Sentio Healthcare Properties Inactive 10-Q11 Aug 172017 Q2 Quarterly reportFinancial data

Company Profile

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jun. 30, 2017	Aug. 09, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Entity Registrant Name	Sentio Healthcare Properties Inc
Entity Central Index Key	1,378,774
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		11,546,503

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 34,958,000	$ 34,921,000
Investments in real estate:
Land	48,146,000	48,146,000
Buildings and improvements, net	404,105,000	395,500,000
Furniture, fixtures and vehicles, net	13,432,000	12,592,000
Construction in progress	0	13,933,000
Intangible lease assets, net	4,642,000	4,833,000
Total investment in real estate	470,325,000	475,004,000
Real estate note receivable	39,380,000	34,181,000
Investment in unconsolidated entities	0	493,000
Tenant and other receivables, net	6,939,000	5,949,000
Deferred costs and other assets	9,145,000	9,973,000
Restricted cash	6,663,000	7,777,000
Goodwill	5,965,000	5,965,000
Total assets	573,375,000	574,263,000
Liabilities:
Notes payable, net	372,073,000	366,097,000
Accounts payable and accrued liabilities	13,416,000	15,783,000
Prepaid rent and security deposits	5,170,000	5,204,000
Distributions payable	1,439,000	1,449,000
Total liabilities	392,098,000	388,533,000
Equity:
Series C Preferred Stock, $0.01 par value; 1,000 shares authorized; 1,000 and 1,000 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively	0	0
Common stock, $0.01 par value; 580,000,000 shares authorized; 11,546,503 and 11,531,615 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively	115,000	115,000
Additional paid-in capital	53,302,000	55,979,000
Accumulated deficit	(29,073,000)	(25,782,000)
Total stockholders' equity	24,344,000	30,312,000
Noncontrolling interests:
Series B convertible preferred OP units	152,778,000	151,080,000
Other noncontrolling interest	4,155,000	4,338,000
Total equity	181,277,000	185,730,000
Total liabilities and equity	$ 573,375,000	$ 574,263,000

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	580,000,000	580,000,000
Common stock, shares issued	11,546,503	11,531,615
Common stock, shares outstanding	11,546,503	11,531,615
Series C Preferred Stock [Member]
Preferred Stock, Par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000	1,000
Preferred Stock, Shares Issued	1,000	1,000
Preferred Stock, Shares Outstanding	1,000	1,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues:
Rental revenues	$ 23,757,000	$ 22,312,000	$ 47,140,000	$ 44,769,000
Resident fees and services	8,164,000	8,087,000	16,397,000	16,442,000
Tenant reimbursements and other income	1,560,000	2,379,000	2,896,000	3,381,000
Total revenues	33,481,000	32,778,000	66,433,000	64,592,000
Expenses:
Property operating and maintenance	21,900,000	20,562,000	43,526,000	41,048,000
General and administrative	3,943,000	405,000	5,542,000	1,096,000
Asset management fees	1,679,000	1,696,000	2,608,000	2,679,000
Depreciation and amortization	4,068,000	5,161,000	8,101,000	8,954,000
Total expenses	31,590,000	27,824,000	59,777,000	53,777,000
Income from operations	1,891,000	4,954,000	6,656,000	10,815,000
Other (income) expense:
Interest expense, net	4,439,000	3,791,000	8,761,000	7,632,000
Change in fair value of contingent consideration	(3,699,000)	129,000	(3,699,000)	306,000
Equity in (income) loss from unconsolidated entities	(50,000)	68,000	(72,000)	128,000
Gain on disposition of investment in unconsolidated entity	0	0	(1,534,000)	0
Net income before income taxes	1,201,000	966,000	3,200,000	2,749,000
Income tax expense (benefit)	535,000	(298,000)	437,000	(900,000)
Net income	666,000	1,264,000	2,763,000	3,649,000
Preferred return to Series B preferred OP units	2,886,000	2,706,000	5,760,000	5,322,000
Net income attributable to other noncontrolling interests	143,000	198,000	294,000	296,000
Net loss attributable to common stockholders	$ (2,363,000)	$ (1,640,000)	$ (3,291,000)	$ (1,969,000)
Basic and diluted weighted average number of common shares	11,544,678	11,515,846	11,539,600	11,510,737
Basic and diluted net loss per common share attributable to common stockholders	$ (0.2)	$ (0.14)	$ (0.29)	$ (0.17)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - 6 months ended Jun. 30, 2017 - USD ($)	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total Stockholders' Equity	Noncontrolling Interest
BALANCE at Dec. 31, 2016	$ 185,730,000	$ 0	$ 115,000	$ 55,979,000	$ (25,782,000)	$ 30,312,000	$ 155,418,000
BALANCE (in shares) at Dec. 31, 2016		1,000	11,531,615
Issuance of Common Stock	185,000	$ 0	$ 0	185,000	0	185,000	0
Issuance of Common Stock (in shares)		0	14,888
Issuance of Series B preferred OP Units, net	1,700,000	$ 0	$ 0	0	0	0	1,700,000
Distributions	(9,101,000)	0	0	(2,862,000)	0	(2,862,000)	(6,239,000)
Net (loss) income	2,763,000	0	0	0	(3,291,000)	(3,291,000)	6,054,000
BALANCE at Jun. 30, 2017	$ 181,277,000	$ 0	$ 115,000	$ 53,302,000	$ (29,073,000)	$ 24,344,000	$ 156,933,000
BALANCE (in shares) at Jun. 30, 2017		1,000	11,546,503

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Jun. 30, 2017		Jun. 30, 2016
Cash flows from operating activities:
Net income	$ 2,763,000		$ 3,649,000
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred financing costs	505,000		500,000
Depreciation and amortization	8,101,000		8,954,000
Straight-line rent and above/below market lease amortization	(387,000)		186,000
Change in fair value of contingent consideration	(3,699,000)		306,000
Amortization of loan discount/premium	(29,000)		(29,000)
Equity in loss from unconsolidated entities	27,000	[1]	222,000
Gain on disposition of investment in unconsolidated entity	(1,534,000)		0
Bad debt expense	88,000		102,000
Deferred tax expense (benefit)	301,000		(900,000)
Changes in operating assets and liabilities:
Tenant and other receivables	(658,000)		300,000
Deferred costs and other assets	527,000		(237,000)
Restricted cash	1,026,000		438,000
Prepaid rent and tenant security deposits	(34,000)		(1,511,000)
Accounts payable and accrued expenses	1,332,000		(502,000)
Net cash provided by operating activities	8,329,000		11,478,000
Cash flows from investing activities:
Additions to real estate	(3,455,000)		(927,000)
Construction in progress	0		(4,207,000)
Real estate note receivable	(5,199,000)		(11,541,000)
Restricted cash	88,000		645,000
Proceeds from disposition of investment in unconsolidated entity	2,000,000		0
Net cash used in investing activities	(6,566,000)		(16,030,000)
Cash flows from financing activities:
Proceeds from issuance of Series B OP units, net	1,700,000		14,377,000
Proceeds from notes payable	7,124,000		7,008,000
Repayment of notes payable	(1,496,000)		(1,633,000)
Payment of contingent consideration	0		(1,777,000)
Deferred financing costs	(129,000)		(240,000)
Distributions paid to Series B preferred OP units and other noncontrolling interests	(6,239,000)		(5,638,000)
Distributions paid to stockholders	(2,686,000)		(2,704,000)
Net cash (used in) provided by financing activities	(1,726,000)		9,393,000
Net increase in cash and cash equivalents	37,000		4,841,000
Cash and cash equivalents - beginning of period	34,921,000		22,801,000
Cash and cash equivalents - end of period	34,958,000		27,642,000
Supplemental disclosure of cash flow information:
Cash paid for interest	8,157,000		7,060,000
Cash paid for income taxes	0		164,000
Supplemental disclosure of non-cash financing and investing activities:
Distributions declared not paid	1,439,000		1,432,000
Distributions reinvested	92,000		88,000
Reclassification of construction in progress to assets placed in service	$ 13,933,000		$ 0

[1]	On February 2, 2017 the Company sold its interest in the joint venture entity Buffalo Crossings, which resulted in cash proceeds of $2.0 million. The Company recorded a gain of $1.5 million in the six months ended June 30, 2017. The Company’s equity in loss from Buffalo Crossings is included in the condensed consolidated statement of operations through the date of the sale.

