Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 27, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | GOOD | |
Entity Registrant Name | GLADSTONE COMMERCIAL CORP | |
Entity Central Index Key | 1,234,006 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 22,065,674 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
ASSETS | |||
Real estate, at cost | $ 761,458 | $ 722,565 | |
Less: accumulated depreciation | 104,877 | 92,133 | |
Total real estate, net | 656,581 | 630,432 | |
Lease intangibles, net | 105,963 | 98,814 | |
Real estate and related assets held for sale, net | 16,832 | ||
Mortgage note receivable | 5,900 | 5,600 | |
Cash and cash equivalents | 3,730 | 8,599 | |
Restricted cash | 4,761 | 3,547 | |
Funds held in escrow | 10,936 | 11,096 | |
Deferred rent receivable, net | 25,098 | 21,728 | |
Deferred financing costs, net | 6,011 | 6,213 | |
Other assets | 2,671 | 1,765 | |
TOTAL ASSETS | 838,483 | 787,794 | |
LIABILITIES | |||
Mortgage notes payable | 482,912 | 459,299 | |
Borrowings under line of credit | 55,500 | 43,300 | |
Redeemable preferred stock | 38,500 | 38,500 | |
Deferred rent liability, net | 9,014 | 8,594 | |
Asset retirement obligation | 3,542 | 3,616 | |
Accounts payable and accrued expenses | 7,820 | 8,285 | |
Liabilities related to assets held for sale | 1,304 | ||
Due to Adviser and Administrator | [1] | 1,820 | 916 |
Other liabilities | 7,644 | 7,612 | |
Total Liabilities | $ 608,056 | $ 570,122 | |
Commitments and contingencies | [2] | ||
STOCKHOLDERS' EQUITY | |||
Redeemable preferred stock | $ 2 | $ 2 | |
Senior common stock, par value $0.001 per share; 7,500,000 shares authorized and 993,069 and 809,411 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively | 1 | 1 | |
Common stock, par value $0.001 per share, 38,500,000 shares authorized and 21,743,779 and 19,589,606 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively | 22 | 20 | |
Additional paid in capital | 408,401 | 369,748 | |
Notes receivable - employee | (375) | ||
Distributions in excess of accumulated earnings | (177,999) | (151,724) | |
Total Stockholders' Equity | 230,427 | 217,672 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 838,483 | $ 787,794 | |
[1] | Refer to Note 2 "Related-Party Transactions" | ||
[2] | Refer to Note 9 "Commitments and Contingencies" |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Redeemable preferred stock, shares issued | 2,150,000 | 2,150,000 |
Senior common stock, par value | $ 0.001 | $ 0.001 |
Senior common stock, shares authorized | 7,500,000 | 7,500,000 |
Senior common stock, shares issued | 993,069 | 809,411 |
Senior common stock, shares outstanding | 993,069 | 809,411 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 38,500,000 | 38,500,000 |
Common stock, shares issued | 21,743,779 | 19,589,606 |
Common stock, shares outstanding | 21,743,779 | 19,589,606 |
Series A and B Preferred Stock [Member] | ||
Redeemable preferred stock, par value | $ 0.001 | $ 0.001 |
Redeemable preferred stock, liquidation preference | $ 25 | $ 25 |
Redeemable preferred stock, shares authorized | 2,300,000 | 2,300,000 |
Redeemable preferred stock, shares issued | 2,150,000 | 2,150,000 |
Redeemable preferred stock, shares outstanding | 2,150,000 | 2,150,000 |
Mandatorily Redeemable Preferred Stock [Member] | Series C Preferred Stock [Member] | ||
Redeemable preferred stock, par value | $ 0.001 | $ 0.001 |
Redeemable preferred stock, liquidation preference | $ 25 | $ 25 |
Redeemable preferred stock, shares authorized | 1,700,000 | 1,700,000 |
Redeemable preferred stock, shares issued | 1,540,000 | 1,540,000 |
Redeemable preferred stock, shares outstanding | 1,540,000 | 1,540,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |||||
Operating revenues | ||||||||
Rental revenue | $ 20,653 | $ 18,368 | $ 59,953 | $ 52,573 | ||||
Tenant recovery revenue | 437 | 549 | 1,195 | 1,870 | ||||
Interest income from mortgage note receivable | 285 | 97 | 835 | 97 | ||||
Total operating revenues | 21,375 | 19,014 | 61,983 | 54,540 | ||||
Operating expenses | ||||||||
Depreciation and amortization | 9,006 | 7,516 | 26,160 | 21,107 | ||||
Property operating expenses | 1,612 | 1,202 | 3,752 | 3,834 | ||||
Acquisition related expenses | 138 | 233 | 589 | 1,202 | ||||
Base management fee | [1] | 872 | 741 | 2,589 | 2,031 | |||
Incentive fee | [1] | 621 | 1,538 | 4,054 | 4,305 | |||
Administration fee | [1] | 326 | 260 | 1,054 | 1,238 | |||
General and administrative | 446 | 538 | 1,675 | 1,495 | ||||
Impairment charge | 622 | 280 | 622 | 14,238 | ||||
Total operating expenses before credit to incentive fee | 13,643 | 12,308 | 40,495 | 49,450 | ||||
Credit to incentive fee | 0 | (851) | [1] | (2,500) | [1] | (3,013) | [1] | |
Total operating expenses | 13,643 | 11,457 | 37,995 | 46,437 | ||||
Other expense | ||||||||
Interest expense | (7,142) | (6,679) | (20,912) | (19,463) | ||||
Gain on sale of real estate | 1,240 | |||||||
Other income | 37 | 11 | 111 | |||||
Total other expense | (7,828) | (7,328) | (22,958) | (20,169) | ||||
Net (loss) income | (96) | 229 | 1,030 | (12,066) | ||||
Distributions attributable to senior common stock | (263) | (137) | (748) | (347) | ||||
Net loss attributable to common stockholders | $ (1,382) | $ (931) | $ (2,788) | $ (15,483) | ||||
Loss per weighted average share of common stock - basic & diluted Loss attributable to common shareholders | $ (0.06) | $ (0.05) | $ (0.13) | $ (0.93) | ||||
Weighted average shares of common stock outstanding | ||||||||
Basic | 21,403,808 | 17,739,084 | 20,820,559 | 16,685,162 | ||||
Diluted | 21,403,808 | 17,739,084 | 20,820,559 | 16,685,162 | ||||
Earnings per weighted average share of senior common stock | $ 0.26 | $ 0.26 | $ 0.79 | $ 0.79 | ||||
Weighted average shares of senior common stock outstanding - basic | 993,069 | 518,592 | 948,347 | 438,196 | ||||
Series C Preferred Stock [Member] | ||||||||
Other expense | ||||||||
Distributions attributable to Series C mandatorily redeemable preferred stock | $ (686) | $ (686) | $ (2,057) | $ (2,057) | ||||
Series A and B Preferred Stock [Member] | ||||||||
Other expense | ||||||||
Distributions attributable to Series A and B preferred stock | $ (1,023) | $ (1,023) | $ (3,070) | $ (3,070) | ||||
[1] | Refer to Note 2 "Related-Party Transactions" |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 1,030 | $ (12,066) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 26,160 | 21,107 |
Impairment charge | 622 | 14,238 |
Gain on sale of real estate | (1,240) | |
Amortization of deferred financing costs | 1,358 | 1,209 |
Amortization of deferred rent asset and liability, net | (394) | (266) |
Amortization of discount and premium on assumed debt | (231) | (190) |
Asset retirement obligation expense | 114 | (96) |
Increase in other assets | (946) | (322) |
Increase in deferred rent liability | 311 | |
Increase in deferred rent receivable | (3,034) | (2,808) |
Increase (decrease) in accounts payable, accrued expenses, and amount due Adviser and Administrator | 1,045 | (538) |
(Decrease) increase in other liabilities | (315) | 238 |
Leasing commissions paid | (532) | (898) |
Net cash provided by operating activities | 24,877 | 18,679 |
Cash flows from investing activities: | ||
Acquisition of real estate and related intangible assets | (71,248) | (83,564) |
Improvements of existing real estate | (4,969) | (5,416) |
Proceeds from sale of real estate | 11,162 | |
Issuance of mortgage note receivable | (300) | (5,600) |
Receipts from lenders for funds held in escrow | 2,952 | 1,670 |
Payments to lenders for funds held in escrow | (2,792) | (6,394) |
Receipts from tenants for reserves | 3,068 | 2,484 |
Payments to tenants from reserves | (1,992) | (3,892) |
(Increase) decrease in restricted cash | (1,214) | 1,510 |
Deposits on future acquisitions | (1,700) | (2,000) |
Deposits applied against acquisition of real estate investments | 1,700 | 2,000 |
Net cash used in investing activities | (76,495) | (88,040) |
Cash flows from financing activities: | ||
Proceeds from issuance of equity | 39,495 | 42,636 |
Offering costs paid | (892) | (2,443) |
Borrowings under mortgage notes payable | 61,059 | 33,635 |
Payments for deferred financing costs | (1,157) | (711) |
Principal repayments on mortgage notes payable | (37,216) | (6,085) |
Principal repayments on employee notes receivable | 375 | |
Borrowings from line of credit | 73,200 | 67,250 |
Repayments on line of credit | (61,000) | (46,050) |
Increase (decrease) in security deposits | 138 | (103) |
Distributions paid for common, senior common and preferred stock | (27,253) | (22,077) |
Net cash provided by financing activities | 46,749 | 66,052 |
Net decrease in cash and cash equivalents | (4,869) | (3,309) |
Cash and cash equivalents, beginning of period | 8,599 | 8,546 |
Cash and cash equivalents, end of period | 3,730 | 5,237 |
NON-CASH INVESTING AND FINANCING INFORMATION | ||
Increase in asset retirement obligation | 56 | 162 |
Fixed rate principal debt assumed in connection with acquisition | 10,147 | |
Senior common dividend issued in the dividend reinvestment program | 53 | 142 |
Capital improvements included in accounts payable and accrued expenses | $ 4,954 | $ 5,774 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Basis of Presentation and Significant Accounting Policies | 1. Organization, Basis of Presentation and Significant Accounting Policies Gladstone Commercial Corporation is a real estate investment trust, or REIT, that was incorporated under the General Corporation Laws of the State of Maryland on February 14, 2003, primarily for the purpose of investing in and owning net leased industrial, commercial and retail real property and selectively making long-term industrial and commercial mortgage loans. Subject to certain restrictions and limitations, our business is managed by Gladstone Management Corporation, a Delaware corporation, or the Adviser, and administrative services are provided by Gladstone Administration, LLC, a Delaware limited liability company, or the Administrator, each pursuant to a contractual arrangement with us. Our Adviser and Administrator collectively employ all of our personnel and pay their salaries, benefits, and general expenses directly. Gladstone Commercial Corporation conducts substantially all of its operations through a subsidiary, Gladstone Commercial Limited Partnership, a Delaware limited partnership, or the Operating Partnership. All further references herein to “we,” “our,” “us” and the “Company” mean Gladstone Commercial Corporation and its consolidated subsidiaries, except where it is made clear that the term means only Gladstone Commercial Corporation. Interim Financial Information Our interim financial statements are prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial information and pursuant to the requirements for reporting on Form 10-Q and in accordance with Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with GAAP are omitted. The year-end balance sheet data presented herein was derived from audited financial statements, but does not include all disclosures required by GAAP. In the opinion of our management, all adjustments, consisting solely of normal recurring accruals, necessary for the fair presentation of financial statements for the interim period, have been included. The interim financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the U.S. Securities and Exchange Commission on February 18, 2015. The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. Critical Accounting Policies The preparation of our financial statements in accordance with GAAP requires management to make judgments that are subjective in nature to make certain estimates and assumptions. Application of these accounting policies involves the exercise of judgment regarding the use of assumptions as to future uncertainties, and as a result, actual results could differ materially from these estimates. A summary of all of our significant accounting policies is provided in Note 1 to our condensed consolidated financial statements included in our 2014 Form 10-K. There were no material changes to our critical accounting policies during the nine months ended September 30, 2015. Recently Issued Accounting Pronouncements In February 2015, the FASB issued ASU 2015-02, “Amendments to the Consolidation Analysis” (“ASU-2015-02”), which amends or supersedes the scope and consolidation guidance under existing GAAP. The new standard changes the way a reporting entity evaluates whether a) limited partnerships and similar entities should be consolidated, b) fees paid to decision makers or service provides are variable interests in a variable interest entity, or VIE, and c) variable interests in a VIE held by related parties require the reporting entity to consolidate the VIE. ASU 2015-02 also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities. We do not anticipate a material impact on our financial position, results of operations or cash flows from adopting this standard. ASU 2015-02 is effective for annual and interim reporting periods beginning after December 15, 2015, with early adoption permitted. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU-2015-03”), which simplifies the presentation of debt issuance costs. We do not anticipate a material impact on our financial position, results of operations or cash flows from adopting this standard. ASU 2015-03 is effective for annual and interim reporting periods beginning after December 15, 2015 with early adoption permitted. In August 2015, the FASB issued ASU 2015-15, “Interest – Imputation of Interest (Subtopic 835-30)” (“ASU 2015-15”), which codifies an SEC staff announcement that entities are permitted to defer and present debt issuance costs related to line of credit arrangements as assets. We have assessed the impact of ASU 2015-15 and identified no impact on our financial position, results of operations or cash flows from adopting this standard. ASU 2015-15 was effective immediately. In September 2015, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”), pertaining to entities that have reported provisional amounts for items in a business combination for which the accounting is incomplete by the end of the reporting period in which the combination occurs and during the measurement period have an adjustment to provisional amounts recognized. The guidance requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Any adjustments should be calculated as if the accounting had been completed at the acquisition date. We are currently assessing the impact of ASU 2015-16 do not anticipate a material impact on our financial position, results of operations or cash flows from adopting this standard. ASU 2015-16 is effective for annual and interim periods beginning after December 15, 2015 with early adoption permitted. |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 2. Related-Party Transactions Gladstone Management and Gladstone Administration We are externally managed pursuant to contractual arrangements with our Adviser and our Administrator, which collectively employ all of our personnel and pay their salaries, benefits, and general expenses directly. Both our Adviser and Administrator are affiliates of ours, as their parent company is controlled by Mr. David Gladstone, our chairman and chief executive officer. We have an advisory agreement with our Adviser, and an administration agreement with our Administrator, or the Administration Agreement. The services and fees under the advisory agreement and Administration Agreement are described below. At September 30, 2015 and December 31, 2014, $1.8 million and $0.9 million, respectively, was collectively due to our Adviser and Administrator. Base Management Fee On July 24, 2015, we entered into an amended and restated advisory agreement, or the Amended Advisory Agreement, with the Adviser. Our entrance into the agreement was approved unanimously by our Board of Directors, including separate and unanimous approval by the independent directors on our Board of Directors. Pursuant to the terms of the Amended Advisory Agreement, effective July 1, 2015, the calculation of the annual base management fee equals 1.5% of our adjusted total stockholders’ equity, which is our total stockholders’ equity (before giving effect to the base management fee and incentive fee), adjusted to exclude the effect of any unrealized gains or losses that do not affect realized net income (including impairment charges) and adjusted for any one-time events and certain non-cash items (the later to occur for a given quarter only upon the approval of our Compensation Committee). The fee is calculated and accrued quarterly as 0.375% per quarter of such adjusted total stockholders’ equity figure. Prior to its amendment and restatement on July 24, 2015, our then-existing advisory agreement with the Adviser, or the Former Advisory Agreement, provided for an annual base management fee equal to 2.0% of our common stockholders’ equity, which was our total stockholders’ equity, less the recorded value of any preferred stock and adjusted to exclude the effect of any unrealized gains, losses, or other items that did not affect realized net income (including impairment charges). For the three and nine months ended September 30, 2015, we recorded a base management fee of $0.9 million and $2.6 million, respectively, and for the three and nine months ended September 30, 2014, we recorded a base management fee of $0.7 million and $2.0 million, respectively. Incentive Fee Under the Amended Advisory Agreement, effective July 1, 2015, the calculation of the incentive fee was revised to reward the Adviser in circumstances where our quarterly Core FFO (defined at the end of this paragraph), before giving effect to any incentive fee, or pre-incentive fee Core FFO, exceeds 2.0% quarterly, or 8.0% annualized, of adjusted total stockholders’ equity (after giving effect to the base management fee but before giving effect to the incentive fee). We refer to this as the new hurdle rate. The Adviser will receive 15.0% of the amount of our pre-incentive fee Core FFO that exceeds the new hurdle rate. However, in no event shall the incentive fee for a particular quarter exceed by 15.0% (the cap) the average quarterly incentive fee paid by us for the previous four quarters (excluding quarters for which no incentive