest rate is calculated as the actual interest income recognized in 2015, using the interest method, annualized and divided by the average amortized cost basis of the investment during 2015. The contractual interest rates and annualized effective interest rates presented are as of June 30, 2015.

⁽⁴⁾ The Company had recorded an asset-specific loan loss reserve against this investment as of June 30, 2015. See “—Reserve for Loan Losses.”

⁽⁵⁾ The borrower under this note is a wholly owned subsidiary of the Irvine Company. Donald Bren, who is the brother of Peter Bren (one of the Company’s executive officers and sponsors), is the chairman of the Irvine Company. During the six months ended June 30, 2015, the Company recognized $1.0 million of interest income related to its investment in this loan.

⁽⁶⁾ See “—Reserve for Loan Losses.”

As of June 30, 2015 and December 31, 2014, interest receivable from real estate loans receivable was $0.1 million and $0.1 million, respectively, and is included in rents and other receivables.

The following summarizes the activity related to real estate loans receivable for the six months ended June 30, 2015 (in thousands):



Real estate loans receivable, net - December 31, 2014	$	28,922
Principal repayments received on real estate loans receivable	(78		)
Accretion of discounts on purchased real estate loans receivable	506
Amortization of origination fees and costs on purchased and originated real estate loans receivable	(15		)
Real estate loans receivable, net - June 30, 2015	$	29,335

For the three and six months ended June 30, 2015 and 2014, interest income from real estate loans receivable consisted of the following (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Contractual interest income	$	491		$	558		$	976		$	1,111
Interest accretion	258			265			506			522
Amortization of origination fees and costs	(8		)	(9		)	(15		)	(18		)
Interest income from real estate loans receivable	$	741		$	814		$	1,467		$	1,615

The Company generally recognizes income on impaired loans on either a cash basis, where interest income is only recorded when received in cash, or on a cost-recovery basis, where all cash receipts are applied against the carrying value of the loan. The Company will resume the accrual of interest if it determines the collection of interest according to the contractual terms of the loan is probable. The Company considers the collectibility of the loan’s principal balance in determining whether to recognize income on impaired loans on a cash basis or a cost-recovery basis. Beginning in July 2014, interest income received on the Sandmar Mezzanine Loan was recorded on a cost-recovery basis. During the six months ended June 30, 2014, the Company recognized $0.2 million of interest income related to the Sandmar Mezzanine Loan, which has an asset-specific reserve. The Company did not recognize any interest income related to the Sandmar Mezzanine Loan during the six months ended June 30, 2015.

Reserve for Loan Losses

As of June 30, 2015, the total reserve for loan losses consisted of $4.0 million of asset-specific reserves related to the Sandmar Mezzanine Loan, which had an amortized cost basis of $5.1 million.

The Company did not record a provision for loan loss reserves during the six months ended June 30, 2015 or 2014. As of June 30, 2015, the borrower under the Sandmar Mezzanine Loan was delinquent and the Company will recognize income on this loan on a cost-recovery basis.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References+ Details

REAL ESTATE HELD FOR SALE AND DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

REAL ESTATE HELD FOR SALE AND DISCONTINUED OPERATIONS

In accordance with ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU No. 2014-08”), operating results of properties that are classified as held for sale in the ordinary course of business on or subsequent to January 1, 2014 would generally be included in continuing operations on the Company’s consolidated statements of operations. Operating results of properties that were classified as held for sale in financial statements issued for the reporting periods prior to January 1, 2014 will remain in discontinued operations on the Company’s consolidated statement of operations. Prior to the adoption of ASU No. 2014-08, the operations of properties held for sale or to be disposed of and the aggregate net gains recognized upon their disposition were presented as discontinued operations in the accompanying consolidated statements of operations for all periods presented. During the year ended December 31, 2014, the Company disposed of 16 properties (of which 11 were GKK Properties), transferred a portfolio of five GKK Properties to the lender in satisfaction of the debt and other obligations due under the BOA Windsor Mortgage Portfolio, terminated its leasehold interest in three GKK Properties and transferred two GKK Properties to the lenders in connection with foreclosure proceedings. During the six months ended June 30, 2015, the Company disposed of six properties (of which four were GKK Properties) and terminated its leasehold interest in three GKK Properties. As of June 30, 2015, the Company did not own any properties that were classified as held for sale.

The following summary presents the major components of assets and liabilities related to real estate held for sale as of June 30, 2015 and December 31, 2014 (in thousands):



	June 30, 2015		December 31, 2014
Assets related to real estate held for sale
Total real estate, at cost and net of impairment charges	$	—	$	166,715
Accumulated depreciation and amortization	—		(18,361		)
Real estate held for sale, net	—		148,354
Other assets	—		10,462
Total assets related to real estate held for sale	$	—	$	158,816
Liabilities related to real estate held for sale
Notes payable	—		79,969
Other liabilities	—		3,087
Total liabilities related to real estate held for sale	$	—	$	83,056