Organization

Organization	6 Months Ended
Organization	Jun. 30, 2017
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
Organization	Sentio Healthcare Properties, Inc., a Maryland corporation, was formed on October 16, 2006 under the Maryland General Corporation Law for the purpose of engaging in the business of investing in and owning commercial real estate. As used in this report, the “Company”, “we”, “us” and “our” refer to Sentio Healthcare Properties, Inc. and its consolidated subsidiaries, except where context otherwise requires. Effective January 1, 2012, subject to certain restrictions and limitations, our business is managed by Sentio Investments, LLC, a Florida limited liability company that was formed on December 20, 2011 Sentio Healthcare Properties OP, LP, a Delaware limited partnership (the “Operating Partnership”), was formed on October 17, 2006 100 57.8 Pending Merger On May 3, 2017, the Company and the Operating Partnership (together, the “Company Parties”), KAREP Master JV, LLC (“Parent”), KAREP Acquisitions Vehicle, LLC, a wholly owned subsidiary of Parent (“Merger Sub” and together with Parent, the “Parent Parties”) and the Advisor, solely in its capacity as the Stockholders’ Representative (as defined in the Merger Agreement), entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which, subject to the satisfaction or waiver of certain conditions, the Company will be merged with and into Merger Sub (the “Merger”). Upon completion of the Merger, the separate existence of the Company will cease, with Merger Sub surviving the Merger (as the surviving entity in the Merger, the “Surviving Entity”). Under the terms of the Merger Agreement, each issued and outstanding share of the Company’s common stock will receive: (i) no less than $14.37 per share in cash at the closing of the Merger; (ii) up to an additional $ 0.55 8.76 14.37 15.21 We expect the Merger to close on September 1, 2017, although closing is subject to various conditions. Certain events may delay the completion of the Merger or result in a termination of the Merger Agreement. Some of these events are outside the control of the parties to the Merger Agreement. Therefore, we cannot provide any assurance that the Merger will close in a timely manner or at all. Additional information regarding the Merger, the Merger Agreement and the transactions contemplated thereby is included in our Current Report on Form 8-K filed with the SEC on May 4, 2017.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2017
Summary Of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies For more information regarding our significant accounting policies and estimates, please refer to “Summary of Significant Accounting Policies” contained in our Annual Report on Form 10-K for the year ended December 31, 2016. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. In accordance with the guidance for the consolidation of variable interest entities (“VIEs”), we analyze our variable interests, including investments in partnerships and joint ventures, to determine if the entity in which we have a variable interest is a variable interest entity. Our analysis includes both quantitative and qualitative reviews, based on our review of the design of the entity, its organizational structure including decision-making ability, risk and reward sharing experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions and financial agreements. We also use quantitative and qualitative analyses to determine if we must consolidate a variable interest entity as the primary beneficiary. The accompanying interim condensed consolidated financial statements have been prepared by our management in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conjunction with the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the interim condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. The accompanying financial information reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. Our accompanying interim condensed consolidated financial statements should be read in conjunction with our audited condensed consolidated financial statements and the notes thereto included on our 2016 Annual Report on Form 10-K, as filed with the SEC. Pending accounting standards In February 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-05, “Other Income: Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets”, which defines an in-substance nonfinancial asset, unifies guidance related to partial sales of nonfinancial assets, eliminates rules specifically addressing the sales of real estate, removes exception to the financial asset derecognition model and clarifies the accounting for contributions of nonfinancial assets to joint ventures. The new standard is effective for fiscal years beginning after December 15, 2017 with early adoption permitted. We do not anticipate early adoption, however, we are evaluating the impact of adopting ASU 2017-05 on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles Goodwill and Other: Simplifying the Test for Goodwill Impairment”, which removes Step 2 from the goodwill impairment test. The amendments are effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is evaluating the impact the adoption of ASU 2017-04 will have on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”. The guidance is intended to assist entities with evaluating whether a set of transferred assets and activities is a business. Under the new guidance, an entity first determines whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the set is not a business. If the threshold is not met, the entity then evaluates whether the set meets the requirement that a business include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. The new standard is effective for the Company on January 1, 2018, however, early adoption is permitted. The Company is evaluating the effect that ASU 2017-01 will have on our consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”, which enhances the presentation requirements of restricted cash. The standard aims to unify presentation and minimize the diversity in practice. These presentation changes include increased disclosures surrounding the restrictions on cash and the inclusion of the restricted cash balance in the reconciliation completed at the end of the statement of cash flows. The new standard is effective for the Company on January 1, 2018, however, early adoption is permitted. The Company does not expect ASU 2016-18 to have a significant impact on our consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230)”, which indicates that there is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. Adoption of this ASU will not have a significant impact on our statement of cash flows. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", which amends various aspects of existing guidance for leases and requires additional disclosures about leasing arrangements. It will require companies to recognize lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. This ASU retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The new guidance will be effective for the Company beginning on January 1, 2019 and earlier adoption is permitted. The Company is evaluating the impact of the adoption of the new guidance on our financial statements. In 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective, although it will not affect the accounting for rental related revenues. The new standard is effective for the Company on January 1, 2018, pursuant to ASU 2015-09 which deferred the adoption date by one year. Early adoption is permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has begun its process of assessing the impact of the guidance. To date the Company’s assessment efforts include the identification of various revenue streams within the scope of the guidance and the evaluation of certain lease contracts with tenants. Although the Company is still evaluating the revenue streams and the timing of recognition under the new model, as well as the related disclosure requirements, a significant change to our current revenue recognition policies is not expected as a substantial portion of our revenue consists of rental income from leasing arrangements, which is excluded from ASU 2014-09. The Company has not yet selected a transition method.

Real Estate Note Receivable

Real Estate Note Receivable	6 Months Ended
Real Estate Note Receivable	Jun. 30, 2017
Disclosure Text Block [Abstract]
Real Estate Notes Receivable	3. Real Estate Note Receivable On January 16, 2015, the Company, through indirect wholly owned subsidiaries, Sentio Georgetown, LLC and Sentio Georgetown TRS, LLC, originated a development loan in the amount of $ 41.9 7.9 1 Interest revenue on the loan receivable is recognized as earned based upon the principal amount outstanding subject to an evaluation of collectability risks. For the three and six months ended June 30, 2017, interest revenue from the real estate note receivable was $0.8 million and $1.5 million, respectively. Interest revenue is recorded as a component of tenant reimbursements and other income in the condensed consolidated statement of operations. As of June 30, 2017, the borrower had made draws on the Georgetown Loan totaling $ 39.4 2.5

Investments in Real Estate

Investments in Real Estate	6 Months Ended
Investments in Real Estate	Jun. 30, 2017
Real Estate [Abstract]
Investments in Real Estate	4. Investments in Real Estate Land Buildings Furniture, Construction (1) Intangible Cost $ 48,146,000 $ 456,322,000 $ 22,624,000 $ - $ 28,744,000 Accumulated depreciation and amortization - (52,217,000) (9,192,000) - (24,102,000) Net $ 48,146,000 $ 404,105,000 $ 13,432,000 $ - $ 4,642,000 (1) In January 2017, the development of Accel at Golden was completed. The lease commenced on January 5, 2017 and we reclassified the construction in progress to the respective fixed asset accounts. This facility is reported in our triple-net leased segment. As of December 31, 2016, accumulated depreciation and amortization related to real estate assets and related lease intangibles were as follows: Land Buildings Furniture, Construction Intangible Cost $ 48,146,000 $ 440,985,000 $ 20,579,000 $ 13,933,000 $ 28,739,000 Accumulated depreciation and amortization - (45,485,000) (7,987,000) - (23,906,000) Net $ 48,146,000 $ 395,500,000 $ 12,592,000 $ 13,933,000 $ 4,833,000 Depreciation expense associated with buildings and improvements and furniture, fixtures and vehicles for the three months ended June 30, 2017 and 2016 was approximately $ 4.0 3.7 0.1 1.5 Depreciation expense associated with buildings and improvements and furniture, fixtures and vehicles for the six months ended June 30, 2017 and 2016 was approximately $ 7.9 7.3 0.2 1.7 Intangible Assets July 1, 2017 - December 31, 2017 $ 192,000 2018 385,000 2019 292,000 2020 292,000 2021 287,000 2022 and thereafter 3,194,000 $ 4,642,000 The estimated useful lives for intangible assets range from approximately two to twenty years. As of June 30, 2017, the weighted-average amortization period for intangible assets was 17 years.

Investments in Unconsolidated E

Investments in Unconsolidated Entities	6 Months Ended
Investments in Unconsolidated Entities	Jun. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]
Investments In Unconsolidated Entities	5. Investments in Unconsolidated Entities Entity (1) Property Type Acquired Investment (2) Ownership % Physicians Center MOB Medical Office Building April 2012 $ - 71.9% (1) This entity is not consolidated because the Company exercises significant influence, but does not control or direct the activities that most significantly impact the entity’s performance. (2) Represents the carrying value of the Company’s investment in the unconsolidated entity. As of December 31, 2015, the Company’s carrying value of the investment in Physicians Center MOB reached zero and we discontinued applying the equity method of accounting. Since January 1, 2016, monthly distributions are recorded as a component of equity in (income) loss from unconsolidated entities in the condensed consolidated statement of operations. June 30, 2017 December 31, 2016 Cash and cash equivalents $ 46,000 $ 688,000 Investments in real estate, net 7,772,000 22,747,000 Other assets 660,000 721,000 Total assets $ 8,478,000 $ 24,156,000 Notes payable, net $ 8,655,000 $ 23,193,000 Accounts payable and accrued liabilities 45,000 289,000 Other liabilities 304,000 454,000 Total stockholders’ equity (526,000) 220,000 Total liabilities and equity $ 8,478,000 $ 24,156,000 Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 (1) 2016 Total revenues $ 437,000 $ 1,334,000 $ 1,297,000 $ 2,539,000 Net income (loss) 25,000 (128,000) 78,000 (154,000) Company’s equity in loss from unconsolidated entities - 105,000 27,000 222,000 (1) On February 2, 2017 the Company sold its interest in the joint venture entity Buffalo Crossings, which resulted in cash proceeds of $ 2.0 1.5

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	6. Income Taxes We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would not be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would establish a valuation allowance which would reduce the provision for income taxes. The Master TRS recognized a $ 0.5 0.3 0.4 0.9 7.4 7.7 1.9 which, if unused, begin to expire in 2035.