fee was paid). Core FFO is defined as GAAP net income (loss) available to common stockholders, excluding the incentive fee, depreciation and amortization, any realized and unrealized gains, losses or other non-cash items recorded in net income (loss) available to common stockholders for the period, and one-time events pursuant to changes in GAAP. The incentive fee under the Former Advisory Agreement rewarded the Adviser in circumstances where our quarterly FFO, before giving effect to any incentive fee, or pre-incentive fee FFO, exceeded 1.75%, or 7.0% annualized, or the hurdle rate, of common stockholders’ equity. Funds from operations, or FFO, included any realized capital gains and capital losses, less any distributions paid on preferred stock and Senior Common Stock, but FFO did not include any unrealized capital gains or losses (including impairment charges). The Adviser received 100.0% of the amount of the pre-incentive fee FFO that exceeded the hurdle rate, but was less than 2.1875% of our common stockholders’ equity. The Adviser also received an incentive fee of 20.0% of the amount of our pre-incentive fee FFO that exceeded 2.1875% of common stockholders’ equity. For the three and nine months ended September 30, 2015, we recorded an incentive fee of $0.6 million and $4.1 million, respectively, offset by credits related to unconditional, voluntary and irrevocable waivers issued by the Adviser of $0.00 and $2.5 million, respectively, resulting in a net incentive fee for the three and nine months ended September 30, 2015, of $0.6 million and $1.6 million, respectively. For the three and nine months ended September 30, 2014, we recorded an incentive fee of $1.5 million and $4.3 million, respectively, offset by credits related to unconditional, voluntary and irrevocable waivers issued by the Adviser of $0.8 million and $3.0 million, respectively, resulting in a net incentive fee for the three and nine months ended September 30, 2014, of $0.7 million and $1.3 million, respectively. Our Board of Directors accepted the Adviser’s offer to waive, on a quarterly basis, a portion of the incentive fee for the six months covering January 1, 2015 through June 30, 2015, and for the three and nine months ended September 30, 2014, in order to support the current level of distributions to our stockholders. Due to the Amended Advisory agreement, the Advisor did not waive any portion of the incentive fee for the three months ended September 30, 2015. Waivers cannot be recouped by the Adviser in the future. Capital Gain Fee Under the Amended Advisory Agreement, effective July 1, 2015, we will pay to the Adviser a capital gains-based incentive fee that will be calculated and payable in arrears as of the end of each fiscal year (or upon termination of the agreement). In determining the capital gain fee, we will calculate aggregate realized capital gains and aggregate realized capital losses for the applicable time period. For this purpose, aggregate realized capital gains and losses, if any, equals the realized gain or loss calculated by the difference between the sales price of the property, less any costs to sell the property and the current gross value of the property (which is calculated as the original acquisition price plus any subsequent non-reimbursed capital improvements). At the end of the fiscal year, if this number is positive, then the capital gain fee payable for such time period shall equal 15.0% of such amount. We did not incur a capital gain fee for the three and nine months ended September 30, 2015. Termination Fee The Amended Advisory Agreement includes a termination fee whereby, in the event of our termination of the agreement without cause (with 120 days’ prior written notice and the vote of at least two-thirds of our independent directors), a termination fee would be payable to the Adviser equal to two times the sum of the average annual base management fee and incentive fee earned by the Adviser during the 24-month period prior to such termination. A termination fee is also payable if the Adviser terminates the agreement after the Company has defaulted and applicable cure periods have expired. The agreement may also be terminated for cause by us (with 30 days’ prior written notice and the vote of at least two-thirds of our independent directors), with no termination fee payable. Cause is defined in the agreement to include if the Adviser breaches any material provisions of the agreement, the bankruptcy or insolvency of the Adviser, dissolution of the Adviser and fraud or misappropriation of funds. Administration Agreement Pursuant to the Administration Agreement, we pay for our allocable portion of the Administrator’s expenses in performing services to us, including, but not limited to, rent and the salaries and benefits of its personnel, including our chief financial officer, treasurer, chief compliance officer, general counsel and secretary (who also serves as our Administrator’s president), and their respective staffs. Prior to July 1, 2014, our allocable portion was generally derived by multiplying that portion of the Administrator’s expenses allocable to all funds managed by the Adviser by the percentage of our total assets at the beginning of each quarter in comparison to the total assets of all funds managed by the Adviser. As approved by our Board of Directors, effective July 1, 2014, our allocable portion of the Administrator’s expenses is derived by multiplying our Administrator’s total expenses by the approximate percentage of time the Administrator’s employees perform services for us in relation to their time spent performing services for all companies serviced by our Administrator under contractual agreements. For the three and nine months ended September 30, 2015, we recorded an administration fee of $0.3 million and $1.1 million, respectively, and for the three and nine months ended September 30, 2014, we recorded an administration fee of $0.3 million and $1.2 million, respectively. Gladstone Securities Gladstone Securities, LLC, or Gladstone Securities, is a privately held broker dealer registered with the Financial Industry Regulatory Authority and insured by the Securities Investor Protection Corporation. Gladstone Securities is an affiliate of ours, as its parent company is controlled by Mr. David Gladstone, our chairman and chief executive officer. Mr. Gladstone also serves on the board of managers of Gladstone Securities. Dealer Manager Agreement In connection with the offering of our Senior Common Stock (see Note 10, “Stockholders’ Equity,” for further details) we entered into a Dealer Manager Agreement, dated March 25, 2011, or the Dealer Manager Agreement, with Gladstone Securities pursuant to which Gladstone Securities agreed to act as our exclusive dealer manager in connection with the offering. The Dealer Manager Agreement terminated according to its terms on March 28, 2015, requiring us to write-off $0.1 million of deferred offering costs to general and administrative expense. Pursuant to the terms of the Dealer Manager Agreement, Gladstone Securities was entitled to receive a sales commission in the amount of 7.0% of the gross proceeds of the shares of Senior Common Stock sold, plus a dealer manager fee in the amount of 3.0% of the gross proceeds of the shares of Senior Common Stock sold. In addition, we agreed to indemnify Gladstone Securities against various liabilities, including certain liabilities arising under the federal securities laws. We made approximately $0.3 million of payments during the three months ended March 31, 2015 and we made approximately $0.3 million and $0.4 million of payments during the three and nine months ended September 30, 2014, respectively, to Gladstone Securities pursuant to this agreement. All such payments are reflected as a component of Senior Common Stock costs as reflected in footnote 10. Mortgage Financing Arrangement Agreement We also entered into an agreement with Gladstone Securities, effective June 18, 2013, for it to act as our non-exclusive agent to assist us with arranging mortgage financing for properties we own. In connection with this engagement, Gladstone Securities may from time to time solicit the interest of various commercial real estate lenders or recommend to us third party lenders offering credit products or packages that are responsive to our needs. We pay Gladstone Securities a financing fee in connection with the services it provides to us for securing mortgage financing on any of our properties. The amount of these financing fees, which are payable upon closing of the financing, are based on a percentage of the amount of the mortgage, generally ranging from 0.15% to a maximum of 1.0% of the mortgage obtained. The amount of the financing fees may be reduced or eliminated, as determined by us and Gladstone Securities, after taking into consideration various factors, including, but not limited to, the involvement of any third party brokers and market conditions. We paid financing fees to Gladstone Securities of $0.02 million and $0.2 million during the three and nine months ended September 30, 2015, which are reflected as deferred financing costs in the condensed consolidated balance sheets, on total mortgages secured of $9.2 million and $64.3 million, or 0.3% of total mortgages secured. We paid financing fees of $0.02 million and $0.1 million during the three and nine months ended September 30, 2014, on total mortgages secured of $6.1 million and $33.6 million, or 0.3% of total mortgages secured. The agreement is scheduled to terminate on August 31, 2016, unless renewed or earlier terminated pursuant to the provisions contained therein. |
Loss per Share of Common Stock
Loss per Share of Common Stock | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Loss per Share of Common Stock | 3. Loss per Share of Common Stock The following tables set forth the computation of basic and diluted loss per share of common stock for each of the three and nine months ended September 30, 2015 and 2014, respectively. We computed basic loss per share for the three and nine months ended September 30, 2015 and 2014, respectively, using the weighted average number of shares outstanding during the periods. Diluted loss per share for the three and nine months ended September 30, 2015 and 2014, reflects additional shares of common stock related to our convertible Senior Common Stock (if the effect would be dilutive), that would have been outstanding if dilutive potential shares of common stock had been issued, as well as an adjustment to net income available to common stockholders as applicable to common stockholders that would result from their assumed issuance (dollars in thousands, except per share amounts). For the three months ended September 30, For the nine months ended September 30, 2015 2014 2015 2014 Calculation of basic loss per share of common stock: Net loss attributable to common stockholders $ (1,382 ) $ (931 ) $ (2,788 ) $ (15,483 ) Denominator for basic weighted average shares of common stock 21,403,808 17,739,084 20,820,559 16,685,162 Basic loss per share of common stock $ (0.06 ) $ (0.05 ) $ (0.13 ) $ (0.93 ) Calculation of diluted loss per share of common stock: Net loss attributable to common stockholders $ (1,382 ) $ (931 ) $ (2,788 ) $ (15,483 ) Net loss attributable to common stockholders plus assumed conversions (1) $ (1,382 ) $ (931 ) $ (2,788 ) $ (15,483 ) Denominator for basic weighted average shares of common stock 21,403,808 17,739,084 20,820,559 16,685,162 Denominator for diluted weighted average shares of common stock (1) 21,403,808 17,739,084 20,820,559 16,685,162 Diluted loss per share of common stock $ (0.06 ) $ (0.05 ) $ (0.13 ) $ (0.93 ) (1) We excluded convertible shares of Senior Common Stock of 828,444 and 791,582 from the calculation of diluted earnings per share for the three and nine months ended September 30, 2015, respectively, because it was anti-dilutive. We also excluded 429,673 and 362,162 shares of convertible Senior Common Stock from the calculation of diluted earnings per share for the three and nine months ended September 30, 2014, respectively, because it was anti-dilutive. |
Real Estate and Intangible Asse
Real Estate and Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Text Block [Abstract] | |
Real Estate and Intangible Assets | 4. Real Estate and Intangible Assets Real Estate The following table sets forth the components of our investments in real estate as of September 30, 2015 and December 31, 2014 (dollars in thousands): September 30, 2015 (1) December 31, 2014 Real estate: Land $ 93,265 $ 88,394 Building and improvements 620,794 593,155 Tenant improvements 47,399 41,016 Accumulated depreciation (104,877 ) (92,133 ) Real estate, net $ 656,581 $ 630,432 (1) Does not include real estate held for sale as of September 30, 2015. Real estate depreciation expense on the building and tenant improvement assets were $5.7 million and $16.4 million for the three and nine months ended September 30, 2015, respectively, and $4.9 million and $13.8 million for the three and nine months ended September 30, 2014, respectively. 2015 Real Estate Activity During the nine months ended September 30, 2015, we acquired five properties, which are summarized below (dollars in thousands): Location Acquisition Date Square Footage Lease Renewal Options Total Purchase Acquisition Annualized GAAP Debt Issued Richardson, TX (1) 3/6/2015 155,984 9.5 Years 2 (5 years each) $ 24,700 $ 108 $ 2,708 $ 14,573 Birmingham, AL 3/20/2015 30,850 8.5 Years 1 (5 years) 3,648 76 333 N/A Columbus, OH 5/28/2015 78,033 15.0 Years 2 (5 years each) 7,700 72 637 4,466 Salt Lake City, UT (1) 5/29/2015 86,409 6.5 Years 1 (5 years) 22,200 149 2,411 13,000 Atlanta, GA (2) 7/15/2015 78,151 Multiple (2) 2 (5 years) 13,000 109 1,291 7,540 Total 429,427 $ 71,248 $ 514 $ 7,380 $ 39,579 (1) The tenant occupying this property is subject to a gross lease. (2) This building is 100% leased to one tenant through two leases. 30% of this space is leased for 15 years, while the remaining space is leased for 7 years. In accordance with Accounting Standards Codification, or ASC, 805, “Business Combinations,” we determined the fair value of the acquired assets related to the five properties acquired during the nine months ended September 30, 2015, as follows (dollars in thousands): Land Building Tenant In-place Leasing Customer Above Market Below Market Total Purchase Richardson, TX $ 2,709 $ 12,503 $ 2,761 $ 2,046 $ 1,791 $ 1,915 $ 975 $ — $ 24,700 Birmingham, AL 650 1,683 351 458 146 360 — — 3,648 Columbus, OH 1,338 3,511 1,547 1,144 672 567 — (1,079 ) 7,700 Salt Lake City, UT 3,248 11,861 1,268 2,396 981 1,678 821 (53 ) 22,200 Atlanta, GA 2,271 7,862 916 750 548 723 44 (114 ) 13,000 $ 10,216 $ 37,420 $ 6,843 $ 6,794 $ 4,138 $ 5,243 $ 1,840 $ (1,246 ) $ 71,248 Below is a summary of the total revenue and earnings recognized on the five properties acquired during the nine months ended September 30, 2015 (dollars in thousands): For the three months ended September 30, For the nine months ended September 30, 2015 2015 Location Acquisition Rental Revenue Earnings (1) Rental Revenue Earnings (1) Richardson, TX 3/6/2015 $ 656 $ 96 $ 1,496 $ 423 Birmingham, AL 3/20/2015 83 (22 ) 177 84 Columbus, OH 5/28/2015 177 18 244 166 Salt Lake City, UT 5/29/2015 572 163 780 441 Atlanta, GA 7/15/2015 274 214 274 214 $ 1,762 $ 469 $ 2,971 $ 1,328 (1) Earnings is calculated as net income exclusive of both interest expense and acquisition related costs that are required to be expensed under ASC 805. Pro Forma The following table reflects pro-forma consolidated statements of operations as if the properties acquired during the three and nine months ended September 30, 2015 and the twelve months ended December 31, 2014, respectively were acquired as of January 1, 2014. The pro-forma earnings for the three and nine months ended September 30, 2015 and 2014 were adjusted to assume that acquisition-related costs were incurred as of the previous period (dollars in thousands, except per share amounts): For the three months ended September 30, For the nine months ended September 30, 2015 2014 2015 2014 Operating Data: Total operating revenue $ 21,402 $ 21,624 $ 64,059 $ 65,425 Total operating expenses (13,539 ) (13,222 ) (38,651 ) (53,311 ) Other expenses (7,820 ) (8,029 ) (23,485 ) (23,120 ) (1) Net income (loss) 43 373 1,923 (11,006 ) Dividends attributable to preferred and senior common stock (1,286 ) (1,160 ) (3,818 ) (3,417 ) Net loss attributable to common stockholders $ (1,243 ) $ (787 ) $ (1,895 ) $ (14,423 ) Share and Per Share Data: Basic (loss) earnings per share of common stock - pro forma $ (0.06 ) $ (0.04 ) $ (0.09 ) $ (0.86 ) Diluted (loss) earnings per share of common stock - pro forma $ (0.06 ) $ (0.04 ) $ (0.09 ) $ (0.86 ) Basic (loss) earnings per share of common stock - actual $ (0.06 ) $ (0.05 ) $ (0.13 ) $ (0.93 ) Diluted (loss) earnings per share of common stock - actual $ (0.06 ) $ (0.05 ) $ (0.13 ) $ (0.93 ) Weighted average shares outstanding-basic 21,403,808 17,739,084 20,820,559 16,685,162 Weighted average shares outstanding-diluted 21,403,808 17,739,084 20,820,559 16,685,162 (1) $14.0 million of other expenses relates to the impairment charge recorded in operating expenses during the nine months ended September 30, 2014. Significant Real Estate Activity on Existing Assets On July 13, 2015 we executed a lease with a new tenant in our Raleigh, North Carolina property to occupy 86,886 square feet, representing 75.0% of the total square footage. The current tenant retained 18.0% of the space. Therefore, the building is approximately 93.0% occupied. The lease commenced on August 1, 2015 and will expire on December 31, 2027. The new lease provides for prescribed rent escalations over its life, with annualized straight line rents of approximately $0.5 million. The lease grants the tenant two extension options for an additional five years each. In connection with the execution of the lease, we provided $0.8 million in tenant improvements and $0.4 million in leasing commissions. On August 28, 2015 we modified a lease with one of our tenants in our multi-tenant Indianapolis, Indiana property. The tenant, which previously occupied 4,512 square feet, increased its square footage to 6,903 square feet and extended their lease term an additional 3 years through September 2021. The original lease term would have expired in October 2018. This lease contains prescribed rent escalations over its life with annualized straight line rents of approximately $0.1 million, a $0.03 million increase over the previous lease. In connection with the extension of the lease and modification of certain of its terms, we provided $0.06 million in tenant improvements. On September 18, 2015 we executed a lease with a tenant to occupy a portion of our previously vacant property located in Baytown, Texas. The lease is for 57.0% of the building, and is for a seven year term. The lease provides for prescribed rent escalations over its life, with annualized straight line rents of approximately $0.13 million. The tenant has two options to renew the lease for an additional period of five years each. In connection with the execution of the lease, we provided $0.2 million in tenant improvements and $0.06 million in leasing commissions. 