Lightstone Value Plus REIT V (LVVP) 10-Q 14 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Document and Entity Information
Entity Registrant Name	Behringer Harvard Opportunity REIT II, Inc.
Entity Central Index Key	1,387,061
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
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		25,218,770
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Real estate
Land and improvements, net	$ 42,862	$ 51,382
Buildings and improvements, net	133,829	185,213
Real estate under development	0	176
Total real estate	176,691	236,771
Cash and cash equivalents	69,687	76,815
Restricted cash	6,994	4,581
Accounts receivable, net	1,511	2,426
Prepaid expenses and other assets	1,212	1,078
Investment in unconsolidated joint venture	14,658	14,482
Furniture, fixtures and equipment, net	3,582	5,702
Lease intangibles, net	327	334
Total assets	274,662	342,189
Liabilities and Equity
Notes payable, net	142,789	177,036
Accounts payable	370	479
Payables to related parties	310	433
Acquired below-market leases, net	69	80
Dividends Payable	0	38,378
Distributions payable to noncontrolling interest	21	52
Income taxes payable	841	986
Deferred gain	1,247	0
Accrued and other liabilities	7,055	8,166
Total liabilities	152,702	225,610
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, 25,360,610 and 25,585,198 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively	3	3
Additional paid-in capital	228,630	229,796
Accumulated distributions and net loss	(112,464)	(119,609)
Accumulated other comprehensive loss	(266)	(372)
Total Behringer Harvard Opportunity REIT II, Inc. equity	115,903	109,818
Noncontrolling interest	6,057	6,761
Total equity	121,960	116,579
Total liabilities and equity	$ 274,662	$ 342,189

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares outstanding (in shares)	0	0
Convertible stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Convertible stock, shares authorized (in shares)	1,000	1,000
Convertible stock, shares outstanding (in shares)	1,000	1,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	350,000,000	350,000,000
Common stock, shares issued (in shares)	25,360,610	25,585,198
Common stock, shares outstanding (in shares)	25,360,610	25,585,198

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues
Rental revenue	$ 6,740	$ 8,349	$ 21,590	$ 25,300
Hotel revenue	4,653	4,190	13,946	13,332
Total revenues	11,393	12,539	35,536	38,632
Expenses
Property operating expenses	2,635	3,172	7,128	8,836
Hotel operating expenses	3,509	3,166	10,219	9,440
Interest expense, net	1,561	1,711	4,692	5,278
Real estate taxes	1,197	1,637	4,113	4,793
Property management fees	374	415	1,164	1,279
Asset management fees	554	657	1,773	2,099
General and administrative	705	1,061	2,246	2,772
Depreciation and amortization	2,616	3,467	8,396	11,869
Total expenses	13,151	15,286	39,731	46,366
Interest income, net	39	28	72	107
Loss on early extinguishment of debt	(500)	(613)	(500)	(732)
Other income (loss)	52	74	263	(95)
Loss before gain on sale of real estate and income taxes	(2,167)	(3,258)	(4,360)	(8,454)
Gain on sale of real estate	11,462	17,451	11,462	22,771
Income tax benefit (expense)	29	(1,076)	29	(2,740)
Net income	9,324	13,117	7,131	11,577
Net (income) loss attributable to the noncontrolling interest	59	(262)	14	(855)
Net income attributable to the Company	$ 9,383	$ 12,855	$ 7,145	$ 10,722
Weighted average shares outstanding:
Basic and diluted (in shares)	25,391	25,667	25,470
Basic and diluted income (loss) per share (in dollars per share)	$ 0.37	$ 0.50	$ 0.28	$ 0.42
Distributions declared per common share (in dollars per share)	$ 0	$ 0	$ 0	$ 1
Comprehensive income (loss):
Net income	$ 9,324	$ 13,117	$ 7,131	$ 11,577
Other comprehensive income (loss):
Reclassification of unrealized (gain) loss on currency translation to net income	0	(346)	0	250
Foreign currency translation gain (loss)	37	124	106	(248)
Total other comprehensive income (loss)	37	(222)	106	2
Comprehensive income	9,361	12,895	7,237	11,579
Comprehensive (income) loss attributable to noncontrolling interest	59	(262)	14	(855)
Comprehensive income attributable to the Company	$ 9,420	$ 12,633	$ 7,251	$ 10,724