Segment Reporting

Segment Reporting	6 Months Ended
Segment Reporting	Jun. 30, 2017
Segment Reporting [Abstract]
Segment Reporting	7. Segment Reporting As of June 30, 2017, we operated in three reportable business segments for management and internal financial reporting purposes: senior living operations, triple-net leased properties, and medical office building (“MOB”) properties. These operating segments are the segments of the Company for which separate financial information is available and for which segment results are evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Our senior living operations segment primarily consists of investments in senior housing communities located in the United States for which we engage independent third-party managers. Our triple-net leased properties segment consists of investments in senior living, skilled nursing and hospital facilities in the United States. These facilities are leased to healthcare operating companies under long-term “triple-net” or “absolute-net” leases, which require the tenants to pay all property-related expenses. Our MOB properties segment primarily consists of investing in medical office buildings and leasing those properties to healthcare providers under long-term leases, which may require tenants to pay property-related expenses. We evaluate performance of the combined properties in each segment based on net operating income. Net operating income is defined as total revenue less property operating and maintenance expenses. There are no intersegment sales or transfers. We use net operating income to evaluate the operating performance of our real estate investments and to make decisions concerning the operation of the property. We believe that net operating income is useful to investors in understanding the value of income-producing real estate. Net income is the GAAP measure that is most directly comparable to net operating income; however, net operating income should not be considered as an alternative to net income as the primary indicator of operating performance as it excludes certain items such as depreciation and amortization, asset management fees, real estate acquisition costs, interest expense and corporate general and administrative expenses. Additionally, net operating income as we define it may not be comparable to net operating income as defined by other REITs or companies. Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Senior living Triple- net leased MOB properties Consolidated Senior living Triple-net leased MOB properties Consolidated Rental revenue $ 20,791,000 $ 2,758,000 $ 208,000 $ 23,757,000 $ 20,410,000 $ 1,673,000 $ 229,000 $ 22,312,000 Resident services and fee income 8,164,000 - - 8,164,000 8,087,000 - - 8,087,000 Tenant reimbursements and other income 1,221,000 259,000 80,000 1,560,000 687,000 1,614,000 78,000 2,379,000 30,176,000 3,017,000 288,000 33,481,000 29,184,000 3,287,000 307,000 32,778,000 Property operating and maintenance expenses 21,548,000 271,000 81,000 21,900,000 19,982,000 468,000 112,000 20,562,000 Net operating income $ 8,628,000 $ 2,746,000 $ 207,000 $ 11,581,000 $ 9,202,000 $ 2,819,000 $ 195,000 $ 12,216,000 General and administrative 3,943,000 405,000 Asset management fees 1,679,000 1,696,000 Depreciation and amortization 4,068,000 5,161,000 Interest expense, net 4,439,000 3,791,000 Change in fair value of contingent consideration (3,699,000) 129,000 Equity in income from unconsolidated entities (50,000) 68,000 Income tax expense (benefit) 535,000 (298,000) Net income 666,000 1,264,000 Preferred return to series B preferred OP units and other noncontrolling interests 3,029,000 2,904,000 Net loss attributable to common stockholders $ (2,363,000) $ (1,640,000) Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Senior living Triple-net leased MOB properties Consolidated Senior living Triple-net leased MOB properties Consolidated Rental revenue $ 41,229,000 $ 5,496,000 $ 415,000 $ 47,140,000 $ 40,331,000 $ 4,003,000 $ 435,000 $ 44,769,000 Resident services and fee income 16,397,000 - - 16,397,000 16,442,000 - - 16,442,000 Tenant reimbursements and other income 2,226,000 509,000 161,000 2,896,000 1,406,000 1,819,000 156,000 3,381,000 59,852,000 6,005,000 576,000 66,433,000 58,179,000 5,822,000 591,000 64,592,000 Property operating and maintenance expenses 42,843,000 524,000 159,000 43,526,000 40,177,000 679,000 192,000 41,048,000 Net operating income $ 17,009,000 $ 5,481,000 $ 417,000 $ 22,907,000 $ 18,002,000 $ 5,143,000 $ 399,000 $ 23,544,000 General and administrative 5,542,000 1,096,000 Asset management fees 2,608,000 2,679,000 Depreciation and amortization 8,101,000 8,954,000 Interest expense, net 8,761,000 7,632,000 Change in fair value of contingent consideration (3,699,000) 306,000 Equity in income from unconsolidated entities (72,000) 128,000 Gain on disposition of investment in unconsolidated entity (1,534,000) - Income tax expense (benefit) 437,000 (900,000) Net income 2,763,000 3,649,000 Preferred return to series B preferred OP units and other noncontrolling interests 6,054,000 5,618,000 Net loss attributable to common stockholders $ (3,291,000) $ (1,969,000) June 30, 2017 December 31, 2016 Assets Investment in real estate: Senior living operations $ 410,579,000 $ 410,007,000 Triple-net leased properties 92,227,000 92,112,000 Medical office building properties 6,899,000 7,066,000 Total reportable segments $ 509,705,000 $ 509,185,000 Reconciliation to consolidated assets: Cash and cash equivalents 34,958,000 34,921,000 Investment in unconsolidated entities - 493,000 Tenant and other receivables, net 6,939,000 5,949,000 Deferred costs and other assets 9,145,000 9,973,000 Restricted cash 6,663,000 7,777,000 Goodwill 5,965,000 5,965,000 Total assets $ 573,375,000 $ 574,263,000 As of June 30, 2017 and December 31, 2016, goodwill had a balance of approximately $ 6.0

Fair Value Measurements

Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	8. Fair Value Measurements The FASB Accounting Standards Codification (“ASC”) 825-10, “Financial Instruments,” requires the disclosure of fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practical to estimate that value. Fair value represents the estimate of the proceeds to be received, or paid in the case of a liability, in a current transaction between willing parties. ASC 820, “ Fair Value Measurement Our balance sheets include the following financial instruments: cash and cash equivalents, real estate note receivable, tenant and other receivables, net, deferred costs and other assets, restricted cash, notes payable, net, accounts payable and accrued liabilities, prepaid rent and security deposits and distributions payable. With the exception of notes payable and our contingent consideration discussed below, we consider the carrying values of our financial instruments to approximate fair value because they generally expose the Company to limited credit risk and because of the short period of time between origination of the financial assets and liabilities and their expected settlement. As of June 30, 2017, the estimated fair value of the contingent consideration related to the Armbrook Village and Sumter Grand acquisitions is $ 1.7 0.0 3.7 The fair value of the contingent consideration is based on significant inputs which are not observable to the market and as a result are classified in Level 3 of the fair value hierarchy. The fair value is derived by making assumptions on the timing of the lease up process based on actual performance as compared to internal underwriting models and applying a discount rate of 9.0 The fair value of the Company’s notes payable is estimated by discounting future cash flows of each instrument at rates that reflect the current market rates available to the Company for debt of the same terms and maturities. The fair value of the notes payable was determined using Level 2 inputs of the fair value hierarchy. Based on the estimates used by the Company, the fair value of notes payable was $ 374.1 369.2 375.7 372.0 370.1 366.1 There were no transfers between Level 1 or 2 during the three and six months ended June 30, 2017.

Notes Payable

Notes Payable	6 Months Ended
Notes Payable	Jun. 30, 2017
Debt Disclosure [Abstract]
Notes Payable	9. Notes Payable Notes payable were $ 375.7 372.0 370.1 366.1 2.80 6.43 4.42 223.4 59 4.79 152.3 41 3.86 219.6 59 4.78 150.5 41 3.41 On March 31, 2017, in connection with the Note secured by Rome LTACH dated December 18, 2009, the Company entered into a Third Modification Agreement (“Modification”) to extend the maturity date of the Note to March 31, 2020. The remaining terms of the note remain unchanged. We are required by the terms of the applicable loan documents to meet certain financial covenants, such as debt service coverage ratios, rent coverage ratios and reporting requirements. Any violation of financial covenants under the loans would constitute an event of default. If we were not able to secure a waiver of such covenant violations, the lender could, in its discretion, declare the loan to be immediately due and payable, take possession of the properties securing the loan, enforce the Company’s loan guarantees of the loan balance, or exercise other remedies available to it under law. If the lender were to declare the loan to be immediately due and payable, we expect to refinance the loan in satisfaction of the debt. Any such refinancing may be on terms and conditions less favorable than the terms currently available under the loan. As of June 30, 2017, we were in compliance with all such covenants and requirements. Year Principal Amount July 1, 2017 - December 31, 2017 $ 2,011,000 2018 28,978,000 2019 133,529,000 2020 69,632,000 2021 18,525,000 2022 and thereafter 123,067,000 $ 375,742,000 Less: Deferred financing costs 3,503,000 Less: Discount 166,000 $ 372,073,000 Interest Expense and Deferred Financing Cost For the three months ended June 30, 2017 and 2016, the Company incurred interest expense, including amortization of deferred financing costs of $ 4.4 3.8 For the six months ended June 30, 2017 and 2016, the Company incurred interest expense, including amortization of deferred financing costs of $ 8.8 7.6 As of June 30, 2017 and December 31, 2016, the Company’s net deferred financing costs were approximately $ 3.5 3.8