2014 Real Estate Activity During the nine months ended September 30, 2014, we acquired eight properties, which are summarized in the table below (dollars in thousands): Lease Total Purchase Acquisition Annualized Straight Debt Issued & Location Acquisition Date Square Footage Term Renewal Options Price Expenses Line Rent Assumed Allen, TX 3/27/2014 21,154 12 Years 4 (5 years each) $ 5,525 $ 33 $ 570 $ 3,481 Colleyville, TX 3/27/2014 20,355 12 Years 4 (5 years each) 4,523 33 467 2,849 Rancho Cordova, CA (4) 4/22/2014 61,358 10 Years 1 (5 year) 8,225 73 902 4,935 Coppell, TX 5/8/2014 21,171 12 Years 4 (5 years each) 5,838 26 601 3,816 Columbus, OH 5/13/2014 114,786 9.5 Years (1) N/A (1) 11,800 70 1,278 (3) N/A Taylor, PA 6/9/2014 955,935 10 Years 4 (5 years each) 39,000 730 3,400 22,600 Aurora, CO 7/1/2014 124,800 15 Years 2 (5 years each) 8,300 91 768 N/A Indianapolis, IN (4) 9/3/2014 86,495 11.5 Years (2) 2 (5 years each) (2) 10,500 58 1,504 (3) 6,100 Total 1,406,054 $ 93,711 $ 1,114 $ 9,490 $ 43,781 (1) Lease term and renewal options are reflective of the largest tenant. The smaller tenant’s lease terminates in November 2016 and contains no renewal options. (2) Lease term and renewal options are reflective of the largest tenant. The other tenants in the building have varying lease expirations from December 2015 to October 2018. No other tenants have renewal options. (3) Rent figure is reflective of aggregate rent among all tenants occupying the building. (4) Tenants occupying these properties are subject to a gross lease. In accordance with ASC 805, we determined the fair value of the acquired assets related to the eight properties acquired during the nine months ended September 30, 2014 as follows (in thousands): Tenant In-place Customer Above Market Below Market Premium on Total Purchase Land Building Improvements Leases Leasing Costs Relationships Leases Leases Assumed Debt Price Allen, TX $ 874 $ 3,509 $ 125 $ 598 $ 273 $ 218 $ — $ — $ (72 ) $ 5,525 Colleyville, TX 1,277 2,307 117 486 220 181 — (6 ) (59 ) 4,523 Rancho Cordova, CA 752 5,898 278 473 546 278 — — — 8,225 Coppell, TX 1,448 3,221 128 636 293 230 — — (118 ) 5,838 Columbus, OH 990 6,080 1,937 823 719 990 261 — — 11,800 Taylor, PA 3,102 24,449 956 6,171 1,452 2,870 — — — 39,000 Aurora, CO 2,882 3,825 92 413 806 282 — — — 8,300 Indianapolis, IN 502 5,334 1,088 1,990 741 732 126 (13 ) — 10,500 $ 11,827 $ 54,623 $ 4,721 $ 11,590 $ 5,050 $ 5,781 $ 387 $ (19 ) $ (249 ) $ 93,711 Below is a summary of the total revenue and earnings recognized on the eight properties acquired during the three and nine months ended September 30, 2014 (dollars in thousands): For the three months ended September 30, For the nine months ended September 30, 2014 2014 Location Acquisition Rental Revenue Earnings (1) Rental Revenue Earnings (1) Allen, TX 3/27/2014 $ 143 $ 101 $ 293 $ 167 Colleyville, TX 3/27/2014 117 83 240 138 Rancho Cordova, CA 4/22/2014 226 104 399 168 Coppell, TX 5/8/2014 150 116 239 139 Columbus, OH (2) 5/13/2014 311 115 479 184 Taylor, PA 6/9/2014 850 395 1,058 493 Aurora, CO 7/1/2014 192 124 192 124 Indianapolis, IN (2) 9/3/2014 116 9 116 9 $ 2,105 $ 1,047 $ 3,016 $ 1,422 (1) Earnings is calculated as net income exclusive of both interest expense and acquisition related costs that are required to be expensed under ASC 805. (2) Rental revenue and earnings is reflective of aggregate rent and operating expenses among all tenants occupying the building. Intangible Assets The following table summarizes the carrying value of intangible assets, liabilities and the accumulated amortization for each intangible asset and liability class as of September 30, 2015 and December 31, 2014 respectively (in thousands): September 30, 2015 (1) December 31, 2014 Lease Intangibles Accumulated Lease Intangibles Accumulated In-place leases $ 65,642 $ (21,198 ) $ 59,233 $ (17,379 ) Leasing costs 42,936 (13,803 ) 38,305 (11,411 ) Customer relationships 46,230 (13,844 ) 41,243 (11,177 ) $ 154,808 $ (48,845 ) $ 138,781 $ (39,967 ) Deferred Rent Accumulated Deferred Rent Accumulated Above market leases $ 9,591 $ (6,307 ) $ 8,314 $ (6,384 ) Below market leases 16,946 (7,932 ) 15,939 (7,345 ) $ 26,537 $ (14,239 ) $ 24,253 $ (13,729 ) Total $ 181,345 $ (63,084 ) $ 163,034 $ (53,696 ) (1) Does not include real estate held for sale as of September 30, 2015. Total amortization expense related to in-place leases, leasing costs and customer relationship lease intangible assets was $3.3 million and $9.7 million for the three and nine months ended September 30, 2015, respectively, and $2.6 million and $7.3 million for the three and nine months ended September 30, 2014, respectively, and is included in depreciation and amortization expense in the condensed consolidated statement of operations. Total amortization related to above-market lease values was $0.1 million and $0.3 million for the three and nine months ended September 30, 2015, respectively, and $0.1 million and $0.2 million for the three and nine months ended September 30, 2014, respectively. Total amortization related to below-market lease values was $0.2 million and $0.7 million for the three and nine months ended September 30, 2015, respectively, and $0.2 million and $0.5 million for the three and nine months ended September 30, 2014, respectively. The weighted average amortization periods in years for the intangible assets acquired and liabilities assumed during the nine months ended September 30, 2015 and 2014, respectively, were as follows: Intangible Assets & Liabilities 2015 2014 In-place leases 11.5 10.2 Leasing costs 11.5 10.2 Customer relationships 16.1 14.6 Above market leases 17.2 9.3 Below market leases 13.5 9.9 All intangible assets & liabilities 12.9 11.5 |
Real Estate Held for Sale and I
Real Estate Held for Sale and Impairment Charges | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate [Abstract] | |
Real Estate Held for Sale and Impairment Charges | 5. Real Estate Held for Sale and Impairment Charges Real Estate Held for Sale As of September 30, 2015, we classified five of our properties, which are located in Columbus, Ohio; Dayton, Ohio; Hialeah, Florida; Columbia, Missouri; and Birmingham, Alabama, as held for sale under the provisions of ASC 360-10, “Property, Plant, and Equipment,” which requires that the assets and liabilities of any such properties, be presented separately in our condensed consolidated balance sheet in the current period presented. In each case, we either executed a purchase and sale agreement with a third party purchaser, or we have currently listed the property for sale with a third party broker. We anticipate all sales to close during the fourth quarter of 2015. With the exception of the Dayton, Ohio property, the respective agreed upon purchase price, net of expected costs to sell, is in excess of the carrying values of each property as of September 30, 2015, and thus the properties were measured at their carrying value in our condensed consolidated balance sheet as of September 30, 2015 in accordance with ASC 360-10. The Dayton, Ohio property was determined to be impaired as of September 30, 2015, with further discussion below. The table below summarizes the components of income from real estate and related assets held for sale (dollars in thousands): For the three months ended September 30, For the nine months ended September 30, 2015 2014 2015 2014 Operating revenue $ 505 $ 623 $ 1,626 $ 1,732 Operating expense 744 (1) 234 1,034 (1) 556 Other expense 47 67 175 201 (Loss) income from real estate and related assets held for sale $ (286 ) $ 322 $ 417 $ 975 (1) $0.6 million of operating expenses relates to the impairment charge recorded in operating expenses during the nine months ended September 30, 2015. The table below summarizes the components of the assets and liabilities held for sale reflected on the accompanying condensed consolidated balance sheet (dollars in thousands): September 30, 2015 ASSETS HELD FOR SALE Real estate, at cost $ 19,271 Less: accumulated depreciation (3,680 ) Total real estate held for sale, net 15,591 Lease intangibles, net 153 Deferred rent receivable, net 1,046 Deferred financing costs, net 2 Other assets 40 TOTAL ASSETS HELD FOR SALE $ 16,832 LIABILITIES HELD FOR SALE Deferred rent liability, net $ 141 Asset retirement obligation 245 Accounts payable and accrued expenses 51 Other liabilities 867 TOTAL LIABILITIES HELD FOR SALE $ 1,304 Impairment Charges We determined that our Dayton, Ohio property should be classified as held for sale during the third quarter of 2015. In determining a market value for this particular property we used the sales comparison approach. Subsequently, we identified that the fair value for this particular property was below the carrying value of this property as of September 30, 2015. Accordingly, we reduced the carrying value of this property to its estimated fair value, less cost to sell, and we recognized an impairment loss of $0.6 million during the quarter ended September 30, 2015. We performed an analysis of our planned real estate dispositions and impaired property for the quarter ended September 30, 2015 and determined that these properties should not be classified as discontinued operations as neither constituted a strategic shift in our operations in accordance with ASU 2014-08. We continue to monitor our portfolio for any other indicators of impairment. |
Mortgage Notes Payable and Line
Mortgage Notes Payable and Line of Credit | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Mortgage Notes Payable and Line of Credit | 6. Mortgage Notes Payable and Line of Credit Our mortgage notes payable and line of credit as of September 30, 2015 and December 31, 2014 are summarized below (dollars in thousands): Carrying Value at Encumbered September 30, 2015 December 31, 2014 Stated Interest Rates (4) Scheduled Maturity Mortgage and Other Secured Loans: Fixed rate mortgage loans 71 $ 452,866 $ 450,392 (1 ) (2 ) Variable rate mortgage loans 8 29,570 8,200 (3 ) (2 ) Premiums and discounts (net) N/A 476 707 N/A N/A Total Mortgage Notes Payable 79 $ 482,912 $ 459,299 (5 ) Variable rate Line of Credit 20 55,500 43,300 LIBOR + 2.75 % (3) 8/1/2017 Total Mortgage Notes Payable and Line of Credit 99 $ 538,412 $ 502,599 (1) Interest rates on our fixed rate mortgage notes payable vary from 3.75% to 6.80%. (2) We have 46 mortgage notes payable with maturity dates ranging from 12/11/2015 through 1/6/2039. (3) Interest rates on our variable rate mortgage notes payable vary from one month LIBOR + 2.15% to one month LIBOR + 2.25%. At September 30, 2015, one month LIBOR was approximately 0.19%. (4) The weighted average interest rate on all debt outstanding at September 30, 2015, was approximately 4.87%. (5) The weighted average interest rate on the mortgage notes outstanding at September 30, 2015, was approximately 5.10%. N/A - Not Applicable Mortgage Notes Payable As of September 30, 2015, we had 46 mortgage notes payable, collateralized by a total of 79 properties with a net book value of $691.9 million. Gladstone Commercial Corporation has limited recourse liabilities that could result from any one or more of the following circumstances: a borrower voluntarily filing for bankruptcy, improper conveyance of a property, fraud or material misrepresentation, misapplication or misappropriation of rents, security deposits, insurance proceeds or condemnation proceeds, or physical waste or damage to the property resulting from a borrower’s gross negligence or willful misconduct. We will also indemnify lenders against claims resulting from the presence of hazardous substances or activity involving hazardous substances in violation of environmental laws on a property. During the nine months ended September 30, 2015, we issued six long-term mortgages, collateralized by seven properties, which are summarized below (dollars in thousands): Date of Issuance Issuing Bank Debt Issued Interest Rate Maturity Date Amortization 3/6/2015 PNC Bank, NA $ 14,573 3.86 % 4/1/2025 300 5/28/2015 FC Bank 4,466 3.75 % 6/1/2022 85 6/16/2015 Guggenheim Partners 13,000 3.99 % 7/1/2045 6/29/2015 Synovus Bank 19,780 LIBOR + 2.25 % 7/1/2018 (1) 7/1/2015 Synovus Bank 1,700 LIBOR + 2.25 % 7/1/2018 (2) 7/15/2015 Prudential Mortgage Capital Company 7,540 4.53 % 8/1/2022 $ 61,059 (1) We refinanced maturing debt on our Duncan, South Carolina and Charlotte, North Carolina properties which had aggregate balloon principal payments of $19.1 million. We completed this refinance on June 29, 2015. (2) We refinanced maturing debt on our Akron,Canton and Dayton, Ohio proerties, which had aggregate balloon principal payments of $11.3 million. We completed this refinance on July 1, 2015. We made payments of $0.3 million and $1.2 million for deferred financing costs during the three and nine months ended September 30, 2015, respectively, and payments of $0.1 million and $0.7 million during the three and nine months ended September 30, 2014, respectively. Scheduled principal payments of mortgage notes payable for the remainder of 2015, and each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands): Year Scheduled Principal Three Months ending December 31, 2015 $ 5,749 (1) 2016 100,279 2017 69,049 2018 40,908 2019 35,738 2020 7,828 Thereafter 222,885 $ 482,436 (2) (1) This figure includes one balloon principal payment that matures in fourth quarter 2015. We plan to refinance using a combination of new mortgage debt and equity. (2) This figure is exclusive of premiums and discounts (net) on assumed debt, which were $0.48 million as of September 30, 2015. Refinancing On July 1, 2015, through a wholly-owned subsidiary, we repaid our $11.3 million mortgage on our Canton, Dayton, and Akron, Ohio properties. The mortgage was originally set to mature on September 1, 2015. We borrowed $1.7 million pursuant to a long-term note payable from Synovus Bank to refinance a portion of this debt. The new loan is variable rate and we entered into an interest rate cap with Synovus Bank to hedge against the variability of the LIBOR rate, at a cost of approximately $0.07 million through July 1, 2018. We will receive payments from Synovus Bank if the one month LIBOR rate increases above 3.0%. Interest Rate Cap We have entered into interest rate cap agreements that caps the interest rate on certain of our notes payable when one-month LIBOR is in excess of 3.0%. The fair value of the interest rate cap agreements is recorded in other assets on our accompanying condensed consolidated balance sheets. We record changes in the fair value of the interest rate cap agreements quarterly based on the current market valuations at quarter end as interest expense on our accompanying condensed consolidated statements of operations. Generally, we will estimate the fair value of our interest rate caps, in the absence of observable market data, using estimates of value including estimated remaining life, counterparty credit risk, current market yield and interest rate spreads of similar securities as of the measurement date. At September 30, 2015 and December 31, 2014, our interest rate cap agreements were valued using Level 3 inputs. The following table summarizes the key terms of each interest rate cap agreement (dollars in thousands): As of September 30, As of December 31, 2015 2014 LIBOR Cap Maturity Date Notional Cost Fair Value Notional Cost Fair Value Interest Rate Cap Nov-13 3.00 % Dec-16 $ 8,200 $ 31 $ — $ 8,200 $ 31 $ 4 Jul-15 3.00 % Jul-18 21,370 68 19 — — — $ 29,570 $ 99 $ 19 $ 8,200 $ 31 $ 4 Fair Value The fair value of all mortgage notes payable outstanding as of September 30, 2015 was $495.6 million, as compared to the carrying value stated above of $482.9 million. The fair value is calculated based on a discounted cash flow analysis, using management’s estimate of market interest rates on long-term debt with comparable terms and loan to value ratios. The fair value was calculated using Level 3 inputs of the hierarchy established by ASC 820, “Fair Value Measurements and Disclosures.” The amount outstanding under the Line of Credit approximates fair value as of September 30, 2015, because the debt is subject to a variable interest rate, determined by market forces, as well as a recently renewed interest rate spread. Line of Credit In August 2013, we procured a senior unsecured revolving credit facility, or the Line of Credit, with KeyBank National Association (serving as a revolving lender, a letter of credit issuer and an administrative agent). On October 5, 2015, we expanded our Line of Credit to $85.0 million and extended the maturity date 1-year through August 2018, with a 1-year extension option through August 2019. We also added a $25.0 million 5-year term loan facility, which matures in October 2020. The interest rate on the revolving line of credit was also reduced by 25 basis points at each of the leverage tiers and the total maximum commitment under the two facilities was increased from $100.0 million to $150.0 million. We also added 3 new lenders to the bank syndicate, which is now comprised of KeyBank, Comerica Banks, Fifth Third Bank, US Bank and Huntington Bank. We were subject to payment of $0.5 million for the modification of the agreement. As of September 30, 2015, there was $55.5 million outstanding under our Line of Credit at an interest rate of approximately 2.94% and $3.9 million outstanding under letters of credit at a weighted average interest rate of 2.75%. As of October 27, 2015, the maximum additional amount we could draw was $13.8 million. We were in compliance with all covenants under the Line of Credit as of September 30, 2015. |
