Lightstone Value Plus REIT V (LVVP) 10-Q12 Aug 142014 Q2 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2014	Jul. 31, 2014
Document and Entity Information	'	'
Entity Registrant Name	'Behringer Harvard Opportunity REIT II, Inc.	'
Entity Central Index Key	'0001387061	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	25,988,620
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Real estate	'	'
Land and improvements, net	$56,217	$65,407
Buildings and improvements, net	191,731	219,523
Real estate under development	814	99
Total real estate	248,762	285,029
Cash and cash equivalents	122,365	94,877
Restricted cash	5,381	5,343
Accounts receivable, net	1,603	3,017
Prepaid expenses and other assets	916	1,196
Investment in unconsolidated joint venture	12,234	11,985
Furniture, fixtures and equipment, net	7,505	7,923
Deferred financing fees, net	2,416	3,185
Lease intangibles, net	1,015	1,820
Total assets	402,197	414,375
Liabilities and Equity	'	'
Notes payable	195,107	212,037
Accounts payable	937	513
Payables to related parties	744	840
Acquired below-market leases, net	272	324
Distributions payable to noncontrolling interest	46	20
Income taxes payable	0	183
Accrued and other liabilities	6,791	7,669
Total liabilities	203,897	221,586
Commitments and contingencies	0	0
Equity	'	'
Preferred stock, $.0001 par value per share; 50,000,000 shares authorized, none outstanding	0	0
Convertible stock, $.0001 par value per share; 1,000 shares authorized, 1,000 outstanding	0	0
Common stock, $.0001 par value per share; 350,000,000 shares authorized, 25,988,620 and 26,015,980 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively	3	3
Additional paid-in capital	232,670	232,903
Accumulated distributions and net loss	-43,220	-49,520
Accumulated other comprehensive income	502	498
Total Behringer Harvard Opportunity REIT II, Inc. equity	189,955	183,884
Noncontrolling interest	8,345	8,905
Total equity	198,300	192,789
Total liabilities and equity	$402,197	$414,375

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares outstanding	0	0
Convertible stock, par value (in dollars per share)	$0.00	$0.00
Convertible stock, shares authorized	1,000	1,000
Convertible stock, shares outstanding	1,000	1,000
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	350,000,000	350,000,000
Common stock, shares issued	25,988,620	26,015,980
Common stock, shares outstanding	25,988,620	26,015,980

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenues	'	'	'	'
Rental revenue	$7,889	$7,098	$15,770	$12,950
Hotel revenue	4,138	3,395	8,502	7,012
Total revenues	12,027	10,493	24,272	19,962
Expenses	'	'	'	'
Property operating expenses	2,625	2,245	5,349	4,120
Hotel operating expenses	2,988	2,734	6,010	5,488
Interest expense, net	2,055	1,912	4,118	3,724
Real estate taxes	1,352	1,236	2,765	2,139
Property management fees	403	367	830	691
Asset management fees	98	865	1,068	1,545
General and administrative	1,098	830	1,957	1,634
Acquisition expense	25	1,185	25	3,056
Depreciation and amortization	3,400	3,885	7,062	6,755
Total expenses	14,044	15,259	29,184	29,152
Interest income, net	54	28	100	58
Loss on early extinguishment of debt	-454	0	-454	0
Other income (loss)	-3	21	-3	10
Loss from continuing operations before gain on sale of real estate	-2,420	-4,717	-5,269	-9,122
Gain on sale of real estate	11,445	0	11,445	0
Loss from continuing operations before gain on sale of real estate	9,025	-4,717	6,176	-9,122
Income from discontinued operations	0	14,290	0	14,182
Net income	9,025	9,573	6,176	5,060
Noncontrolling interest in continuing operations	159	237	124	378
Noncontrolling interest in discontinued operations	0	-3,795	0	-3,756
Net income attributable to the noncontrolling interest	159	-3,558	124	-3,378
Net income attributable to the Company	9,184	6,015	6,300	1,682
Amounts attributable to the Company	'	'	'	'
Continuing operations	9,184	-4,480	6,300	-8,744
Discontinued operations	0	10,495	0	10,426
Net income attributable to the Company	9,184	6,015	6,300	1,682
Weighted average shares outstanding:	'	'	'	'
Basic and diluted (in shares)	25,993	26,039	26,002	26,046
Net income (loss) per share	'	'	'	'
Continuing operations (in dollars per share)	$0.35	($0.17)	$0.24	($0.34)
Discontinued operations (in dollars per share)	$0	$0.40	$0	$0.40
Basic and diluted income (loss) per share (in dollars per share)	$0.35	$0.23	$0.24	$0.06
Comprehensive income (loss):	'	'	'	'
Net income	9,025	9,573	6,176	5,060
Other comprehensive income (loss):	'	'	'	'
Reclassification of unrealized loss on interest rate derivatives to net income	20	56	37	88
Foreign currency translation gain (loss)	-54	225	-27	-127
Total other comprehensive income (loss)	-34	281	10	-39
Comprehensive income	8,991	9,854	6,186	5,021
Comprehensive income attributable to noncontrolling interest	155	-3,562	117	-3,384
Comprehensive income attributable to the Company	$9,146	$6,292	$6,303	$1,637

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Equity (USD $)	Total	Convertible Stock	Common Stock	Additional Paid-in Capital	Accumulated Distributions and Net (Loss)	Accumulated Other Comprehensive Income (loss)	Noncontrolling Interest
In Thousands, unless otherwise specified	Total	Convertible Stock	Common Stock	Additional Paid-in Capital	Accumulated Distributions and Net (Loss)	Accumulated Other Comprehensive Income (loss)	Noncontrolling Interest
Balance at Dec. 31, 2012	$186,533	$0	$3	$233,283	($58,249)	$126	$11,370
Balance (in shares) at Dec. 31, 2012	'	1	26,060	'	'	'	'
Increase (Decrease) in Stockholders' Equity	'	'	'	'	'	'	'
Net income	5,060	'	'	'	1,682	'	3,378
Redemption of common stock	-188	'	'	-188	'	'	'
Redemption of common stock (in shares)	'	'	-22	'	'	'	'
Contributions from noncontrolling interest	1,541	'	'	'	'	'	1,541
Distributions to noncontrolling interest	-6,812	'	'	'	'	'	-6,812
Other comprehensive income (loss):	'	'	'	'	'	'	'
Reclassification of unrealized losses on interest rate derivatives to net income	88	'	'	'	'	82	6
Foreign currency translation loss	-127	'	'	'	'	-127	'
Balance at Jun. 30, 2013	186,095	0	3	233,095	-56,567	81	9,483
Balance (in shares) at Jun. 30, 2013	'	1	26,038	'	'	'	'
Balance at Dec. 31, 2013	192,789	0	3	232,903	-49,520	498	8,905
Balance (in shares) at Dec. 31, 2013	'	1	26,016	'	'	'	'
Increase (Decrease) in Stockholders' Equity	'	'	'	'	'	'	'
Net income	6,176	'	'	'	6,300	'	-124
Redemption of common stock	-233	'	'	-233	'	'	'
Redemption of common stock (in shares)	'	'	-27	'	'	'	'
Noncontrolling Interest, Increase from Capital Contribution	53	'	'	'	'	'	53
Distributions to noncontrolling interest	-495	'	'	'	'	'	-495
Other comprehensive income (loss):	'	'	'	'	'	'	'
Reclassification of unrealized losses on interest rate derivatives to net income	37	'	'	'	'	31	6
Foreign currency translation loss	-27	'	'	'	'	-27	'
Balance at Jun. 30, 2014	$198,300	$0	$3	$232,670	($43,220)	$502	$8,345
Balance (in shares) at Jun. 30, 2014	'	1	25,989	'	'	'	'

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:	'	'
Net income	$6,176	$5,060
Adjustments to reconcile net income to net cash flows provided by operating activities:	'	'
Depreciation and amortization	7,006	8,640
Amortization of deferred financing fees	415	489
Gain on sale of real estate	-11,445	-14,455
Loss on early extinguishment of debt	454	260
Loss on derivatives	159	30
Change in operating assets and liabilities:	'	'
Accounts receivable	356	-87
Prepaid expenses and other assets	156	431
Accounts payable	444	-594
Accrued and other liabilities	-893	971
Payables to related parties	-97	63
Addition of lease intangibles	-87	-571
Cash provided by operating activities	2,644	237
Cash flows from investing activities:	'	'
Acquisition deposits reimbursed	500	250
Purchases of real estate	0	-63,510
Investment in unconsolidated joint venture	-249	-14,079
Return of investment in unconsolidated joint ventures	0	2,444
Proceeds from sale of real estate	46,290	39,106
Additions of property and equipment	-4,267	-4,270
Change in restricted cash	-38	-2,007
Cash provided by (used in) investing activities	42,236	-42,066
Cash flows from financing activities:	'	'
Financing costs	-101	-893
Proceeds from notes payable	0	47,589
Payments on notes payable	-16,682	-12,224
Purchase of interest rate derivatives	0	-133
Redemptions of common stock	-233	-188
Offering costs receivable from related party	0	-3,832
Contributions from noncontrolling interest holders	53	1,541
Distributions to noncontrolling interest holders	-443	-6,812
Cash provided by (used in) financing activities	-17,406	32,712
Effect of exchange rate changes on cash and cash equivalents	14	85
Net change in cash and cash equivalents	27,488	-9,032
Cash and cash equivalents at beginning of period	94,877	77,752
Cash and cash equivalents at end of period	$122,365	$68,720

Business_and_Organization

Business and Organization	6 Months Ended
Business and Organization	Jun. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Business and Organization	'
	Business and Organization

	Business

	Behringer Harvard Opportunity REIT II, Inc. (which may be referred to as the “Company,” “we,” “us,” or “our”) was organized as a Maryland corporation on January 9, 2007 and has elected to be taxed, and currently qualifies, as a real estate investment trust (“REIT”) for federal income tax purposes.

	We acquire and operate commercial real estate and real estate-related assets. In particular, we focus generally on acquiring commercial properties with significant possibilities for capital appreciation, such as those requiring development, redevelopment, or repositioning, those located in markets and submarkets with high growth potential, and those available from sellers who are distressed or face time-sensitive deadlines. In addition, our investment strategy also includes investments in real estate-related assets that present opportunities for higher current income. Such investments may have capital gain characteristics, whether as a result of a discount purchase or related equity participations. We may acquire a wide variety of commercial properties, including office, industrial, retail, hospitality, recreation and leisure, single-tenant, multifamily, and other real properties. These properties may be existing, income-producing properties, newly constructed properties, or properties under development or construction. They may include multifamily properties purchased for conversion into condominiums and single-tenant properties that may be converted for multi-tenant use. We may invest in real estate-related securities, including securities issued by other real estate companies, either for investment or in change of control transactions completed on a negotiated basis or otherwise. Further, we also may originate or invest in collateralized mortgage-backed securities and mortgage, bridge or mezzanine loans, or in entities that make investments similar to the foregoing. We expect to make our investments in or in respect of real estate assets located in the United States and other countries based on our view of existing market conditions. As of June 30, 2014, we had 12 real estate investments, 11 of which were consolidated into our condensed consolidated financial statements (one wholly owned and ten properties consolidated through investments in joint ventures).

	Substantially all of our business is conducted through Behringer Harvard Opportunity OP II LP, a limited partnership organized in Delaware (“Behringer Harvard Opportunity OP II”). As of June 30, 2014, our wholly-owned subsidiary, BHO II, Inc., a Delaware corporation, was the sole general partner of Behringer Harvard Opportunity OP II and owned a 0.1% partnership interest in Behringer Harvard Opportunity OP II. As of June 30, 2014, our wholly-owned subsidiary, BHO Business Trust II, a Maryland business trust, was the sole limited partner of Behringer Harvard Opportunity OP II and owned the remaining 99.9% interest in Behringer Harvard Opportunity OP II.

	We are externally managed and advised by Behringer Harvard Opportunity Advisors II, LLC (the “Advisor”). The Advisor is responsible for managing our day-to-day affairs and for identifying and making acquisitions and investments on our behalf.

	Organization

	In connection with our initial capitalization, on January 19, 2007, we issued 22,471 shares of our common stock and 1,000 shares of our convertible stock to Behringer Harvard Holdings, LLC (“BHH”). BHH transferred its shares of convertible stock to one of its affiliates on April 2, 2010.

	As of June 30, 2014, we had issued 26.7 million shares of our common stock, including 22,471 shares owned by BHH and 2.2 million shares issued through the distribution reinvestment plan (the “DRP”). As of June 30, 2014, we had redeemed 0.7 million shares of our common stock and had 26 million shares of common stock outstanding. As of June 30, 2014, we had 1,000 shares of convertible stock held by an affiliate of BHH.

	Our common stock is not currently listed on a national securities exchange. The timing of a liquidity event will depend upon then prevailing market conditions. We currently intend to consider the process of disposing assets, liquidating, and distributing the net proceeds to our stockholders no later than three to six years after the termination of our initial public offering of common stock, which occurred on July 3, 2011. Economic or market conditions may, however, result in different holding periods for different assets. If we do not begin an orderly liquidation, we may seek to have our shares listed on a national securities exchange or seek alternative liquidation opportunities.

Interim_Unaudited_Financial_In

Interim Unaudited Financial Information	6 Months Ended
Interim Unaudited Financial Information	Jun. 30, 2014
Interim Unaudited Financial Information	'
Interim Unaudited Financial Information	'
	Interim Unaudited Financial Information

	The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013, which was filed with the SEC on March 26, 2014. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted in this report on Form 10-Q pursuant to the rules and regulations of the SEC.