Stockholders' Equity

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Jun. 30, 2017
Stockholders' Equity Note [Abstract]
Stockholders' Equity	10. Stockholders’ Equity Common Stock Our charter authorizes the issuance of 580,000,000 0.01 20,000,000 0.01 1,000 13.4 13.4 133.8 133.5 Preferred Stock and OP Units On February 10, 2013, we entered into a series of agreements, which have been amended at various points after February 10, 2013, with Sentinel RE Investment Holdings LP (the “Investor”), an affiliate of Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, “KKR”) for the purpose of obtaining equity funding to finance investment opportunities (such investment and the related agreements, as amended, are referred to herein collectively as the “KKR Equity Commitment”). Pursuant to the KKR Equity Commitment, we could issue and sell to the Investor and its affiliates on a private placement basis from time to time over a period of up to three years, up to $ 158.7 As of June 30, 2017 and December 31, 2016 we had issued 1,000 1,586,260 158.7 158.7 0.6 1.7 15,830,938 The Series C Preferred Stock ranks senior to the Company’s common stock with respect to dividend rights and rights on liquidation. The holders of the Series C Preferred Stock are entitled to receive dividends, as and if authorized by our board of directors out of funds legally available for that purpose, at an annual rate equal to 3 The Series B Preferred Units rank senior to the Operating Partnership’s common units with respect to distribution rights and rights on liquidation. With the exception of certain Series B Preferred Units issued in connection with the put exercise related to the Georgetown Loan (the “Georgetown Put”), the Series B Preferred Units are entitled to receive cash distributions at an annual rate equal to 7.5 6.0 6.0 219,120 7.5 200,000 10.0 After payment of the preferred distributions, additional distributions will be paid first to the common units until they have received an aggregate blended return equal to a weighted average interest rate determined taking into account the Series B Preferred Units receiving a 6.0% return and the Series B Preferred Units receiving a 7.5 2.9 5.8 2.7 5.3 Distributions Available to Common Stockholders Distributions Declared (1)(2) Cash Flow from Period Cash Reinvested (3) Total Operations First quarter 2016 $ 1,342,000 $ 89,000 $ 1,431,000 $ 6,871,000 Second quarter 2016 1,343,000 88,000 1,431,000 4,607,000 $ 2,685,000 $ 177,000 $ 2,862,000 $ 11,478,000 First quarter 2017 $ 1,329,000 $ 94,000 $ 1,423,000 $ 4,541,000 Second quarter 2017 1,439,000 - 1,439,000 3,788,000 $ 2,768,000 $ 94,000 $ 2,862,000 $ 8,329,000 (1) In order to meet the requirements for being treated as a REIT under the Internal Revenue Code, we must pay distributions to our stockholders each taxable year equal to at least 90 (2) This table represents distributions declared and paid to common stockholders for each respective period. These amounts do not include distribution payments to the Series B Preferred Unit holders for the three and six months ended June 30, 2017 and 2016. (3) On June 19, 2013, we filed a registration statement on Form S-3 to register up to $ 99,000,000 10.02 11.63 12.45 656,963 642,075 Commencing with the declaration of distributions for daily record dates occurring in the second quarter of 2013 and thereafter, our board of directors has declared distributions on our common stock in amounts per share that, if declared and paid each day for a 365-day period, would equate to an annualized rate of $ 0.50 5.00 10.00 On August 31, 2016 the board of directors adopted a Regular Quarterly Dividend Policy (the “Dividend Policy”), which documents the circumstances under which the board of directors may increase the regular quarterly dividend that may be paid to holders of the common stock of the Company (the “Regular Quarterly Dividend Rate”) from its current level of $ 0.125 The declaration of distributions is at the discretion of our board of directors and our board will determine the amount of distributions on a regular basis. The amount of distributions will depend on our funds from operations, financial condition, capital requirements, annual distribution requirements under the REIT provisions of the Internal Revenue Code and other factors our board of directors deems relevant.

Earnings Per Share

Earnings Per Share	6 Months Ended
Earnings Per Share	Jun. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Share	11. Earnings Per Share We report earnings (loss) per share pursuant to ASC Topic 260, “ Earnings per Share 1,586,260

Related Party Transactions

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions	12. Related Party Transactions Advisory Relationship with the Advisor We have been party to an Advisory Agreement with the Advisor since January 1, 2012. The Advisory Agreement has been renewed since 2012 for additional one-year terms commencing on January 1, 2013, January 1, 2014, January 1, 2015, January 1, 2016, and January 1, 2017, however, certain provisions of the Advisory Agreement have been amended as a result of the execution on February 10, 2013 of a Transition to Internal Management Agreement which was subsequently amended in April 2014, February 2015 and February 2017 (as amended, the “Transition Agreement”) with the Advisor and the Investor. Pursuant to the provisions of the Advisory Agreement, the Advisor is responsible for managing, operating, directing and supervising the operation of our company and its assets. Generally, the Advisor is responsible for providing us with (i) property acquisition, disposition and financing services, (ii) asset management and operational services, including real estate services and financial and administrative services, (iii) stockholder services, and (iv) in the event we conduct a public offering of our securities, offering-related services. The Advisor is subject to the supervision and ultimate authority of our board of directors and has a fiduciary duty to us and our stockholders. The Advisory Agreement with our Advisor and the terms of the Transition Agreement are more fully described in our Annual Report on Form 10-K for the year ended December 31, 2016. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Asset Management Fees $ 1,679,000 $ 1,696,000 $ 2,608,000 $ 2,679,000 The Transition Agreement limits the amount of the fees payable under the Advisory Agreement. Specifically, notwithstanding the provisions of the Advisory Agreement, acquisition fees, financing coordination fees, asset management fees, property management and leasing fees, and disposition fees payable under the Advisory Agreement (collectively, the “Advisory Agreement Fees”) are limited to (1) $ 3.2 10.0 During the period from February 10, 2013 through February 10, 2015, and February 11, 2015 through February 10, 2017, the Advisory Agreement Fees were similarly capped, except that the Excess Amount was $3.2 million and as a result the Maximum Fee Amount was $9.6 million. In addition, solely with respect to any fees earned by the Advisor during the period from February 11, 2014 to February 10, 2015 in excess of the Maximum Fee Amount, such fees were included in fees payable during the one-year period from February 11, 2015 to February 10, 2016, subject to a maximum amount of $1.0 million. As of November 2015, the Advisor earned the Maximum Fee Amount of $9.6 million for the period from February 10, 2013 through February 10, 2016. As of December 31, 2016, the Advisor earned the maximum fee amount for February 11, 2016 through February 10, 2017 of $3.2 million. For the four fiscal quarters ended June 30, 2017, our management fees and expenses and operating expenses totaled did not exceed the greater of 2 25 KKR Equity Commitment Pursuant to the KKR Equity Commitment, we could issue and sell to the Investor and its affiliates on a private placement basis from time to time over a period of three years, up to $ 158.7 15,830,938 57.8 As of June 30, 2017, pursuant to the terms of the KKR Equity Commitment, the Investor had purchased 1,000 1,586,260 158.7 The terms of the KKR Equity Commitment are more fully described in our Annual Report on Form 10-K for the year ended December 31, 2016

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2017
Commitments and Contingencies [Abstract]
Commitments and Contingencies	13. Commitments and Contingencies We monitor our properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist, we are not currently aware of any environmental liability with respect to the properties that we believe would have a material effect on our financial condition, results of operations and cash flows. Further, we are not aware of any environmental liability or any unasserted claim or assessment with respect to an environmental liability that we believe would require additional disclosure or the recording of a loss contingency. Our commitments and contingencies include the usual obligations of real estate owners and operators in the normal course of business. In the opinion of management, these matters are not expected to have a material impact on our condensed consolidated financial position, cash flows and results of operations. We are not presently subject to any material litigation nor, to our knowledge, is any material litigation threatened against the Company which if determined unfavorably to us would have a material adverse effect on our cash flows, financial condition or results of operations. Refer to Note 3 “Real Estate Note Receivable” for additional information on the remaining commitment to fund our real estate note receivable.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2017
Summary Of Significant Accounting Policies [Abstract]
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. In accordance with the guidance for the consolidation of variable interest entities (“VIEs”), we analyze our variable interests, including investments in partnerships and joint ventures, to determine if the entity in which we have a variable interest is a variable interest entity. Our analysis includes both quantitative and qualitative reviews, based on our review of the design of the entity, its organizational structure including decision-making ability, risk and reward sharing experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions and financial agreements. We also use quantitative and qualitative analyses to determine if we must consolidate a variable interest entity as the primary beneficiary.
Interim Financial Information	Interim Financial Information The accompanying interim condensed consolidated financial statements have been prepared by our management in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conjunction with the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the interim condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. The accompanying financial information reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. Our accompanying interim condensed consolidated financial statements should be read in conjunction with our audited condensed consolidated financial statements and the notes thereto included on our 2016 Annual Report on Form 10-K, as filed with the SEC.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Pending accounting standards In February 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-05, “Other Income: Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets”, which defines an in-substance nonfinancial asset, unifies guidance related to partial sales of nonfinancial assets, eliminates rules specifically addressing the sales of real estate, removes exception to the financial asset derecognition model and clarifies the accounting for contributions of nonfinancial assets to joint ventures. The new standard is effective for fiscal years beginning after December 15, 2017 with early adoption permitted. We do not anticipate early adoption, however, we are evaluating the impact of adopting ASU 2017-05 on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles Goodwill and Other: Simplifying the Test for Goodwill Impairment”, which removes Step 2 from the goodwill impairment test. The amendments are effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is evaluating the impact the adoption of ASU 2017-04 will have on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”. The guidance is intended to assist entities with evaluating whether a set of transferred assets and activities is a business. Under the new guidance, an entity first determines whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the set is not a business. If the threshold is not met, the entity then evaluates whether the set meets the requirement that a business include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. The new standard is effective for the Company on January 1, 2018, however, early adoption is permitted. The Company is evaluating the effect that ASU 2017-01 will have on our consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”, which enhances the presentation requirements of restricted cash. The standard aims to unify presentation and minimize the diversity in practice. These presentation changes include increased disclosures surrounding the restrictions on cash and the inclusion of the restricted cash balance in the reconciliation completed at the end of the statement of cash flows. The new standard is effective for the Company on January 1, 2018, however, early adoption is permitted. The Company does not expect ASU 2016-18 to have a significant impact on our consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230)”, which indicates that there is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. Adoption of this ASU will not have a significant impact on our statement of cash flows. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", which amends various aspects of existing guidance for leases and requires additional disclosures about leasing arrangements. It will require companies to recognize lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. This ASU retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The new guidance will be effective for the Company beginning on January 1, 2019 and earlier adoption is permitted. The Company is evaluating the impact of the adoption of the new guidance on our financial statements. In 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective, although it will not affect the accounting for rental related revenues. The new standard is effective for the Company on January 1, 2018, pursuant to ASU 2015-09 which deferred the adoption date by one year. Early adoption is permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has begun its process of assessing the impact of the guidance. To date the Company’s assessment efforts include the identification of various revenue streams within the scope of the guidance and the evaluation of certain lease contracts with tenants. Although the Company is still evaluating the revenue streams and the timing of recognition under the new model, as well as the related disclosure requirements, a significant change to our current revenue recognition policies is not expected as a substantial portion of our revenue consists of rental income from leasing arrangements, which is excluded from ASU 2014-09. The Company has not yet selected a transition method.