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands	Total	Convertible Stock	Common Stock	Additional Paid-in Capital	Accumulated Distributions and Net (Loss)	Accumulated Other Comprehensive Income (loss)	Noncontrolling Interest
Balance (in shares) at Dec. 31, 2014		1	25,802
Balance at Dec. 31, 2014	$ 176,556	$ 0	$ 3	$ 231,240	$ (62,477)	$ (246)	$ 8,036
Increase (Decrease) in Stockholders' Equity
Net income (loss)	11,577				10,722		855
Redemption of common stock (in shares)			(147)
Redemption of common stock	(997)			(997)
Distributions declared on common stock	(25,732)				(25,732)
Contributions from noncontrolling interest	499						499
Distributions to noncontrolling interest	(2,383)						(2,383)
Other comprehensive income (loss):
Reclassification of unrealized (gain) loss on currency translation to net income	250					250
Foreign currency translation gain (loss)	(248)					(248)
Balance (in shares) at Sep. 30, 2015		1	25,655
Balance at Sep. 30, 2015	159,522	$ 0	$ 3	230,243	(77,487)	(244)	7,007
Other comprehensive income (loss):
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(248)
Balance (in shares) at Dec. 31, 2015		1	25,585
Balance at Dec. 31, 2015	116,579	$ 0	$ 3	229,796	(119,609)	(372)	6,761
Increase (Decrease) in Stockholders' Equity
Net income (loss)	7,131				7,145		(14)
Redemption of common stock (in shares)			(224)
Redemption of common stock	(1,166)			(1,166)
Contributions from noncontrolling interest	92						92
Distributions to noncontrolling interest	(782)						(782)
Other comprehensive income (loss):
Reclassification of unrealized (gain) loss on currency translation to net income	0
Foreign currency translation gain (loss)	106					106
Balance (in shares) at Sep. 30, 2016		1	25,361
Balance at Sep. 30, 2016	121,960	$ 0	$ 3	$ 228,630	$ (112,464)	$ (266)	$ 6,057
Other comprehensive income (loss):
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	$ 106

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income (loss)	$ 7,131	$ 11,577
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	8,277	11,721
Amortization of deferred financing fees	394	540
Gain on sale of real estate	(11,462)	(22,771)
Loss on early extinguishment of debt	500	732
Loss on derivatives	2	15
Change in operating assets and liabilities:
Accounts receivable	890	232
Prepaid expenses and other assets	(137)	22
Accounts payable	(109)	(239)
Income taxes payable	(171)	1,951
Accrued and other liabilities	(1,001)	1,460
Payables to related parties	(123)	(112)
Addition of lease intangibles	(65)	(28)
Cash provided by operating activities	4,126	5,100
Cash flows from investing activities:
Investment in unconsolidated joint venture	(176)	(377)
Proceeds from sale of real estate	68,520	79,075
Additions of property and equipment	(2,062)	(3,399)
Change in restricted cash	(1,166)	(404)
Net proceeds from the sale of real estate placed into escrow	(1,247)	0
Cash provided by investing activities	63,869	74,895
Cash flows from financing activities:
Financing costs	(135)	(379)
Payments on notes payable	(34,880)	(44,674)
Redemptions of common stock	(1,166)	(997)
Distributions paid on common stock	(38,378)	(25,732)
Contributions from noncontrolling interest holders	92	499
Distributions to noncontrolling interest holders	(813)	(2,362)
Cash used in financing activities	(75,280)	(73,645)
Effect of exchange rate changes on cash and cash equivalents	157	(291)
Net change in cash and cash equivalents	(7,128)	6,059
Cash and cash equivalents at beginning of period	76,815	72,949
Cash and cash equivalents at end of period	$ 69,687	$ 79,008

Business and Organization

Business and Organization	9 Months Ended
	Sep. 30, 2016
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 were formed primarily to acquire and operate commercial real estate and real estate-related assets on an opportunistic and value-add basis. In particular, we have focused 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. We have acquired a wide variety of commercial properties, including office, industrial, retail, hospitality and multifamily. We have purchased existing, income-producing properties, and newly-constructed properties. We have also invested in a mortgage loan and a mezzanine loan. We are not actively seeking to purchase additional assets at this time, but may invest capital in our current assets in order to position them for sale in the normal course of business. We intend to hold the various real properties in which we have invested until such time as our board of directors determines that a sale or other disposition appears to be advantageous to achieve our investment objectives or until it appears that the objectives will not be met. Consistent with our investment objectives of commencing a liquidation within three to six years after the termination of our initial public offering, we have entered our disposition phase and our board of directors is in the process of considering the orderly disposition of our assets. As of September 30, 2016, we had eight real estate investments, seven of which were consolidated. One of our consolidated properties is wholly owned and six properties are 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 (the “Operating Partnership”). As of September 30, 2016, our wholly-owned subsidiary, BHO II, Inc., a Delaware corporation, owned a 0.1% partnership interest in the Operating Partnership as its sole general partner. As of September 30, 2016, our wholly-owned subsidiary, BHO Business Trust II, a Maryland business trust, was the sole limited partner of the Operating Partnership and owned the remaining 99.9% interest in the Operating Partnership. 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 services related to the sale of our assets. Organization In connection with our initial capitalization, we issued 22,471 shares of our common stock and 1,000 shares of our convertible stock to Behringer Harvard Holdings, LLC (“Behringer”) on January 19, 2007. Behringer transferred its shares of convertible stock to one of its affiliates on April 2, 2010. As of September 30, 2016, we had 25.4 million shares of common stock outstanding and 1,000 shares of convertible stock outstanding held by an affiliate of Behringer. 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. Our board of directors is in the process of considering the orderly disposition of our assets and we can provide no assurances as to the timing of our ultimate liquidation. As we sell assets, we expect to distribute net proceeds to our stockholders.