	The results for the interim periods shown in this report are not necessarily indicative of future financial results. The accompanying condensed consolidated balance sheet as of June 30, 2014, the condensed consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2014 and 2013 and condensed consolidated statements of equity and cash flows for the six months ended June 30, 2014 and 2013 have not been audited by our independent registered public accounting firm. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments necessary to fairly present our condensed consolidated financial position as of June 30, 2014 and December 31, 2013 and our condensed consolidated results of operations and cash flows for the periods ended June 30, 2014 and 2013. Such adjustments are of a normal recurring nature.
	In the Notes to Condensed Consolidated Financial Statements, all dollar and share amounts in tabulation are in thousands of dollars and shares, respectively, unless otherwise noted.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
Summary of Significant Accounting Policies	'
	Summary of Significant Accounting Policies

	Described below are certain of our significant accounting policies. The disclosures regarding several of the policies have been condensed or omitted in accordance with interim reporting regulations specified by Form 10-Q. Please see our Annual Report on Form 10-K for a complete listing of all of our significant accounting policies.

	Use of Estimates in the Preparation of Financial Statements

	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 period. These estimates include such items as purchase price allocation for real estate acquisitions, impairment of long-lived assets, depreciation and amortization, and allowance for doubtful accounts. Actual results could differ from those estimates.

	Principles of Consolidation and Basis of Presentation

	Our consolidated financial statements include our accounts and the accounts of other subsidiaries over which we have control. All inter-company transactions, balances, and profits have been eliminated in consolidation. Interests in entities acquired will be evaluated based on applicable GAAP, which includes the requirement to consolidate entities deemed to be variable interest entities (“VIE”) in which we are the primary beneficiary. If the interest in the entity is determined not to be a VIE, then the entity will be evaluated for consolidation based on legal form, economic substance, and the extent to which we have control and/or substantive participating rights under the respective ownership agreement. For entities in which we have less than a controlling interest or entities which we are not deemed to be the primary beneficiary, we account for the investment using the equity method of accounting.

	There are judgments and estimates involved in determining if an entity in which we have made an investment is a VIE and, if so, whether we are the primary beneficiary. The entity is evaluated to determine if it is a VIE by, among other things, calculating the percentage of equity being risked compared to the total equity of the entity. Determining expected future losses involves assumptions of various possibilities of the results of future operations of the entity, assigning a probability to each possibility and using a discount rate to determine the net present value of those future losses. A change in the judgments, assumptions, and estimates outlined above could result in consolidating an entity that should not be consolidated or accounting for an investment using the equity method that should in fact be consolidated, the effects of which could be material to our financial statements.

	Real Estate

	Upon the acquisition of real estate properties, we recognize the assets acquired, the liabilities assumed and any noncontrolling interest as of the acquisition date, measured at their fair values. The acquisition date is the date on which we obtain control of the real estate property. The assets acquired and liabilities assumed may consist of land, inclusive of associated rights, buildings, assumed debt, identified intangible assets and liabilities and asset retirement obligations. Identified intangible assets generally consist of above-market leases, in-place leases, in-place tenant improvements, in-place leasing commissions and tenant relationships. Identified intangible liabilities generally consist of below-market leases. Goodwill is recognized as of the acquisition date and measured as the aggregate fair value of the consideration transferred and any noncontrolling interests in the acquiree over the fair value of the identifiable net assets acquired. Likewise, a bargain purchase gain is recognized in current earnings when the aggregate fair value of the consideration transferred and any noncontrolling interests in the acquiree is less than the fair value of the identifiable net assets acquired. Acquisition-related costs are expensed in the period incurred. Initial valuations are subject to change until our information is finalized, which is no later than twelve months from the acquisition date.

	The fair value of the tangible assets acquired, consisting of land and buildings, is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land and buildings. Land values are derived from appraisals, and building values are calculated as replacement cost less depreciation or management’s estimates of the fair value of these assets using discounted cash flow analyses or similar methods believed to be used by market participants. The value of buildings is depreciated over the estimated useful life of 25 years using the straight-line method.

	We determine the fair value of assumed debt by calculating the net present value of the scheduled mortgage payments using interest rates for debt with similar terms and remaining maturities that management believes we could obtain at the date of the debt assumption. Any difference between the fair value and stated value of the assumed debt is recorded as a discount or premium and amortized over the remaining life of the loan using the effective interest method.

	We determine the value of above-market and below-market leases for acquired properties based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (1) the contractual amounts to be paid pursuant to the in-place leases and (2) management’s estimate of current market lease rates for the corresponding in-place leases, measured over a period equal to (a) the remaining non-cancelable lease term for above-market leases, or (b) the remaining non-cancelable lease term plus any below-market fixed rate renewal options that, based on a qualitative assessment of several factors, including the financial condition of the lessee, the business conditions in the industry in which the lessee operates, the economic conditions in the area in which the property is located, and the ability of the lessee to sublease the property during the renewal term, are reasonably assured to be exercised by the lessee for below-market leases. We record the fair value of above-market and below-market leases as intangible assets or intangible liabilities, respectively, and amortize them as an adjustment to rental income over the determined lease term.

	The total value of identified real estate intangible assets acquired is further allocated to in-place leases, in-place tenant improvements, in-place leasing commissions and tenant relationships based on our evaluation of the specific characteristics of each tenant’s lease and our overall relationship with that respective tenant. The aggregate value for tenant improvements and leasing commissions is based on estimates of these costs incurred at inception of the acquired leases, amortized through the date of acquisition. The aggregate value of in-place leases acquired and tenant relationships is determined by applying a fair value model. The estimates of fair value of in-place leases include an estimate of carrying costs during the expected lease-up periods for the respective spaces considering current market conditions. In estimating the carrying costs that would have otherwise been incurred had the leases not been in place, we include such items as real estate taxes, insurance and other operating expenses as well as lost rental revenue during the expected lease-up period based on current market conditions. The estimates of the fair value of tenant relationships also include costs to execute similar leases including leasing commissions, legal fees and tenant improvements as well as an estimate of the likelihood of renewal as determined by management on a tenant-by-tenant basis.

	We amortize the value of in-place leases, in-place tenant improvements and in-place leasing commissions to expense over the initial term of the respective leases. The tenant relationship values are amortized to expense over the initial term and any anticipated renewal periods, but in no event does the amortization period for intangible assets or liabilities exceed the remaining depreciable life of the building. Should a tenant terminate its lease, the unamortized portion of the acquired lease intangibles related to that tenant would be charged to expense.

	Anticipated amortization expense associated with the acquired lease intangibles for each of the following five years as of June 30, 2014 is as follows:


	Year	Lease / Other
		Intangibles
	July 1, 2014 - December 31, 2014	$	110

	2015	129

	2016	111

	2017	59

	2018	24


	Accumulated depreciation and amortization related to our consolidated investments in real estate assets and intangibles were as follows:


	30-Jun-14		Buildings and Improvements				Land and Improvements				Lease Intangibles				Acquired
															Below-Market Leases
	Cost		$	212,402			$	57,972			$	3,854			$	(619	)

	Less: depreciation and amortization		(20,671		)		(1,755		)		(2,839		)		347

	Net		$	191,731			$	56,217			$	1,015			$	(272	)




	December 31, 2013		Buildings and Improvements				Land and Improvements				Lease Intangibles				Acquired
															Below-Market Leases
	Cost		$	241,881			$	66,828			$	8,102			$	(768	)

	Less: depreciation and amortization		(22,358		)		(1,421		)		(6,282		)		444

Net		$	219,523			$	65,407			$	1,820			$	(324	)


Real Estate Held for Sale and Discontinued Operations
We classify properties as held for sale when certain criteria are met, in accordance with GAAP. At that time we present the assets and obligations of the property held for sale separately in our consolidated balance sheet and we cease recording depreciation and amortization expense related to that property. Properties held for sale are reported at the lower of their carrying amount or their estimated fair value, less estimated costs to sell. We had no property classified as held for sale at June 30, 2014 or December 31, 2013.
Effective as of April 1, 2014, we adopted the revised guidance regarding discontinued operations as further discussed in Note 4, New Accounting Pronouncements. For sales of real estate or assets classified as held for sale after April 1, 2014, we will evaluate whether the disposal transaction meets the criteria of a strategic shift and will have a major effect on our operations and financial results to determine if the results of operations and gains on sale of real estate will be presented as part of our continuing operations or as discontinued operations in our consolidated statements of operations. If the disposal represents a strategic shift, it will be classified as discontinued operations for all periods presented; if not, it will be presented in continuing operations.
Investment Impairment
For all of our real estate and real estate related investments, we monitor events and changes in circumstances indicating that the carrying amounts of the real estate assets may not be recoverable. Examples of the types of events and circumstances that would cause management to assess our assets for potential impairment include, but are not limited to: a significant decrease in the market price of an asset; a significant adverse change in the manner in which the asset is being used; an accumulation of costs in excess of the acquisition basis plus construction of the property; major vacancies and the resulting loss of revenues; natural disasters; a change in the projected holding period; legitimate purchase offers and changes in the global and local markets or economic conditions. Our assets may at times be concentrated in limited geographic locations and, to the extent that our portfolio is concentrated in limited geographic locations, downturns specifically related to such regions may result in tenants defaulting on their lease obligations at a portion of our properties within a short time period, which may result in asset impairments. When such events or changes in circumstances are present, we assess potential impairment by comparing estimated future undiscounted operating cash flows expected to be generated over the life of the asset and from its eventual disposition to the carrying amount of the asset. These projected cash flows are prepared internally by the Advisor and reflect in-place and projected leasing activity, market revenue and expense growth rates, market capitalization rates, discount rates, and changes in economic and other relevant conditions. The Company’s Chief Financial Officer and Chief Accounting Officer review these projected cash flows to assure that the valuation is prepared using reasonable inputs and assumptions that are consistent with market data or with assumptions that would be used by a third-party market participant and assume the highest and best use of the investment. We consider trends, strategic decisions regarding future development plans, and other factors in our assessment of whether impairment conditions exist. In the event that the carrying amount exceeds the estimated future undiscounted operating cash flows, we recognize an impairment loss to adjust the carrying amount of the asset to estimated fair value. While we believe our estimates of future cash flows are reasonable, different assumptions regarding factors such as market rents, economic conditions, and occupancy rates could significantly affect these estimates.

In evaluating our investments for impairment, management may use appraisals and make estimates and assumptions, including, but not limited to, the projected date of disposition of the properties, the estimated future cash flows of the properties during our ownership, and the projected sales price of each of the properties. A future change in these estimates and assumptions could result in understating or overstating the carrying value of our investments, which could be material to our financial statements.

We also evaluate our investments in unconsolidated joint ventures at each reporting date. If we believe there is an other than temporary decline in market value, we will record an impairment charge based on these evaluations. We assess potential impairment by comparing our portion of estimated future undiscounted operating cash flows expected to be generated by the joint venture over the life of the joint venture’s assets to the carrying amount of the joint venture. In the event that the carrying amount exceeds our portion of estimated future undiscounted operating cash flows, we recognize an impairment loss to adjust the carrying amount of the joint venture to its estimated fair value.

We believe the carrying value of our operating real estate is currently recoverable. Accordingly, there were no impairment charges for the six months ended June 30, 2014 and 2013. However, if market conditions worsen unexpectedly or if changes in our strategy significantly affect any key assumptions used in our fair value calculations, we may need to take charges in future periods for impairments related to our existing investments. Any such non-cash charges would have an adverse effect on our consolidated financial position and results of operations.

Investment in Unconsolidated Joint Venture
We provide funding to third party developers for the acquisition, development and construction of real estate (“ADC Arrangement”). Under the ADC Arrangement, we may participate in the residual profits of the project through the sale or refinancing of the property. We evaluate this arrangement to determine if they have characteristics similar to a loan or if the characteristics are more similar to a joint venture or partnership such as participating in the risks and rewards of the project as an owner or an investment partner. When we determine that the characteristics are more similar to a jointly-owned investment or partnership, we account for the arrangement as an investment in an unconsolidated joint venture under the equity method of accounting or a direct investment (consolidated basis of accounting) instead of applying loan accounting. The ADC Arrangement is reassessed at each reporting period. See Note 8 for further discussion.
Revenue Recognition

We recognize rental income generated from leases of our operating properties on a straight-line basis over the terms of the respective leases, including the effect of rent holidays, if any. Straight-line rent was a charge of less than $0.1 million recognized in rental revenues for the three and six months ended June 30, 2014. Straight-line rent was income of $0.1 million and $0.3 million recognized in rental revenues for the three and six months ended June 30, 2013, respectively, and includes amounts recognized in discontinued operations. Leases associated with our multifamily, student housing, hotel and self storage assets are generally short-term in nature, and thus have no straight-line rent. Net above-market lease amortization of less than $0.1 million was recognized in rental revenues for the three and six months ended June 30, 2014. Net below-market lease amortization of less than $0.1 million was recognized in rental revenues for the three and six months ended June 30, 2013 and includes amounts recognized in discontinued operations.

Hotel revenue is derived from the operations of the Courtyard Kauai at Coconut Beach Hotel and consists primarily of guest room, food and beverage, and other ancillary revenues such as laundry and parking. Hotel revenue is recognized as the services are rendered.

Accounts Receivable

Accounts receivable primarily consist of receivables related to our consolidated properties of $1.6 million and $3 million as of June 30, 2014 and December 31, 2013, respectively, and include straight-line rental revenue receivables of $0.4 million and $1 million as of June 30, 2014 and December 31, 2013, respectively.

Furniture, Fixtures, and Equipment

Furniture, fixtures, and equipment are recorded at cost and are depreciated according to the Company’s capitalization policy which uses the straight-line method over their estimated useful lives of five to seven years. Maintenance and repairs are charged to operations as incurred. Accumulated depreciation associated with our furniture, fixtures, and equipment was $5.2 million and $4.2 million as of June 30, 2014 and December 31, 2013, respectively.

Deferred Financing Fees

Deferred financing fees are recorded at cost and are amortized to interest expense of our notes payable using a straight-line method that approximates the effective interest method over the life of the related debt. Accumulated amortization of deferred financing fees was $1.8 million as of June 30, 2014 and December 31, 2013.