Investments in Real Estate (Tab

Investments in Real Estate (Tables)	6 Months Ended
Investments in Real Estate (Tables)	Jun. 30, 2017
Real Estate [Abstract]
Schedule Of Cost and Accumulated Depreciation and Amortization Related To Real Estate Assets and Related Lease Intangibles	As of June 30, 2017, cost and accumulated depreciation and amortization related to real estate assets and related lease intangibles were as follows: Land Buildings Furniture, Construction (1) Intangible Cost $ 48,146,000 $ 456,322,000 $ 22,624,000 $ - $ 28,744,000 Accumulated depreciation and amortization - (52,217,000) (9,192,000) - (24,102,000) Net $ 48,146,000 $ 404,105,000 $ 13,432,000 $ - $ 4,642,000 (1) In January 2017, the development of Accel at Golden was completed. The lease commenced on January 5, 2017 and we reclassified the construction in progress to the respective fixed asset accounts. This facility is reported in our triple-net leased segment. As of December 31, 2016, accumulated depreciation and amortization related to real estate assets and related lease intangibles were as follows: Land Buildings Furniture, Construction Intangible Cost $ 48,146,000 $ 440,985,000 $ 20,579,000 $ 13,933,000 $ 28,739,000 Accumulated depreciation and amortization - (45,485,000) (7,987,000) - (23,906,000) Net $ 48,146,000 $ 395,500,000 $ 12,592,000 $ 13,933,000 $ 4,833,000
Estimated Amortization	Estimated amortization for July 1, 2017 through December 31, 2017 and each of the subsequent years is as follows: Intangible Assets July 1, 2017 - December 31, 2017 $ 192,000 2018 385,000 2019 292,000 2020 292,000 2021 287,000 2022 and thereafter 3,194,000 $ 4,642,000

Investments in Unconsolidated22

Investments in Unconsolidated Entities (Tables)	6 Months Ended
Investments in Unconsolidated Entities (Tables)	Jun. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Equity Method Accounting	As of June 30, 2017, the Company owns interest in one entity that is accounted for under the equity method of accounting: Entity (1) Property Type Acquired Investment (2) Ownership % Physicians Center MOB Medical Office Building April 2012 $ - 71.9% (1) This entity is not consolidated because the Company exercises significant influence, but does not control or direct the activities that most significantly impact the entity’s performance. (2) Represents the carrying value of the Company’s investment in the unconsolidated entity. As of December 31, 2015, the Company’s carrying value of the investment in Physicians Center MOB reached zero and we discontinued applying the equity method of accounting. Since January 1, 2016, monthly distributions are recorded as a component of equity in (income) loss from unconsolidated entities in the condensed consolidated statement of operations.
Schedule of Combined Financial Information For Unconsolidated Entities	Summarized combined financial information for the Company’s unconsolidated entities is as follows: June 30, 2017 December 31, 2016 Cash and cash equivalents $ 46,000 $ 688,000 Investments in real estate, net 7,772,000 22,747,000 Other assets 660,000 721,000 Total assets $ 8,478,000 $ 24,156,000 Notes payable, net $ 8,655,000 $ 23,193,000 Accounts payable and accrued liabilities 45,000 289,000 Other liabilities 304,000 454,000 Total stockholders’ equity (526,000) 220,000 Total liabilities and equity $ 8,478,000 $ 24,156,000 Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 (1) 2016 Total revenues $ 437,000 $ 1,334,000 $ 1,297,000 $ 2,539,000 Net income (loss) 25,000 (128,000) 78,000 (154,000) Company’s equity in loss from unconsolidated entities - 105,000 27,000 222,000 (1) On February 2, 2017 the Company sold its interest in the joint venture entity Buffalo Crossings, which resulted in cash proceeds of $ 2.0 1.5

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
Segment Reporting (Tables)	Jun. 30, 2017
Segment Reporting [Abstract]
Reconciliation of segment activity to consolidated net income (loss)	The following tables reconcile the segment activity to consolidated net income (loss) for the three and six months ended June 30, 2017 and 2016: Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Senior living Triple- net leased MOB properties Consolidated Senior living Triple-net leased MOB properties Consolidated Rental revenue $ 20,791,000 $ 2,758,000 $ 208,000 $ 23,757,000 $ 20,410,000 $ 1,673,000 $ 229,000 $ 22,312,000 Resident services and fee income 8,164,000 - - 8,164,000 8,087,000 - - 8,087,000 Tenant reimbursements and other income 1,221,000 259,000 80,000 1,560,000 687,000 1,614,000 78,000 2,379,000 30,176,000 3,017,000 288,000 33,481,000 29,184,000 3,287,000 307,000 32,778,000 Property operating and maintenance expenses 21,548,000 271,000 81,000 21,900,000 19,982,000 468,000 112,000 20,562,000 Net operating income $ 8,628,000 $ 2,746,000 $ 207,000 $ 11,581,000 $ 9,202,000 $ 2,819,000 $ 195,000 $ 12,216,000 General and administrative 3,943,000 405,000 Asset management fees 1,679,000 1,696,000 Depreciation and amortization 4,068,000 5,161,000 Interest expense, net 4,439,000 3,791,000 Change in fair value of contingent consideration (3,699,000) 129,000 Equity in income from unconsolidated entities (50,000) 68,000 Income tax expense (benefit) 535,000 (298,000) Net income 666,000 1,264,000 Preferred return to series B preferred OP units and other noncontrolling interests 3,029,000 2,904,000 Net loss attributable to common stockholders $ (2,363,000) $ (1,640,000) Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Senior living Triple-net leased MOB properties Consolidated Senior living Triple-net leased MOB properties Consolidated Rental revenue $ 41,229,000 $ 5,496,000 $ 415,000 $ 47,140,000 $ 40,331,000 $ 4,003,000 $ 435,000 $ 44,769,000 Resident services and fee income 16,397,000 - - 16,397,000 16,442,000 - - 16,442,000 Tenant reimbursements and other income 2,226,000 509,000 161,000 2,896,000 1,406,000 1,819,000 156,000 3,381,000 59,852,000 6,005,000 576,000 66,433,000 58,179,000 5,822,000 591,000 64,592,000 Property operating and maintenance expenses 42,843,000 524,000 159,000 43,526,000 40,177,000 679,000 192,000 41,048,000 Net operating income $ 17,009,000 $ 5,481,000 $ 417,000 $ 22,907,000 $ 18,002,000 $ 5,143,000 $ 399,000 $ 23,544,000 General and administrative 5,542,000 1,096,000 Asset management fees 2,608,000 2,679,000 Depreciation and amortization 8,101,000 8,954,000 Interest expense, net 8,761,000 7,632,000 Change in fair value of contingent consideration (3,699,000) 306,000 Equity in income from unconsolidated entities (72,000) 128,000 Gain on disposition of investment in unconsolidated entity (1,534,000) - Income tax expense (benefit) 437,000 (900,000) Net income 2,763,000 3,649,000 Preferred return to series B preferred OP units and other noncontrolling interests 6,054,000 5,618,000 Net loss attributable to common stockholders $ (3,291,000) $ (1,969,000)
Reconciliation of segment activity to consolidated financial position	The following table reconciles the segment activity to consolidated financial position as of June 30, 2017 and December 31, 2016: June 30, 2017 December 31, 2016 Assets Investment in real estate: Senior living operations $ 410,579,000 $ 410,007,000 Triple-net leased properties 92,227,000 92,112,000 Medical office building properties 6,899,000 7,066,000 Total reportable segments $ 509,705,000 $ 509,185,000 Reconciliation to consolidated assets: Cash and cash equivalents 34,958,000 34,921,000 Investment in unconsolidated entities - 493,000 Tenant and other receivables, net 6,939,000 5,949,000 Deferred costs and other assets 9,145,000 9,973,000 Restricted cash 6,663,000 7,777,000 Goodwill 5,965,000 5,965,000 Total assets $ 573,375,000 $ 574,263,000