Mandatorily Redeemable Preferre
Mandatorily Redeemable Preferred Stock | 9 Months Ended |
Sep. 30, 2015 | |
Text Block [Abstract] | |
Mandatorily Redeemable Preferred Stock | 7. Mandatorily Redeemable Preferred Stock In February 2012, we completed a public offering of 1,540,000 shares of 7.125% Series C Cumulative Term Preferred Stock, par value $0.001 per share, or the Term Preferred Stock, at a public offering price of $25.00 per share. Gross proceeds of the offering totaled $38.5 million and net proceeds, after deducting offering expenses borne by us, were $36.7 million. On or after January 31, 2016, we may redeem the shares at a redemption price of $25.00 per share, plus any accumulated and unpaid dividends to and including the date of redemption. The shares of the Term Preferred Stock have a mandatory redemption date of January 31, 2017. The fair value of our Term Preferred Stock as of September 30, 2015, was $39.5 million, as compared to the carrying value stated above of $38.5 million. The fair value is calculated based on the closing share price as of September 30, 2015 of $25.68. The fair value was calculated using Level 1 inputs of the hierarchy established by ASC 820, “Fair Value Measurements and Disclosures.” |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Ground Leases We are obligated as lessee under four ground leases. Future minimum rental payments due under the terms of these leases for the remainder of 2015 and each of the five succeeding years and thereafter, are as follows (dollars in thousands): For the year ended December 31, Location Lease End Date 2015 2016 2017 2018 2019 2020 Thereafter Tulsa, OK Apr-21 $ 42 $ 169 $ 169 $ 169 $ 169 $ 169 $ 85 Dartmouth, MA May-36 44 174 174 174 174 174 3,126 Springfield, MA Feb-30 21 86 89 90 90 90 884 Salt Lake City, UT Nov-40 7 30 30 31 32 33 853 $ 114 $ 459 $ 462 $ 464 $ 465 $ 466 $ 4,948 Expenses recorded in connection to rental expense incurred for the properties listed above during both the three months ended September 30, 2015 and 2014 and the nine months ended September 30, 2015 and 2014 were $0.1 million, and $0.3 million, respectively. Rental expenses are reflected in property operating expenses on the condensed consolidated statements of operations. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity The following table summarizes the changes in our stockholders’ equity for the nine months ended September 30, 2015 (dollars in thousands): Shares Issued Notes Distributions in Preferred Senior Common Common Preferred Senior Common Common Additional Paid in Receivable from Excess of Accumulated Total Stockholders’ Stock Stock Stock Stock Stock Stock Capital Employees Earnings Equity Balance at December 31, 2014 2,150,000 809,411 19,589,606 $ 2 $ 1 $ 20 $ 369,748 $ (375 ) $ (151,724 ) $ 217,672 Issuance of senior common stock and common stock, net — 183,658 2,154,173 — — 2 38,653 — — 38,655 Distributions declared to common, senior common and preferred stockholders — — — — — — — — (27,305 ) (27,305 ) Principal repayments of employee notes receivable — — — — — — — 375 — 375 Net income — — — — — — — — 1,030 1,030 Balance at September 30, 2015 2,150,000 993,069 21,743,779 $ 2 $ 1 $ 22 $ 408,401 $ — $ (177,999 ) $ 230,427 Distributions Our Board of Directors declared the following distributions per share for the three and nine months ended September 30, 2015 and 2014: For the three months ended September 30, For the nine months ended September 30, 2015 2014 2015 2014 Common Stock $ 0.375 $ 0.375 $ 1.125 $ 1.125 Senior Common Stock 0.2625 0.2625 0.7875 0.7875 Series A Preferred Stock 0.4843749 0.4843749 1.4531247 1.4531247 Series B Preferred Stock 0.4688 0.4688 1.4063 1.4063 Series C Preferred Stock 0.4453 0.4453 1.3359 1.3359 ATM Program In September 2014 we entered into an open market sale agreement, or the ATM Program, with Cantor Fitzgerald & Co., or Cantor Fitzgerald, pursuant to which we may, from time to time, offer to sell shares of our common stock with an aggregate sales price of up to $100.0 million on the open market through Cantor Fitzgerald, acting as sales agent and/or principal. During the nine months ended September 30, 2015, we raised approximately $36.2 million in net proceeds under the ATM Program. As of September 30, 2015, we have sold a total of 4.0 million shares with aggregate gross proceeds of $69.3 million, and have a remaining capacity to sell up to $30.7 million of common stock under the ATM Program. Senior Common Program In March 2011, we commenced an offering of an aggregate of 3,500,000 shares of our Senior Common Stock, par value $0.001 per share, at a price to the public of $15.00 per share, of which 3,000,000 shares were intended to be offered pursuant to the primary offering and 500,000 shares were intended to be offered pursuant to our senior common distribution reinvestment plan, or the DRIP. This offering terminated according to its terms on March 28, 2015. During the three months ended March 31, 2015, we sold 189,052 shares of our Senior Common Stock at $15.00 per share and issued 5,134 shares of our Senior Common Stock under the Dividend Reinvestment Plan, or DRIP, program. The net proceeds, after deducting the underwriting discount and commission, were $2.6 million. At the conclusion of the offering on March 28, 2015, we had sold 927,994 shares of Senior Common Stock, for gross proceeds of $13.9 million, and issued an additional 27,038 shares of Senior Common Stock under the DRIP program. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent Events On October 2, 2015 we modified a lease with one of our tenants in our multi-tenant Indianapolis, Indiana property. This tenant, occupying 1,427 square feet, extended their lease term an additional three years through March 31, 2019. The original lease term would have expired on December 31, 2015. This lease contains prescribed rent escalations over its life with annualized straight line rents of approximately $0.02 million. On October 13, 2015, our Board of Directors declared the following monthly distributions: Record Date Payment Date Common Stock Series A Preferred Series B Preferred Series C Preferred October 26, 2015 November 4, 2015 $ 0.125 $ 0.1614583 $ 0.15625 $ 0.1484375 November 17, 2015 November 30, 2015 0.125 0.1614583 0.15625 0.1484375 December 18, 2015 December 31, 2015 0.125 0.1614583 0.15625 0.1484375 Total $ 0.375 $ 0.4843749 $ 0.46875 $ 0.4453125 Senior Common Stock Distributions Payable to the Holders of Record During the Month of: Payment Date Distribution per Share October November 6, 2015 $ 0.0875 November December 7, 2015 0.0875 December January 8, 2016 0.0875 Total $ 0.2625 On October 20, 2015 we acquired a 90,626 square foot industrial facility located in the Atlanta, Georgia suburb of Villa Rica for $6.6 million, excluding related acquisition expenses of $0.1 million. We funded this acquisition with existing cash on hand and the issuance of $3.8 million of mortgage debt on the property. This property is 100% leased to one tenant for 18 years, with 2 options to renew this lease for an additional 5 years each. The lease provides for prescribed rent escalations over its life with annualized straight line rents of $0.6 million. The average cap rate on this acquisition is 9.2%. |
Organization, Basis of Presen16
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Financial Information | Interim Financial Information Our interim financial statements are prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial information and pursuant to the requirements for reporting on Form 10-Q and in accordance with Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with GAAP are omitted. The year-end balance sheet data presented herein was derived from audited financial statements, but does not include all disclosures required by GAAP. In the opinion of our management, all adjustments, consisting solely of normal recurring accruals, necessary for the fair presentation of financial statements for the interim period, have been included. The interim financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the U.S. Securities and Exchange Commission on February 18, 2015. The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. |
Critical Accounting Policies | Critical Accounting Policies The preparation of our financial statements in accordance with GAAP requires management to make judgments that are subjective in nature to make certain estimates and assumptions. Application of these accounting policies involves the exercise of judgment regarding the use of assumptions as to future uncertainties, and as a result, actual results could differ materially from these estimates. A summary of all of our significant accounting policies is provided in Note 1 to our condensed consolidated financial statements included in our 2014 Form 10-K. There were no material changes to our critical accounting policies during the nine months ended September 30, 2015. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2015, the FASB issued ASU 2015-02, “Amendments to the Consolidation Analysis” (“ASU-2015-02”), which amends or supersedes the scope and consolidation guidance under existing GAAP. The new standard changes the way a reporting entity evaluates whether a) limited partnerships and similar entities should be consolidated, b) fees paid to decision makers or service provides are variable interests in a variable interest entity, or VIE, and c) variable interests in a VIE held by related parties require the reporting entity to consolidate the VIE. ASU 2015-02 also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities. We do not anticipate a material impact on our financial position, results of operations or cash flows from adopting this standard. ASU 2015-02 is effective for annual and interim reporting periods beginning after December 15, 2015, with early adoption permitted. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU-2015-03”), which simplifies the presentation of debt issuance costs. We do not anticipate a material impact on our financial position, results of operations or cash flows from adopting this standard. ASU 2015-03 is effective for annual and interim reporting periods beginning after December 15, 2015 with early adoption permitted. In August 2015, the FASB issued ASU 2015-15, “Interest – Imputation of Interest (Subtopic 835-30)” (“ASU 2015-15”), which codifies an SEC staff announcement that entities are permitted to defer and present debt issuance costs related to line of credit arrangements as assets. We have assessed the impact of ASU 2015-15 and identified no impact on our financial position, results of operations or cash flows from adopting this standard. ASU 2015-15 was effective immediately. In September 2015, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”), pertaining to entities that have reported provisional amounts for items in a business combination for which the accounting is incomplete by the end of the reporting period in which the combination occurs and during the measurement period have an adjustment to provisional amounts recognized. The guidance requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Any adjustments should be calculated as if the accounting had been completed at the acquisition date. We are currently assessing the impact of ASU 2015-16 do not anticipate a material impact on our financial position, results of operations or cash flows from adopting this standard. ASU 2015-16 is effective for annual and interim periods beginning after December 15, 2015 with early adoption permitted. |
Fair Value Measurements and Disclosures | We have entered into interest rate cap agreements that caps the interest rate on certain of our notes payable when one-month LIBOR is in excess of 3.0%. The fair value of the interest rate cap agreements is recorded in other assets on our accompanying condensed consolidated balance sheets. We record changes in the fair value of the interest rate cap agreements quarterly based on the current market valuations at quarter end as interest expense on our accompanying condensed consolidated statements of operations. Generally, we will estimate the fair value of our interest rate caps, in the absence of observable market data, using estimates of value including estimated remaining life, counterparty credit risk, current market yield and interest rate spreads of similar securities as of the measurement date. At September 30, 2015 and December 31, 2014, our interest rate cap agreements were valued using Level 3 inputs. The following table summarizes the key terms of each interest rate cap agreement (dollars in thousands): As of September 30, As of December 31, 2015 2014 LIBOR Cap Maturity Date Notional Cost Fair Value Notional Cost Fair Value Interest Rate Cap Nov-13 3.00 % Dec-16 $ 8,200 $ 31 $ — $ 8,200 $ 31 $ 4 Jul-15 3.00 % Jul-18 21,370 68 19 — — — $ 29,570 $ 99 $ 19 $ 8,200 $ 31 $ 4 |
Loss per Share of Common Stock
Loss per Share of Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Loss Per Share of Common Stock | The following tables set forth the computation of basic and diluted loss per share of common stock for each of the three and nine months ended September 30, 2015 and 2014, respectively. We computed basic loss per share for the three and nine months ended September 30, 2015 and 2014, respectively, using the weighted average number of shares outstanding during the periods. Diluted loss per share for the three and nine months ended September 30, 2015 and 2014, reflects additional shares of common stock related to our convertible Senior Common Stock (if the effect would be dilutive), that would have been outstanding if dilutive potential shares of common stock had been issued, as well as an adjustment to net income available to common stockholders as applicable to common stockholders that would result from their assumed issuance (dollars in thousands, except per share amounts). For the three months ended September 30, For the nine months ended September 30, 2015 2014 2015 2014 Calculation of basic loss per share of common stock: Net loss attributable to common stockholders $ (1,382 ) $ (931 ) $ (2,788 ) $ (15,483 ) Denominator for basic weighted average shares of common stock 21,403,808 17,739,084 20,820,559 16,685,162 Basic loss per share of common stock $ (0.06 ) $ (0.05 ) $ (0.13 ) $ (0.93 ) Calculation of diluted loss per share of common stock: Net loss attributable to common stockholders $ (1,382 ) $ (931 ) $ (2,788 ) $ (15,483 ) Net loss attributable to common stockholders plus assumed conversions (1) $ (1,382 ) $ (931 ) $ (2,788 ) $ (15,483 ) Denominator for basic weighted average shares of common stock 21,403,808 17,739,084 20,820,559 16,685,162 Denominator for diluted weighted average shares of common stock (1) 21,403,808 17,739,084 20,820,559 16,685,162 Diluted loss per share of common stock $ (0.06 ) $ (0.05 ) $ (0.13 ) $ (0.93 ) (1) We excluded convertible shares of Senior Common Stock of 828,444 and 791,582 from the calculation of diluted earnings per share for the three and nine months ended September 30, 2015, respectively, because it was anti-dilutive. We also excluded 429,673 and 362,162 shares of convertible Senior Common Stock from the calculation of diluted earnings per share for the three and nine months ended September 30, 2014, respectively, because it was anti-dilutive. |
Real Estate and Intangible As18
Real Estate and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Text Block [Abstract] | |
Components of Investments in Real Estate | The following table sets forth the components of our investments in real estate as of September 30, 2015 and December 31, 2014 (dollars in thousands): September 30, 2015 (1) December 31, 2014 Real estate: Land $ 93,265 $ 88,394 Building and improvements 620,794 593,155 Tenant improvements 47,399 41,016 Accumulated depreciation (104,877 ) (92,133 ) Real estate, net $ 656,581 $ 630,432 (1) Does not include real estate held for sale as of September 30, 2015. |
Summary of Properties Acquired | 2015 Real Estate Activity During the nine months ended September 30, 2015, we acquired five properties, which are summarized below (dollars in thousands): Location Acquisition Date Square Footage Lease Renewal Options Total Purchase Acquisition Annualized GAAP Debt Issued Richardson, TX (1) 3/6/2015 155,984 9.5 Years 2 (5 years each) $ 24,700 $ 108 $ 2,708 $ 14,573 Birmingham, AL 3/20/2015 30,850 8.5 Years 1 (5 years) 3,648 76 333 N/A Columbus, OH 5/28/2015 78,033 15.0 Years 2 (5 years each) 7,700 72 637 4,466 Salt Lake City, UT (1) 5/29/2015 86,409 6.5 Years 1 (5 years) 22,200 149 2,411 13,000 Atlanta, GA (2) 7/15/2015 78,151 Multiple (2) 2 (5 years) 13,000 109 1,291 7,540 Total 429,427 $ 71,248 $ 514 $ 7,380 $ 39,579 (1) The tenant occupying this property is subject to a gross lease. (2) This building is 100% leased to one tenant through two leases. 30% of this space is leased for 15 years, while the remaining space is leased for 7 years. 2014 Real Estate Activity During the nine months ended September 30, 2014, we acquired eight properties, which are summarized in the table below (dollars in thousands): Lease Total Purchase Acquisition Annualized Straight Debt Issued & Location Acquisition Date Square Footage Term Renewal Options Price Expenses Line Rent Assumed Allen, TX 3/27/2014 21,154 12 Years 4 (5 years each) $ 5,525 $ 33 $ 570 $ 3,481 Colleyville, TX 3/27/2014 20,355 12 Years 4 (5 years each) 4,523 33 467 2,849 Rancho Cordova, CA (4) 4/22/2014 61,358 10 Years 1 (5 year) 8,225 73 902 4,935 Coppell, TX 5/8/2014 21,171 12 Years 4 (5 years each) 5,838 26 601 3,816 Columbus, OH 5/13/2014 114,786 9.5 Years (1) N/A (1) 11,800 70 1,278 (3) N/A Taylor, PA 6/9/2014 955,935 10 Years 4 (5 years each) 39,000 730 3,400 22,600 Aurora, CO 7/1/2014 124,800 15 Years 2 (5 years each) 8,300 91 768 N/A Indianapolis, IN (4) 9/3/2014 86,495 11.5 Years (2) 2 (5 years each) (2) 10,500 58 1,504 (3) 6,100 Total 1,406,054 $ 93,711 $ 1,114 $ 9,490 $ 43,781 (1) Lease term and renewal options are reflective of the largest tenant. The smaller tenant’s lease terminates in November 2016 and contains no renewal options. (2) Lease term and renewal options are reflective of the largest tenant. The other tenants in the building have varying lease expirations from December 2015 to October 2018. No other tenants have renewal options. (3) Rent figure is reflective of aggregate rent among all tenants occupying the building. (4) Tenants occupying these properties are subject to a gross lease. |