Income Taxes

We have elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), and have qualified as a REIT since the year ended December 31, 2008. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute at least 90% of our REIT taxable income to our stockholders. As a REIT, we generally will not be subject to federal income tax at the corporate level. We are organized and operate in such a manner as to qualify for taxation as a REIT under the Code and intend to continue to operate in such a manner, but no assurance can be given that we will operate in a manner so as to qualify or remain qualified as a REIT. Taxable income from non-REIT activities managed through a taxable REIT subsidiary (“TRS”) is subject to applicable federal, state, and local income and margin taxes. We have no taxable income associated with a TRS. Our operating partnerships are flow-through entities and are not subject to federal income taxes at the entity level.

We have reviewed our tax positions under GAAP guidance that clarify the relevant criteria and approach for the recognition and measurement of uncertain tax positions. The guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken, or expected to be taken, in a tax return. A tax position may only be recognized in the financial statements if it is more likely than not that the tax position will be sustained upon examination. We believe it is more likely than not that the tax positions taken relative to our federal tax status as a REIT will be sustained in any tax examination.

Foreign Currency Translation

For our international investments where the functional currency is other than the U.S. dollar, assets and liabilities are translated using period-end exchange rates, while the statement of operations amounts are translated using the average exchange rates for the respective period. Gains and losses resulting from the change in exchange rates from period to period are reported separately as a component of other comprehensive income (loss) (“OCI”). Gains and losses resulting from foreign currency transactions are included in the condensed consolidated statements of operations and comprehensive income.

The Euro is the functional currency for the operations of Holstenplatz and Alte Jakobstraße. We also maintain a Euro-denominated bank account that is translated into U.S. dollars at the current exchange rate at each reporting period. For the three and six months ended June 30, 2014, the foreign currency translation adjustment was a loss of less than $0.1 million. For the three and six months ended June 30, 2013, the foreign currency translation adjustment was a gain of $0.2 million and a loss of $0.1 million, respectively.

Concentration of Credit Risk

At June 30, 2014 and December 31, 2013, we had cash and cash equivalents deposited in certain financial institutions in excess of federally insured levels. We have diversified our cash and cash equivalents among several banking institutions in an attempt to minimize exposure to any one of these entities. We regularly monitor the financial stability of these financial institutions and believe that we are not exposed to any significant credit risk in cash and cash equivalents or restricted cash.

Geographic, Asset Type and Industry Concentration

At any one time, a significant portion of our investments could be in one property class or concentrated in one or several geographic regions that are subject to higher risk of foreclosure. To the extent that our portfolio is concentrated in limited geographic regions, types of assets, industries or business sectors, downturns relating generally to such region, type of asset, industry or business sector may result in defaults on a number of our investments within a short time period, which may reduce our net income and the value of our common stock and accordingly limit our ability to fund our operations.

Noncontrolling Interest

Noncontrolling interest represents the noncontrolling ownership interest’s proportionate share of the equity in our consolidated real estate investments. Income and losses are allocated to noncontrolling interest holders based generally on their ownership percentage. In certain instances, our joint venture agreement provides for liquidating distributions based on achieving certain return metrics (“promoted interest”). If a property reaches a defined return threshold, then it will result in distributions to noncontrolling interest which is different from the standard pro-rata allocation percentage.

Earnings per Share

Net income per share is calculated based on the weighted average number of common shares outstanding during each period. The weighted average shares outstanding used to calculate both basic and diluted income per share were the same for each of the three and six months ended June 30, 2014 and 2013, as there were no potentially dilutive securities outstanding.

Subsequent Events

We have evaluated subsequent events for recognition or disclosure in our condensed consolidated financial statements.

New_Accounting_Pronouncements

New Accounting Pronouncements	6 Months Ended
New Accounting Pronouncements	Jun. 30, 2014
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]	'
New Accounting Pronouncements	'
	New Accounting Pronouncements
	In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-08 (“ASU 2014-08”), Presentation of Financial Statements and Property, Plant, and Equipment (Topics 205 and 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The updated guidance revised the definition of a discontinued operation by limiting discontinued operations reporting to disposals of components of an entity that represent a strategic shift that has or will have a major effect on an entity’s operations and financial results when a component of an entity or a group of components of an entity are classified as held for sale or disposed of by sale or by means other than a sale, such as an abandonment. Examples of a strategic shift could include a disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity. In addition, ASU 2014-08 requires expanded disclosures for discontinued operations so users of the financial statements will be provided with more information about the assets, liabilities, revenues and expenses of discontinued operations. We adopted this guidance effective April 1, 2014. Our results of operations and gains on real estate sold beginning April 1, 2014 that do not meet the criteria of a strategic shift that has or will have a major effect on our operations and financial results will be presented as continuing operations in our condensed consolidated statements of operations. Any sales of real estate prior to April 1, 2014 that were reported in discontinued operations in prior reporting periods will continue to be reported as discontinued operations.
	In May 2014, the FASB issued an update (“ASU 2014-09”) to ASC Topic 606, Revenue from Contracts with Customers. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. ASU 2014-09 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2016. We are currently evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements.

Assets_and_Liabilities_Measure

Assets and Liabilities Measured at Fair Value

6 Months Ended

Jun. 30, 2014

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]

Assets and Liabilities Measured at Fair Value

Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy) has been established.

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets and liabilities that we have the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability that are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

Recurring Fair Value Measurements

Currently, we use interest rate swaps and caps to manage our interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, implied volatilities, and foreign currency exchange rates.

We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2014, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.

The following fair value hierarchy table presents information about our assets measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013:

30-Jun-14

Level 1

Level 2

Level 3

Total

Assets

Derivative financial instruments

—

December 31, 2013

Level 1

Level 2

Level 3

Total

Assets

Derivative financial instruments

—

174

—

174

Derivative financial instruments classified as assets are included in prepaid expenses and other assets on the balance sheet.

Financial_Instruments_not_Repo

Financial Instruments not Reported at Fair Value	6 Months Ended
Financial Instruments not Reported at Fair Value	Jun. 30, 2014
Fair Value Disclosures [Abstract]	'
Financial Instruments not Reported at Fair Value	'
	Financial Instruments not Reported at Fair Value

	We determined the following disclosure of estimated fair values using available market information and appropriate valuation methodologies. However, considerable judgment is necessary to interpret market data and develop the related estimates of fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

	As of June 30, 2014 and December 31, 2013, management estimated that the carrying value of cash and cash equivalents, restricted cash, accounts receivable, prepaid expenses and other assets, accounts payable, accrued expenses, other liabilities, payables/receivables from related parties, and distributions payable to noncontrolling interests were at amounts that reasonably approximated their fair value based on their highly-liquid nature and/or short-term maturities. The notes payable of $195.1 million and $212 million as of June 30, 2014 and December 31, 2013, respectively, have a fair value of approximately $191.8 million and $207.8 million as of June 30, 2014 and December 31, 2013, respectively, based upon interest rates for debt with similar terms and remaining maturities that management believes we could obtain. The fair value of the notes payable is categorized as a Level 2 basis. The fair value is estimated using a discounted cash flow analysis valuation on the borrowing rates currently available for loans with similar terms and maturities. The fair value of the notes payable was determined by discounting the future contractual interest and principal payments by a market rate. Disclosure about fair value of financial instruments is based on pertinent information available to management as of June 30, 2014 and December 31, 2013.

Real_Estate_and_Real_EstateRel

Real Estate and Real Estate-Related Investments

6 Months Ended

Jun. 30, 2014

Real Estate [Abstract]

Real Estate and Real Estate-Related Investments

As of June 30, 2014, we consolidated 11 real estate assets. The following table presents certain information about our consolidated investments as of June 30, 2014:

Property Name

Description

Location

Date Acquired

Ownership

Interest

Holstenplatz

Office building

Hamburg, Germany

June 30, 2010

100%

Gardens Medical Pavilion(1)

Medical office building

Palm Beach Gardens, Florida

October 20, 2010

79.80%

Courtyard Kauai Coconut Beach Hotel

Hotel

Kauai, Hawaii

October 20, 2010

80%

River Club and the Townhomes at River Club

Student housing

Athens, Georgia

April 25, 2011

85%

Babcock Self Storage

Self storage

San Antonio, Texas

August 30, 2011

85%

Lakes of Margate

Multifamily

Margate, Florida

October 19, 2011

92.50%

Arbors Harbor Town

Multifamily

Memphis, Tennessee

December 20, 2011

94%

Alte Jakobstraße

Office building

Berlin, Germany

April 5, 2012

99.70%

Wimberly at Deerwood (“Wimberly”)

Multifamily

Jacksonville, Florida

February 19, 2013

95%

22 Exchange

Student housing

Akron, Ohio

April 16, 2013

90%

Parkside Apartments (“Parkside”)

Multifamily

Sugarland, Texas

8-Aug-13

90%

________________________________

(1)

We acquired a portfolio of eight medical office buildings, known as the Original Florida MOB Portfolio on October 8, 2010. We acquired a medical office building known as Gardens Medical Pavilion on October 20, 2010. Collectively, the Original Florida MOB Portfolio and Gardens Medical Pavilion were referred to as the Florida MOB Portfolio. The Florida MOB Portfolio consisted of nine medical office buildings. On September 20, 2013, we sold the Original Florida MOB Portfolio. As of June 30, 2014, we own approximately 79.8% of the ninth building, Gardens Medical Pavilion.

Real Estate Asset Disposition

1875 Lawrence

On May 30, 2014, we sold 1875 Lawrence for a contract sales price of approximately $46.7 million. We recorded a gain on sale of real estate property of $11.4 million and loss on early extinguishment of debt of $0.5 million which was comprised of the write-off of deferred financing fees of $0.4 million and an early termination fee of $0.1 million. A portion of the proceeds from the sale were used to pay off in full the existing indebtedness of approximately $15.6 million associated with the office building. The disposal of the 1875 Lawrence property does not represent a strategic shift, therefore it is presented in continuing operations in the condensed consolidated statements of operations for the three and six months ended June 30, 2014. Any sales of real estate prior to April 1, 2014 that were reported in discontinued operations in prior reporting periods will continue to be reported as discontinued operations.

Sales of Real Estate Reported in Continuing Operations

The following table presents our sale of real estate for the six months ended June 30, 2014 (in millions):

Date of Sale

Property

Ownership Interest

Sales Contract Price

Net Cash Proceeds

Gain on Sale of Real Estate

30-May-14

1875 Lawrence

100%

46.7

46.3

11.4

The following table presents net income attributable to the Company for the three and six months ended June 30, 2014 and 2013 related to the 1875 Lawrence office building sold in 2014. Net income for the three and six months ended June 30, 2014 includes the gain on sale of real estate (in millions):

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2014

2013

2014

2013

Net income (loss) attributable to the Company

10.6

(0.4

)

9.9

(0.8

)

Discontinued Operations

As discussed in Note 4, New Accounting Pronouncements, we adopted the provisions of the recently issued FASB guidance regarding the reporting of discontinued operations. Accordingly, we have no discontinued operations for the three or six months ended June 30, 2014. See Note 16, Asset Sales and Discontinued Operations, for additional disclosures regarding discontinued operations for the three and six months ended June 30, 2013.

Investment_in_Unconsolidated_J

Investment in Unconsolidated Joint Venture	6 Months Ended
Investment in Unconsolidated Joint Venture	Jun. 30, 2014
Equity Method Investments and Joint Ventures [Abstract]	'
Investment in Unconsolidated Joint Venture	'
	Investment in Unconsolidated Joint Venture
	On May 24, 2013, we (the “Lender”) provided mezzanine financing totaling $13.7 million to an unaffiliated third-party entity that owns and is developing an apartment complex in Denver, Colorado (“Prospect Park”). The developer also has a senior construction loan with a third-party senior construction lender (the “Senior Lender”), in an aggregate principal amount of $35.6 million. The senior construction loan is guaranteed by the owners of the developer. We also have a completion guaranty from the developer. Our mezzanine loan to the developer is subordinate to the senior construction loan. Our loan is collateralized by the property and has an annual stated interest rate of 10% for the first three years of the term, followed by two one-year extension options at which point the annual interest rate would increase to 14%. We have evaluated this ADC Arrangement and determined that the characteristics are similar to a jointly-owned investment or partnership, and accordingly, the investment is accounted for as an unconsolidated joint venture under the equity method of accounting instead of loan accounting since we will participate in the residual interests through the sale or refinancing of the property.
	As of June 30, 2014, the outstanding principal balance under our mezzanine loan was $13.7 million. Interest capitalized for the three and six months ending June 30, 2014 was $0.1 million and $0.2 million, respectively. Interest capitalized for the three and six months ending June 30, 2013 was less than $0.1 million. For the three and six months ended June 30, 2014, we recorded no equity in earnings (losses) of unconsolidated joint venture related to our investment in Prospect Park.
	The following table sets forth our ownership interest in Prospect Park:


	Property Name		Ownership Interest at June 30, 2014	Carrying Amount at June 30, 2014
	Prospect Park		N/A	$12,234	-1
	______________________________

	-1	During the three and six months ended June 30, 2014, we capitalized $0.1 million and $0.2 million of interest, respectively. For the year ended December 31, 2013, approximately $2 million of the $2.4 million of distributions was an interest reserve funded at closing (classified as restricted cash on the condensed consolidated balance sheet). The balance of the interest reserve was $0.5 million at June 30, 2014.

	Due to projected cost overruns in excess of the budget associated with the construction of Prospect Park, an event of default was declared by the senior construction lender on April 28, 2014. In accordance with our rights under the mezzanine loan, we also declared an event of default on May 5, 2014. The developer is currently in negotiations with the senior construction lender, as well as with us, to remedy the events of default. We will continue to monitor this situation and any impact these events might have on our ability to ultimately realize our investment. We considered the impact of these events on the accounting treatment and determined the ADC Arrangement will continue to be accounted for as an unconsolidated joint venture under the equity method of accounting. The ADC Arrangement is reassessed at each reporting period.