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
Notes Payable (Tables)	Jun. 30, 2017
Debt Disclosure [Abstract]
Principal payments due on notes payable	Principal payments due on our notes payable for July 1, 2017 to December 31, 2017 and each of the subsequent years is as follows: Year Principal Amount July 1, 2017 - December 31, 2017 $ 2,011,000 2018 28,978,000 2019 133,529,000 2020 69,632,000 2021 18,525,000 2022 and thereafter 123,067,000 $ 375,742,000 Less: Deferred financing costs 3,503,000 Less: Discount 166,000 $ 372,073,000

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
Stockholders' Equity (Tables)	Jun. 30, 2017
Stockholders' Equity [Abstract]
Summary of distributions declared	The following are the distributions declared on our common stock during the six months ended June 30, 2017 and 2016: Distributions Declared (1)(2) Cash Flow from Period Cash Reinvested (3) Total Operations First quarter 2016 $ 1,342,000 $ 89,000 $ 1,431,000 $ 6,871,000 Second quarter 2016 1,343,000 88,000 1,431,000 4,607,000 $ 2,685,000 $ 177,000 $ 2,862,000 $ 11,478,000 First quarter 2017 $ 1,329,000 $ 94,000 $ 1,423,000 $ 4,541,000 Second quarter 2017 1,439,000 - 1,439,000 3,788,000 $ 2,768,000 $ 94,000 $ 2,862,000 $ 8,329,000 (1) In order to meet the requirements for being treated as a REIT under the Internal Revenue Code, we must pay distributions to our stockholders each taxable year equal to at least 90 (2) This table represents distributions declared and paid to common stockholders for each respective period. These amounts do not include distribution payments to the Series B Preferred Unit holders for the three and six months ended June 30, 2017 and 2016. (3) On June 19, 2013, we filed a registration statement on Form S-3 to register up to $ 99,000,000 10.02 11.63 12.45 656,963 642,075

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
Related Party Transactions (Tables)	Jun. 30, 2017
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	The fees payable to the Advisor under the advisory agreement for the three and six months ended June 30, 2017 and 2016 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Asset Management Fees $ 1,679,000 $ 1,696,000 $ 2,608,000 $ 2,679,000

Organization (Details Textual)

Organization (Details Textual) - USD ($)	May 03, 2017	Jun. 30, 2017
Organization [Line Items]
Percentage of interest owned		57.80%
Merger Agreement, Additional Per Share Consideration	$ 0.55
Business Combination, Contingent Consideration, Liability	$ 8.76
Minimum [Member]
Organization [Line Items]
Business Acquisition, Share Price	$ 14.37
Maximum [Member]
Organization [Line Items]
Business Acquisition, Share Price	$ 15.21
Sentio Investments, LLC [Member]
Organization [Line Items]
Formation date		December 20, 2011
Sentio Healthcare Properties OP, LP [Member]
Organization [Line Items]
Formation date		October 17, 2006
Operating Partnership and the HC Operating Partnership, LP [Member]
Organization [Line Items]
Percentage of interest owned		100.00%

Real Estate Note Receivable (De

Real Estate Note Receivable (Details Textual) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jan. 16, 2015
Interest Income, Other	$ 0.8	$ 1.5
Georgetown Loan [Member]
Debt Instrument, Face Amount			$ 41.9
Debt Instrument, Interest Rate, Stated Percentage	7.90%	7.90%
Loan Origination Fee Percent		1.00%
Debt Instrument, Maturity Date, Description		on January 15, 2020 with one 12-month option to extend at the Company’s option
Secured Debt	$ 2.5	$ 2.5
Loans Receivable	$ 39.4	$ 39.4

Investments in Real Estate (Det

Investments in Real Estate (Details) - USD ($)	Jun. 30, 2017		Dec. 31, 2016
Cost and accumulated depreciation and amortization related to real estate assets and related lease intangibles
Net	$ 470,325,000		$ 475,004,000
Land [Member]
Cost and accumulated depreciation and amortization related to real estate assets and related lease intangibles
Cost	48,146,000		48,146,000
Accumulated depreciation and amortization	0		0
Net	48,146,000		48,146,000
Buildings and Improvements [Member]
Cost and accumulated depreciation and amortization related to real estate assets and related lease intangibles
Cost	456,322,000		440,985,000
Accumulated depreciation and amortization	(52,217,000)		(45,485,000)
Net	404,105,000		395,500,000
Furniture, Fixtures and Vehicles [Member]
Cost and accumulated depreciation and amortization related to real estate assets and related lease intangibles
Cost	22,624,000		20,579,000
Accumulated depreciation and amortization	(9,192,000)		(7,987,000)
Net	13,432,000		12,592,000
Construction in Progress [Member]
Cost and accumulated depreciation and amortization related to real estate assets and related lease intangibles
Cost	0	[1]	13,933,000
Accumulated depreciation and amortization	0	[1]	0
Net	0	[1]	13,933,000
Intangible Lease Assets [Member]
Cost and accumulated depreciation and amortization related to real estate assets and related lease intangibles
Cost	28,744,000		28,739,000
Accumulated depreciation and amortization	(24,102,000)		(23,906,000)
Net	$ 4,642,000		$ 4,833,000

[1]	In January 2017, the development of Accel at Golden was completed. The lease commenced on January 5, 2017 and we reclassified the construction in progress to the respective fixed asset accounts. This facility is reported in our triple-net leased segment.

Investments in Real Estate (D30

Investments in Real Estate (Details 1)	Jun. 30, 2017USD ($)
Estimated amortization
July 1, 2017 - December 31, 2017	$ 192,000
2,018	385,000
2,019	292,000
2,020	292,000
2,021	287,000
2022 and thereafter	3,194,000
Intangible Assets	$ 4,642,000

Investments in Real Estate (D31

Investments in Real Estate (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Property, Plant and Equipment [Line Items]
Real Estate Accumulated Depreciation, Depreciation Expense	$ 4	$ 3.7	$ 7.9	$ 7.3
Finite-Lived Intangible Assets, Remaining Amortization Period			17 years
Amortization associated with the intangible assets	$ 0.1	$ 1.5	$ 0.2	$ 1.7
Minimum [Member]
Property, Plant and Equipment [Line Items]
Finite-Lived Intangible Asset, Useful Life			2 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Finite-Lived Intangible Asset, Useful Life			20 years

Investments in Unconsolidated32

Investments in Unconsolidated Entities (Details) - Physicians Center MOB [Member] - Medical Office Building [Member]	6 Months Ended
	Jun. 30, 2017USD ($)	[1]
Acquired	Apr. 30, 2012
Investment	$ 0	[2]
Ownership	71.90%

[1]	This entity is not consolidated because the Company exercises significant influence, but does not control or direct the activities that most significantly impact the entity’s performance.
[2]	Represents the carrying value of the Company’s investment in the unconsolidated entity. As of December 31, 2015, the Company’s carrying value of the investment in Physicians Center MOB reached zero and we discontinued applying the equity method of accounting. Since January 1, 2016, monthly distributions are recorded as a component of equity in (income) loss from unconsolidated entities in the condensed consolidated statement of operations.

Investments in Unconsolidated33

Investments in Unconsolidated Entities (Details 1) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Equity Method Investment, Summarized Financial Information, Assets	$ 8,478,000	$ 24,156,000
Equity Method Investment Summarized Financial Information, Equity	(526,000)	220,000
Equity Method Investment, Summarized Financial Information, Liabilities and Equity	8,478,000	24,156,000
Cash and Cash Equivalents [Member]
Equity Method Investment, Summarized Financial Information, Assets	46,000	688,000
Investments In Real Estate Net [Member]
Equity Method Investment, Summarized Financial Information, Assets	7,772,000	22,747,000
Other Assets [Member]
Equity Method Investment, Summarized Financial Information, Assets	660,000	721,000
Notes Payable Net [Member]
Equity Method Investment, Summarized Financial Information, Liabilities	8,655,000	23,193,000
Accounts Payable and Accrued Liabilities [Member]
Equity Method Investment, Summarized Financial Information, Liabilities	45,000	289,000
Other Liabilities [Member]
Equity Method Investment, Summarized Financial Information, Liabilities	$ 304,000	$ 454,000

Investments in Unconsolidated34

Investments in Unconsolidated Entities (Details 2) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	[1]	Jun. 30, 2016
Total revenues	$ 437,000	$ 1,334,000	$ 1,297,000		$ 2,539,000
Net income (loss)	25,000	(128,000)	78,000		(154,000)
Company’s equity in loss from unconsolidated entities	$ 0	$ 105,000	$ 27,000		$ 222,000

[1]	On February 2, 2017 the Company sold its interest in the joint venture entity Buffalo Crossings, which resulted in cash proceeds of $2.0 million. The Company recorded a gain of $1.5 million in the six months ended June 30, 2017. The Company’s equity in loss from Buffalo Crossings is included in the condensed consolidated statement of operations through the date of the sale.

