ORGANIZATION KBS Growth &amp; Income REIT, Inc. (the Company) was formed on January 12, 2015 as a Maryland corporation that elected to be taxed as a real estate investment trust (REIT) beginning with the taxable year ended December 31, 2015. Substantially all of the Companys business is conducted through KBS Growth &amp; Income Limited Partnership (the Operating Partnership), a Delaware limited partnership formed on January 14, 2015. The Company is the sole general partner of, and owns a 0.1% partnership interest in, the Operating Partnership. KBS Growth &amp; Income REIT Holdings LLC (REIT Holdings), a Delaware limited liability company formed on January 14, 2015, owns the remaining 99.9% partnership interest in the Operating Partnership and is the sole limited partner. The Company is the sole member and manager of REIT Holdings. Subject to certain restrictions and limitations, the business of the Company is externally managed by KBS Capital Advisors LLC (the Advisor), an affiliate of the Company, pursuant to an advisory agreement between the Company and the Advisor initially entered into on June 11, 2015, and amended at various times thereafter (the Advisory Agreement). The Advisor conducts the Companys operations and manages its portfolio of core real estate properties. On January 27, 2015, the Company issued 20,000 shares of its common stock to the Advisor at a purchase price of $10.00 per share. On June 11, 2015, these outstanding shares of common stock were designated Class A shares of common stock. As of June 30, 2020, the Company owned three office properties and had made an investment in an unconsolidated joint venture. The Company has invested in a portfolio of core real estate properties. The Company considers core properties to be existing properties with at least 80% occupancy. The Companys core focus in the U.S. office sector reflects a value-creating core strategy, which is also known as a core-plus strategy. The Company commenced a private placement offering exempt from registration pursuant to Rule 506(b) of Regulation D of the Securities Act of 1933, as amended, on June 11, 2015, pursuant to which the Company offered a maximum of $105,000,000 in shares of its Class A common stock for sale to accredited investors (the Initial Private Offering), of which $5,000,000 of Class A shares were offered pursuant to the Companys distribution reinvestment plan. The Company ceased offering shares in the primary portion of the Initial Private Offering on April 27, 2016 and processed subscriptions for the primary Initial Private Offering dated on or prior to April 27, 2016 through May 30, 2016. KBS Capital Markets Group LLC (the Dealer Manager), an affiliate of the Advisor, served as the dealer manager of the Initial Private Offering pursuant to a dealer manager agreement dated June 11, 2015 (the Initial Private Offering Dealer Manager Agreement). On February 4, 2015, the Company filed a registration statement on Form S-11 with the Securities and Exchange Commission (the SEC) to register an initial public offering of its common stock to offer a maximum of $1,500,000,000 in shares of common stock for sale to the public in a primary offering, consisting of two classes of shares: Class A and Class T (the Primary Offering) and a maximum of $800,000,000 in both classes of shares of its common stock pursuant to the Companys distribution reinvestment plan (the DRP Offering and, together with the Primary Offering, the Public Offering). The SEC declared the Companys registration statement effective on April 28, 2016 and the Company retained the Dealer Manager to serve as the dealer manager of the Public Offering pursuant to a dealer manager agreement dated April 28, 2016 (the Public Offering Dealer Manager Agreement). The Company terminated the Primary Offering effective June 30, 2017. On August 5, 2020, the board of directors of the Company approved the termination of the DRP Offering effective August 20, 2020. On October 3, 2017, the Company launched a private placement offering exempt from registration pursuant to Rule 506(c) of Regulation D of the Securities Act pursuant to which the Company offered a maximum of $1,000,000,000 in shares of its Class A common stock to accredited investors (the Second Private Offering). Prior to the launch of the Second Private Offering, on September 29, 2017, the Company entered into a dealer manager agreement (the NCPS Dealer Agreement) with the Advisor and North Capital Private Securities Corporation (NCPS) in connection with the Second Private Offering. In December 2019, the Companys board of directors suspended the Second Private Offering and terminated the Second Private Offering on August 5, 2020. The Company sold 8,548,972 shares of Class A common stock for gross offering proceeds of $76.8 million in the Initial Private Offering, including 74,744 