Interim Unaudited Financial Inf

Interim Unaudited Financial Information	9 Months Ended
	Sep. 30, 2016
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, 2015, which was filed with the SEC on March 16, 2016. 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 Securities and Exchange Commission (“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 September 30, 2016, the condensed consolidated statements of operations and comprehensive income for the three and nine months ended September 30, 2016 and 2015 and the condensed consolidated statements of equity and cash flows for the nine months ended September 30, 2016 and 2015 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 September 30, 2016 and December 31, 2015 and our condensed consolidated results of operations and cash flows for the periods ended September 30, 2016 and 2015. 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 Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
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 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 condensed consolidated financial statements include our accounts and the accounts of other subsidiaries over which we have control. All inter-company transactions, balances, profits, and the accounts of variable interest entities, if any, in which we are the primary beneficiary 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, substantive participating rights or both 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 As of September 30, 2016 and December 31, 2015, accumulated depreciation and amortization related to our consolidated investments in real estate assets and intangibles were as follows: September 30, 2016 Buildings and Improvements Land and Improvements Lease Intangibles Acquired Cost $ 163,620 $ 45,884 $ 1,546 $ (137 ) Less: depreciation and amortization (29,791 ) (3,022 ) (1,219 ) 68 Net $ 133,829 $ 42,862 $ 327 $ (69 ) December 31, 2015 Buildings and Improvements Land and Improvements Lease Intangibles Acquired Cost $ 211,635 $ 54,068 $ 3,083 $ (184 ) Less: depreciation and amortization (26,422 ) (2,686 ) (2,749 ) 104 Net $ 185,213 $ 51,382 $ 334 $ (80 ) 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. 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 net amortization expense (accretion) associated with the acquired lease intangibles for each of the following five years as of September 30, 2016 is as follows: Year Lease / Other Intangibles October 1, 2016 - December 31, 2016 $ 9 2017 20 2018 (14 ) 2019 (12 ) 2020 (10 ) Real Estate Held for Sale 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 did not have any real estate assets classified as held for sale as of September 30, 2016 or December 31, 2015. 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 those 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 principal executive officer and principal financial 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. In addition, we may incur impairment charges on assets classified as held for sale in the future if the carrying amount of the asset upon classification as held for sale exceeds the estimated fair value, less costs to sell. 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 assets and our investment in an unconsolidated joint venture is currently recoverable. There were no impairment charges for the three and nine months ended September 30, 2016 and 2015. 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 an 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 it has 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 9, Investment in Unconsolidated Joint Venture, 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 income of less than $0.1 million recognized in rental revenues for the three and nine months ended September 30, 2016 and 2015. Leases associated with our multifamily, student housing, and hotel assets are generally short-term in nature, and thus have no straight-line rent. Net above-market lease amortization was a charge of less than $0.1 million recognized in rental revenues for the three and nine months ended September 30, 2016. Net below-market lease amortization was income of less than $0.1 million recognized in rental revenues for the three and nine months ended September 30, 2015. Hotel revenue is derived from the operations of the Courtyard Kauai 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 $1.5 million and $2.4 million as of September 30, 2016 and December 31, 2015, respectively, and included straight-line rental revenue receivables of $0.3 million as of September 30, 2016 and December 31, 2015. 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 . Furniture, fixtures, and equipment associated with properties classified as held for sale are not depreciated. Maintenance and repairs are charged to operations as incurred. Accumulated depreciation associated with our furniture, fixtures, and equipment was $9.4 million and $8.1 million as of September 30, 2016 and December 31, 2015, respectively. Deferred Financing Fees Deferred financing fees are recorded at cost and are amortized to interest expense using a straight-line method that approximates the effective interest method over the life of the related debt. Deferred financing fees, net of accumulated amortization, were $0.9 million and $1.7 million as of September 30, 2016 and December 31, 2015, respectively. Accumulated amortization of deferred financing fees were $1.8 million and $2.5 million as of September 30, 2016 and December 31, 2015, respectively. In April 2015, the Financial Accounting Standards Board (“FASB”) issued an update (“ASU 2015-03”) to ASC Topic 835, Interest - Imputation of Interest, Simplifying the Presentation of Debt Issuance Costs. The adoption of ASU 2015-03, effective January 1, 2016, requires companies to present debt issuance costs related to a recognized debt liability as a direct reduction from the carrying amount of the related debt liability, retrospectively. The adoption of the new standard resulted in the following reclassifications of unamortized deferred financing fees as of December 31, 2015: December 31, 2015 Originally Reported Reclassification Adjusted Deferred financing fees, net $ 1,656 $ (1,656 ) $ — Notes payable 178,692 (1,656 ) 177,036 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 currently 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. As a result of the sale of one of our foreign investments during the first quarter of 2015, Alte Jakobstraße (“AJS”), we recorded estimated foreign income tax of approximately $2.2 million during the period ended March 31, 2015. During the second quarter of 2015, we recorded a credit of $0.5 million to the provision for income tax based on a change in the estimated taxes payable on the sale of AJS. We recorded a provision for income tax of approximately $1 million in the third quarter of 2015 as a result of estimated foreign income tax related to the sale of Holstenplatz, resulting in a total income tax provision of $2.7 million for the nine months ended September 30, 2015. During the third quarter of 2016, we recorded a credit of less than $0.1 million to the provision for income tax based on the difference in the actual taxes due and the originally estimated taxes payable on the sale of Holstenplatz. The foreign income tax recorded during 2015 was calculated on gains recognized at the exchange rate in effect on the date of sale and calculated using current tax rates. 