Notes_Payable

Notes Payable	6 Months Ended
	Jun. 30, 2014
Debt Disclosure [Abstract]	'
Notes Payable	'
	Notes Payable

	The following table sets forth information on our notes payable as of June 30, 2014 and December 31, 2013:


			Notes Payable as of
	Description		30-Jun-14		December 31, 2013		Interest Rate		Maturity Date
	1875 Lawrence(2)		$	—	$	15,621	30-day LIBOR + 5.35%	(1)	1/1/16

	Holstenplatz		10,357		10,581		3.89%		4/30/15

	Courtyard Kauai at Coconut Beach Hotel		38,000		38,000		30-day LIBOR + .95%	(1)	11/9/15

	Florida MOB Portfolio - Gardens Medical Pavilion		13,861		14,040		4.90%		1/1/18

	River Club and the Townhomes at River Club		24,838		25,010		5.26%		5/1/18

	Babcock Self Storage		2,160		2,182		5.80%		8/30/18

	Lakes of Margate		14,852		14,966		5.49% and 5.92%		1/1/20

	Arbors Harbor Town		25,814		26,000		3.98%		1/1/19

	Alte Jakobstraße		8,037		8,275		2.30%		12/30/15

	Wimberly		26,685		26,685		30-day LIBOR + 2.28%	(1)	3/1/23

	22 Exchange		19,500		19,500		3.93%		5/5/23

	Parkside(3)		11,003		11,177		5%		6/1/18

			$	195,107	$	212,037

	_________________________________

	-1	30-day London Interbank Offer Rate ("LIBOR") was 0.15% at June 30, 2014.

	-2	On May 30, 2014, we sold the 1875 Lawrence office building to an unaffiliated third party. A portion of the proceeds from the sale were used to pay off in full the existing indebtedness associated with the property.

	-3	Includes approximately $0.7 million of unamortized premium related to debt we assumed at acquisition.

	At June 30, 2014, our notes payable balance was $195.1 million and consisted of the notes payable related to our consolidated properties. We have guaranteed payment of certain recourse liabilities with respect to certain customary nonrecourse carveouts as set forth in the guaranties in favor of the unaffiliated lenders with respect to the Courtyard Kauai at Coconut Beach Hotel, Wimberly, 22 Exchange and Parkside notes payable. On May 30, 2014, we sold 1875 Lawrence for a contract sales price of approximately $46.7 million. We recorded a gain on sale of real estate property of $11.4 million and loss on early extinguishment of debt of $0.5 million, which was comprised of the write-off of deferred financing fees of $0.4 million and an early termination fee of $0.1 million. A portion of the proceeds from the sale were used to pay off in full the existing indebtedness of approximately $15.6 million associated with the office building. For the three and six months ended June 30, 2014, we capitalized interest of $0.1 million and $0.2 million, respectively, in connection with our equity method investment in Prospect Park. Interest capitalized for the three and six months ending June 30, 2013 was less than $0.1 million.
	We are subject to customary affirmative, negative, and financial covenants and representations, warranties and borrowing conditions, all as set forth in our loan agreements, including, among other things, maintaining minimum debt service coverage ratios, loan to value ratios and liquidity. As of June 30, 2014, we believe we were in compliance with the covenants under our loan agreements.
	Our debt secured by Courtyard Kauai at Coconut Beach Hotel, with a balance of $38 million at June 30, 2014, matures on November 9, 2015. The loan has an 18-month renewal option to extend the term to May 9, 2017. Our debt secured by Holstenplatz and Alte Jakobstraße, with balances of $10.4 million and $8 million at June 30, 2014, respectively, also mature in 2015. We currently expect to pay-off or refinance these two loans by their respective maturity dates of April 30, 2015 and December 30, 2015.
	The following table summarizes our contractual obligations for principal payments as of June 30, 2014:


	Year	Amount Due
	July 1, 2014 - December 31, 2014	$	1,209

	2015	58,097

	2016	2,497

	2017	2,724

	2018	49,396

	Thereafter	80,525

	Total contractual obligations for principal payments	$	194,448

	Unamortized premium	659

Total notes payable	$	195,107

Leasing_Activity

Leasing Activity	6 Months Ended
	Jun. 30, 2014
Leases [Abstract]	'
Leasing Activity	'
	Leasing Activity

	Future minimum base rental payments of our office properties due to us under non-cancelable leases in effect as of June 30, 2014 for our consolidated properties are as follows:


	Year	Amount Due
	July 1, 2014 - December 31, 2014	$	1,106

	2015	179

	2016	690

	2017	601

	2018	490

	Thereafter	1,150

	Total	$	4,216



	The schedule above does not include rental payments due to us from our multifamily, hotel, student housing, and self-storage properties, as leases associated with these properties typically are for periods of one year or less.

Derivative_Instruments_and_Hed

Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

We may be exposed to the risk associated with variability of interest rates that might impact our cash flows and the results of operations. The hedging strategy of entering into interest rate caps and swaps, therefore, is to eliminate or reduce, to the extent possible, the volatility of cash flows. As of June 30, 2014, none of our derivative instruments were designated as hedging instruments. We have two interest rate caps as of June 30, 2014.

Derivative instruments classified as assets were reported at their combined fair values of less than $0.1 million and $0.2 million in prepaid expenses and other assets at June 30, 2014 and December 31, 2013, respectively. During the six months ended June 30, 2014 and 2013, we recorded reclassifications of unrealized loss of less than $0.1 million and $0.1 million, respectively, to adjust the carrying amount of the interest rate caps. The reclassification out of OCI in our statement of equity for the six months ended June 30, 2014 and 2013 was due to all derivatives being designated as non-hedging instruments as of January 1, 2013 compared to being designated as hedging instruments as of December 31, 2012.

The following table summarizes the notional values of our derivative financial instruments. The notional values provide an indication of the extent of our involvement in these instruments, but do not represent exposure to credit, interest rate, or market risks:

Type / Description

Notional

Interest Rate /

Index

Maturity Date

Value

Strike Rate

Not Designated as Hedging Instruments

Interest rate cap - Courtyard Kauai Coconut Beach Hotel

38,000

6.00%

30-day LIBOR

October 15, 2014

Interest rate cap - Wimberly

26,685

4.56%

30-day LIBOR

March 1, 2018

The table below presents the fair value of our derivative financial instruments, as well as their classification on the consolidated balance sheets as of June 30, 2014 and December 31, 2013:

Asset Derivatives

Derivatives not designated as hedging instruments:

Balance Sheet Location

30-Jun-14

December 31, 2013

Interest rate derivative contracts

Prepaid expenses and other assets

174

The table below presents the effect of our derivative financial instruments on the condensed consolidated statements of operations for the three and six months ended June 30, 2014 and 2013:

Derivatives Not Designated as Hedging Instruments

Amount of Gain or (Loss) (1)

Three months ended June 30,

Six months ended June 30,

2014

2013

2014

2013

(103

)

(159

)

(30

)

Commitments_and_Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	Commitments and Contingencies

	Operating Leases

	On September 20, 2013, we sold the Original Florida MOB Portfolio. Prior to the sale, our operating leases consisted of ground leases on each of the original eight buildings acquired in connection with the purchase of the Original Florida MOB Portfolio. Each ground lease was for a term of 50 years, with a 25-year extension option. The annual payment for each ground lease increased by 10% every 5 years. As of June 30, 2014, we do not have operating leases. For the six months ended June 30, 2013, we incurred $0.2 million in lease expense related to our ground leases which is included in discontinued operations.

Distributions

Distributions	6 Months Ended
Distributions	Jun. 30, 2014
Distributions	'
Distributions	'
	Distributions

	Distributions are authorized at the discretion of our board of directors based on its analysis of our performance over the previous periods and expectations of performance for future periods. These analyses may include actual and anticipated operating cash flow, changes in market capitalization rates for investments suitable for our portfolio, capital expenditure needs, general financial and market conditions, proceeds from asset sales and other factors that our board deems relevant. The board’s decision will be substantially influenced by its obligation to ensure that we maintain our federal tax status as a REIT. We cannot provide assurance that we will pay distributions at any particular level, or at all. We did not pay any distributions to stockholders during the three and six months ended June 30, 2014 and 2013.

	We have paid and may in the future pay some or all of our distributions from sources other than operating cash flow. We have, for example, generated cash to pay distributions from sales activities and financing activities, components of which included proceeds from the initial public offering and the follow-on public offerings (collectively, the “Offerings”) and borrowings (including borrowings secured by our assets) in anticipation of future operating cash flow. We have also utilized cash from refinancing and dispositions, the components of which may represent a return of capital and/or the gains on sale. In addition, from time to time, our Advisor may agree to waive or defer all or a portion of the acquisition, asset management or other fees or incentives due to it, pay general administrative expenses or otherwise supplement investor returns which may increase the amount of cash that we have available to pay distributions to our stockholders.

Related_Party_Transactions

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2014
Related Party Transactions [Abstract]	'
Related Party Transactions	'
	Related Party Transactions
	The Advisor and certain of its affiliates receive fees and compensation in connection with the acquisition, management, and sale of our assets based on the Advisory Management Agreement, as amended and restated.
	Fourth Amended and Restated Advisory Management Agreement
	Recently, the Advisor and the Company, through members of a special committee composed solely of independent directors, considered and discussed the calculation and application of certain fee and expense reimbursement provisions contained in the Advisory Management Agreement. We entered into the Fourth Amended and Restated Advisory Management Agreement (the “Fourth Advisory Agreement”) with our Advisor on June 6, 2014 to, among other things, revise the acquisition and advisory fees, asset management fee, and the debt financing fee that may be paid to the Advisor and to fix certain expense reimbursement provisions. The Fourth Advisory Agreement is effective as of January 1, 2014.
	The Advisor or its affiliates receive acquisition and advisory fees of 1.5% of the amount paid in respect of the purchase, development, construction, or improvement of each asset we acquire, including any debt attributable to those assets. In addition, the Advisor and its affiliates will also receive acquisition and advisory fees of 1.5% of the funds advanced in respect of a loan investment. Before January 1, 2014, this rate was 2.5%. We incurred acquisition and advisory fees payable to the Advisor of less than $0.1 million for the six months ended June 30, 2014 as a result of improvements made to our assets. We incurred acquisition and advisory fees payable to the Advisor of $1.9 million for the six months ended June 30, 2013. During the six months ended June 30, 2014, we had no acquisitions. During the six months ended June 30, 2013, we made three separate real estate acquisitions, one of which was a loan investment.
	The Advisor or its affiliates also receive an acquisition expense reimbursement in the amount of (i) 0.25% of the funds paid for purchasing an asset, including any debt attributable to the asset, plus 0.25% of the funds budgeted for development, construction, or improvement in the case of assets that we acquire and intend to develop, construct, or improve or (ii) 0.25% of the funds advanced in respect of a loan investment. We also pay third parties, or reimburse the Advisor or its affiliates, for any investment-related expenses due to third parties in the case of a completed investment, including, but not limited to, legal fees and expenses, travel and communication expenses, costs of appraisals, accounting fees and expenses, third-party brokerage or finder's fees, title insurance, premium expenses, and other closing costs.
	In addition, acquisition expenses for which we will reimburse the Advisor, include any payments approved in advance by our board of directors made to (i) a prospective seller of an asset, (ii) an agent of a prospective seller of an asset, or (iii) a party that has the right to control the sale of an asset intended for investment by us that are not refundable and that are not ultimately applied against the purchase price for such asset. Previously, to the extent the Advisor or its affiliates directly provided services, formerly provided or usually provided by third parties, including, without limitation, accounting services related to the preparation of audits required by the Securities and Exchange Commission, property condition reports, title services, title insurance, insurance brokerage or environmental services related to the preparation of environmental assessments in connection with a completed investment, the direct employee costs and burden to the Advisor of providing these services was included as acquisition expenses for which we reimbursed the Advisor. Pursuant to the Fourth Advisory Agreement, effective January 1, 2014, such services will no longer be included as acquisition expenses for which the Company will reimburse the Advisor.
	In addition, the Advisor is responsible for paying all of the expenses it incurs associated with persons employed by the Advisor to the extent that they are dedicated to making investments for us, such as wages and benefits of the investment personnel. The Advisor and its affiliates are also responsible for paying all of the investment-related expenses that we or the Advisor or its affiliates incur that are due to third parties or related to the additional services provided by the Advisor as described above with respect to investments we do not make, other than certain non-refundable payments made in connection with any acquisition. For the six months ended June 30, 2014 we incurred less than $0.1 million in acquisition expense reimbursements. For the six months ended June 30, 2013, we incurred acquisition expense reimbursements of $0.2 million.
	Beginning January 1, 2014, we pay the Advisor or its affiliates a debt financing fee of 0.5% of the amount available under any loan or line of credit made available to us and will pay directly all third party costs associated with obtaining the debt financing. Before January 1, 2014, we paid the Advisor a debt financing fee of 1%. We incurred no debt financing fees for the six months ended June 30, 2014. We incurred debt financing fees of $0.4 million for the six months ended June 30, 2013.
	We pay the Advisor or its affiliates a development fee in an amount that is usual and customary for comparable services rendered to similar projects in the geographic market of the project if such affiliate provides the development services and if a majority of our independent directors determines that such development fee is fair and reasonable to us. We incurred no such fees for the six months ended June 30, 2014 and 2013.
	Prior to January 1, 2014, we paid the Advisor or its affiliates a monthly asset management fee of one-twelfth of 1.0% of the sum of the higher of the cost or value of each asset. Pursuant to the Fourth Advisory Agreement, we pay the Advisor or its affiliates a monthly asset management fee which, effective January 1, 2014, is one-twelfth of 0.7% of the value of each asset. The value of our assets will be the value as determined in connection with the establishment and publication of an estimated value per share unless the asset was acquired after our publication of an estimated value per share (in which case the value of the asset will be the contract purchase price of the asset). In addition, pursuant to the Fourth Advisory Agreement, the Advisor agreed to waive asset management fees previously accrued during the period from August 2013 to December 2013 of $0.3 million. Therefore, we reversed this accrual in the second quarter of 2014. In addition, we reversed approximately $0.1 million in the second quarter of 2014 to reflect the reduction in the fee structure related to the first quarter of 2014. For the six months ended June 30, 2014 and 2013, we expensed $1 million and $1.5 million, respectively, of asset management fees. The total for the six months ended June 30, 2013 includes asset management fees which were classified to discontinued operations and our disposed properties.
	Under the Fourth Advisory Agreement, beginning January 1, 2014, instead of reimbursing the Advisor for specific expenses paid or incurred in connection with providing services to us, we will pay the Advisor an administrative services fee based on a budget of expenses prepared by the Advisor. The administrative services fee is intended to reimburse for all costs associated with providing services to us under the Fourth Advisory Agreement. The administrative services fee is $1,775,000 per calendar year, payable in four equal quarterly installments within 45 days of the end of each calendar quarter beginning with calendar year 2014. Before the effective date of the Fourth Advisory Agreement, we reimbursed the Advisor or its affiliates for all expenses paid or incurred by them in connection with the services they provided us, subject to certain limitations. For the six months ended June 30, 2014 and 2013, we incurred and expensed such costs for administrative services of $888,000 and $838,000, respectively.
	Notwithstanding the fees and cost reimbursements described above, under our charter we may not reimburse the Advisor for any amount by which our operating expenses (including the asset management fee) at the end of the four preceding fiscal quarters exceeds the greater of: (i) 2% of our average invested assets, or (ii) 25% of our net income determined without reduction for any additions to reserves for depreciation, bad debts or other similar non-cash reserves and excluding any gain from the sale of our assets for that period unless a majority of our independent directors determines that such excess expenses are justified based on unusual and non-recurring factors. For the four fiscal quarters ended June 30, 2014, our total operating expenses (including the asset management fee) were excessive. On August 8, 2014, our board of directors determined that the excess expenses were justified based on unusual and non-recurring factors.
	We pay our property manager and affiliate of the Advisor, Behringer Harvard Opportunity II Management Services, LLC (“BHO II Management”), or its affiliates, fees for the management, leasing, and construction supervision of our properties. Before January 1, 2014, property management fees were 4.5% of the gross revenues of the properties managed by BHO II Management or its affiliates, plus leasing commissions based upon the customary leasing commission applicable to the same geographic location of the respective property. Effective January 1, 2014, we entered into the First Amendment to the Amended and Restated Property Management and Leasing Agreement, which reduced the property management fee paid to 4.0% of gross revenues of the properties managed by BHO II Management or its affiliates. In the event that we contract directly with a third-party property manager in respect of a property, BHO II Management or its affiliates receives an oversight fee equal to 0.5% of the gross revenues of the property managed. In no event will BHO II Management or its affiliates receive both a property management fee and an oversight fee with respect to any particular property. In the event we own a property through a joint venture that does not pay BHO II Management directly for its services, we will pay BHO II Management a management fee or oversight fee, as applicable, based only on our economic interest in the property. We incurred and expensed property management fees or oversight fees to BHO II Management of approximately $0.3 million and $0.5 million for the six months ended June 30, 2014 and 2013, respectively.
	We pay the Advisor or its affiliates a construction management fee in an amount not to exceed 5% of all hard construction costs incurred in connection with, but not limited to capital repairs and improvements, major building reconstruction and tenant improvements, if such affiliate supervises construction performed by or on behalf of us or our affiliates. We incurred less than $0.1 million of construction management fees for the six months ended June 30, 2014 and 2013.
	We are dependent on the Advisor and BHO II Management for certain services that are essential to us, including asset acquisition and disposition decisions, property management and leasing services, and other general administrative responsibilities. In the event that these companies were unable to provide us with their respective services, we would be required to obtain such services from other sources.