Fair Value of Acquired Assets | In accordance with Accounting Standards Codification, or ASC, 805, “Business Combinations,” we determined the fair value of the acquired assets related to the five properties acquired during the nine months ended September 30, 2015, as follows (dollars in thousands): Land Building Tenant In-place Leasing Customer Above Market Below Market Total Purchase Richardson, TX $ 2,709 $ 12,503 $ 2,761 $ 2,046 $ 1,791 $ 1,915 $ 975 $ — $ 24,700 Birmingham, AL 650 1,683 351 458 146 360 — — 3,648 Columbus, OH 1,338 3,511 1,547 1,144 672 567 — (1,079 ) 7,700 Salt Lake City, UT 3,248 11,861 1,268 2,396 981 1,678 821 (53 ) 22,200 Atlanta, GA 2,271 7,862 916 750 548 723 44 (114 ) 13,000 $ 10,216 $ 37,420 $ 6,843 $ 6,794 $ 4,138 $ 5,243 $ 1,840 $ (1,246 ) $ 71,248 In accordance with ASC 805, we determined the fair value of the acquired assets related to the eight properties acquired during the nine months ended September 30, 2014 as follows (in thousands): Tenant In-place Customer Above Market Below Market Premium on Total Purchase Land Building Improvements Leases Leasing Costs Relationships Leases Leases Assumed Debt Price Allen, TX $ 874 $ 3,509 $ 125 $ 598 $ 273 $ 218 $ — $ — $ (72 ) $ 5,525 Colleyville, TX 1,277 2,307 117 486 220 181 — (6 ) (59 ) 4,523 Rancho Cordova, CA 752 5,898 278 473 546 278 — — — 8,225 Coppell, TX 1,448 3,221 128 636 293 230 — — (118 ) 5,838 Columbus, OH 990 6,080 1,937 823 719 990 261 — — 11,800 Taylor, PA 3,102 24,449 956 6,171 1,452 2,870 — — — 39,000 Aurora, CO 2,882 3,825 92 413 806 282 — — — 8,300 Indianapolis, IN 502 5,334 1,088 1,990 741 732 126 (13 ) — 10,500 $ 11,827 $ 54,623 $ 4,721 $ 11,590 $ 5,050 $ 5,781 $ 387 $ (19 ) $ (249 ) $ 93,711 |
Schedule of Revenue and Earnings Recognized on Properties Acquired | Below is a summary of the total revenue and earnings recognized on the five properties acquired during the nine months ended September 30, 2015 (dollars in thousands): For the three months ended September 30, For the nine months ended September 30, 2015 2015 Location Acquisition Rental Revenue Earnings (1) Rental Revenue Earnings (1) Richardson, TX 3/6/2015 $ 656 $ 96 $ 1,496 $ 423 Birmingham, AL 3/20/2015 83 (22 ) 177 84 Columbus, OH 5/28/2015 177 18 244 166 Salt Lake City, UT 5/29/2015 572 163 780 441 Atlanta, GA 7/15/2015 274 214 274 214 $ 1,762 $ 469 $ 2,971 $ 1,328 (1) Earnings is calculated as net income exclusive of both interest expense and acquisition related costs that are required to be expensed under ASC 805. Below is a summary of the total revenue and earnings recognized on the eight properties acquired during the three and nine months ended September 30, 2014 (dollars in thousands): For the three months ended September 30, For the nine months ended September 30, 2014 2014 Location Acquisition Rental Revenue Earnings (1) Rental Revenue Earnings (1) Allen, TX 3/27/2014 $ 143 $ 101 $ 293 $ 167 Colleyville, TX 3/27/2014 117 83 240 138 Rancho Cordova, CA 4/22/2014 226 104 399 168 Coppell, TX 5/8/2014 150 116 239 139 Columbus, OH (2) 5/13/2014 311 115 479 184 Taylor, PA 6/9/2014 850 395 1,058 493 Aurora, CO 7/1/2014 192 124 192 124 Indianapolis, IN (2) 9/3/2014 116 9 116 9 $ 2,105 $ 1,047 $ 3,016 $ 1,422 (1) Earnings is calculated as net income exclusive of both interest expense and acquisition related costs that are required to be expensed under ASC 805. (2) Rental revenue and earnings is reflective of aggregate rent and operating expenses among all tenants occupying the building. |
Pro-Forma Condensed Consolidated Statements of Operations | The following table reflects pro-forma consolidated statements of operations as if the properties acquired during the three and nine months ended September 30, 2015 and the twelve months ended December 31, 2014, respectively were acquired as of January 1, 2014. The pro-forma earnings for the three and nine months ended September 30, 2015 and 2014 were adjusted to assume that acquisition-related costs were incurred as of the previous period (dollars in thousands, except per share amounts): For the three months ended September 30, For the nine months ended September 30, 2015 2014 2015 2014 Operating Data: Total operating revenue $ 21,402 $ 21,624 $ 64,059 $ 65,425 Total operating expenses (13,539 ) (13,222 ) (38,651 ) (53,311 ) Other expenses (7,820 ) (8,029 ) (23,485 ) (23,120 ) (1) Net income (loss) 43 373 1,923 (11,006 ) Dividends attributable to preferred and senior common stock (1,286 ) (1,160 ) (3,818 ) (3,417 ) Net loss attributable to common stockholders $ (1,243 ) $ (787 ) $ (1,895 ) $ (14,423 ) Share and Per Share Data: Basic (loss) earnings per share of common stock - pro forma $ (0.06 ) $ (0.04 ) $ (0.09 ) $ (0.86 ) Diluted (loss) earnings per share of common stock - pro forma $ (0.06 ) $ (0.04 ) $ (0.09 ) $ (0.86 ) Basic (loss) earnings per share of common stock - actual $ (0.06 ) $ (0.05 ) $ (0.13 ) $ (0.93 ) Diluted (loss) earnings per share of common stock - actual $ (0.06 ) $ (0.05 ) $ (0.13 ) $ (0.93 ) Weighted average shares outstanding-basic 21,403,808 17,739,084 20,820,559 16,685,162 Weighted average shares outstanding-diluted 21,403,808 17,739,084 20,820,559 16,685,162 (1) $14.0 million of other expenses relates to the impairment charge recorded in operating expenses during the nine months ended September 30, 2014. |
Carrying Value of Intangible Assets, Liabilities and Accumulated Amortization | The following table summarizes the carrying value of intangible assets, liabilities and the accumulated amortization for each intangible asset and liability class as of September 30, 2015 and December 31, 2014 respectively (in thousands): September 30, 2015 (1) December 31, 2014 Lease Intangibles Accumulated Lease Intangibles Accumulated In-place leases $ 65,642 $ (21,198 ) $ 59,233 $ (17,379 ) Leasing costs 42,936 (13,803 ) 38,305 (11,411 ) Customer relationships 46,230 (13,844 ) 41,243 (11,177 ) $ 154,808 $ (48,845 ) $ 138,781 $ (39,967 ) Deferred Rent Accumulated Deferred Rent Accumulated Above market leases $ 9,591 $ (6,307 ) $ 8,314 $ (6,384 ) Below market leases 16,946 (7,932 ) 15,939 (7,345 ) $ 26,537 $ (14,239 ) $ 24,253 $ (13,729 ) Total $ 181,345 $ (63,084 ) $ 163,034 $ (53,696 ) (1) Does not include real estate held for sale as of September 30, 2015. |
Weighted Average Amortization Period for Intangible Assets Acquired and Liabilities Assumed | The weighted average amortization periods in years for the intangible assets acquired and liabilities assumed during the nine months ended September 30, 2015 and 2014, respectively, were as follows: Intangible Assets & Liabilities 2015 2014 In-place leases 11.5 10.2 Leasing costs 11.5 10.2 Customer relationships 16.1 14.6 Above market leases 17.2 9.3 Below market leases 13.5 9.9 All intangible assets & liabilities 12.9 11.5 |
Real Estate Held for Sale and19
Real Estate Held for Sale and Impairment Charges (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate [Abstract] | |
Components of Income from Real Estate and Related Assets Held for Sale | The table below summarizes the components of income from real estate and related assets held for sale (dollars in thousands): For the three months ended September 30, For the nine months ended September 30, 2015 2014 2015 2014 Operating revenue $ 505 $ 623 $ 1,626 $ 1,732 Operating expense 744 (1) 234 1,034 (1) 556 Other expense 47 67 175 201 (Loss) income from real estate and related assets held for sale $ (286 ) $ 322 $ 417 $ 975 (1) $0.6 million of operating expenses relates to the impairment charge recorded in operating expenses during the nine months ended September 30, 2015. |
Components of Assets and Liabilities Held for Sale | The table below summarizes the components of the assets and liabilities held for sale reflected on the accompanying condensed consolidated balance sheet (dollars in thousands): September 30, 2015 ASSETS HELD FOR SALE Real estate, at cost $ 19,271 Less: accumulated depreciation (3,680 ) Total real estate held for sale, net 15,591 Lease intangibles, net 153 Deferred rent receivable, net 1,046 Deferred financing costs, net 2 Other assets 40 TOTAL ASSETS HELD FOR SALE $ 16,832 LIABILITIES HELD FOR SALE Deferred rent liability, net $ 141 Asset retirement obligation 245 Accounts payable and accrued expenses 51 Other liabilities 867 TOTAL LIABILITIES HELD FOR SALE $ 1,304 |
Mortgage Notes Payable and Li20
Mortgage Notes Payable and Line of Credit (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Company's Mortgage Notes Payable and Line of Credit | Our mortgage notes payable and line of credit as of September 30, 2015 and December 31, 2014 are summarized below (dollars in thousands): Carrying Value at Encumbered September 30, 2015 December 31, 2014 Stated Interest Rates (4) Scheduled Maturity Mortgage and Other Secured Loans: Fixed rate mortgage loans 71 $ 452,866 $ 450,392 (1 ) (2 ) Variable rate mortgage loans 8 29,570 8,200 (3 ) (2 ) Premiums and discounts (net) N/A 476 707 N/A N/A Total Mortgage Notes Payable 79 $ 482,912 $ 459,299 (5 ) Variable rate Line of Credit 20 55,500 43,300 LIBOR + 2.75 % (3) 8/1/2017 Total Mortgage Notes Payable and Line of Credit 99 $ 538,412 $ 502,599 (1) Interest rates on our fixed rate mortgage notes payable vary from 3.75% to 6.80%. (2) We have 46 mortgage notes payable with maturity dates ranging from 12/11/2015 through 1/6/2039. (3) Interest rates on our variable rate mortgage notes payable vary from one month LIBOR + 2.15% to one month LIBOR + 2.25%. At September 30, 2015, one month LIBOR was approximately 0.19%. (4) The weighted average interest rate on all debt outstanding at September 30, 2015, was approximately 4.87%. (5) The weighted average interest rate on the mortgage notes outstanding at September 30, 2015, was approximately 5.10%. N/A - Not Applicable |
Summary of Long-Term Mortgages | During the nine months ended September 30, 2015, we issued six long-term mortgages, collateralized by seven properties, which are summarized below (dollars in thousands): Date of Issuance Issuing Bank Debt Issued Interest Rate Maturity Date Amortization 3/6/2015 PNC Bank, NA $ 14,573 3.86 % 4/1/2025 300 5/28/2015 FC Bank 4,466 3.75 % 6/1/2022 85 6/16/2015 Guggenheim Partners 13,000 3.99 % 7/1/2045 6/29/2015 Synovus Bank 19,780 LIBOR + 2.25 % 7/1/2018 (1) 7/1/2015 Synovus Bank 1,700 LIBOR + 2.25 % 7/1/2018 (2) 7/15/2015 Prudential Mortgage Capital Company 7,540 4.53 % 8/1/2022 $ 61,059 (1) We refinanced maturing debt on our Duncan, South Carolina and Charlotte, North Carolina properties which had aggregate balloon principal payments of $19.1 million. We completed this refinance on June 29, 2015. (2) We refinanced maturing debt on our Akron,Canton and Dayton, Ohio proerties, which had aggregate balloon principal payments of $11.3 million. We completed this refinance on July 1, 2015. |
Schedule of Principal Payments of Mortgage Notes Payable | Scheduled principal payments of mortgage notes payable for the remainder of 2015, and each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands): Year Scheduled Principal Three Months ending December 31, 2015 $ 5,749 (1) 2016 100,279 2017 69,049 2018 40,908 2019 35,738 2020 7,828 Thereafter 222,885 $ 482,436 (2) (1) This figure includes one balloon principal payment that matures in fourth quarter 2015. We plan to refinance using a combination of new mortgage debt and equity. (2) This figure is exclusive of premiums and discounts (net) on assumed debt, which were $0.48 million as of September 30, 2015. |
Summary of Interest Rate Cap Agreement | The following table summarizes the key terms of each interest rate cap agreement (dollars in thousands): As of September 30, As of December 31, 2015 2014 LIBOR Cap Maturity Date Notional Cost Fair Value Notional Cost Fair Value Interest Rate Cap Nov-13 3.00 % Dec-16 $ 8,200 $ 31 $ — $ 8,200 $ 31 $ 4 Jul-15 3.00 % Jul-18 21,370 68 19 — — — $ 29,570 $ 99 $ 19 $ 8,200 $ 31 $ 4 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments Due under Terms of Leases | We are obligated as lessee under four ground leases. Future minimum rental payments due under the terms of these leases for the remainder of 2015 and each of the five succeeding years and thereafter, are as follows (dollars in thousands): For the year ended December 31, Location Lease End Date 2015 2016 2017 2018 2019 2020 Thereafter Tulsa, OK Apr-21 $ 42 $ 169 $ 169 $ 169 $ 169 $ 169 $ 85 Dartmouth, MA May-36 44 174 174 174 174 174 3,126 Springfield, MA Feb-30 21 86 89 90 90 90 884 Salt Lake City, UT Nov-40 7 30 30 31 32 33 853 $ 114 $ 459 $ 462 $ 464 $ 465 $ 466 $ 4,948 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Summary of Changes in Stockholders' Equity | The following table summarizes the changes in our stockholders’ equity for the nine months ended September 30, 2015 (dollars in thousands): Shares Issued Notes Distributions in Preferred Senior Common Common Preferred Senior Common Common Additional Paid in Receivable from Excess of Accumulated Total Stockholders’ Stock Stock Stock Stock Stock Stock Capital Employees Earnings Equity Balance at December 31, 2014 2,150,000 809,411 19,589,606 $ 2 $ 1 $ 20 $ 369,748 $ (375 ) $ (151,724 ) $ 217,672 Issuance of senior common stock and common stock, net — 183,658 2,154,173 — — 2 38,653 — — 38,655 Distributions declared to common, senior common and preferred stockholders — — — — — — — — (27,305 ) (27,305 ) Principal repayments of employee notes receivable — — — — — — — 375 — 375 Net income — — — — — — — — 1,030 1,030 Balance at September 30, 2015 2,150,000 993,069 21,743,779 $ 2 $ 1 $ 22 $ 408,401 $ — $ (177,999 ) $ 230,427 |
Dividends Declared | Our Board of Directors declared the following distributions per share for the three and nine months ended September 30, 2015 and 2014: For the three months ended September 30, For the nine months ended September 30, 2015 2014 2015 2014 Common Stock $ 0.375 $ 0.375 $ 1.125 $ 1.125 Senior Common Stock 0.2625 0.2625 0.7875 0.7875 Series A Preferred Stock 0.4843749 0.4843749 1.4531247 1.4531247 Series B Preferred Stock 0.4688 0.4688 1.4063 1.4063 Series C Preferred Stock 0.4453 0.4453 1.3359 1.3359 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Monthly Distributions Declared by Company's Board of Directors | On October 13, 2015, our Board of Directors declared the following monthly distributions: Record Date Payment Date Common Stock Series A Preferred Series B Preferred Series C Preferred October 26, 2015 November 4, 2015 $ 0.125 $ 0.1614583 $ 0.15625 $ 0.1484375 November 17, 2015 November 30, 2015 0.125 0.1614583 0.15625 0.1484375 December 18, 2015 December 31, 2015 0.125 0.1614583 0.15625 0.1484375 Total $ 0.375 $ 0.4843749 $ 0.46875 $ 0.4453125 Senior Common Stock Distributions Payable to the Holders of Record During the Month of: Payment Date Distribution per Share October November 6, 2015 $ 0.0875 November December 7, 2015 0.0875 December January 8, 2016 0.0875 Total $ 0.2625 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - USD ($) | Jul. 01, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||||
Related Party Transaction [Line Items] | |||||||||||
Due to Adviser and Administrator | [1] | $ 1,820,000 | $ 1,820,000 | $ 916,000 | |||||||
Annual base management fee, in percentage of stockholders' equity, adjusted to unrealized gains or losses | 1.50% | ||||||||||
Quarterly base management fee, in percentage of stockholders' equity, adjusted to unrealized gains or losses | 0.375% | ||||||||||
Annual base management fee, in percentage of stockholders' equity, in excess of recorded value of preferred stock | 2.00% | ||||||||||
Base management fee | [1] | 872,000 | $ 741,000 | $ 2,589,000 | $ 2,031,000 | ||||||
Pre-incentive quarterly fee FFO in percentage of common stockholders' equity that will reward the Adviser | 2.00% | 1.75% | |||||||||
Pre-incentive annual fee FFO in percentage of common stockholders' equity that will reward the Adviser | 8.00% | 7.00% | |||||||||
Amount to be paid to Adviser in percentage of pre-incentive fee condition one | 15.00% | 100.00% | |||||||||
Incentive fee description | However, in no event shall the incentive fee for a particular quarter exceed by 15.0% (the cap) the average quarterly incentive fee paid by us for the previous four quarters (excluding quarters for which no incentive fee was paid). | ||||||||||
Pre-incentive fee in percentage of common stockholders' equity that awards Adviser hundred percent of amount of pre-incentive fee, maximum percentage | 2.1875% | ||||||||||
Amount to be paid to Adviser in percentage of pre-incentive fee condition two | 20.00% | ||||||||||
Pre-incentive fee in percentage of common stockholders' equity that awards the Adviser 20% of the amount of the pre-incentive fee, minimum percentage | 2.1875% | ||||||||||
Incentive fee | [1] | 621,000 | 1,538,000 | $ 4,054,000 | 4,305,000 | ||||||
Credits related to unconditional and irrevocable voluntary waivers issued by the Adviser | 0 | 851,000 | [1] | 2,500,000 | [1] | 3,013,000 | [1] | ||||
Related-party transactions incentive fee, net | 600,000 | 700,000 | $ 1,600,000 | 1,300,000 | |||||||
Capital gains-based incentive fee percentage | 15.00% | ||||||||||
Capital gains incentive fee description | At the end of the fiscal year, if this number is positive, then the capital gain fee payable for such time period shall equal 15.0% of such amount. | ||||||||||
Capital gain fee | 0 | $ 0 | |||||||||
Notice period for termination of agreement without cause | 120 days | ||||||||||
Notice period for termination of agreement with cause | 30 days | ||||||||||
Administration fee | [1] | 326,000 | 260,000 | $ 1,054,000 | 1,238,000 | ||||||
Agreement termination date | Aug. 31, 2016 | ||||||||||
Dealer manager fee in percentage of gross proceeds of shares of Senior Common Stock sold | 7.00% | ||||||||||
Sales commission fee in percentage of gross proceeds of shares of Senior Common Stock sold | 3.00% | ||||||||||
Fees paid | 20,000 | 20,000 | $ 200,000 | 100,000 | |||||||