shares of Class A common stock under its distribution reinvestment plan for gross offering proceeds of $0.7 million. The Company sold 122,721 and 270,415 shares of Class A and Class T common stock, respectively, in the Primary Offering for aggregate gross offering proceeds of $3.9 million. As of June 30, 2020, the Company had sold 876,321 and 40,474 shares of Class A and Class T common stock, respectively, in the DRP Offering for aggregate gross offering proceeds of $8.4 million. As of June 30, 2020, the Company had sold 612,272 shares of Class A common stock in the Second Private Offering for aggregate gross offering proceeds of $5.5 million. As of June 30, 2020, the Company had redeemed 446,022 and 2,245 Class A and Class T shares, respectively, for $3.7 million. Additionally, on August 11, 2015, the Company issued 46,362 shares of Class A common stock to the Companys affiliates, for an aggregate of $0.3 million, in private transactions exempt from the registration requirements pursuant to Section 4(a)(2) of the Securities Act of 1933. COVID-19 Pandemic One of the most significant risks and uncertainties facing the Company and the real estate industry generally continues to be the effect of the ongoing public health crisis of the novel coronavirus disease (COVID-19) pandemic. The Company continues to closely monitor the impact of the COVID-19 pandemic on all aspects of its business, including how the pandemic is affecting its tenants. During the six months ended June 30, 2020, the Company did not experience significant disruptions in its operations from the COVID-19 pandemic. The Company did, however, recognize impairment charges related to a projected reduction in cash flows as a result of changes in leasing projections that were impacted in part by the COVID-19 pandemic. In addition, reductions in property values related to the impact of the COVID-19 pandemic may limit the Companys ability to draw on the revolving commitment under its term loan due to covenants described in the loan agreement. Many of the Companys tenants have experienced disruptions in their business, some more severely than others. In general, the Companys retail tenants, which comprise approximately 5% of its annualized base rent, have been more severely impacted by the COVID-19 pandemic than its office tenants. During the last quarter, the Company granted rent relief to a small number of tenants, but as the impact of the pandemic continues to be felt, these tenants or additional tenants may request rent relief in future periods or become unable to pay rent, and the Company is unable to predict the ultimate impact the pandemic will have on its financial condition, results of operations and cash flows due to numerous uncertainties. The extent to which the COVID-19 pandemic impacts the Companys operations and those of its tenants depends on future developments, which remain uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others. Liquidation Strategy On November 7, 2018, the board of directors of the Company formed a special committee comprised of the independent directors to evaluate various strategic alternatives for the Company. With input from the Advisor, and with the assistance of its own independent financial advisor, the special committee conducted a detailed assessment of the portfolio, taking into account the prevailing conditions of the real estate and financial markets and the economic conditions in the submarkets where the properties are located, the inability to raise substantial funds in the offerings and subsequent inability to acquire a diverse portfolio of investments resulting in the fixed costs associated with managing a public REIT and the portfolio of real estate investments being a greater percentage of the net operating income of the Company. Based upon the special committees assessment and recommendation, the board of directors determined that it is in the best interests of the Company and its stockholders to pursue a liquidation strategy through asset sales. The special committee has directed the Advisor, with the assistance of the independent financial advisor of the special committee, to develop a plan of liquidation for approval by the board and submission to our stockholders. The Company currently expects to present a plan of liquidation for a vote of the stockholders of the Company within the next three to six months, with the goal of completing the liquidation of the Company no later than the end of 2022. Stockholders are cautioned, however, that the Company currently has no agreements in place to sell any of its assets and economic and market conditions that arise in the future including the effect of the ongoing pandemic related to COVID-19 could impact this process and could influence the Company to either accelerate or delay the implementation of a plan of liquidation.