Supplemental_Cash_Flow_Informa

Supplemental Cash Flow Information	6 Months Ended
	Jun. 30, 2014
Supplemental Cash Flow Information [Abstract]	'
Supplemental Cash Flow Information	'
	Supplemental Cash Flow Information

	Supplemental cash flow information is summarized below:


		Six months ended June 30,
	Description	2014		2013
	Interest paid, net of amounts capitalized	$	3,915	$	3,838

	Income tax paid	196		—

	Non-cash investing and financing activities:

	Capital expenditures for real estate in accounts payable	—		24

	Capital expenditures for real estate in accrued liabilities	393		358

	Accrued distributions to noncontrolling interest holder	72		—

Discontinued_Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2014
Discontinued Operations and Disposal Groups [Abstract]	'
Discontinued Operations	'

	16. Asset Sales and Discontinued Operations
	Effective as of April 1, 2014, we adopted the revised guidance for discontinued operations as further discussed in Note 4, New Accounting Pronouncements. For sales of real estate or assets classified as held for sale after April 1, 2014, we will evaluate whether the disposal transaction meets the criteria of a strategic shift and will have a major effect on our operations and financial results to determine if the results of operations and gains on sale of real estate will be presented as part of our continuing operations or as discontinued operations in our consolidated statements of operations. If the disposal represents a strategic shift, it will be classified as discontinued operations for all periods presented; if not, it will be presented in continuing operations. Any sales of real estate prior to April 1, 2014 that were reported in discontinued operations in prior reporting periods will continue to be reported as discontinued operations.
	The following table summarizes the disposition of our properties during 2013 and 2014 (in millions):



	Property Name	Date of Disposition	Contract Sales Price
	Interchange Business Center	-1	$	40.4

	Original Florida MOB Portfolio(2)	20-Sep-13	$	63

	1875 Lawrence	30-May-14	$	46.7

	_________________________________
	(1) On October 18, 2012, we sold one of the four industrial buildings at Interchange Business Center to an unaffiliated third party. On April 12, 2013, we sold the remaining three buildings to an unaffiliated third party.
	(2) On September 20, 2013, we sold the original eight medical office buildings. We continue to own approximately 79.8% of the ninth building, Gardens Medical Pavilion.
	On May 30, 2014, we sold 1875 Lawrence for a contract sales price of approximately $46.7 million. We recorded a gain on sale of real estate property of $11.4 million and loss on early extinguishment of debt of $0.5 million which was comprised of the write-off of deferred financing fees of $0.4 million and an early termination fee of $0.1 million. A portion of the proceeds from the sale were used to pay off in full the existing indebtedness of approximately $15.6 million associated with the office building. The disposal of the 1875 Lawrence property does not represent a strategic shift, therefore it is presented in continuing operations in the condensed consolidated statements of operations for the three and six months ended June 30, 2014. See Note 7, Real Estate and Real Estate-Related Investments, for further details.
	On October 18, 2012, we sold one of the four industrial buildings at Interchange Business Center for a contract sales price of approximately $7.5 million, excluding transaction costs. On April 12, 2013, we sold the remaining three buildings for a contract sales price of approximately $40.4 million, excluding transaction costs. We recorded a gain on sale of real estate property of $14.5 million and loss on early extinguishment of debt of $0.3 million, which is reflected in discontinued operations for the year ended December 31, 2013. A portion of the proceeds from the sale of the asset were used to fully satisfy the existing indebtedness of approximately $11.3 million associated with the buildings.
	On September 20, 2013, we sold the Original Florida MOB Portfolio for an aggregate contract sales price of approximately $63 million, which was paid in cash and through the assumption by the buyer of approximately $18 million of existing indebtedness.
	We have classified the results of operations for the Interchange Business Center and the Original Florida MOB Portfolio into discontinued operations in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2013.
	The following table summarizes the income from discontinued operations for the three and six months ended June 30, 2013 (in thousands):


			Three Months Ended June 30, 2013			Six Months Ended June 30, 2013
	Rental revenue		$	2,914		$	6,111


	Expenses
	Property operating expenses		1,350			2,596

	Interest expense		301			781

	Real estate taxes		179			546

	Property management fees		129			258

	Asset management fees		13			50

	Depreciation and amortization		847			1,893

	Total expenses		2,819			6,124


	Loss on early extinguishment of debt(1)		260			260

	Loss from discontinued operations		(165		)	(273		)

	Gain on sale of real estate		14,455			14,455

	Income from discontinued operations		14,290			14,182

	Income attributable to noncontrolling interests		(3,795		)	(3,756		)
	Income from discontinued operations attributable to the Company		$	10,495		$	10,426


	Non-cash investing and financing activities:
	Capital expenditures for real estate in accrued liabilities		$	143		$	1,191

	________________________________
	(1) Loss on early extinguishment of debt for the three and six months ended June 30, 2013 was approximately $0.3 million and was comprised of the write-off of deferred financing fees of $0.1 million and an early termination fee of $0.2 million.

	Changes in operating and investing noncash items related to discontinued operations were not significant for the three and six months ended June 30, 2013.

Subsequent_Events_Subsequent_E

Subsequent Events Subsequent Events	6 Months Ended
Subsequent Events Subsequent Events	Jun. 30, 2014
Subsequent Events [Abstract]	'
Subsequent Events	'
	Subsequent Events
	Special Distribution
	On August 8, 2014, our board of directors authorized a special distribution of $0.50 per share of common stock payable to stockholders of record as of September 15, 2014. The special distribution, which represents a portion of proceeds from asset sales, is to be paid on or about September 18, 2014.
	Share Redemption Program
	On August 8, 2014, our board of directors approved redemptions for the third quarter of 2014 totaling 80,803 shares with an aggregate redemption payment of approximately $0.6 million. In addition, effective September 15, 2014, the price at which we redeem shares under our share redemption program will change as a result of the adjustment to our estimated value per share to reflect the payment of the special distribution to stockholders of record as of September 15, 2014. See Part II, Item 2, “Unregistered Sale of Equity Securities and Use of Proceeds” included in this Quarterly Report on Form 10-Q for a full description of the price at which we redeem shares under our share redemption program.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2014
Accounting Policies [Abstract]	'
Use of Estimates in the Preparation of Financial Statements	'
	Use of Estimates in the Preparation of Financial Statements

	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 period. These estimates include such items as purchase price allocation for real estate acquisitions, impairment of long-lived assets, depreciation and amortization, and allowance for doubtful accounts. Actual results could differ from those estimates.
Principles of Consolidation and Basis of Presentation	'
	Principles of Consolidation and Basis of Presentation

	Our consolidated financial statements include our accounts and the accounts of other subsidiaries over which we have control. All inter-company transactions, balances, and profits have been eliminated in consolidation. Interests in entities acquired will be evaluated based on applicable GAAP, which includes the requirement to consolidate entities deemed to be variable interest entities (“VIE”) in which we are the primary beneficiary. If the interest in the entity is determined not to be a VIE, then the entity will be evaluated for consolidation based on legal form, economic substance, and the extent to which we have control and/or substantive participating rights under the respective ownership agreement. For entities in which we have less than a controlling interest or entities which we are not deemed to be the primary beneficiary, we account for the investment using the equity method of accounting.

	There are judgments and estimates involved in determining if an entity in which we have made an investment is a VIE and, if so, whether we are the primary beneficiary. The entity is evaluated to determine if it is a VIE by, among other things, calculating the percentage of equity being risked compared to the total equity of the entity. Determining expected future losses involves assumptions of various possibilities of the results of future operations of the entity, assigning a probability to each possibility and using a discount rate to determine the net present value of those future losses. A change in the judgments, assumptions, and estimates outlined above could result in consolidating an entity that should not be consolidated or accounting for an investment using the equity method that should in fact be consolidated, the effects of which could be material to our financial statements.
Real Estate	'
	Real Estate

	Upon the acquisition of real estate properties, we recognize the assets acquired, the liabilities assumed and any noncontrolling interest as of the acquisition date, measured at their fair values. The acquisition date is the date on which we obtain control of the real estate property. The assets acquired and liabilities assumed may consist of land, inclusive of associated rights, buildings, assumed debt, identified intangible assets and liabilities and asset retirement obligations. Identified intangible assets generally consist of above-market leases, in-place leases, in-place tenant improvements, in-place leasing commissions and tenant relationships. Identified intangible liabilities generally consist of below-market leases. Goodwill is recognized as of the acquisition date and measured as the aggregate fair value of the consideration transferred and any noncontrolling interests in the acquiree over the fair value of the identifiable net assets acquired. Likewise, a bargain purchase gain is recognized in current earnings when the aggregate fair value of the consideration transferred and any noncontrolling interests in the acquiree is less than the fair value of the identifiable net assets acquired. Acquisition-related costs are expensed in the period incurred. Initial valuations are subject to change until our information is finalized, which is no later than twelve months from the acquisition date.

	The fair value of the tangible assets acquired, consisting of land and buildings, is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land and buildings. Land values are derived from appraisals, and building values are calculated as replacement cost less depreciation or management’s estimates of the fair value of these assets using discounted cash flow analyses or similar methods believed to be used by market participants. The value of buildings is depreciated over the estimated useful life of 25 years using the straight-line method.

	We determine the fair value of assumed debt by calculating the net present value of the scheduled mortgage payments using interest rates for debt with similar terms and remaining maturities that management believes we could obtain at the date of the debt assumption. Any difference between the fair value and stated value of the assumed debt is recorded as a discount or premium and amortized over the remaining life of the loan using the effective interest method.

	We determine the value of above-market and below-market leases for acquired properties based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (1) the contractual amounts to be paid pursuant to the in-place leases and (2) management’s estimate of current market lease rates for the corresponding in-place leases, measured over a period equal to (a) the remaining non-cancelable lease term for above-market leases, or (b) the remaining non-cancelable lease term plus any below-market fixed rate renewal options that, based on a qualitative assessment of several factors, including the financial condition of the lessee, the business conditions in the industry in which the lessee operates, the economic conditions in the area in which the property is located, and the ability of the lessee to sublease the property during the renewal term, are reasonably assured to be exercised by the lessee for below-market leases. We record the fair value of above-market and below-market leases as intangible assets or intangible liabilities, respectively, and amortize them as an adjustment to rental income over the determined lease term.