Total secured mortgages subject to financing fee | $ 9,200,000 | $ 6,100,000 | $ 64,300,000 | $ 33,600,000 | |||||||
Financing fee on total secured mortgages percentage | 0.30% | 0.30% | 0.30% | 0.30% | |||||||
Minimum [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Percentage of the amount of the mortgage | 0.15% | ||||||||||
Maximum [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Percentage of the amount of the mortgage | 1.00% | ||||||||||
Amended Advisory Agreement [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Credits related to unconditional and irrevocable voluntary waivers issued by the Adviser | $ 0 | ||||||||||
Dealer Manager [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Agreement termination date | Mar. 28, 2015 | ||||||||||
Wrote-off of deferred offering costs | $ 100,000 | ||||||||||
Payments made to the Dealer Manager pursuant to Dealer Manager Agreement | $ 300,000 | $ 300,000 | $ 400,000 | ||||||||
Adviser and Administrator [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Due to Adviser and Administrator | $ 1,800,000 | $ 1,800,000 | $ 900,000 | ||||||||
[1] | Refer to Note 2 "Related-Party Transactions" |
Loss per Share of Common Stoc25
Loss per Share of Common Stock - Basic and Diluted Loss Per Share of Common Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Calculation of basic loss per share of common stock: | ||||
Net loss attributable to common stockholders | $ (1,382) | $ (931) | $ (2,788) | $ (15,483) |
Denominator for basic weighted average shares of common stock | 21,403,808 | 17,739,084 | 20,820,559 | 16,685,162 |
Basic loss per share of common stock | $ (0.06) | $ (0.05) | $ (0.13) | $ (0.93) |
Calculation of diluted loss per share of common stock: | ||||
Net loss attributable to common stockholders | $ (1,382) | $ (931) | $ (2,788) | $ (15,483) |
Net loss attributable to common stockholders plus assumed conversions | $ (1,382) | $ (931) | $ (2,788) | $ (15,483) |
Denominator for basic weighted average shares of common stock | 21,403,808 | 17,739,084 | 20,820,559 | 16,685,162 |
Denominator for diluted weighted average shares of common stock | 21,403,808 | 17,739,084 | 20,820,559 | 16,685,162 |
Diluted loss per share of common stock | $ (0.06) | $ (0.05) | $ (0.13) | $ (0.93) |
Loss per Share of Common Stoc26
Loss per Share of Common Stock - Basic and Diluted Loss Per Share of Common Stock (Parenthetical) (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Senior Common Stock [Member] | ||||
Summary Of Computation Of Basic And Diluted Earnings Per Share [Line Items] | ||||
Anti-dilutive convertible shares of senior common stock excluded from calculation of diluted earnings per share | 828,444 | 429,673 | 791,582 | 362,162 |
Real Estate and Intangible As27
Real Estate and Intangible Assets - Components of Investments in Real Estate (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Real estate: | ||
Land | $ 93,265 | $ 88,394 |
Building and improvements | 620,794 | 593,155 |
Tenant improvements | 47,399 | 41,016 |
Accumulated depreciation | (104,877) | (92,133) |
Total real estate, net | $ 656,581 | $ 630,432 |
Real Estate and Intangible As28
Real Estate and Intangible Assets - Additional Information (Detail) $ in Thousands | Sep. 18, 2015USD ($)Option | Aug. 28, 2015USD ($)ft² | Jul. 13, 2015USD ($)ft²Option | Sep. 30, 2015USD ($)ft²Property | Sep. 30, 2014USD ($)ft²Property | Sep. 30, 2015USD ($)ft²Property | Sep. 30, 2014USD ($)ft²Property | Dec. 31, 2014USD ($) |
Real Estate Properties [Line Items] | ||||||||
Number of properties acquired | Property | 5 | 8 | 5 | 8 | ||||
Acquisition of our property, area | ft² | 429,427 | 1,406,054 | 429,427 | 1,406,054 | ||||
Lease expiration date | Dec. 31, 2015 | |||||||
Tenant improvements | $ 47,399 | $ 47,399 | $ 41,016 | |||||
Total amortization expense related to lease intangible assets | 3,300 | $ 2,600 | 9,700 | $ 7,300 | ||||
Amortization related to below-market lease | 200 | 200 | 700 | 500 | ||||
Building and Tenant Improvements [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Real estate depreciation expense | 5,700 | 4,900 | 16,400 | 13,800 | ||||
Above Market Leases [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Amortization related to above-market lease | $ 100 | $ 100 | $ 300 | $ 200 | ||||
Raleigh, North Carolina [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Acquisition of our property, area | ft² | 86,886 | |||||||
Percentage of space occupied | 75.00% | |||||||
Percentage of lease space retained by current tenant | 18.00% | |||||||
Percentage of building lease space occupied | 93.00% | |||||||
Lease commencement date | Aug. 1, 2015 | |||||||
Lease expiration date | Dec. 31, 2027 | |||||||
Annualized straight line rent escalations | $ 500 | |||||||
Number of options for renewal of lease | Option | 2 | |||||||
Renew the lease for additional periods | 5 years | |||||||
Amount provided for tenant improvements | $ 800 | |||||||
Lease commission provided | $ 400 | |||||||
Baytown, Texas [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Annualized straight line rent escalations | $ 130 | |||||||
Number of options for renewal of lease | Option | 2 | |||||||
Renew the lease for additional periods | 5 years | |||||||
Amount provided for tenant improvements | $ 200 | |||||||
Lease commission provided | $ 60 | |||||||
Percentage of building occupied by tenant | 57.00% | |||||||
Lease Term | 7 years | |||||||
Indianapolis, IN [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Acquisition of our property, area | ft² | 4,512 | 86,495 | 86,495 | |||||
Annualized straight line rent escalations | $ 100 | |||||||
Extended area of real estate property leased | ft² | 6,903 | |||||||
Option to extend lease term | 3 years | |||||||
Extended lease period | 2021-09 | |||||||
Period for lease expiration | 2018-10 | |||||||
Increase in annualized straight line rent escalations | $ 30 | |||||||
Tenant improvements | $ 60 | |||||||
Lease Term | 11 years 6 months |
Real Estate and Intangible As29
Real Estate and Intangible Assets - Summary of Properties Acquired (Detail) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015USD ($)ft²Option | Sep. 30, 2014USD ($)ft²Option | Aug. 28, 2015ft² | |
Business Acquisition [Line Items] | |||
Square Footage (unaudited) | ft² | 429,427 | 1,406,054 | |
Total Purchase Price | $ 71,248 | $ 93,711 | |
Acquisition Expenses | 514 | 1,114 | |
Annualized GAAP/Straight Line Rent | 7,380 | 9,490 | |
Debt Issued & Assumed | $ 39,579 | $ 43,781 | |
Richardson, TX [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Mar. 6, 2015 | ||
Square Footage (unaudited) | ft² | 155,984 | ||
Lease Term | 9 years 6 months | ||
Renewal Options | Option | 2 | ||
Renewal Options Period | 5 years | ||
Total Purchase Price | $ 24,700 | ||
Acquisition Expenses | 108 | ||
Annualized GAAP/Straight Line Rent | 2,708 | ||
Debt Issued & Assumed | $ 14,573 | ||
Birmingham, AL [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Mar. 20, 2015 | ||
Square Footage (unaudited) | ft² | 30,850 | ||
Lease Term | 8 years 6 months | ||
Renewal Options | Option | 1 | ||
Renewal Options Period | 5 years | ||
Total Purchase Price | $ 3,648 | ||
Acquisition Expenses | 76 | ||
Annualized GAAP/Straight Line Rent | $ 333 | ||
Allen, TX [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Mar. 27, 2014 | ||
Square Footage (unaudited) | ft² | 21,154 | ||
Lease Term | 12 years | ||
Renewal Options | Option | 4 | ||
Renewal Options Period | 5 years | ||
Total Purchase Price | $ 5,525 | ||
Acquisition Expenses | 33 | ||
Annualized GAAP/Straight Line Rent | 570 | ||
Debt Issued & Assumed | $ 3,481 | ||
Colleyville, TX [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Mar. 27, 2014 | ||
Square Footage (unaudited) | ft² | 20,355 | ||
Lease Term | 12 years | ||
Renewal Options | Option | 4 | ||
Renewal Options Period | 5 years | ||
Total Purchase Price | $ 4,523 | ||
Acquisition Expenses | 33 | ||
Annualized GAAP/Straight Line Rent | 467 | ||
Debt Issued & Assumed | $ 2,849 | ||
Rancho Cordova, CA [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Apr. 22, 2014 | ||
Square Footage (unaudited) | ft² | 61,358 | ||
Lease Term | 10 years | ||
Renewal Options | Option | 1 | ||
Renewal Options Period | 5 years | ||
Total Purchase Price | $ 8,225 | ||
Acquisition Expenses | 73 | ||
Annualized GAAP/Straight Line Rent | 902 | ||
Debt Issued & Assumed | $ 4,935 | ||
Coppell, TX [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition Date | May 8, 2014 | ||
Square Footage (unaudited) | ft² | 21,171 | ||
Lease Term | 12 years | ||
Renewal Options | Option | 4 | ||
Renewal Options Period | 5 years | ||
Total Purchase Price | $ 5,838 | ||
Acquisition Expenses | 26 | ||
Annualized GAAP/Straight Line Rent | 601 | ||
Debt Issued & Assumed | $ 3,816 | ||
Columbus, OH [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition Date | May 28, 2015 | May 13, 2014 | |
Square Footage (unaudited) | ft² | 78,033 | 114,786 | |
Lease Term | 15 years | 9 years 6 months | |
Renewal Options | Option | 2 | ||
Renewal Options Period | 5 years | ||
Total Purchase Price | $ 7,700 | $ 11,800 | |
Acquisition Expenses | 72 | 70 | |
Annualized GAAP/Straight Line Rent | 637 | $ 1,278 | |
Debt Issued & Assumed | $ 4,466 | ||
Taylor, PA [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Jun. 9, 2014 | ||
Square Footage (unaudited) | ft² | 955,935 | ||
Lease Term | 10 years | ||
Renewal Options | Option | 4 | ||
Renewal Options Period | 5 years | ||
Total Purchase Price | $ 39,000 | ||
Acquisition Expenses | 730 | ||
Annualized GAAP/Straight Line Rent | 3,400 | ||
Debt Issued & Assumed | $ 22,600 | ||
Salt Lake City, UT [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition Date | May 29, 2015 | ||
Square Footage (unaudited) | ft² | 86,409 | ||
Lease Term | 6 years 6 months | ||
Renewal Options | Option | 1 | ||
Renewal Options Period | 5 years | ||
Total Purchase Price | $ 22,200 | ||
Acquisition Expenses | 149 | ||
Annualized GAAP/Straight Line Rent | 2,411 | ||
Debt Issued & Assumed | $ 13,000 | ||
Atlanta, GA [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Jul. 15, 2015 | ||
Square Footage (unaudited) | ft² | 78,151 | ||
Renewal Options | Option | 2 | ||
Renewal Options Period | 5 years | ||
Total Purchase Price | $ 13,000 | ||
Acquisition Expenses | 109 | ||
Annualized GAAP/Straight Line Rent | 1,291 | ||
Debt Issued & Assumed | $ 7,540 | ||
Aurora, CO [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Jul. 1, 2014 | ||
Square Footage (unaudited) | ft² | 124,800 | ||
Lease Term | 15 years | ||
Renewal Options | Option | 2 | ||
Renewal Options Period | 5 years | ||
Total Purchase Price | $ 8,300 | ||
Acquisition Expenses | 91 | ||
Annualized GAAP/Straight Line Rent | $ 768 | ||
Indianapolis, IN [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Sep. 3, 2014 | ||
Square Footage (unaudited) | ft² | 86,495 | 4,512 | |
Lease Term | 11 years 6 months | ||
Renewal Options | Option | 2 | ||
Renewal Options Period | 5 years | ||
Total Purchase Price | $ 10,500 | ||
Acquisition Expenses | 58 | ||
Annualized GAAP/Straight Line Rent | 1,504 | ||
Debt Issued & Assumed | $ 6,100 |
Real Estate and Intangible As30
Real Estate and Intangible Assets - Summary of Properties Acquired (Parenthetical) (Detail) | 9 Months Ended | |
Sep. 30, 2015LeaseTenants | Sep. 30, 2014 | |
Business Acquisition [Line Items] | ||
Lease expiration year | 2016-11 | |
Lease renewal terms description | The other tenants in the building have varying lease expirations from December 2015 to October 2018. No other tenants have renewal options. | |
Atlanta, GA [Member] | ||
Business Acquisition [Line Items] | ||
Number of tenant | Tenants | 1 | |
Number of leases | 2 | |
Percentage of building occupied by tenant | 100.00% | |
Lease Two [Member] | Atlanta, GA [Member] | ||
Business Acquisition [Line Items] | ||
Percentage of building occupied by tenant | 30.00% | |
Lease expiration period | 15 years | |
Lease One [Member] | Atlanta, GA [Member] | ||
Business Acquisition [Line Items] | ||
Percentage of building occupied by tenant | 70.00% | |
Lease expiration period | 7 years |
Real Estate and Intangible As31
Real Estate and Intangible Assets - Fair Value of Acquired Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Business Acquisition [Line Items] | ||
Total Purchase Price | $ 71,248 | $ 93,711 |
Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 5,243 | 5,781 |
Above Market Leases [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 1,840 | 387 |
Below Market Leases [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | (1,246) | (19) |
Premium on Assumed Debt [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | (249) | |
Richardson, TX [Member] | ||
Business Acquisition [Line Items] | ||
Total Purchase Price | 24,700 | |
Richardson, TX [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 1,915 | |
Richardson, TX [Member] | Above Market Leases [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 975 | |
Birmingham, AL [Member] | ||
Business Acquisition [Line Items] | ||
Total Purchase Price | 3,648 | |
Birmingham, AL [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 360 | |
Allen, TX [Member] | ||
Business Acquisition [Line Items] | ||
Total Purchase Price | 5,525 | |
Allen, TX [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 218 | |
Allen, TX [Member] | Premium on Assumed Debt [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | (72) | |
Colleyville, TX [Member] | ||
Business Acquisition [Line Items] | ||
Total Purchase Price | 4,523 | |
Colleyville, TX [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 181 | |
Colleyville, TX [Member] | Below Market Leases [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | (6) | |
Colleyville, TX [Member] | Premium on Assumed Debt [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | (59) | |
Rancho Cordova, CA [Member] | ||
Business Acquisition [Line Items] | ||
Total Purchase Price | 8,225 | |
Rancho Cordova, CA [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 278 | |
Coppell, TX [Member] | ||
Business Acquisition [Line Items] | ||
Total Purchase Price | 5,838 | |
Coppell, TX [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 230 | |
Coppell, TX [Member] | Premium on Assumed Debt [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | (118) | |
Columbus, OH [Member] | ||
Business Acquisition [Line Items] | ||
Total Purchase Price | 7,700 | 11,800 |
Columbus, OH [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 567 | 990 |
Columbus, OH [Member] | Above Market Leases [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 261 | |
Columbus, OH [Member] | Below Market Leases [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | (1,079) | |
Taylor, PA [Member] | ||
Business Acquisition [Line Items] | ||
Total Purchase Price | 39,000 | |
Taylor, PA [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 2,870 | |
Salt Lake City, UT [Member] | ||
Business Acquisition [Line Items] | ||
Total Purchase Price | 22,200 | |
Salt Lake City, UT [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 1,678 | |
Salt Lake City, UT [Member] | Above Market Leases [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 821 | |
Salt Lake City, UT [Member] | Below Market Leases [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | (53) | |
Atlanta, GA [Member] | ||
Business Acquisition [Line Items] | ||
Total Purchase Price | 13,000 | |
Atlanta, GA [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 723 | |
Atlanta, GA [Member] | Above Market Leases [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 44 | |
Atlanta, GA [Member] | Below Market Leases [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | (114) | |
Aurora, CO [Member] | ||
Business Acquisition [Line Items] | ||
Total Purchase Price | 8,300 | |
Aurora, CO [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 282 | |
Indianapolis, IN [Member] | ||
Business Acquisition [Line Items] | ||
Total Purchase Price | 10,500 | |
Indianapolis, IN [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 732 | |
Indianapolis, IN [Member] | Above Market Leases [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 126 | |
Indianapolis, IN [Member] | Below Market Leases [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | (13) | |
Land [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 10,216 | 11,827 |
Land [Member] | Richardson, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 2,709 | |
Land [Member] | Birmingham, AL [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 650 | |
Land [Member] | Allen, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 874 | |
Land [Member] | Colleyville, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 1,277 | |
Land [Member] | Rancho Cordova, CA [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 752 | |
Land [Member] | Coppell, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 1,448 | |
Land [Member] | Columbus, OH [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 1,338 | 990 |
Land [Member] | Taylor, PA [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 3,102 | |
Land [Member] | Salt Lake City, UT [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 3,248 | |
Land [Member] | Atlanta, GA [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 2,271 | |
Land [Member] | Aurora, CO [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 2,882 | |
Land [Member] | Indianapolis, IN [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 502 | |
Building [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 37,420 | 54,623 |
Building [Member] | Richardson, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 12,503 | |
Building [Member] | Birmingham, AL [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 1,683 | |
Building [Member] | Allen, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 3,509 | |
Building [Member] | Colleyville, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 2,307 | |
Building [Member] | Rancho Cordova, CA [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 5,898 | |
Building [Member] | Coppell, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 3,221 | |
Building [Member] | Columbus, OH [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 3,511 | 6,080 |
Building [Member] | Taylor, PA [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 24,449 | |