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). Gains and losses resulting from foreign currency transactions are included in the condensed consolidated statements of operations and comprehensive income (loss). The Euro is the functional currency for the operations of AJS and Holstenplatz, which were both sold in 2015. We sold AJS on February 21, 2015 and Holstenplatz on September 1, 2015. We maintain a Euro-denominated bank account that is comprised primarily of the remaining proceeds from the sale of these properties and is translated into U.S. dollars at the current exchange rate at each reporting period. For the three and nine months ended September 30, 2016, the foreign currency translation adjustment was a gain of less than $0.1 million and a gain of $0.1 million , respectively. For the three and nine months ended September 30, 2015, the foreign currency translation adjustment was a gain of $0.1 million and a loss of $0.2 million , respectively. When the Company has substantially liquidated its investment in a foreign entity, the cumulative translation adjustment (“CTA”) balance is required to be released into earnings. In accordance with ASU 2013-05, upon disposal of the property, we would recognize the CTA as an adjustment to the gain on sale. During the first quarter of 2015, we recognized a CTA of approximately $0.6 million as a reduction to the gain on sale of our AJS office building, which we sold on February 21, 2015. We sold our wholly owned investment in the Holstenplatz office building on September 1, 2015. We recognized a CTA credit of approximately $0.4 million as an increase to the gain on sale of Holstenplatz. With the sale of Holstenplatz, we no longer have foreign operations. Concentration of Credit Risk At September 30, 2016 and December 31, 2015, 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 and Asset Type Concentration Our investments may at times be concentrated in certain asset types that are subject to higher risk of foreclosure, or secured by assets concentrated in a limited number of geographic locations. For the nine months ended September 30, 2016, excluding sold assets, 44% and 15% of our total revenues were derived from our properties located in Hawaii and Florida, respectively. Additionally, excluding our property sold in 2016, 44% , 30% , and 21% of our total revenues for the nine months ended September 30, 2016 were from our hotel, multifamily, and student housing investments, respectively. To the extent that our portfolio is concentrated in limited geographic regions or types of assets, downturns relating generally to such region or type of asset 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 nine months ended September 30, 2016 and 2015 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	9 Months Ended
	Sep. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements 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. The new guidance will require companies to apply a five-step model in accounting for revenue arising from contracts with customers, as well as enhance disclosures regarding revenue recognition. Lease contracts will be excluded from this revenue recognition criteria; however, the sale of real estate will be required to follow the new model. ASU 2014-09 is effective for public companies for interim and annual reporting periods beginning after December 15, 2017. In addition, early adoption will be permitted beginning after December 15, 2016, including interim reporting periods within those annual periods. Either full retrospective adoption or modified retrospective adoption is permitted. We do not expect that the adoption of this pronouncement will have a material effect on our condensed consolidated financial statements; however, we will continue to evaluate this assessment until the guidance becomes effective. During the quarter ended June 30, 2016, the FASB issued subsequent updates to ASU 2014-09. In April 2016, the FASB issued an update (“ASU 2016-10”) to ASC Topic 606, Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing. In May 2016, the FASB issued an update (“ASU 2016-12”) to ASC Topic 606, Revenue from Contracts with Customers, Narrow-Scope Improvement and Practical Expedients. The amendments in these updates did not change the core principle of the guidance in Topic 606; rather, they added improvements to reduce the diversity in practice at initial application and the cost and complexity of applying Topic 606 both at transition and an ongoing basis. The areas affected include: assessing the collectability criteria; presentation of sales taxes and other similar taxes collected from customers; noncash consideration; contract modification and completed contracts at transition; and technical correction as it relates to retrospective application and disclosure. The new guidance is effective January 1, 2018, with early adoption permitted beginning January 1, 2017, and allows full or modified retrospective application. We do not expect the adoption of ASU 2016-10 and ASU 2016-12 to have a material effect on our consolidated financial statements; however, we will continue to evaluate this assessment until the guidance becomes effective. In August 2014, the FASB issued an update (“ASU 2014-15”) to ASC Topic 205, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 requires management’s assessment of a company’s ability to continue as a going concern and provide related footnote disclosures when conditions give rise to substantial doubt about a company’s ability to continue as a going concern within one year from the financial statement issuance date. ASU 2014-15 applies to all companies and is effective for the annual period ending after December 15, 2016, and all annual and interim periods thereafter. We do not believe the adoption of this guidance will have a material impact on our disclosures. In February 2016, the FASB issued an update (“ASU 2016-02”) to ASC Topic 842, Leases. ASU 2016-02 supersedes the existing lease accounting model, and modifies both lessee and lessor accounting. The new guidance will require lessees to recognize a liability to make lease payments and a right-of-use asset, initially measured at the present value of lease payments, for both operating and financing leases. For leases with a term of 12 months or less, lessees will be permitted to make an accounting policy election by class of underlying asset to not recognize lease liabilities and lease assets. Under this new pronouncement, lessor accounting will be largely unchanged from existing GAAP. The new standard will be effective January 1, 2019, with early adoption permitted. We do not expect that the adoption of this pronouncement will have a material effect on our condensed consolidated financial statements; however, we will continue to evaluate this assessment until the guidance becomes effective. In August 2016, the FASB issued an update (“ASU 2016-15”) to ASC Topic 230, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments. The objective of this amendment is to reduce the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statements of cash flows. Of the eight types of cash flows discussed in the new standard, the classification of debt prepayment, distributions received from equity method investees, and debt extinguishment costs as financing outflows may impact the Company. ASU 2016-15 is effective for public companies for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The amendment in the update should be applied using the retrospective transition method for each period presented. We will continue to evaluate the impact until the guidance becomes effective.