Investments in Unconsolidated35

Investments in Unconsolidated Entities (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Proceeds from Sale of Equity Method Investments			$ 2,000,000	$ 0
Equity Method Investment, Realized Gain (Loss) on Disposal	$ 0	$ 0	1,534,000	$ 0
Buffalo Crossings [Member]
Proceeds from Sale of Equity Method Investments			2,000,000
Equity Method Investment, Realized Gain (Loss) on Disposal			$ 1,500,000

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Income Taxes (Details Textual) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Deferred State and Local Income Tax Expense (Benefit)	$ 0.5	$ (0.3)	$ 0.4	$ (0.9)
Deferred Tax Assets, Net	7.4		$ 7.4		$ 7.7
Federal Statutory Authority [Member]
Operating Loss Carryforwards Expiration, Description			which, if unused, begin to expire in 2035.
Operating Loss Carryforwards	$ 1.9		$ 1.9

Segment Reporting (Details)

Segment Reporting (Details) - USD ($)	3 Months Ended		6 Months Ended
Segment Reporting (Details) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Reconciliation of segment activity to consolidated net income
Rental revenue	$ 23,757,000	$ 22,312,000	$ 47,140,000	$ 44,769,000
Resident services and fee income	8,164,000	8,087,000	16,397,000	16,442,000
Tenant reimbursements and other income	1,560,000	2,379,000	2,896,000	3,381,000
Total revenues	33,481,000	32,778,000	66,433,000	64,592,000
Property operating and maintenance expenses	21,900,000	20,562,000	43,526,000	41,048,000
Net operating income	11,581,000	12,216,000	22,907,000	23,544,000
General and administrative	3,943,000	405,000	5,542,000	1,096,000
Asset management fees	1,679,000	1,696,000	2,608,000	2,679,000
Depreciation and amortization	4,068,000	5,161,000	8,101,000	8,954,000
Interest expense, net	4,439,000	3,791,000	8,761,000	7,632,000
Change in fair value of contingent consideration	(3,699,000)	129,000	(3,699,000)	306,000
Equity in (income) loss from unconsolidated entities	(50,000)	68,000	(72,000)	128,000
Gain on disposition of investment in unconsolidated entity	0	0	(1,534,000)	0
Income tax expense (benefit)	535,000	(298,000)	437,000	(900,000)
Net income	666,000	1,264,000	2,763,000	3,649,000
Preferred return to series B preferred OP units and other noncontrolling interests	3,029,000	2,904,000	6,054,000	5,618,000
Net loss attributable to common stockholders	(2,363,000)	(1,640,000)	(3,291,000)	(1,969,000)
Senior living operations [Member]
Reconciliation of segment activity to consolidated net income
Rental revenue	20,791,000	20,410,000	41,229,000	40,331,000
Resident services and fee income	8,164,000	8,087,000	16,397,000	16,442,000
Tenant reimbursements and other income	1,221,000	687,000	2,226,000	1,406,000
Total revenues	30,176,000	29,184,000	59,852,000	58,179,000
Property operating and maintenance expenses	21,548,000	19,982,000	42,843,000	40,177,000
Net operating income	8,628,000	9,202,000	17,009,000	18,002,000
Triple-net leased properties [Member]
Reconciliation of segment activity to consolidated net income
Rental revenue	2,758,000	1,673,000	5,496,000	4,003,000
Resident services and fee income	0	0	0	0
Tenant reimbursements and other income	259,000	1,614,000	509,000	1,819,000
Total revenues	3,017,000	3,287,000	6,005,000	5,822,000
Property operating and maintenance expenses	271,000	468,000	524,000	679,000
Net operating income	2,746,000	2,819,000	5,481,000	5,143,000
MOB [Member]
Reconciliation of segment activity to consolidated net income
Rental revenue	208,000	229,000	415,000	435,000
Resident services and fee income	0	0	0	0
Tenant reimbursements and other income	80,000	78,000	161,000	156,000
Total revenues	288,000	307,000	576,000	591,000
Property operating and maintenance expenses	81,000	112,000	159,000	192,000
Net operating income	$ 207,000	$ 195,000	$ 417,000	$ 399,000

Segment Reporting (Details 1)

Segment Reporting (Details 1) - USD ($)	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Investment in real estate:
Total reportable segments	$ 509,705,000	$ 509,185,000
Reconciliation to consolidated assets:
Cash and cash equivalents	34,958,000	34,921,000	$ 27,642,000	$ 22,801,000
Investment in unconsolidated entities	0	493,000
Tenant and other receivables, net	6,939,000	5,949,000
Deferred costs and other assets	9,145,000	9,973,000
Restricted cash	6,663,000	7,777,000
Goodwill	5,965,000	5,965,000
Total assets	573,375,000	574,263,000
Senior living operations [Member]
Investment in real estate:
Total reportable segments	410,579,000	410,007,000
Reconciliation to consolidated assets:
Goodwill	6,000,000	6,000,000
Triple-net leased properties [Member]
Investment in real estate:
Total reportable segments	92,227,000	92,112,000
MOB [Member]
Investment in real estate:
Total reportable segments	$ 6,899,000	$ 7,066,000

Segment Reporting (Details Text

Segment Reporting (Details Textual) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Goodwill	$ 5,965,000	$ 5,965,000
Senior living operations [Member]
Segment Reporting Information [Line Items]
Goodwill	$ 6,000,000	$ 6,000,000

Fair Value Measurements (Detail

Fair Value Measurements (Details Textual) - USD ($)	3 Months Ended	6 Months Ended
Fair Value Measurements (Details Textual) - USD ($)	Jun. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Notes Payable carrying Value	$ 375,742,000	$ 375,742,000	$ 370,100,000
Notes Payable net of discount and prmium	372,073,000	372,073,000	366,097,000
Liabilities, Fair Value Adjustment	3,700,000	3,700,000
Sumter Grand [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other	0	$ 0
Armbrook Village [Member]
Change In Fair Value of Liabilities Discount Rate Percentage		9.00%
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other	1,700,000	$ 1,700,000
Fair Value, Inputs, Level 2 [Member]
Notes Payable carrying Value	$ 374,100,000	$ 374,100,000	$ 369,200,000

Notes Payable (Details)

Notes Payable (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Principal payments due on notes payable
Principal amount	$ 375,742,000	$ 370,100,000
Less: Deferred financing costs	3,503,000	3,800,000
Less: Discount	166,000
Notes payable	372,073,000	$ 366,097,000
July 1, 2017 - December 31, 2017 [Member]
Principal payments due on notes payable
Principal amount	2,011,000
2018 [Member]
Principal payments due on notes payable
Principal amount	28,978,000
2019 [Member]
Principal payments due on notes payable
Principal amount	133,529,000
2020 [Member]
Principal payments due on notes payable
Principal amount	69,632,000
2021 [Member]
Principal payments due on notes payable
Principal amount	18,525,000
2022 and thereafter [Member]
Principal payments due on notes payable
Principal amount	$ 123,067,000

Notes Payable (Details Textual)

Notes Payable (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
Notes Payable (Details Textual) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Notes Payable (Additional Textual) [Abstract]
Notes payable	$ 372,073,000		$ 372,073,000		$ 366,097,000
Fixed rate debt	$ 223,400,000		$ 223,400,000		$ 219,600,000
Fixed rate debt, notes payable	59.00%		59.00%		59.00%
Variable rate debt	$ 152,300,000		$ 152,300,000		$ 150,500,000
Variable rate debt, notes payable	41.00%		41.00%		41.00%
Fixed and variable rate secured mortgage loans with average effective interest rate	4.42%		4.42%
Fixed rate debt, weighted average interest rate	4.79%		4.79%		4.78%
Variable rate debt, weighted average interest rate	3.86%		3.86%		3.41%
Deferred Finance Costs, Net	$ 3,503,000		$ 3,503,000		$ 3,800,000
Interest Expense Deferred Financing Cost	4,400,000	$ 3,800,000	8,800,000	$ 7,600,000
Notes Payable Carrying Value	$ 375,742,000		$ 375,742,000		$ 370,100,000
Maximum [Member]
Notes Payable (Additional Textual) [Abstract]
Fixed rate debt, notes payable	6.43%		6.43%
Minimum [Member]
Notes Payable (Additional Textual) [Abstract]
Fixed rate debt, notes payable	2.80%		2.80%

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)		3 Months Ended				6 Months Ended
Stockholders' Equity (Details) - USD ($)		Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2017	Jun. 30, 2016
Summary of distributions declared
Distributions Declared, Cash	[1],[2]	$ 1,439,000	$ 1,329,000	$ 1,343,000	$ 1,342,000	$ 2,768,000	$ 2,685,000
Distributions Declared, Reinvested	[1],[2],[3]	0	94,000	88,000	89,000	94,000	177,000
Distributions Declared, Total	[1],[2]	1,439,000	1,423,000	1,431,000	1,431,000	2,862,000	2,862,000
Cash Flow From Operations		$ 3,788,000	$ 4,541,000	$ 4,607,000	$ 6,871,000	$ 8,329,000	$ 11,478,000

[1]	In order to meet the requirements for being treated as a REIT under the Internal Revenue Code, we must pay distributions to our stockholders each taxable year equal to at least 90% of our net ordinary taxable income.
[2]	This table represents distributions declared and paid to common stockholders for each respective period. These amounts do not include distribution payments to the Series B Preferred Unit holders for the three and six months ended June 30, 2017 and 2016.
[3]	On June 19, 2013, we filed a registration statement on Form S-3 to register up to $99,000,000 of shares of common stock to be offered to our existing stockholders pursuant to an amended and restated distribution reinvestment plan (the “DRIP offering”) pursuant to which our stockholders can elect to have their cash distributions reinvested in shares of our common stock. The purchase price for shares offered pursuant to the DRIP Offering is equal to the most recently announced estimated per-share value, as of the date the shares are purchased under the distribution reinvestment plan. The DRIP Offering shares were initially offered at a purchase price of $10.02; effective February 28, 2014 , DRIP offering shares were offered at a purchase price of $11.63 per share; and effective March 23, 2016 DRIP offering shares are being offered at $12.45, which is our most recent estimated per-share value. In connection with the Company’s entry into the Merger Agreement, on May 3, 2017, the board of directors approved the suspension of the Company’s distribution reinvestment plan, which suspension became effective May 13, 2017. As a result, distributions paid by the Company following May 13, 2017 will be paid in cash and not reinvested in shares of Company Common Stock. As of June 30, 2017 and December 31, 2016, 656,963 and 642,075 shares, respectively, had been issued under the distribution reinvestment plan.