Building [Member] | Salt Lake City, UT [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 11,861 | |
Building [Member] | Atlanta, GA [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 7,862 | |
Building [Member] | Aurora, CO [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 3,825 | |
Building [Member] | Indianapolis, IN [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 5,334 | |
Tenant Improvements [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 6,843 | 4,721 |
Tenant Improvements [Member] | Richardson, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 2,761 | |
Tenant Improvements [Member] | Birmingham, AL [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 351 | |
Tenant Improvements [Member] | Allen, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 125 | |
Tenant Improvements [Member] | Colleyville, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 117 | |
Tenant Improvements [Member] | Rancho Cordova, CA [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 278 | |
Tenant Improvements [Member] | Coppell, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 128 | |
Tenant Improvements [Member] | Columbus, OH [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 1,547 | 1,937 |
Tenant Improvements [Member] | Taylor, PA [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 956 | |
Tenant Improvements [Member] | Salt Lake City, UT [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 1,268 | |
Tenant Improvements [Member] | Atlanta, GA [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 916 | |
Tenant Improvements [Member] | Aurora, CO [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 92 | |
Tenant Improvements [Member] | Indianapolis, IN [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 1,088 | |
In-Place Leases [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 6,794 | 11,590 |
In-Place Leases [Member] | Richardson, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 2,046 | |
In-Place Leases [Member] | Birmingham, AL [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 458 | |
In-Place Leases [Member] | Allen, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 598 | |
In-Place Leases [Member] | Colleyville, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 486 | |
In-Place Leases [Member] | Rancho Cordova, CA [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 473 | |
In-Place Leases [Member] | Coppell, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 636 | |
In-Place Leases [Member] | Columbus, OH [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 1,144 | 823 |
In-Place Leases [Member] | Taylor, PA [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 6,171 | |
In-Place Leases [Member] | Salt Lake City, UT [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 2,396 | |
In-Place Leases [Member] | Atlanta, GA [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 750 | |
In-Place Leases [Member] | Aurora, CO [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 413 | |
In-Place Leases [Member] | Indianapolis, IN [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 1,990 | |
Leasing Costs [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 4,138 | 5,050 |
Leasing Costs [Member] | Richardson, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 1,791 | |
Leasing Costs [Member] | Birmingham, AL [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 146 | |
Leasing Costs [Member] | Allen, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 273 | |
Leasing Costs [Member] | Colleyville, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 220 | |
Leasing Costs [Member] | Rancho Cordova, CA [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 546 | |
Leasing Costs [Member] | Coppell, TX [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 293 | |
Leasing Costs [Member] | Columbus, OH [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 672 | 719 |
Leasing Costs [Member] | Taylor, PA [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 1,452 | |
Leasing Costs [Member] | Salt Lake City, UT [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 981 | |
Leasing Costs [Member] | Atlanta, GA [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | $ 548 | |
Leasing Costs [Member] | Aurora, CO [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | 806 | |
Leasing Costs [Member] | Indianapolis, IN [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of acquired assets related to the properties acquired | $ 741 |
Real Estate and Intangible As32
Real Estate and Intangible Assets - Schedule of Revenue and Earnings Recognized on Properties Acquired (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Business Acquisition [Line Items] | ||||
Rental Revenue | $ 1,762 | $ 2,105 | $ 2,971 | $ 3,016 |
Earnings | 469 | 1,047 | $ 1,328 | $ 1,422 |
Richardson, TX [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition Date | Mar. 6, 2015 | |||
Rental Revenue | 656 | $ 1,496 | ||
Earnings | 96 | $ 423 | ||
Birmingham, AL [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition Date | Mar. 20, 2015 | |||
Rental Revenue | 83 | $ 177 | ||
Earnings | (22) | $ 84 | ||
Columbus, OH [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition Date | May 28, 2015 | May 13, 2014 | ||
Rental Revenue | 177 | 311 | $ 244 | $ 479 |
Earnings | 18 | 115 | $ 166 | $ 184 |
Salt Lake City, UT [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition Date | May 29, 2015 | |||
Rental Revenue | 572 | $ 780 | ||
Earnings | 163 | $ 441 | ||
Atlanta, GA [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition Date | Jul. 15, 2015 | |||
Rental Revenue | 274 | $ 274 | ||
Earnings | $ 214 | $ 214 | ||
Allen, TX [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition Date | Mar. 27, 2014 | |||
Rental Revenue | 143 | $ 293 | ||
Earnings | 101 | $ 167 | ||
Colleyville, TX [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition Date | Mar. 27, 2014 | |||
Rental Revenue | 117 | $ 240 | ||
Earnings | 83 | $ 138 | ||
Rancho Cordova, CA [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition Date | Apr. 22, 2014 | |||
Rental Revenue | 226 | $ 399 | ||
Earnings | 104 | $ 168 | ||
Coppell, TX [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition Date | May 8, 2014 | |||
Rental Revenue | 150 | $ 239 | ||
Earnings | 116 | $ 139 | ||
Taylor, PA [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition Date | Jun. 9, 2014 | |||
Rental Revenue | 850 | $ 1,058 | ||
Earnings | 395 | $ 493 | ||
Aurora, CO [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition Date | Jul. 1, 2014 | |||
Rental Revenue | 192 | $ 192 | ||
Earnings | 124 | $ 124 | ||
Indianapolis, IN [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition Date | Sep. 3, 2014 | |||
Rental Revenue | 116 | $ 116 | ||
Earnings | $ 9 | $ 9 |
Real Estate and Intangible As33
Real Estate and Intangible Assets - Pro-Forma Condensed Consolidated Statements of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Data: | ||||
Total operating revenue | $ 21,402 | $ 21,624 | $ 64,059 | $ 65,425 |
Total operating expenses | (13,539) | (13,222) | (38,651) | (53,311) |
Other expenses | (7,820) | (8,029) | (23,485) | (23,120) |
Net income (loss) | 43 | 373 | 1,923 | (11,006) |
Dividends attributable to preferred and senior common stock | (1,286) | (1,160) | (3,818) | (3,417) |
Net loss attributable to common stockholders | $ (1,243) | $ (787) | $ (1,895) | $ (14,423) |
Share and Per Share Data: | ||||
Basic (loss) earnings per share of common stock - pro forma | $ (0.06) | $ (0.04) | $ (0.09) | $ (0.86) |
Diluted (loss) earnings per share of common stock - pro forma | (0.06) | (0.04) | (0.09) | (0.86) |
Basic (loss) earnings per share of common stock - actual | (0.06) | (0.05) | (0.13) | (0.93) |
Diluted (loss) earnings per share of common stock - actual | $ (0.06) | $ (0.05) | $ (0.13) | $ (0.93) |
Weighted average shares outstanding-basic | 21,403,808 | 17,739,084 | 20,820,559 | 16,685,162 |
Weighted average shares outstanding-diluted | 21,403,808 | 17,739,084 | 20,820,559 | 16,685,162 |
Real Estate and Intangible As34
Real Estate and Intangible Assets - Pro-Forma Condensed Consolidated Statements of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Business Combinations [Abstract] | ||||
Impairment charge | $ 622 | $ 280 | $ 622 | $ 14,238 |
Real Estate and Intangible As35
Real Estate and Intangible Assets - Carrying Value of Intangible Assets, Liabilities and Accumulated Amortization (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 181,345 | $ 163,034 |
Finite-lived intangible assets, accumulated amortization | (63,084) | (53,696) |
Finite-lived intangible assets, gross | 9,591 | 8,314 |
Finite-lived intangible assets, accumulated amortization | (6,307) | (6,384) |
Below market leases, gross | 16,946 | 15,939 |
Below market leases, accumulated amortization | (7,932) | (7,345) |
In-Place Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 65,642 | 59,233 |
Finite-lived intangible assets, accumulated amortization | (21,198) | (17,379) |
Leasing Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 42,936 | 38,305 |
Finite-lived intangible assets, accumulated amortization | (13,803) | (11,411) |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 46,230 | 41,243 |
Finite-lived intangible assets, accumulated amortization | (13,844) | (11,177) |
Lease Intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 154,808 | 138,781 |
Finite-lived intangible assets, accumulated amortization | (48,845) | (39,967) |
Above and Below Market Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 26,537 | 24,253 |
Finite-lived intangible assets, accumulated amortization | $ (14,239) | $ (13,729) |
Real Estate and Intangible As36
Real Estate and Intangible Assets - Weighted Average Amortization Period for Intangible Assets Acquired and Liabilities Assumed (Detail) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Period for intangible assets and liabilities | 12 years 10 months 24 days | 11 years 6 months |
In-Place Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Period for intangible assets and liabilities | 11 years 6 months | 10 years 2 months 12 days |
Leasing Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Period for intangible assets and liabilities | 11 years 6 months | 10 years 2 months 12 days |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Period for intangible assets and liabilities | 16 years 1 month 6 days | 14 years 7 months 6 days |
Above Market Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Period for intangible assets and liabilities | 17 years 2 months 12 days | 9 years 3 months 18 days |
Below Market Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Period for intangible assets and liabilities | 13 years 6 months | 9 years 10 months 24 days |
Real Estate Held for Sale and37
Real Estate Held for Sale and Impairment Charges - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)Property | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Property | Sep. 30, 2014USD ($) | |
Real Estate [Abstract] | ||||
Number of real estate properties, held for sale | Property | 5 | 5 | ||
Impairment loss | $ 622 | $ 280 | $ 622 | $ 14,238 |
Real Estate Held for Sale and38
Real Estate Held for Sale and Impairment Charges - Components of Income from Real Estate and Related Assets Held for Sale (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Real Estate Properties [Line Items] | ||||
Operating expense | $ 13,643 | $ 11,457 | $ 37,995 | $ 46,437 |
Total operating revenues | 21,375 | 19,014 | 61,983 | 54,540 |
Real Estate Held for Sale [Member] | ||||
Real Estate Properties [Line Items] | ||||
Operating revenue | 505 | 623 | 1,626 | 1,732 |
Operating expense | 744 | 234 | 1,034 | 556 |
Other expense | 47 | 67 | 175 | 201 |
Total operating revenues | $ (286) | $ 322 | $ 417 | $ 975 |
Real Estate Held for Sale and39
Real Estate Held for Sale and Impairment Charges - Components of Income from Real Estate and Related Assets Held for Sale (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Real Estate [Abstract] | ||||
Impairment charge | $ 622 | $ 280 | $ 622 | $ 14,238 |
Real Estate Held for Sale and40
Real Estate Held for Sale and Impairment Charges - Components of Assets and Liabilities Held for Sale (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
ASSETS HELD FOR SALE | |
TOTAL ASSETS HELD FOR SALE | $ 16,832 |
LIABILITIES HELD FOR SALE | |
TOTAL LIABILITIES HELD FOR SALE | 1,304 |
Real Estate Held for Sale [Member] | |
ASSETS HELD FOR SALE | |
Real estate, at cost | 19,271 |
Less: accumulated depreciation | (3,680) |
Total real estate held for sale, net | 15,591 |
Lease intangibles, net | 153 |
Deferred rent receivable, net | 1,046 |
Deferred financing costs, net | 2 |
Other assets | 40 |
TOTAL ASSETS HELD FOR SALE | 16,832 |
LIABILITIES HELD FOR SALE | |
Deferred rent liability, net | 141 |
Asset retirement obligation | 245 |
Accounts payable and accrued expenses | 51 |
Other liabilities | 867 |
TOTAL LIABILITIES HELD FOR SALE | $ 1,304 |
Mortgage Notes Payable and Li41
Mortgage Notes Payable and Line of Credit - Company's Mortgage Notes Payable and Line of Credit (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($)Property | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||
Encumbered properties | Property | 99 | |
Carrying Value | $ 538,412 | $ 502,599 |
Stated Interest Rates | One month LIBOR was approximately 0.19% | |
Libor rate | 0.19% | |
Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Encumbered properties | Property | 20 | |
Carrying Value | $ 55,500 | 43,300 |
Stated Interest Rates | LIBOR + 2.75% | |
Libor rate | 2.75% | |
Scheduled Maturity Dates | Aug. 1, 2017 | |
Premiums and Discounts (Net) [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 476 | 707 |
Fixed Rate Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Encumbered properties | Property | 71 | |
Carrying Value | $ 452,866 | 450,392 |
Variable Rate Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Encumbered properties | Property | 8 | |
Carrying Value | $ 29,570 | 8,200 |
Stated Interest Rates | Variable rate mortgage notes payable vary from one month LIBOR + 2.15% to one month LIBOR + 2.25% | |
Mortgage Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Encumbered properties | Property | 79 | |
Carrying Value | $ 482,912 | $ 459,299 |
Mortgage Notes Payable and Li42
Mortgage Notes Payable and Line of Credit - Company's Mortgage Notes Payable and Line of Credit (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2015Mortgages | |
Debt Instrument [Line Items] | |
Number of mortgage notes payable | 46 |
Libor rate | 0.19% |
Libor rate description | One month LIBOR was approximately 0.19% |
Weighted average interest rate on debt outstanding | 4.87% |
Fixed Rate Mortgage Loans [Member] | |
Debt Instrument [Line Items] | |
Number of mortgage notes payable | 46 |
Maturity date of mortgage notes payable, start date | Dec. 11, 2015 |
Maturity date of mortgage notes payable, end date | Jan. 6, 2039 |
Fixed Rate Mortgage Loans [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Stated Interest Rates | 3.75% |
Fixed Rate Mortgage Loans [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Stated Interest Rates | 6.80% |
Variable Rate Mortgage Loans [Member] | |
Debt Instrument [Line Items] | |
Libor rate description | Variable rate mortgage notes payable vary from one month LIBOR + 2.15% to one month LIBOR + 2.25% |
Variable Rate Mortgage Loans [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Libor rate | 2.15% |
Variable Rate Mortgage Loans [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Libor rate | 2.25% |
Mortgage Notes Payable [Member] | |
Debt Instrument [Line Items] | |
Weighted average interest rate on debt outstanding | 5.10% |
Mortgage Notes Payable and Li43
Mortgage Notes Payable and Line of Credit - Additional Information (Detail) | Oct. 05, 2015USD ($) | Jul. 01, 2015USD ($) | Sep. 30, 2015USD ($)PropertyMortgages | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)PropertyMortgagesLenders | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Oct. 27, 2015USD ($) | Aug. 31, 2013USD ($) |
Debt Instrument [Line Items] | |||||||||
Number of mortgage notes payable | Mortgages | 46 | 46 | |||||||
Number of properties collateralized in mortgage notes payable | Property | 99 | 99 | |||||||
Net book value of collateralized mortgage properties | $ 691,900,000 | $ 691,900,000 | |||||||
Number of long-term mortgages issued | Mortgages | 6 | ||||||||
Number of properties to issue collateralized mortgage notes payable | Property | 7 | ||||||||
Payments of deferred financing costs | 300,000 | $ 100,000 | $ 1,157,000 | $ 711,000 | |||||
Principal repayments on mortgage notes payable | 37,216,000 | $ 6,085,000 | |||||||
Hedge contract, cost | 99,000 | $ 31,000 | |||||||
Fair value of mortgage notes payable outstanding | 495,600,000 | 495,600,000 | |||||||
Line of credit facility, maximum borrowing capacity | 150,000,000 | $ 150,000,000 | $ 100,000,000 | ||||||
Line of credit facility, percentage of extension fee on initial maturity | 0.25% | ||||||||
Number of lenders added | Lenders | 3 | ||||||||
Cost for modification of the credit facility agreement | $ 500,000 | ||||||||
Borrowings under line of credit | $ 55,500,000 | $ 55,500,000 | $ 43,300,000 | ||||||
Line of credit at an interest rate | 2.94% | 2.94% | |||||||
Letters of credit, outstanding | $ 3,900,000 | $ 3,900,000 | |||||||
Weighted average interest rate on debt outstanding | 4.87% | 4.87% | |||||||
Line of credit facility, maximum additional amount drawn | $ 13,800,000 | ||||||||
Interest Rate Cap [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Hedge contract, maturity date | Jul. 1, 2018 | ||||||||
Hedge contract, interest rate description | We will receive payments from Synovus Bank if the one month LIBOR rate increases above 3.0%. | ||||||||
Synovus Bank [Member] | Interest Rate Cap [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Hedge contract, cost | $ 70,000 | ||||||||
LIBOR [Member] | Interest Rate Cap [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
LIBOR Cap | 3.00% | ||||||||
5-Year Term Loan Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 25,000,000 | $ 25,000,000 | |||||||
Line of credit, maturity date | 2020-10 | ||||||||
Subsequent Event [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 85,000,000 | ||||||||
Line of credit, maturity date | 2019-08 | ||||||||