	The total value of identified real estate intangible assets acquired is further allocated to in-place leases, in-place tenant improvements, in-place leasing commissions and tenant relationships based on our evaluation of the specific characteristics of each tenant’s lease and our overall relationship with that respective tenant. The aggregate value for tenant improvements and leasing commissions is based on estimates of these costs incurred at inception of the acquired leases, amortized through the date of acquisition. The aggregate value of in-place leases acquired and tenant relationships is determined by applying a fair value model. The estimates of fair value of in-place leases include an estimate of carrying costs during the expected lease-up periods for the respective spaces considering current market conditions. In estimating the carrying costs that would have otherwise been incurred had the leases not been in place, we include such items as real estate taxes, insurance and other operating expenses as well as lost rental revenue during the expected lease-up period based on current market conditions. The estimates of the fair value of tenant relationships also include costs to execute similar leases including leasing commissions, legal fees and tenant improvements as well as an estimate of the likelihood of renewal as determined by management on a tenant-by-tenant basis.

	We amortize the value of in-place leases, in-place tenant improvements and in-place leasing commissions to expense over the initial term of the respective leases. The tenant relationship values are amortized to expense over the initial term and any anticipated renewal periods, but in no event does the amortization period for intangible assets or liabilities exceed the remaining depreciable life of the building. Should a tenant terminate its lease, the unamortized portion of the acquired lease intangibles related to that tenant would be charged to expense.
Real Estate Held for Sale	'
	Real Estate Held for Sale and Discontinued Operations
	We classify properties as held for sale when certain criteria are met, in accordance with GAAP. At that time we present the assets and obligations of the property held for sale separately in our consolidated balance sheet and we cease recording depreciation and amortization expense related to that property. Properties held for sale are reported at the lower of their carrying amount or their estimated fair value, less estimated costs to sell. We had no property classified as held for sale at June 30, 2014 or December 31, 2013.
Investment Impairment	'
	Investment Impairment
	For all of our real estate and real estate related investments, we monitor events and changes in circumstances indicating that the carrying amounts of the real estate assets may not be recoverable. Examples of the types of events and circumstances that would cause management to assess our assets for potential impairment include, but are not limited to: a significant decrease in the market price of an asset; a significant adverse change in the manner in which the asset is being used; an accumulation of costs in excess of the acquisition basis plus construction of the property; major vacancies and the resulting loss of revenues; natural disasters; a change in the projected holding period; legitimate purchase offers and changes in the global and local markets or economic conditions. Our assets may at times be concentrated in limited geographic locations and, to the extent that our portfolio is concentrated in limited geographic locations, downturns specifically related to such regions may result in tenants defaulting on their lease obligations at a portion of our properties within a short time period, which may result in asset impairments. When such events or changes in circumstances are present, we assess potential impairment by comparing estimated future undiscounted operating cash flows expected to be generated over the life of the asset and from its eventual disposition to the carrying amount of the asset. These projected cash flows are prepared internally by the Advisor and reflect in-place and projected leasing activity, market revenue and expense growth rates, market capitalization rates, discount rates, and changes in economic and other relevant conditions. The Company’s Chief Financial Officer and Chief Accounting Officer review these projected cash flows to assure that the valuation is prepared using reasonable inputs and assumptions that are consistent with market data or with assumptions that would be used by a third-party market participant and assume the highest and best use of the investment. We consider trends, strategic decisions regarding future development plans, and other factors in our assessment of whether impairment conditions exist. In the event that the carrying amount exceeds the estimated future undiscounted operating cash flows, we recognize an impairment loss to adjust the carrying amount of the asset to estimated fair value. While we believe our estimates of future cash flows are reasonable, different assumptions regarding factors such as market rents, economic conditions, and occupancy rates could significantly affect these estimates.

	In evaluating our investments for impairment, management may use appraisals and make estimates and assumptions, including, but not limited to, the projected date of disposition of the properties, the estimated future cash flows of the properties during our ownership, and the projected sales price of each of the properties. A future change in these estimates and assumptions could result in understating or overstating the carrying value of our investments, which could be material to our financial statements.

	We also evaluate our investments in unconsolidated joint ventures at each reporting date. If we believe there is an other than temporary decline in market value, we will record an impairment charge based on these evaluations. We assess potential impairment by comparing our portion of estimated future undiscounted operating cash flows expected to be generated by the joint venture over the life of the joint venture’s assets to the carrying amount of the joint venture. In the event that the carrying amount exceeds our portion of estimated future undiscounted operating cash flows, we recognize an impairment loss to adjust the carrying amount of the joint venture to its estimated fair value.

	We believe the carrying value of our operating real estate is currently recoverable. Accordingly, there were no impairment charges for the six months ended June 30, 2014 and 2013. However, if market conditions worsen unexpectedly or if changes in our strategy significantly affect any key assumptions used in our fair value calculations, we may need to take charges in future periods for impairments related to our existing investments. Any such non-cash charges would have an adverse effect on our consolidated financial position and results of operations.
Investment in Unconsolidated Joint Venture	'
	Investment in Unconsolidated Joint Venture
	We provide funding to third party developers for the acquisition, development and construction of real estate (“ADC Arrangement”). Under the ADC Arrangement, we may participate in the residual profits of the project through the sale or refinancing of the property. We evaluate this arrangement to determine if they have characteristics similar to a loan or if the characteristics are more similar to a joint venture or partnership such as participating in the risks and rewards of the project as an owner or an investment partner. When we determine that the characteristics are more similar to a jointly-owned investment or partnership, we account for the arrangement as an investment in an unconsolidated joint venture under the equity method of accounting or a direct investment (consolidated basis of accounting) instead of applying loan accounting.
Revenue Recognition	'
	Revenue Recognition

	We recognize rental income generated from leases of our operating properties on a straight-line basis over the terms of the respective leases, including the effect of rent holidays, if any. Straight-line rent was a charge of less than $0.1 million recognized in rental revenues for the three and six months ended June 30, 2014. Straight-line rent was income of $0.1 million and $0.3 million recognized in rental revenues for the three and six months ended June 30, 2013, respectively, and includes amounts recognized in discontinued operations. Leases associated with our multifamily, student housing, hotel and self storage assets are generally short-term in nature, and thus have no straight-line rent. Net above-market lease amortization of less than $0.1 million was recognized in rental revenues for the three and six months ended June 30, 2014. Net below-market lease amortization of less than $0.1 million was recognized in rental revenues for the three and six months ended June 30, 2013 and includes amounts recognized in discontinued operations.

	Hotel revenue is derived from the operations of the Courtyard Kauai at Coconut Beach Hotel and consists primarily of guest room, food and beverage, and other ancillary revenues such as laundry and parking. Hotel revenue is recognized as the services are rendered.

Accounts Receivable	'
	Accounts Receivable

	Accounts receivable primarily consist of receivables related to our consolidated properties of $1.6 million and $3 million as of June 30, 2014 and December 31, 2013, respectively, and include straight-line rental revenue receivables of $0.4 million and $1 million as of June 30, 2014 and December 31, 2013, respectively.
Furniture, Fixtures, and Equipment	'
	Furniture, Fixtures, and Equipment

	Furniture, fixtures, and equipment are recorded at cost and are depreciated according to the Company’s capitalization policy which uses the straight-line method over their estimated useful lives of five to seven years. Maintenance and repairs are charged to operations as incurred. Accumulated depreciation associated with our furniture, fixtures, and equipment was $5.2 million and $4.2 million as of June 30, 2014 and December 31, 2013, respectively.
Deferred Financing Fees	'
	Deferred Financing Fees

	Deferred financing fees are recorded at cost and are amortized to interest expense of our notes payable using a straight-line method that approximates the effective interest method over the life of the related debt. Accumulated amortization of deferred financing fees was $1.8 million as of June 30, 2014 and December 31, 2013.
Income Taxes	'
	Income Taxes

	We have elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), and have qualified as a REIT since the year ended December 31, 2008. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute at least 90% of our REIT taxable income to our stockholders. As a REIT, we generally will not be subject to federal income tax at the corporate level. We are organized and operate in such a manner as to qualify for taxation as a REIT under the Code and intend to continue to operate in such a manner, but no assurance can be given that we will operate in a manner so as to qualify or remain qualified as a REIT. Taxable income from non-REIT activities managed through a taxable REIT subsidiary (“TRS”) is subject to applicable federal, state, and local income and margin taxes. We have no taxable income associated with a TRS. Our operating partnerships are flow-through entities and are not subject to federal income taxes at the entity level.
Foreign Currency Translation	'
	Foreign Currency Translation

	For our international investments where the functional currency is other than the U.S. dollar, assets and liabilities are translated using period-end exchange rates, while the statement of operations amounts are translated using the average exchange rates for the respective period. Gains and losses resulting from the change in exchange rates from period to period are reported separately as a component of other comprehensive income (loss) (“OCI”). Gains and losses resulting from foreign currency transactions are included in the condensed consolidated statements of operations and comprehensive income.

	The Euro is the functional currency for the operations of Holstenplatz and Alte Jakobstraße. We also maintain a Euro-denominated bank account that is translated into U.S. dollars at the current exchange rate at each reporting period. For the three and six months ended June 30, 2014, the foreign currency translation adjustment was a loss of less than $0.1 million. For the three and six months ended June 30, 2013, the foreign currency translation adjustment was a gain of $0.2 million and a loss of $0.1 million, respectively.
Concentration of Credit Risk	'
	Concentration of Credit Risk

	At June 30, 2014 and December 31, 2013, we had cash and cash equivalents deposited in certain financial institutions in excess of federally insured levels. We have diversified our cash and cash equivalents among several banking institutions in an attempt to minimize exposure to any one of these entities. We regularly monitor the financial stability of these financial institutions and believe that we are not exposed to any significant credit risk in cash and cash equivalents or restricted cash.
Noncontrolling Interest	'
	Noncontrolling Interest

	Noncontrolling interest represents the noncontrolling ownership interest’s proportionate share of the equity in our consolidated real estate investments. Income and losses are allocated to noncontrolling interest holders based generally on their ownership percentage. In certain instances, our joint venture agreement provides for liquidating distributions based on achieving certain return metrics (“promoted interest”). If a property reaches a defined return threshold, then it will result in distributions to noncontrolling interest which is different from the standard pro-rata allocation percentage.
Earnings per Share	'
	Earnings per Share

	Net income per share is calculated based on the weighted average number of common shares outstanding during each period. The weighted average shares outstanding used to calculate both basic and diluted income per share were the same for each of the three and six months ended June 30, 2014 and 2013, as there were no potentially dilutive securities outstanding.
Subsequent Events	'
	Subsequent Events

	We have evaluated subsequent events for recognition or disclosure in our condensed consolidated financial statements.

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
Schedule of anticipated amortization expense associated with the acquired lease intangibles excluding properties classified as discontinued operations	'
	Anticipated amortization expense associated with the acquired lease intangibles for each of the following five years as of June 30, 2014 is as follows:


	Year	Lease / Other
		Intangibles
	July 1, 2014 - December 31, 2014	$	110

	2015	129

	2016	111

	2017	59

	2018	24

Schedule of accumulated depreciation and amortization related to entity's consolidated investments in real estate assets and intangibles	'
	Accumulated depreciation and amortization related to our consolidated investments in real estate assets and intangibles were as follows:


	30-Jun-14		Buildings and Improvements			Land and Improvements			Lease Intangibles			Acquired
												Below-Market Leases
	Cost		$	212,402		$	57,972		$	3,854		$	(619	)

	Less: depreciation and amortization		(20,671		)	(1,755		)	(2,839		)	347

	Net		$	191,731		$	56,217		$	1,015		$	(272	)




	December 31, 2013		Buildings and Improvements			Land and Improvements			Lease Intangibles			Acquired
												Below-Market Leases
	Cost		$	241,881		$	66,828		$	8,102		$	(768	)

	Less: depreciation and amortization		(22,358		)	(1,421		)	(6,282		)	444

	Net		$	219,523		$	65,407		$	1,820		$	(324	)

Assets_and_Liabilities_Measure1

Assets and Liabilities Measured at Fair Value (Tables)	6 Months Ended
	Jun. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]	'
Schedule of information about assets measured at fair value on a recurring basis	'
	The following fair value hierarchy table presents information about our assets measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013:


	30-Jun-14	Level 1		Level 2		Level 3		Total
	Assets

	Derivative financial instruments	$	—	$	55	$	—	$	55



	December 31, 2013	Level 1		Level 2		Level 3		Total
	Assets

	Derivative financial instruments	$	—	$	174	$	—	$	174

Real_Estate_and_Real_EstateRel1

Real Estate and Real Estate-Related Investments (Tables)

6 Months Ended

Jun. 30, 2014

Real Estate [Abstract]

Schedule of information pertaining to consolidated investments

As of June 30, 2014, we consolidated 11 real estate assets. The following table presents certain information about our consolidated investments as of June 30, 2014:

Property Name

Description

Location

Date Acquired

Ownership

Interest

Holstenplatz

Office building

Hamburg, Germany

June 30, 2010

100%

Gardens Medical Pavilion(1)

Medical office building

Palm Beach Gardens, Florida

October 20, 2010

79.80%

Courtyard Kauai Coconut Beach Hotel

Hotel

Kauai, Hawaii

October 20, 2010

80%

River Club and the Townhomes at River Club

Student housing

Athens, Georgia

April 25, 2011

85%

Babcock Self Storage

Self storage

San Antonio, Texas

August 30, 2011

85%

Lakes of Margate

Multifamily

Margate, Florida

October 19, 2011

92.50%

Arbors Harbor Town

Multifamily

Memphis, Tennessee

December 20, 2011

94%

Alte Jakobstraße

Office building

Berlin, Germany

April 5, 2012

99.70%

Wimberly at Deerwood (“Wimberly”)

Multifamily

Jacksonville, Florida

February 19, 2013

95%

22 Exchange

Student housing

Akron, Ohio

April 16, 2013

90%

Parkside Apartments (“Parkside”)

Multifamily

Sugarland, Texas

8-Aug-13

90%

________________________________

(1)

Schedule of real estate sold

The following table presents our sale of real estate for the six months ended June 30, 2014 (in millions):

Date of Sale

Property

Ownership Interest

Sales Contract Price

Net Cash Proceeds

Gain on Sale of Real Estate

30-May-14

1875 Lawrence

100%

46.7

46.3

11.4

Net income for real Estate sold during period

Net income for the three and six months ended June 30, 2014 includes the gain on sale of real estate (in millions):

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2014

2013

2014

2013

Net income (loss) attributable to the Company

10.6

(0.4

)

9.9

(0.8

)

Investment_in_Unconsolidated_J1

Investment in Unconsolidated Joint Venture (Tables)	6 Months Ended
Investment in Unconsolidated Joint Venture (Tables)	Jun. 30, 2014
Equity Method Investments and Joint Ventures [Abstract]	'
Schedule of ownership interest in Prospect Park that is recorded as equity investment	'
	The following table sets forth our ownership interest in Prospect Park:


	Property Name		Ownership Interest at June 30, 2014	Carrying Amount at June 30, 2014
	Prospect Park		N/A	$12,234	-1
	______________________________

	-1	During the three and six months ended June 30, 2014, we capitalized $0.1 million and $0.2 million of interest, respectively. For the year ended December 31, 2013, approximately $2 million of the $2.4 million of distributions was an interest reserve funded at closing (classified as restricted cash on the condensed consolidated balance sheet). The balance of the interest reserve was $0.5 million at June 30, 2014.