Assets and Liabilities Measured

Assets and Liabilities Measured at Fair Value	9 Months Ended
	Sep. 30, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]
Assets and Liabilities Measured at Fair Value	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 September 30, 2016, 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 December 31, 2015: December 31, 2015 Level 1 Level 2 Level 3 Total Assets Derivative financial instruments $ — $ 2 $ — $ 2 Courtyard Kauai Coconut Beach Hotel was our only remaining asset with an interest rate cap as of September 30, 2016 and it had a nominal value. Derivative financial instruments classified as assets are included in prepaid expenses and other assets on the balance sheet. Nonrecurring Fair Value Measurements During the year ended December 31, 2015, we recorded a $1.4 million non-cash impairment charge as a result of a measurable decrease in the fair value of 22 Exchange, one of our student housing investments. In estimating the fair value of 22 Exchange, we used management’s internal discounted cash flow analysis prepared with consideration of the current local market. The discounted cash flow estimate is considered Level 3 under the fair value hierarchy described above. The following fair value hierarchy table presents information about our assets measured at fair value on a nonrecurring basis during the year ended December 31, 2015: For the year ended December 31, 2015 Level 1 Level 2 Level 3 Total Fair Value Loss Assets Buildings and improvements, net (1) $ — $ — $ 25,000 $ 25,000 $ (1,417 ) ______________________________________ (1) Due to the local market decline in Akron, Ohio during the fourth quarter of 2015, we recorded a non-cash impairment charge of $1.4 million on our investment in 22 Exchange, one of our student housing investments. Quantitative Information about Level 3 Fair Value Measurements Description Fair Value for the year ended December 31, 2015 (in 000s) Valuation Unobservable Input Range Buildings and improvements, net (1) $ 25,000 Discounted cash flow Discount rate 7.5% - 8.0% ______________________________________ (1) Due to the local market decline in Akron, Ohio during the fourth quarter of 2015, we recorded a non-cash impairment charge of $1.4 million on our investment in 22 Exchange, a student housing property. There were no impairment charges recorded during the three and nine months ended September 30, 2016 and 2015.