Letter of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average interest rate on debt outstanding | 2.75% | 2.75% | |||||||
Mortgage Notes Payable [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of properties collateralized in mortgage notes payable | Property | 79 | 79 | |||||||
Principal repayments on mortgage notes payable | $ 11,300,000 | ||||||||
Debt instrument original maturity date | Sep. 1, 2015 | ||||||||
Excess of LIBOR rate | 3.00% | ||||||||
Carrying value of mortgage notes payable outstanding | $ 482,900,000 | $ 482,900,000 | |||||||
Weighted average interest rate on debt outstanding | 5.10% | 5.10% | |||||||
Mortgage Notes Payable [Member] | Synovus Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term notes payable | $ 1,700,000 |
Mortgage Notes Payable and Li44
Mortgage Notes Payable and Line of Credit - Summary of Long-Term Mortgages (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | ||
Debt Issued | $ 61,059 | $ 33,635 |
Libor rate description | One month LIBOR was approximately 0.19% | |
Libor rate | 0.19% | |
Maturity Date One [Member] | PNC Bank, NA [Member] | ||
Debt Instrument [Line Items] | ||
Date of Issuance | Mar. 6, 2015 | |
Issuing Bank | PNC Bank, NA | |
Debt Issued | $ 14,573 | |
Interest Rate | 3.86% | |
Maturity Date | Apr. 1, 2025 | |
Amortization Period (months) | 300 months | |
Maturity Date Two [Member] | FC Bank [Member] | ||
Debt Instrument [Line Items] | ||
Date of Issuance | May 28, 2015 | |
Issuing Bank | FC Bank | |
Debt Issued | $ 4,466 | |
Interest Rate | 3.75% | |
Maturity Date | Jun. 1, 2022 | |
Amortization Period (months) | 85 months | |
Maturity Date Three [Member] | Guggenheim Partners [Member] | ||
Debt Instrument [Line Items] | ||
Date of Issuance | Jun. 16, 2015 | |
Issuing Bank | Guggenheim Partners | |
Debt Issued | $ 13,000 | |
Interest Rate | 3.99% | |
Maturity Date | Jul. 1, 2045 | |
Maturity Date Four [Member] | Synovus Bank [Member] | ||
Debt Instrument [Line Items] | ||
Date of Issuance | Jun. 29, 2015 | |
Issuing Bank | Synovus Bank | |
Debt Issued | $ 19,780 | |
Libor rate description | LIBOR + 2.25% | |
Maturity Date | Jul. 1, 2018 | |
Libor rate | 2.25% | |
Maturity Date Five [Member] | Synovus Bank [Member] | ||
Debt Instrument [Line Items] | ||
Date of Issuance | Jul. 1, 2015 | |
Issuing Bank | Synovus Bank | |
Debt Issued | $ 1,700 | |
Libor rate description | LIBOR + 2.25% | |
Maturity Date | Jul. 1, 2018 | |
Libor rate | 2.25% | |
Maturity Date Six [Member] | Prudential Mortgage Capital Company [Member] | ||
Debt Instrument [Line Items] | ||
Date of Issuance | Jul. 15, 2015 | |
Issuing Bank | Prudential Mortgage Capital Company | |
Debt Issued | $ 7,540 | |
Interest Rate | 4.53% | |
Maturity Date | Aug. 1, 2022 |
Mortgage Notes Payable and Li45
Mortgage Notes Payable and Line of Credit - Summary of Long-Term Mortgages (Parenthetical) (Detail) - USD ($) $ in Millions | Jul. 01, 2015 | Jun. 29, 2015 |
Variable Rate Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument balloon payment to be paid | $ 11.3 | $ 19.1 |
Mortgage Notes Payable and Li46
Mortgage Notes Payable and Line of Credit - Schedule of Principal Payments of Mortgage Notes Payable (Detail) - Mortgage Notes Payable [Member] $ in Thousands | Sep. 30, 2015USD ($) |
Debt Instrument [Line Items] | |
Three Months ending December 31, 2015 | $ 5,749 |
2,016 | 100,279 |
2,017 | 69,049 |
2,018 | 40,908 |
2,019 | 35,738 |
2,020 | 7,828 |
Thereafter | 222,885 |
Total Mortgage Notes Payable | $ 482,436 |
Mortgage Notes Payable and Li47
Mortgage Notes Payable and Line of Credit - Schedule of Principal Payments of Mortgage Notes Payable (Parenthetical) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Debt Instrument [Line Items] | |
Refinance of principal payment maturity period, description | This figure includes one balloon principal payment that matures in fourth quarter 2015. We plan to refinance using a combination of new mortgage debt and equity. |
Mortgage Notes Payable [Member] | |
Debt Instrument [Line Items] | |
Premiums and discounts, net | $ 480 |
Mortgage Notes Payable and Li48
Mortgage Notes Payable and Line of Credit - Summary of Interest Rate Cap Agreement (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Notional Amount | $ 29,570,000 | $ 8,200,000 |
Cost | 99,000 | 31,000 |
Fair Value | $ 19,000 | 4,000 |
Interest Rate Cap Agreement November 2013 [Member] | ||
Debt Instrument [Line Items] | ||
Date of Issuance | Nov. 30, 2013 | |
LIBOR Cap | 3.00% | |
Maturity Date | Dec. 1, 2016 | |
Notional Amount | $ 8,200,000 | 8,200,000 |
Cost | $ 31,000 | 31,000 |
Fair Value | $ 4,000 | |
Interest Rate Cap Agreement July 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Date of Issuance | Jul. 31, 2015 | |
LIBOR Cap | 3.00% | |
Maturity Date | Jul. 1, 2018 | |
Notional Amount | $ 21,370,000 | |
Cost | 68,000 | |
Fair Value | $ 19,000 |
Mandatorily Redeemable Prefer49
Mandatorily Redeemable Preferred Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | |
Feb. 29, 2012 | Sep. 30, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | |||
Redeemable preferred stock, shares issued | 2,150,000 | 2,150,000 | |
Preferred shares at a redemption price | $ 25 | ||
Preferred Stock redemption term | On or after January 31, 2016, we may redeem the shares at a redemption price of $25.00 per share, plus any accumulated and unpaid dividends to and including the date of redemption. | ||
Preferred Stock mandatory redemption date | Jan. 31, 2017 | ||
Carrying value Term Preferred Stock | $ 2 | $ 2 | |
Mandatorily Redeemable Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Redeemable preferred stock, shares issued | 1,540,000 | ||
Redeemable preferred stock, par value | $ 0.001 | ||
Public offering price | $ 25 | ||
Gross proceeds of the offering | $ 38,500 | ||
Net proceeds, after deducting offering expenses | $ 36,700 | ||
Fair value of Term Preferred Stock | 39,500 | ||
Carrying value Term Preferred Stock | $ 38,500 | ||
Closing price of Term Preferred Stock | $ 25.68 | ||
Series C Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Redeemable preferred stock, dividend rate percentage | 7.125% | ||
Series C Preferred Stock [Member] | Mandatorily Redeemable Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Redeemable preferred stock, shares issued | 1,540,000 | 1,540,000 | |
Redeemable preferred stock, par value | $ 0.001 | $ 0.001 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)Lease | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Lease | Sep. 30, 2014USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Number of leases | 4 | 4 | ||
Expenses incurred for the properties listed | $ | $ 0.1 | $ 0.3 | $ 0.1 | $ 0.3 |
Commitments and Contingencies51
Commitments and Contingencies - Future Minimum Rental Payments Due under Terms of Leases (Detail) - Ground Leases [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Operating Leased Assets [Line Items] | |
Remainder of 2015 | $ 114 |
For the year ended December 31, 2016 | 459 |
For the year ended December 31, 2017 | 462 |
For the year ended December 31, 2018 | 464 |
For the year ended December 31, 2019 | 465 |
For the year ended December 31, 2020 | 466 |
Thereafter | $ 4,948 |
Tulsa, OK [Member] | |
Operating Leased Assets [Line Items] | |
Lease End Date | 2021-04 |
Remainder of 2015 | $ 42 |
For the year ended December 31, 2016 | 169 |
For the year ended December 31, 2017 | 169 |
For the year ended December 31, 2018 | 169 |
For the year ended December 31, 2019 | 169 |
For the year ended December 31, 2020 | 169 |
Thereafter | $ 85 |
Dartmouth, MA [Member] | |
Operating Leased Assets [Line Items] | |
Lease End Date | 2036-05 |
Remainder of 2015 | $ 44 |
For the year ended December 31, 2016 | 174 |
For the year ended December 31, 2017 | 174 |
For the year ended December 31, 2018 | 174 |
For the year ended December 31, 2019 | 174 |
For the year ended December 31, 2020 | 174 |
Thereafter | $ 3,126 |
Springfield, MA [Member] | |
Operating Leased Assets [Line Items] | |
Lease End Date | 2030-02 |
Remainder of 2015 | $ 21 |
For the year ended December 31, 2016 | 86 |
For the year ended December 31, 2017 | 89 |
For the year ended December 31, 2018 | 90 |
For the year ended December 31, 2019 | 90 |
For the year ended December 31, 2020 | 90 |
Thereafter | $ 884 |
Salt Lake City, UT [Member] | |
Operating Leased Assets [Line Items] | |
Lease End Date | 2040-11 |
Remainder of 2015 | $ 7 |
For the year ended December 31, 2016 | 30 |
For the year ended December 31, 2017 | 30 |
For the year ended December 31, 2018 | 31 |
For the year ended December 31, 2019 | 32 |
For the year ended December 31, 2020 | 33 |
Thereafter | $ 853 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Changes in Stockholders' Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Preferred Stock, Shares Issued, beginning balance | 2,150,000 | |||
Preferred Stock, Shares Issued, ending balance | 2,150,000 | 2,150,000 | ||
Senior Common stock, Shares Issued, beginning balance | 809,411 | |||
Senior Common stock, Shares Issued, ending balance | 993,069 | 993,069 | ||
Common Stock, Shares Issued, beginning balance | 19,589,606 | |||
Common Stock, Shares Issued, ending balance | 21,743,779 | 21,743,779 | ||
Total Stockholders' Equity, beginning balance | $ 217,672 | |||
Issuance of senior common stock and common stock, net | 38,655 | |||
Distributions declared to common, senior common and preferred stockholders | (27,305) | |||
Principal repayments of employee notes receivable | 375 | |||
Net income | $ (96) | $ 229 | 1,030 | $ (12,066) |
Total Stockholders' Equity, ending balance | 230,427 | $ 230,427 | ||
Senior Common Stock [Member] | ||||
Issuance of common stock, net, Shares | 183,658 | |||
Total Stockholders' Equity, beginning balance | $ 1 | |||
Total Stockholders' Equity, ending balance | 1 | 1 | ||
Preferred Stock [Member] | ||||
Total Stockholders' Equity, beginning balance | 2 | |||
Total Stockholders' Equity, ending balance | 2 | $ 2 | ||
Common Stock [Member] | ||||
Issuance of common stock, net, Shares | 2,154,173 | |||
Total Stockholders' Equity, beginning balance | $ 20 | |||
Issuance of senior common stock and common stock, net | 2 | |||
Total Stockholders' Equity, ending balance | 22 | 22 | ||
Additional Paid in Capital [Member] | ||||
Total Stockholders' Equity, beginning balance | 369,748 | |||
Issuance of senior common stock and common stock, net | 38,653 | |||
Total Stockholders' Equity, ending balance | 408,401 | 408,401 | ||
Notes Receivable from Employees [Member] | ||||
Total Stockholders' Equity, beginning balance | (375) | |||
Principal repayments of employee notes receivable | 375 | |||
Distributions in Excess of Accumulated Earnings [Member] | ||||
Total Stockholders' Equity, beginning balance | (151,724) | |||
Distributions declared to common, senior common and preferred stockholders | (27,305) | |||
Net income | 1,030 | |||
Total Stockholders' Equity, ending balance | $ (177,999) | $ (177,999) |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends Declared (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Common Stock [Member] | ||||
Dividends Payable [Line Items] | ||||
Common Stock, distributions declared per share | $ 0.375 | $ 0.375 | $ 1.125 | $ 1.125 |
Senior Common Stock [Member] | ||||
Dividends Payable [Line Items] | ||||
Common Stock, distributions declared per share | 0.2625 | 0.2625 | 0.7875 | 0.7875 |
Series A Preferred Stock [Member] | ||||
Dividends Payable [Line Items] | ||||
Preferred Stock, distributions declared per share | 0.4843749 | 0.4843749 | 1.4531247 | 1.4531247 |
Series B Preferred Stock [Member] | ||||
Dividends Payable [Line Items] | ||||
Preferred Stock, distributions declared per share | 0.4688 | 0.4688 | 1.4063 | 1.4063 |
Series C Preferred Stock [Member] | ||||
Dividends Payable [Line Items] | ||||
Preferred Stock, distributions declared per share | $ 0.4453 | $ 0.4453 | $ 1.3359 | $ 1.3359 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Mar. 28, 2015 | Mar. 31, 2011 | Mar. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Class of Stock [Line Items] | ||||||
Common stock, shares issued | 21,743,779 | 19,589,606 | ||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||
Shares intended to be offered pursuant to primary offering | 3,000,000 | |||||
Shares offered under distribution reinvestment plan | 500,000 | |||||
Shares of senior common stock sold in offering | 927,994 | 189,052 | ||||
Senior common stock offering, gross proceeds | $ 39,495,000 | $ 42,636,000 | ||||
Senior Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares issued | 3,500,000 | |||||
Common stock, par value | $ 0.001 | |||||
Common stock shares issued, selling price | $ 15 | $ 15 | ||||
Shares offered under distribution reinvestment plan | 27,038 | 5,134 | ||||
Net proceeds after deducting underwriting discount and commission | $ 2,600,000 | |||||
Senior common stock offering, gross proceeds | $ 13,900,000 | |||||
Cantor Fitzgerald & Co [Member] | ||||||
Class of Stock [Line Items] | ||||||
Maximum aggregate sales price of shares to be issued under open market sale agreement | $ 100,000,000 | |||||
Net proceeds under ATM program | $ 36,200,000 | |||||
Number of shares sold under open market sale agreement | 4,000,000 | |||||
Gross proceeds of shares sold under open market sale agreement | $ 69,300,000 | |||||
Maximum remaining capacity to sell common stock under open market sale agreement | $ 30,700,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Thousands | Oct. 20, 2015USD ($)ft²OptionTenants | Oct. 02, 2015USD ($)ft² | Sep. 30, 2015USD ($)ft²Tenants | Sep. 30, 2014USD ($)ft² |
Subsequent Event [Line Items] | ||||
Acquired area of real estate property | ft² | 429,427 | 1,406,054 | ||
Lease expiration date | Dec. 31, 2015 | |||
Straight line rents | $ 3,034 | $ 2,808 | ||
Extended lease term maturity date | Mar. 31, 2019 | |||
Atlanta, GA [Member] | ||||
Subsequent Event [Line Items] | ||||
Acquired area of real estate property | ft² | 78,151 | |||
Percentage of building occupied by tenant | 100.00% | |||
Number of tenant | Tenants | 1 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Acquired area of real estate property | ft² | 1,427 | |||
Extended lease term | 3 years | |||
Straight line rents | $ 20 | |||
Subsequent Event [Member] | Atlanta, GA [Member] | ||||
Subsequent Event [Line Items] | ||||
Acquired area of real estate property | ft² | 90,626 | |||
Acquisition price of real estate property | $ 6,600 | |||
Acquisition expenses | 100 | |||
Issuance of mortgage debt on property | $ 3,800 | |||
Percentage of building occupied by tenant | 100.00% | |||
Number of tenant | Tenants | 1 | |||
Lease expiration period | 18 years | |||
Number of options for renewal of lease | Option | 2 | |||
Renew the lease for additional periods | 5 years | |||
Annualized straight line rent escalations | $ 600 | |||
Average cap rate | 9.20% |
Subsequent Events - Monthly Dis
Subsequent Events - Monthly Distributions Declared by Company's Board of Directors (Detail) - Subsequent Event [Member] | Oct. 13, 2015$ / shares |
Senior Common Stock [Member] | |
Dividends Payable [Line Items] | |
Distribution per Share | $ 0.2625 |
Series A Preferred Stock [Member] | |
Dividends Payable [Line Items] | |
Distribution per Share | 0.4843749 |
Series B Preferred Stock [Member] | |
Dividends Payable [Line Items] | |
Distribution per Share | 0.4687500 |
Series C Preferred Stock [Member] | |
Dividends Payable [Line Items] | |
Distribution per Share | 0.4453125 |
Common Stock [Member] | |
Dividends Payable [Line Items] | |
Distribution per Share | $ 0.3750000 |
Installment 1 - FY2015 [Member] | |
Dividends Payable [Line Items] | |
Record Date | Oct. 26, 2015 |
Payment Date | Nov. 4, 2015 |
Installment 1 - FY2015 [Member] | Senior Common Stock [Member] | |
Dividends Payable [Line Items] | |
Payment Date | Nov. 6, 2015 |
Distribution per Share | $ 0.0875 |
Payable to the Holders of Records During the Month | October |
Installment 1 - FY2015 [Member] | Series A Preferred Stock [Member] | |
Dividends Payable [Line Items] | |
Distribution per Share | $ 0.1614583 |
Installment 1 - FY2015 [Member] | Series B Preferred Stock [Member] | |
Dividends Payable [Line Items] | |
Distribution per Share | 0.1562500 |
Installment 1 - FY2015 [Member] | Series C Preferred Stock [Member] | |
Dividends Payable [Line Items] | |
Distribution per Share | 0.1484375 |
Installment 1 - FY2015 [Member] | Common Stock [Member] | |
Dividends Payable [Line Items] | |
Distribution per Share | $ 0.1250000 |
Installment 2 - FY2015 [Member] | |
Dividends Payable [Line Items] | |
Record Date | Nov. 17, 2015 |
Payment Date | Nov. 30, 2015 |
Installment 2 - FY2015 [Member] | Senior Common Stock [Member] | |
Dividends Payable [Line Items] | |
Payment Date | Dec. 7, 2015 |
Distribution per Share | $ 0.0875 |
Payable to the Holders of Records During the Month | November |
Installment 2 - FY2015 [Member] | Series A Preferred Stock [Member] | |
Dividends Payable [Line Items] | |
Distribution per Share | $ 0.1614583 |
Installment 2 - FY2015 [Member] | Series B Preferred Stock [Member] | |
Dividends Payable [Line Items] | |
Distribution per Share | 0.1562500 |
Installment 2 - FY2015 [Member] | Series C Preferred Stock [Member] | |
Dividends Payable [Line Items] | |
Distribution per Share | 0.1484375 |
Installment 2 - FY2015 [Member] | Common Stock [Member] | |
Dividends Payable [Line Items] | |
Distribution per Share | $ 0.1250000 |
Installment 3 - FY2015 [Member] | |
Dividends Payable [Line Items] | |
Record Date | Dec. 18, 2015 |
Payment Date | Dec. 31, 2015 |
Installment 3 - FY2015 [Member] | Senior Common Stock [Member] | |
Dividends Payable [Line Items] | |
Payment Date | Jan. 8, 2016 |
Distribution per Share | $ 0.0875 |
Payable to the Holders of Records During the Month | December |
Installment 3 - FY2015 [Member] | Series A Preferred Stock [Member] | |
Dividends Payable [Line Items] | |
Distribution per Share | $ 0.1614583 |
Installment 3 - FY2015 [Member] | Series B Preferred Stock [Member] | |
Dividends Payable [Line Items] | |
Distribution per Share | 0.1562500 |
Installment 3 - FY2015 [Member] | Series C Preferred Stock [Member] | |
Dividends Payable [Line Items] | |
Distribution per Share | 0.1484375 |
Installment 3 - FY2015 [Member] | Common Stock [Member] | |
Dividends Payable [Line Items] | |
Distribution per Share | $ 0.1250000 |