During the six months ended June 30, 2015, the Company sold two historical real estate properties and three GKK Properties, which properties were not classified as held for sale in financial statements issued for the reporting periods prior to January 1, 2014. During the year ended December 31, 2014, the Company sold four historical real estate properties and two GKK Properties, disposed of a portfolio of five properties in connection with a deed-in-lieu of foreclosure, and transferred two GKK Properties to the lenders in connection with foreclosure proceedings, which properties were not classified as held for sale in financial statements issued for the reporting periods prior to January 1, 2014. In accordance with ASU No. 2014-08, the operations of these properties are included in continuing operations on the Company’s consolidated statements of operations. The following table summarizes certain revenues and expenses related to all of these properties, which were included in continuing operations (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Revenues
Rental income	$	1,518	$	7,880	$	6,280	$	15,773
Tenant reimbursements and other operating income	37		1,436		1,286		3,191
Total Revenues	1,555		9,316		7,566		18,964
Expenses
Operating, maintenance, and management	389		2,621		2,753		5,229
Real estate taxes and insurance	89		1,279		682		2,419
Asset management fees to affiliate	—		193		98		388
General and administrative expenses	2		13		—		20
Depreciation and amortization	—		3,446		1,500		6,885
Interest expense	402		3,714		1,802		7,442
Impairment of real estate	—		939		—		2,196
Total expenses	882		12,205		6,835		24,579

Discontinued Operations

The following table summarizes operating income from discontinued operations for the three and six months ended June 30, 2015 and 2014 (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015		2014
Total revenues and other income	$	—		$	195		$	45	$	886
Total expenses	7			195			7		652
(Loss) income from discontinued operations before gain on sales of real estate, net, and impairment charge	(7		)	—			38		234
Gain on sales of real estate, net	—			89			124		3,006
Impairment charge	—			(81		)	—		(81		)
(Loss) income from discontinued operations	$	(7	)	$	8		$	162	$	3,159

Significant Transactions

101 Independence

On May 1, 2015, the Company, through an indirect wholly owned subsidiary, sold an office building containing 565,694 rentable square feet located in Charlotte, North Carolina (“101 Independence”) to a purchaser unaffiliated with the Company or the Advisor for $107.8 million, or $106.8 million net of concessions and credits. The carrying value of 101 Independence as of the date of sale was $69.5 million, which was net of $13.3 million of accumulated depreciation and amortization. The Company recognized a gain on the disposition of 101 Independence of approximately $35.0 million after fees and expenses.

- Definition

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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-Section 50

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 50

-Paragraph 5C

-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721675-107760

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 360

-SubTopic 10

-Section 50

-Paragraph 3A

-URI http://asc.fasb.org/extlink&oid=51719941&loc=SL51724579-110230

+ Details

FORECLOSED REAL ESTATE HELD FOR SALE	6 Months Ended
FORECLOSED REAL ESTATE HELD FOR SALE	Jun. 30, 2015
Foreclosed Real Estate Held for Sale [Abstract]
FORECLOSED REAL ESTATE HELD FOR SALE	FORECLOSED REAL ESTATE HELD FOR SALE In 2006 and 2007, the Company originally made three debt investments (collectively, the “Tribeca Loans”) related to the conversion of an eight-story loft building into a 10-story condominium building with 62 units (the “Tribeca Building”) located at 415 Greenwich Street in New York, New York. On February 19, 2010, the borrowers under the Tribeca Loans defaulted and the Company foreclosed on the Tribeca Building by exercising its right to accept 100% of the ownership interest of the borrowers. The Company acquired the remaining unsold condominium units of the Tribeca Building (the residential, retail and parking space condominium units transferred to the Company are, collectively, the “Units” and, individually, each is a “Unit”) and assumed the project liabilities. The Company recorded the Tribeca Building at fair value using a discounted cash flow valuation model based on the net realizable value (expected sales price less estimated costs to sell the unsold Units) of the real estate. As of December 31, 2014, the Company’s investment in the Tribeca Building consisted of two Units with a carrying value of $12.0 million and is presented as foreclosed real estate held for sale on the consolidated balance sheet. During the six months ended June 30, 2015, the Company sold the remaining two Units and recognized a gain on sale of $2.5 million (which gain on sale has been reduced by disposition fees to the Advisor of $0.2 million related to these two Units) and recorded expenses of $0.3 million related to foreclosed real estate held for sale. During the six months ended June 30, 2014, the Company did not sell any Units of the Tribeca Building and recorded expenses of $0.7 million related to foreclosed real estate held for sale.

NOTES PAYABLE

6 Months Ended

Jun. 30, 2015

Notes Payable [Abstract]

NOTES PAYABLE

As of June 30, 2015 and December 31, 2014, the Company’s notes payable, including notes payable related to real estate held for sale, consisted of the following (dollars in thousands):



Loan Type	Book Value as of June 30, 2015		Book Value as of December 31, 2014		Contractual Interest Rates as of June 30, 2015 ⁽¹⁾	Weighted-Average Interest Rates as of June 30, 2015 ⁽¹⁾	Weighted-Average Remaining Term in Years ⁽²⁾
Fixed Rate
Mortgage loans	$	62,200	$	62,200	5.9%	5.9%	1.3
GKK Properties mortgage loans ⁽³⁾	312,090		381,179		5.3% - 6.8%	5.9%	3.9
	374,290		443,379
Variable Rate

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