Financial Instruments not Repor

Financial Instruments not Reported at Fair Value	9 Months Ended
	Sep. 30, 2016
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 or only estimation methodologies may have a material effect on the estimated fair value amounts. As of September 30, 2016 and December 31, 2015, 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 short-term maturities. The fair value of the notes payable is categorized as a Level 2 in the fair value hierarchy. The fair value was 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 September 30, 2016 and December 31, 2015. Carrying amounts of our notes payable and the related estimated fair value as of September 30, 2016 and December 31, 2015 are as follows: September 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Notes payable $ 143,686 $ 146,175 $ 178,692 $ 179,306 Less: unamortized debt issuance costs (897 ) (1,656 ) Notes payable, net $ 142,789 $ 177,036

Real Estate and Real Estate-Rel

Real Estate and Real Estate-Related Investments	9 Months Ended
	Sep. 30, 2016
Real Estate [Abstract]
Real Estate and Real Estate-Related Investments	Real Estate and Real Estate-Related Investments As of September 30, 2016, we consolidated seven real estate assets in our condensed consolidated balance sheet. The following table presents certain information about our consolidated investments as of September 30, 2016: Property Name Description Location Date Acquired Ownership Interest Gardens Medical Pavilion Medical office building Palm Beach Gardens, Florida October 20, 2010 81.8% 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% Lakes of Margate Multifamily Margate, Florida October 19, 2011 92.5% Arbors Harbor Town Multifamily Memphis, Tennessee December 20, 2011 94% 22 Exchange Student housing Akron, Ohio April 16, 2013 90% Parkside Apartments (“Parkside”) Multifamily Sugar Land, Texas August 8, 2013 90% Real Estate Asset Disposition Lakewood Flats On August 16, 2016, we sold Lakewood Flats for a contract sales price of approximately $68.8 million , resulting in a gain on sale of real estate of $11.5 million and a deferred gain of approximately $1.2 million . The deferred gain represents the amount of monies held in escrow to be reimbursed upon completion of the property’s outstanding insurance claim. We recorded a loss on early extinguishment of debt of $0.5 million , which was composed 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 $33.5 million secured by the property. Lakewood Flats was classified as held for sale on our consolidated balance sheet at June 30, 2016. Sales of Real Estate Reported in Continuing Operations The following table presents our sales of real estate for the nine months ended September 30, 2016 and 2015 (in millions): Date of Sale Property Ownership Interest Sales Contract Price Net Cash Proceeds (1) Gain on Sale of Real Estate August 16, 2016 Lakewood Flats 100% $ 68.8 $ 68.5 $ 11.5 January 8, 2015 Babcock Self Storage 85% $ 5.4 $ 5.2 $ 2.0 February 21, 2015 Alte Jakobstraße 99.7% $ 14.1 $ 13.0 $ 3.3 September 1, 2015 Holstenplatz 100.0% $ 18.4 $ 18.0 $ 8.6 September 9, 2015 Wimberly at Deerwood 95.0% $ 43.5 $ 42.9 $ 8.9 ______________________________________ (1) A portion of the net cash proceeds was used to pay off the property-associated debt of $33.5 million , $2.1 million , $6.5 million , and $26.4 million for Lakewood Flats, Babcock Self Storage (“Babcock”), AJS, and Wimberly at Deerwood (“Wimberly”), respectively. The Holstenplatz debt was paid off on April 30, 2015. The Company does not view the 2016 disposal of Lakewood Flats or the 2015 disposals of Babcock, AJS, Holstenplatz, and Wimberly as a strategic shift. Therefore, the results of operations for Lakewood Flats is presented in continuing operations in the consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015. The results of operations for Babcock and AJS are presented in continuing operations in the condensed consolidated statements of operations for the nine months ended September 30, 2015. The results of operations for Holstenplatz and Wimberly are presented in continuing operations in the condensed consolidated statements of operations for the three and nine months ended September 30, 2015. Net income attributable to the Company for the nine months ended September 30, 2016 includes the gain on sale of Lakewood Flats of $11.5 million . Net income attributable to the Company for the nine months ended September 30, 2015 related to Babcock, AJS, Holstenplatz, and Wimberly was $17.8 million and includes the gains on sale for a total of $22.8 million .