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
Stockholders' Equity (Details Textual) - USD ($)	Aug. 31, 2016	Jun. 19, 2013	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Mar. 23, 2016	Feb. 28, 2014	Jun. 30, 2013
Stockholders' Equity (Textual) [Abstract]
Common stock, shares authorized			580,000,000		580,000,000		580,000,000
Common stock, par value			$ 0.01		$ 0.01		$ 0.01
Percentage of annualized rate										5.00%
Annualized rate per share										$ 0.50
Common Stock Reinvested					13,400,000		13,400,000
Proceeds from Issuance of Preferred Stock and Preference Stock					$ 158,700,000
Gross Proceeds From Common Stock			$ 133,800,000		$ 133,800,000		$ 133,500,000
Common Stock To Be Offered Shares Dividend Reinvestment Plan		$ 99,000,000
Stock Issued During Period, Shares, Dividend Reinvestment Plan					656,963		642,075
Net Ordinary Taxable Income		90.00%
Stock Issued During Period, Value, New Issues					$ 185,000
Sale of Stock, Price Per Share		$ 10.02								$ 10
Dividends Payable, Amount Per Share			$ 0.125		$ 0.125
Proceeds from Issuance of Convertible Preferred Stock					$ 158,700,000
Preferred Stock [Member]
Stockholders' Equity (Textual) [Abstract]
Preferred stock, shares authorized			20,000,000		20,000,000		20,000,000
Preferred stock, par value			$ 0.01		$ 0.01		$ 0.01
Stock Issued During Period, Shares, New Issues					0
Stock Issued During Period, Value, New Issues					$ 0
Distribution Reinvestment Plan [Member]
Stockholders' Equity (Textual) [Abstract]
Sale of Stock, Price Per Share								$ 12.45	$ 11.63
Series B [Member]
Stockholders' Equity (Textual) [Abstract]
Dividends, Preferred Stock, Cash			$ 2,900,000	$ 2,700,000	$ 5,800,000	$ 5,300,000
Series B Preferred Stock [Member]
Stockholders' Equity (Textual) [Abstract]
Percentage of annualized rate			7.50%		7.50%
Preferred Stock Convertible Number Of Equity Instruments					15,830,938		15,830,938
Construction Loan Originations Percentage			6.00%		6.00%
Preferred Stock Liquidation Preference Percentage			10.00%		10.00%
Stock Issued During Period, Value, New Issues					$ 158,700,000		$ 158,700,000
Stock Issued During Period, Shares, Conversion of Units					1,586,260
Series B Preferred Stock [Member] \| Georgetown Loan [Member]
Stockholders' Equity (Textual) [Abstract]
Preferred Stock, Dividend Rate, Percentage	6.00%
Series B Preferred Stock [Member] \| Georgetown Loan [Member] \| Issue One [Member]
Stockholders' Equity (Textual) [Abstract]
Stock Issued During Period, Shares, New Issues	219,120
Series B Preferred Stock [Member] \| Georgetown Loan [Member] \| Issue Two [Member]
Stockholders' Equity (Textual) [Abstract]
Stock Issued During Period, Shares, New Issues	200,000
Preferred Stock, Dividend Rate, Percentage	7.50%
Series B Preferred Stock [Member] \| KKR Equity Commitment [Member]
Stockholders' Equity (Textual) [Abstract]
Proceeds from Issuance of Preferred Stock and Preference Stock			$ 600,000		$ 1,700,000
Stock Issued During Period, Shares, New Issues					1,586,260
Series B Preferred Stock [Member] \| Series B [Member] \| Georgetown Loan [Member]
Stockholders' Equity (Textual) [Abstract]
Preferred Stock, Dividend Rate, Percentage	7.50%
Series C Preferred Stock [Member]
Stockholders' Equity (Textual) [Abstract]
Preferred stock, shares authorized			1,000		1,000		1,000
Preferred stock, par value			$ 0.01		$ 0.01		$ 0.01
Percentage of annualized rate			3.00%		3.00%
Stock Issued During Period, Shares, Other					1,000		1,000
Series C Preferred Stock [Member] \| KKR Equity Commitment [Member]
Stockholders' Equity (Textual) [Abstract]
Stock Issued During Period, Shares, New Issues					1,000

Earnings Per Share (Details Tex

Earnings Per Share (Details Textual)	6 Months Ended
Earnings Per Share (Details Textual)	Jun. 30, 2017shares
Series B Preferred Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,586,260

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	3 Months Ended		6 Months Ended
Related Party Transactions (Details) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Asset Management Fees	$ 1,679,000	$ 1,696,000	$ 2,608,000	$ 2,679,000

Related Party Transactions (D47

Related Party Transactions (Details Textual) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
Related Party Transactions (Details Textual) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Related Party Transactions (Additional Textual) [Abstract]
Percentage of average invested assets			2.00%
Percentage of net income			25.00%
Asset Management Fees	$ 1,679,000	$ 1,696,000	$ 2,608,000	$ 2,679,000
Stock Issued During Period, Value, New Issues			$ 185,000
Management Fees, Amount Payable Terms			The Transition Agreement limits the amount of the fees payable under the Advisory Agreement. Specifically, notwithstanding the provisions of the Advisory Agreement, acquisition fees, financing coordination fees, asset management fees, property management and leasing fees, and disposition fees payable under the Advisory Agreement (collectively, the “Advisory Agreement Fees”) are limited to (1) $3.2 million plus an excess amount (the “Excess Amount”) of $3.6 million during the period from February 11, 2017 through February 10, 2018, and (2) $3.2 million plus any remaining portion of the Excess Amount during the period from February 11, 2018 through February 10, 2019. The maximum aggregate amount of such fees payable to the Advisor during these periods under the caps (the “Maximum Fee Amount”) will be $10.0 million. During the period from February 10, 2013 through February 10, 2015, and February 11, 2015 through February 10, 2017, the Advisory Agreement Fees were similarly capped, except that the Excess Amount was $3.2 million and as a result the Maximum Fee Amount was $9.6 million. In addition, solely with respect to any fees earned by the Advisor during the period from February 11, 2014 to February 10, 2015 in excess of the Maximum Fee Amount, such fees were included in fees payable during the one-year period from February 11, 2015 to February 10, 2016, subject to a maximum amount of $1.0 million. As of November 2015, the Advisor earned the Maximum Fee Amount of $9.6 million for the period from February 10, 2013 through February 10, 2016. As of December 31, 2016, the Advisor earned the maximum fee amount for February 11, 2016 through February 10, 2017 of $3.2 million.
Advisory Agreement [Member]
Related Party Transactions (Additional Textual) [Abstract]
Asset Management Fees			$ 3,200,000
Common Stock [Member]
Related Party Transactions (Additional Textual) [Abstract]
Stock Issued During Period, Value, New Issues			$ 0
Stock Issued During Period, Shares, New Issues			14,888
Series B Preferred Stock [Member]
Related Party Transactions (Additional Textual) [Abstract]
Stock Issued During Period, Value, New Issues			$ 158,700,000		$ 158,700,000
KKR Equity Commitment [Member] \| Common Stock [Member]
Related Party Transactions (Additional Textual) [Abstract]
Investment Owned, Balance, Shares	15,830,938		15,830,938
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	57.80%		57.80%
KKR Equity Commitment [Member] \| Series C And Series B Preferred Stock [Member]
Related Party Transactions (Additional Textual) [Abstract]
Stock Issued During Period, Value, New Issues			$ 158,700,000
Equity Interests Issued Or Issuable Amount	$ 158,700,000		$ 158,700,000
KKR Equity Commitment [Member] \| Series C Preferred Stock [Member]
Related Party Transactions (Additional Textual) [Abstract]
Stock Issued During Period, Shares, New Issues			1,000
KKR Equity Commitment [Member] \| Series B Preferred Stock [Member]
Related Party Transactions (Additional Textual) [Abstract]
Stock Issued During Period, Shares, New Issues			1,586,260
Transition to Internal Management Agreement [Member] \| Purchase Agreements [Member]
Related Party Transactions (Additional Textual) [Abstract]
Investment Advisory, Management and Administrative Fees			$ 10,000,000