Notes_Payable_Tables

Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2014
Debt Disclosure [Abstract]	'
Schedule of information on notes payable	'
	The following table sets forth information on our notes payable as of June 30, 2014 and December 31, 2013:


			Notes Payable as of
	Description		30-Jun-14		December 31, 2013		Interest Rate		Maturity Date
	1875 Lawrence(2)		$	—	$	15,621	30-day LIBOR + 5.35%	(1)	1/1/16

	Holstenplatz		10,357		10,581		3.89%		4/30/15

	Courtyard Kauai at Coconut Beach Hotel		38,000		38,000		30-day LIBOR + .95%	(1)	11/9/15

	Florida MOB Portfolio - Gardens Medical Pavilion		13,861		14,040		4.90%		1/1/18

	River Club and the Townhomes at River Club		24,838		25,010		5.26%		5/1/18

	Babcock Self Storage		2,160		2,182		5.80%		8/30/18

	Lakes of Margate		14,852		14,966		5.49% and 5.92%		1/1/20

	Arbors Harbor Town		25,814		26,000		3.98%		1/1/19

	Alte Jakobstraße		8,037		8,275		2.30%		12/30/15

	Wimberly		26,685		26,685		30-day LIBOR + 2.28%	(1)	3/1/23

	22 Exchange		19,500		19,500		3.93%		5/5/23

	Parkside(3)		11,003		11,177		5%		6/1/18

			$	195,107	$	212,037

	_________________________________

	-1	30-day London Interbank Offer Rate ("LIBOR") was 0.15% at June 30, 2014.

	-2	On May 30, 2014, we sold the 1875 Lawrence office building to an unaffiliated third party. A portion of the proceeds from the sale were used to pay off in full the existing indebtedness associated with the property.

	-3	Includes approximately $0.7 million of unamortized premium related to debt we assumed at acquisition.
Contractual obligations for principal payments	'
	The following table summarizes our contractual obligations for principal payments as of June 30, 2014:


	Year	Amount Due
	July 1, 2014 - December 31, 2014	$	1,209

	2015	58,097

	2016	2,497

	2017	2,724

	2018	49,396

	Thereafter	80,525

	Total contractual obligations for principal payments	$	194,448

	Unamortized premium	659

	Total notes payable	$	195,107

Leasing_Activity_Tables

Leasing Activity (Tables)	6 Months Ended
	Jun. 30, 2014
Leases [Abstract]	'
Future minimum base rental payments of our office and industrial properties due to us under non-cancelable leases	'
	Future minimum base rental payments of our office properties due to us under non-cancelable leases in effect as of June 30, 2014 for our consolidated properties are as follows:


	Year	Amount Due
	July 1, 2014 - December 31, 2014	$	1,106

	2015	179

	2016	690

	2017	601

	2018	490

	Thereafter	1,150

	Total	$	4,216

Derivative_Instruments_and_Hed1

Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of notional value of derivative financial instruments

Type / Description

Notional

Interest Rate /

Index

Maturity Date

Value

Strike Rate

Not Designated as Hedging Instruments

Interest rate cap - Courtyard Kauai Coconut Beach Hotel

38,000

6.00%

30-day LIBOR

October 15, 2014

Interest rate cap - Wimberly

26,685

4.56%

30-day LIBOR

March 1, 2018

Summary of fair value of derivative financial instruments

The table below presents the fair value of our derivative financial instruments, as well as their classification on the consolidated balance sheets as of June 30, 2014 and December 31, 2013:

Asset Derivatives

Derivatives not designated as hedging instruments:

Balance Sheet Location

30-Jun-14

December 31, 2013

Interest rate derivative contracts

Prepaid expenses and other assets

174

Summary of effect of derivative financial instruments on consolidated statements of operations

The table below presents the effect of our derivative financial instruments on the condensed consolidated statements of operations for the three and six months ended June 30, 2014 and 2013:

Derivatives Not Designated as Hedging Instruments

Amount of Gain or (Loss) (1)

Three months ended June 30,

Six months ended June 30,

2014

2013

2014

2013

(103

)

(159

)

(30

)

Supplemental_Cash_Flow_Informa1

Supplemental Cash Flow Information (Tables)	6 Months Ended
	Jun. 30, 2014
Supplemental Cash Flow Information [Abstract]	'
Schedule of supplemental cash flow information	'
	Supplemental cash flow information is summarized below:


		Six months ended June 30,
	Description	2014		2013
	Interest paid, net of amounts capitalized	$	3,915	$	3,838

	Income tax paid	196		—

	Non-cash investing and financing activities:

	Capital expenditures for real estate in accounts payable	—		24

	Capital expenditures for real estate in accrued liabilities	393		358

	Accrued distributions to noncontrolling interest holder	72		—

Discontinued_Operations_Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2014
Discontinued Operations and Disposal Groups [Abstract]	'
Schedule of disposition of properties	'
	The following table summarizes the disposition of our properties during 2013 and 2014 (in millions):



	Property Name	Date of Disposition	Contract Sales Price
	Interchange Business Center	-1	$	40.4

	Original Florida MOB Portfolio(2)	20-Sep-13	$	63

	1875 Lawrence	30-May-14	$	46.7

	_________________________________
	(1) On October 18, 2012, we sold one of the four industrial buildings at Interchange Business Center to an unaffiliated third party. On April 12, 2013, we sold the remaining three buildings to an unaffiliated third party.
	(2) On September 20, 2013, we sold the original eight medical office buildings. We continue to own approximately 79.8% of the ninth building, Gardens Medical Pavilion.
Schedule of discontinued operations in consolidated statements of operations	'
	The following table summarizes the income from discontinued operations for the three and six months ended June 30, 2013 (in thousands):


			Three Months Ended June 30, 2013			Six Months Ended June 30, 2013
	Rental revenue		$	2,914		$	6,111


	Expenses
	Property operating expenses		1,350			2,596

	Interest expense		301			781

	Real estate taxes		179			546

	Property management fees		129			258

	Asset management fees		13			50

	Depreciation and amortization		847			1,893

	Total expenses		2,819			6,124


	Loss on early extinguishment of debt(1)		260			260

	Loss from discontinued operations		(165		)	(273		)

	Gain on sale of real estate		14,455			14,455

	Income from discontinued operations		14,290			14,182

	Income attributable to noncontrolling interests		(3,795		)	(3,756		)
	Income from discontinued operations attributable to the Company		$	10,495		$	10,426


	Non-cash investing and financing activities:
	Capital expenditures for real estate in accrued liabilities		$	143		$	1,191

	________________________________
	(1) Loss on early extinguishment of debt for the three and six months ended June 30, 2013 was approximately $0.3 million and was comprised of the write-off of deferred financing fees of $0.1 million and an early termination fee of $0.2 million.

Business_and_Organization_Deta

Business and Organization (Details)	6 Months Ended		6 Months Ended				6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014	Jan. 19, 2007	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014
	real_estate_investment		Minimum	Maximum	Initial Capitalization	Initial Capitalization	Initial Offering	Consolidated Entities [Member]	Initial Offering
					Behringer Harvard Holdings	Behringer Harvard Holdings		Partially Owned Properties [Member]
								real_estate_investment
Business and Organization	'	'	'	'	'	'	'	'	'
Number of Real Estate Investments	12	'	'	'	'	'	'	10	'
Number of real estate assets consolidated	11	'	'	'	'	'	'	'	'
Percentage of ownership interest by BHO II, Inc	0.10%	'	'	'	'	'	'	'	'
Percentage of remaining ownership interest held by BHO Business Trust II	99.90%	'	'	'	'	'	'	'	'
Common stock, shares issued	25,988,620	26,015,980	'	'	'	22,471	26,700,000	'	'
Convertible stock issued (in shares)	'	'	'	'	'	1,000	'	'	'
Common stock, shares outstanding	25,988,620	26,015,980	'	'	22,471	'	'	'	26,000,000
Common stock issued pursuant to reinvestment plan	'	'	'	'	'	'	2,200,000	'	'
Redemption of common stock (in shares)	700,000	'	'	'	'	'	'	'	'
Convertible stock outstanding	1,000	1,000	'	'	1,000	'	'	'	'
Liquidation period of assets and distribution of net proceeds to stockholders	'	'	'3 years	'6 years	'	'	'	'	'

Summary_of_Significant_Account3

Summary of Significant Accounting Policies (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Anticipated amortization expense associated with acquired lease intangibles	'	'	'	'	'
July 1, 2014 - December 31, 2014	$110,000	'	$110,000	'	'
2015	129,000	'	129,000	'	'
2016	111,000	'	111,000	'	'
2017	59,000	'	59,000	'	'
2018	24,000	'	24,000	'	'
Real estate	'	'	'	'	'
Total real estate	248,762,000	'	248,762,000	'	285,029,000
Accumulated depreciation and amortization related to consolidated investments in real estate intangibles	'	'	'	'	'
Net	1,015,000	'	1,015,000	'	1,820,000
Revenue Recognition	'	'	'	'	'
Straight-line rental revenue	100,000	100,000	100,000	300,000	'
Market lease amortization included in rental revenue	'	100,000	100,000	100,000	'
Accounts Receivable	'	'	'	'	'
Straight-line rental revenue	400,000	'	400,000	'	1,000,000
Deferred Financing Fees	'	'	'	'	'
Accumulated amortization, deferred financing fees	1,800,000	'	1,800,000	'	1,800,000
Income Taxes	'	'	'	'	'
Required minimum percentage distribution of ordinary taxable income to stockholders to qualify as a REIT	'	'	90.00%	'	'
Foreign Currency Translation	'	'	'	'	'
Gain (loss) on foreign currency translation adjustment	'	200,000	100,000	100,000	'
Maximum	'	'	'	'	'
Real Estate	'	'	'	'	'
Period for change in initial valuations from acquisition date	'	'	'12 months	'	'
Lease Intangibles	'	'	'	'	'
Accumulated depreciation and amortization related to consolidated investments in real estate intangibles	'	'	'	'	'
Cost	3,854,000	'	3,854,000	'	8,102,000
Less: depreciation and amortization	-2,839,000	'	-2,839,000	'	-6,282,000
Net	1,015,000	'	1,015,000	'	1,820,000
Acquired Below-Market Leases	'	'	'	'	'
Accumulated depreciation and amortization related to consolidated investments in real estate intangibles	'	'	'	'	'
Cost	-619,000	'	-619,000	'	-768,000
Less: depreciation and amortization	347,000	'	347,000	'	444,000
Net	-272,000	'	-272,000	'	-324,000
Buildings and Improvements	'	'	'	'	'
Real Estate	'	'	'	'	'
Estimated useful lives	'	'	'25 years	'	'
Real estate	'	'	'	'	'
Cost	212,402,000	'	212,402,000	'	241,881,000
Less: depreciation and amortization	-20,671,000	'	-20,671,000	'	-22,358,000
Total real estate	191,731,000	'	191,731,000	'	219,523,000
Land and Improvements	'	'	'	'	'
Real estate	'	'	'	'	'
Cost	57,972,000	'	57,972,000	'	66,828,000
Less: depreciation and amortization	-1,755,000	'	-1,755,000	'	-1,421,000
Total real estate	56,217,000	'	56,217,000	'	65,407,000
Furniture, Fixtures and Equipment	'	'	'	'	'
Accumulated depreciation and amortization related to consolidated investments in real estate intangibles	'	'	'	'	'
SEC Schedule III, Real Estate Accumulated Depreciation	5,200,000	'	5,200,000	'	4,200,000
Furniture, Fixtures and Equipment \| Maximum	'	'	'	'	'
Real Estate	'	'	'	'	'
Estimated useful lives	'	'	'7 years	'	'
Furniture, Fixtures and Equipment \| Minimum	'	'	'	'	'
Real Estate	'	'	'	'	'
Estimated useful lives	'	'	'5 years	'	'
Consolidated Properties [Member]	'	'	'	'	'
Real Estate	'	'	'	'	'
Accounts Receivable, Net, Current	$1,600,000	'	$1,600,000	'	$3,000,000

Assets_and_Liabilities_Measure2

Assets and Liabilities Measured at Fair Value (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Assets	'	'
Derivative financial instruments	$100	$200
Recurring \| Level 1	'	'
Assets	'	'
Derivative financial instruments	0	0
Recurring \| Level 2	'	'
Assets	'	'
Derivative financial instruments	55	174
Recurring \| Level 3	'	'
Assets	'	'
Derivative financial instruments	0	0
Recurring \| Total	'	'
Assets	'	'
Derivative financial instruments	$55	$174