Investment in Unconsolidated Jo

Investment in Unconsolidated Joint Venture	9 Months Ended
	Sep. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]
Investment in Unconsolidated Joint Venture	Investment in Unconsolidated Joint Venture We provided mezzanine financing totaling $15.3 million to an unaffiliated third-party entity (the “Borrower”) that owns an apartment complex under development in Denver, Colorado (“Prospect Park”). The Borrower also has a senior construction loan with a third-party construction lender (the “Senior Lender”) in an aggregate principal amount up to $40 million . The senior construction loan is guaranteed by the owners of the developer. We also have a personal guaranty from the owners of the developer guaranteeing completion of the project and payment of cost overruns. Our mezzanine loan is secured by all of the membership interests of the Borrower and is subordinate to the senior construction loan. Our advances of $15.3 million have annual stated interest rates ranging from 10% to 18% . We evaluated this ADC Arrangement and determined that the characteristics are similar to a jointly-owned investment or partnership. Accordingly, the investment was 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. Both the senior loan and our mezzanine loan were in technical default at July 31, 2016 due to a delay in completion of the project. The Senior Lender and the Company have decided not to call the loan and will amend the loan agreements when construction is complete. Completion of the project is expected to occur before the end of 2016. As of September 30, 2016, the outstanding principal balance under the mezzanine loan was $15.3 million . The Borrower has been funding any cost overruns. 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. We will continue to monitor this situation and any impact these events might have on our ability to ultimately realize the investment. The ADC Arrangement is reassessed at each reporting period. In connection with this investment, interest capitalized for the three and nine months ended September 30, 2016 was less than $0.1 million and less than $0.2 million , respectively. Interest capitalized for the three and nine months ended September 30, 2015 was $0.1 million and $0.4 million , respectively. For the three months ended September 30, 2016 and 2015, 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: Ownership Interest Carrying Amount Property Name September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Prospect Park N/A N/A $ 14,658 $ 14,482

Variable Interest Entities

Variable Interest Entities	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable Interest Entities	Variable Interest Entities As discussed in Note 3, effective January 1, 2016, we have adopted the guidance in ASU 2015-02. As a result, the Operating Partnership (see Note 1) and each of our less than wholly-owned real estate partnerships (22 Exchange, LLC, Gardens Medical Pavilion, LLC, SL Parkside Apartments, LLC, and the ADC Arrangement associated with Prospect Park) have been deemed to have the characteristics of a VIE. However, we were not required to consolidate any previously unconsolidated entities or deconsolidate any previously consolidated entities as a result of the change in classification. Accordingly, there has been no change to the amounts reported in our condensed consolidated balance sheets and statements of cash flows or amounts recognized in our condensed consolidated statements of operations. Consolidated VIEs The Company consolidates the Operating Partnership, 22 Exchange, LLC, Gardens Medical Pavilion, LLC through BH-AW-Florida MOB Venture, LLC, and SL Parkside Apartments, LLC, which are variable interest entities, or VIEs, for which we are the primary beneficiary. Generally, a VIE is a legal entity in which the equity investors do not have the characteristics of a controlling financial interest or the equity investors lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. A limited partnership, or legal entities such as an LLC, are considered a VIE when the majority of the limited partners unrelated to the general partner possess neither the right to remove the general partner without cause, nor certain rights to participate in the decisions that most significantly affect the financial results of the partnership. In determining whether we are the primary beneficiary of a VIE, we consider qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of our investment; the obligation or likelihood for us or other investors to provide financial support; and the similarity with and significance to our business activities and the business activities of the other investors. Significant judgments related to these determinations include estimates about the current and future fair values and performance of real estate held by these VIEs and general market conditions. Unconsolidated VIEs Included in the Company’s joint venture investments at September 30, 2016 is the ADC Arrangement associated with Prospect Park, which is accounted for as an unconsolidated joint venture and is a VIE. Refer to Note 8 for further details on the ADC Arrangement. This arrangement was established to provide mezzanine financing to an unaffiliated third party that owns Prospect Park, an apartment complex under development in Denver, Colorado. Based on our reevaluation under ASU 2015-02, we determined that we are not the primary beneficiary of this VIE based on the rights of the general partner. The arrangement does not allow for substantive kick-out rights over the general partner and we do not have the power to direct the activities of Prospect Park that most significantly affect the entity’s economic performance. Accordingly, we have determined it is appropriate, consistent with past accounting, that the Prospect Park ADC Arrangement will continue to be accounted for under the equity method. As of September 30, 2016 and December 31, 2015, total assets of the property under development were approximately $74 million and $63.9 million , respectively. Total assets as of September 30, 2016 and December 31, 2015 were made up of construction in progress of $63.6 million and $53.5 million , respectively, land of $9.8 million , and other assets of $0.6 million and $0.5 million , respectively. The outstanding balance on the senior construction loan as of September 30, 2016 and December 31, 2015 was $35.7 million and $26.9 million , respectively. At September 30, 2016 and December 31, 2015, the outstanding principal balance of our mezzanine loan was $15.3 million . The Company’s maximum exposure to losses associated with its unconsolidated joint venture is limited to its carrying value in this investment. As of September 30, 2016 and December 31, 2015, the Company’s carrying value and maximum exposure to loss in this investment was $14.7 million and $14.5 million , respectively.