Financial_Instruments_not_Repo1

Financial Instruments not Reported at Fair Value (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Fair Value Disclosures [Abstract]	'	'
Notes payable	$195,107,000	$212,037,000
Fair value of notes payable	$191,800,000	$207,800,000

Real_Estate_and_Real_EstateRel2

Real Estate and Real Estate-Related Investments (Details) (USD $)

3 Months Ended

6 Months Ended

0 Months Ended

3 Months Ended

6 Months Ended

0 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

30-May-14

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

30-May-14

Jun. 30, 2014

Oct. 20, 2010

real_estate_investment

1875 Lawrence, Denver, CO

Holstenplatz, Hamburg, Germany

Gardens Medical Pavilion, South Florida

Courtyard Kauai Coconut Beach Hotel, Kauai, Hawaii

River Club and the Townhomes at River Club, Athens, Georgia

Babcock Self Storage, San Antonio, Texas

Lakes of Margate, Margate, Florida

Arbors Harbor Town, Memphis, Tennessee

Alte Jakobstrabe, Berlin, Germany

Wimberly at Deerwood, Jacksonville, Florida

22 Exchange, Akron, Ohio

Parkside Apartments, Sugarland, Texas

Original Florida MOB Portfolio

Florida MOB Portfolio, South Florida

Write-off of deferred financing fees

Early termination fee

building

Real Estate Properties [Line Items]

Noncontrolling Interest, Ownership Percentage by Parent

100.00%

Number of real estate assets consolidated

Ownership Interest (as a percent)

100.00%

79.80%

80.00%

85.00%

92.50%

94.00%

99.70%

95.00%

90.00%

Number of properties

Real Estate Ownership Interest Through Joint Venture

79.80%

Sales contract price, real estate

$46,700,000

Loss on early extinguishment of debt

-454,000

-500,000

-400,000

-100,000

Repayment of long-term debt

15,600,000

Net cash proceeds from sale of real estate

46,300,000

Gain on sale of real estate

11,445,000

11,400,000

Net income (loss) attributable to the Company

$9,184,000

$6,015,000

$6,300,000

$1,682,000

$10,600,000

($400,000)

$9,900,000

($800,000)

Investment_in_Unconsolidated_J2

Investment in Unconsolidated Joint Venture (Details) (USD $)	0 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	24-May-13	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
	extension_option	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Investment in Unconsolidated Joint Venture	'	'	'	'	'	'
Restricted cash	'	$5,381,000	'	$5,381,000	'	$5,343,000
Prospect Park	'	'	'	'	'	'
Investment in Unconsolidated Joint Venture	'	'	'	'	'	'
Mezzanine financing to an unaffiliated third-party entity	13,700,000	'	'	'	'	'
Amount of senior construction loan taken by unconsolidated joint venture from a third-party lender	35,600,000	'	'	'	'	'
Annual interest rate for the first three years (as a percent)	10.00%	'	'	'	'	'
Period for which annual interest rate will be 10 percent	'3 years	'	'	'	'	'
Number of extensions of the term of mezzanine loan at the option of the borrower	2	'	'	'	'	'
Period of extension of the term of mezzanine loan at the option of the borrower	'1 year	'	'	'	'	'
Annual interest rate after two extensions of mezzanine loan (as a percent)	14.00%	'	'	'	'	'
Outstanding principal balance under mezzanine loan	'	13,700,000	'	13,700,000	'	'
Interest capitalized	'	100,000	0	200,000	100,000	'
Carrying Amount	'	12,234,000	'	12,234,000	'	'
Restricted cash	'	500,000	'	500,000	'	2,000,000
Proceeds from distributions received	'	'	'	'	'	$2,400,000

Notes_Payable_Details

Notes Payable (Details) (USD $)

3 Months Ended

6 Months Ended

0 Months Ended

3 Months Ended

6 Months Ended

12 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

30-May-14

Apr. 12, 2013

Oct. 18, 2012

Jun. 30, 2013

Dec. 31, 2013

Jun. 30, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

1875 Lawrence

Interchange Business Center

Notes payable

Prospect Park

Write-off of deferred financing fees

Early termination fee

building

Write-off of deferred financing fees

Early termination fee

1875 Lawrence

Holstenplatz

Courtyard Kauai at Coconut Beach Hotel

Florida MOB Portfolio - Gardens Medical Pavilion

River Club and the Townhomes at River Club (formerly referred to as the UGA Portfolio)

Babcock Self Storage

Lakes of Margate

Arbors Harbor Town

Alte Jakobstrabe

Wimberly at Deerwood

22 Exchange

Parkside

Holstenplatz and Alte Jakobstrabe

loan

Notes Payable

Notes payable

$195,107,000

$212,037,000

$15,621,000

$10,357,000

$10,581,000

$38,000,000

$13,861,000

$14,040,000

$24,838,000

$25,010,000

$2,160,000

$2,182,000

$14,852,000

$14,966,000

$25,814,000

$26,000,000

$8,037,000

$8,275,000

$26,685,000

$19,500,000

$11,003,000

$11,177,000

Interest rate (as a percent)

3.89%

4.90%

5.26%

5.80%

3.99%

2.30%

3.93%

5.00%

Variable rate basis

'30-day LIBOR

Variable interest rate (as a percent)

5.35%

0.95%

2.28%

Variable rate (as a percent)

0.15%

Minimum interest rate (as a percent)

5.49%

Maximum interest rate (as a percent)

5.92%

Number of industrial buildings sold

Number of industrial buildings

Debt instrument, unamortized premium

700,000

Interest capitalized

100,000

200,000

100,000

Debt instrument, term of renewal option

'18 months

Number of loans

Sales contract price, real estate

46,700,000

Gain on sale of real estate

11,445,000

11,400,000

Loss on early extinguishment of debt

-454,000

-500,000

-400,000

-100,000

300,000

100,000

200,000

Repayment of long-term debt

$15,600,000

Notes_Payable_Details_2

Notes Payable (Details 2) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Contractual obligations for principal payments	'	'
July 1, 2014 - December 31, 2014	$1,209	'
2015	58,097	'
2016	2,497	'
2017	2,724	'
2018	49,396	'
Thereafter	80,525	'
Total contractual obligations for principal payments	194,448	'
Unamortized premium	659	'
Total notes payable	$195,107	$212,037

Leasing_Activity_Details

Leasing Activity (Details) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014
Future minimum base rental payments due to entity under non-cancelable leases	'
July 1, 2014 - December 31, 2014	$1,106
2015	179
2016	690
2017	601
2018	490
Thereafter	1,150
Total	$4,216
Maximum lease term	'1 year

Derivative_Instruments_and_Hed2

Derivative Instruments and Hedging Activities (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Derivative Instruments and Hedging Activities	'	'	'	'	'
Fair value of derivative assets	$100,000	'	$100,000	'	$200,000
Amount of Loss Reclassified from OCI into Income	-20,000	-56,000	-37,000	-88,000	'
Amount of gain or (loss) on derivative not designated as hedging instrument	-103,000	41,000	-159,000	-30,000	'
Interest rate cap \| Courtyard Kauai at Coconut Beach Hotel	'	'	'	'	'
Derivative Instruments and Hedging Activities	'	'	'	'	'
Interest Rate/ Strike Rate (as a percent)	6.00%	'	6.00%	'	'
Interest Rate/ Strike Rate, low end of range (as a percent)	2.75%	'	2.75%	'	'
Interest Rate/ Strike Rate, high end of range (as a percent)	6.00%	'	6.00%	'	'
Index	'	'	'30-day LIBOR	'	'
Interest rate cap \| Wimberly at Deerwood	'	'	'	'	'
Derivative Instruments and Hedging Activities	'	'	'	'	'
Interest Rate/ Strike Rate (as a percent)	4.56%	'	4.56%	'	'
Index	'	'	'30-day LIBOR	'	'
Derivative not designated as hedging instruments: \| Interest rate cap \| Courtyard Kauai at Coconut Beach Hotel	'	'	'	'	'
Derivative Instruments and Hedging Activities	'	'	'	'	'
Notional Value	38,000,000	'	38,000,000	'	'
Derivative not designated as hedging instruments: \| Interest rate cap \| Wimberly at Deerwood	'	'	'	'	'
Derivative Instruments and Hedging Activities	'	'	'	'	'
Notional Value	26,685,000	'	26,685,000	'	'
Derivative not designated as hedging instruments: \| Interest rate derivative contracts	'	'	'	'	'
Derivative Instruments and Hedging Activities	'	'	'	'	'
Fair value of derivative assets	55,000	'	55,000	'	174,000
Interest Expense \| Maximum	'	'	'	'	'
Derivative Instruments and Hedging Activities	'	'	'	'	'
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring	'	'	$100,000	$100,000	'

Commitments_and_Contingencies_

Commitments and Contingencies (Details) (USD $)	6 Months Ended
In Millions, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
	building	Ground Leases
Operating Leased Assets [Line Items]	'	'
Number of buildings acquired in connection with purchase of MOB Portfolio	8	'
Term of ground lease	'50 years	'
Extended term of ground lease	'25 years	'
Percentage increase in annual payment for each ground lease	10.00%	'
Number of years for which annual payment for each ground lease increases	'5 years	'
Lease expense, ground leases	'	$0.20

Related_Party_Transactions_Det

Related Party Transactions (Details) (USD $)

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

12 Months Ended

6 Months Ended

12 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Mar. 31, 2014

Mar. 31, 2013

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Jun. 30, 2014

Advisor

Behringer Harvard Opportunity II Management Services, LLC

installment

Funds paid for purchasing an asset

Funds budgeted for development, construction or improvement of assets

Funds advanced in respect of loan investment

Minimum

Related party transaction

Acquisition and advisory fees as percentage of purchase, development, construction, or improvement of each asset acquired

1.50%

2.50%

Acquisition and advisory fees as percentage of funds advanced in respect of loan or other investment

1.50%

Acquisition and advisory fees incurred

$100,000

$1,900,000

Percentage of reimbursement of acquisition expense

0.25%

Reimbursement of acquisition expense

100,000

200,000

Percentage of debt financing fee payable under loan or line of credit

0.50%

1.00%

Debt financing fees

100,000

400,000

Asset management fee, annual (percent)

0.70%

1.00%

Gain on reversal of asset management fees

300,000

Gain on reduction of asset management fee structure

100,000

Asset management fees incurred

98,000

865,000

1,068,000

1,545,000

1,000,000

1,500,000

Administrative service fee, annual

1,775,000

Administrative service fees, number of annual installment payments

Administrative service fees, maximum period for payment

'45 days

Administrative services cost incurred and expensed

888,000

838,000

Non reimbursement of operating expenses in excess of average invested assets (as a percent)

2.00%

Non reimbursement of operating expenses in excess of net income (as a percent)

25.00%

Property management fees as percentage of gross revenues of properties

4.00%

4.50%

Oversight fee as percentage of gross revenues of property managed

0.50%

Property management fees or oversight fees incurred

300,000

500,000

Construction management fee, percentage (not to exceed)

5.00%

Construction management fees (less than)

$100,000

Supplemental_Cash_Flow_Informa2

Supplemental Cash Flow Information (Details) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
Supplemental Cash Flow Information [Abstract]	'	'
Interest paid, net of amounts capitalized	$3,915	$3,838
Income tax paid	196	0
Non-cash investing and financing activities:	'	'
Capital expenditures for real estate in accrued liabilities	393	358
Accrued distributions to noncontrolling interest holder	$72	$0

Discontinued_Operations_Detail

Discontinued Operations (Details) (USD $)

3 Months Ended

6 Months Ended

0 Months Ended

3 Months Ended

6 Months Ended

12 Months Ended

6 Months Ended

0 Months Ended

3 Months Ended

6 Months Ended

0 Months Ended

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

30-May-14

Apr. 12, 2013

Oct. 18, 2012

Jun. 30, 2013

Dec. 31, 2013

Jun. 30, 2014

Sep. 20, 2013

30-May-14

Jun. 30, 2013

30-May-14

Jun. 30, 2013

1875 Lawrence, Denver, CO

Interchange Business Center San Bernardino [Member]

Gardens Medical Pavilion, South Florida

Original Florida MOB Portfolio, South Florida

Write-off of deferred financing fees

Early termination fee

building

1875 Lawrence, Denver, CO

Interchange Business Center San Bernardino [Member]

1875 Lawrence, Denver, CO

Interchange Business Center San Bernardino [Member]

Discontinued Operations

Disposal Group Including Discontinued Operation Deferred Financing Fees Written Off

$100,000

Real Estate Ownership Interest Through Joint Venture

79.80%

Sales contract price, real estate

46,700,000

Gain on sale of real estate

11,445,000

11,400,000

Loss on early extinguishment of debt

454,000

500,000

-300,000

400,000

-100,000

100,000

-200,000

Repayment of long-term debt

15,600,000

Number of industrial buildings sold

Number of industrial buildings

Proceeds from sale of discontinued operations

40,400,000

7,500,000

Contract sales price

63,000,000

Gain on sale of discontinued operations

14,500,000

Notes payable, assets held for sale

11,300,000

Mortgage loan related to property sales

18,000,000

Rental revenue

2,914,000

6,111,000

Expenses

Property operating expenses

1,350,000

2,596,000

Interest expense

301,000

781,000

Real estate taxes

179,000

546,000

Property management fees

129,000

258,000

Asset management fees

13,000

50,000

Depreciation and amortization

847,000

1,893,000

Total expenses

2,819,000

6,124,000

Loss on early extinguishment of debt(1)

260,000

Loss from discontinued operations

-165,000

-273,000

Gain on sale of real estate

14,455,000

Income from discontinued operations

14,290,000

14,182,000

Income attributable to noncontrolling interests

-3,795,000

-3,756,000

Income from discontinued operations attributable to the Company

10,495,000

10,426,000

Capital expenditures for real estate in accrued liabilities

143,000

1,191,000

Disposal Group Including Discontinued Operation, Early Termination Fees

$200,000