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Notes Payable	Notes Payable The following table sets forth information on our notes payable as of September 30, 2016 and December 31, 2015: Notes Payable as of Description September 30, 2016 December 31, 2015 Interest Rate Maturity Date Courtyard Kauai Coconut Beach Hotel $ 38,000 $ 38,000 30-day LIBOR + .95% (1) 5/9/2017 Gardens Medical Pavilion 13,001 13,298 4.9% 1/1/2018 River Club and the Townhomes at River Club 24,016 24,299 5.26% 5/1/2018 Lakes of Margate 14,309 14,496 5.49% and 5.92% 1/1/2020 Arbors Harbor Town 24,775 25,130 3.985% 1/1/2019 22 Exchange 19,392 19,500 3.93% 5/5/2023 Parkside (2) 10,193 10,469 5% 6/1/2018 Lakewood Flats (3) — 33,500 30-day LIBOR + 1.5% (1) 11/5/2019 Total debt 143,686 178,692 Deferred financing fees (4) (897 ) (1,656 ) Notes payable, net of deferred financing fees 142,789 177,036 Total notes payable obligations $ 142,789 $ 177,036 _________________________________ (1) 30-day London Interbank Offered Rate (“LIBOR”) was 0.53% at September 30, 2016. (2) Includes approximately $0.3 million of unamortized premium related to debt we assumed at acquisition. (3) On August 16, 2016, we sold Lakewood Flats to an unaffiliated third party. A portion of the proceeds from the sale were used to payoff the existing indebtedness associated with the property. (4) Effective January 1, 2016, we adopted ASU 2015-03, which requires companies to present the debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of the related debt liability. See Note 3, Summary of Significant Accounting Policies, for further details. At September 30, 2016, our notes payable balance was $142.8 million , net of deferred financing fees of $0.9 million . 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 Coconut Beach Hotel, 22 Exchange, and Parkside notes payable. Interest capitalized in connection with our equity method investment in Prospect Park for the three and nine months ended September 30, 2016 was less than $0.1 million and less than $0.2 million , respectively. Interest capitalized for the three and nine months ended September 30, 2015 was $0.1 million and $0.4 million , respectively. On August 16, 2016, we sold Lakewood Flats to an unaffiliated third party and used a portion of the proceeds from the sale to fully satisfy the existing indebtedness of approximately $33.5 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 September 30, 2016, we believe we were in compliance with the covenants under our loan agreements. The following table summarizes our contractual obligations for principal payments as of September 30, 2016: Year Amount Due October 1, 2016 - December 31, 2016 $ 524 2017 40,151 2018 46,807 2019 24,308 2020 13,771 Thereafter 17,845 Total contractual obligations for principal payments 143,406 Unamortized premium 280 Total notes payable 143,686 Less: Deferred financing fees, net (897 ) Notes payable, net $ 142,789

Leasing Activity

Leasing Activity	9 Months Ended
	Sep. 30, 2016
Leases [Abstract]
Leasing Activity	Leasing Activity Future minimum base rental payments of our remaining office property due to us under non-cancelable leases in effect as of September 30, 2016 are as follows: Year Amount Due October 1, 2016 - December 31, 2016 $ 308 2017 1,250 2018 980 2019 919 2020 927 Thereafter 3,000 Total $ 7,384 The schedule above does not include rental payments due to us from our multifamily, hotel, and student housing properties, as leases associated with these properties typically are for periods of one year or less. We have one remaining office property at September 30, 2016, Gardens Medical Pavilion, located in Palm Beach Gardens, Florida.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	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 September 30, 2016, we had one remaining interest rate cap which was not designated as a hedging instrument. At September 30, 2016 and December 31, 2015, the fair value of our derivative instrument had a nominal value and was reported in prepaid expenses and other assets. The following table summarizes the notional value of our derivative financial instrument. The notional value provides an indication of the extent of our involvement in this instrument, but does not represent exposure to credit, interest rate, or market risks: Type / Description Notional Value Interest Rate / Strike Rate Index Maturity Date Not designated as hedging instrument Interest rate cap - Courtyard Kauai Coconut Beach Hotel $ 38,000 3.00% 30-day LIBOR May 15, 2017 The table below presents the fair value of our derivative financial instrument, as well as its classification on the consolidated balance sheets as of September 30, 2016 and December 31, 2015: Derivative not designated as hedging instrument: Asset Derivative (1) Balance Sheet Location September 30, 2016 December 31, 2015 Interest rate derivative contract Prepaid expenses and other assets $ — $ 2 ______________________________________ (1) The interest rate cap for Courtyard Kauai Coconut Beach Hotel had a nominal value at September 30, 2016 and 2015. The table below presents the effect of our derivative financial instruments on the condensed consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015: Derivatives Not Designated as Hedging Instruments (1) Amount of Loss Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 $ — $ — $ 2 $ 15 ______________________________________ (1) Courtyard Kauai Coconut Beach Hotel interest rate cap had a nominal value and was our only remaining asset with an interest rate cap during the three and nine months ended September 30, 2016 and 2015.

Distributions

Distributions	9 Months Ended
	Sep. 30, 2016
Distributions [Abstract]
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 expect that any future distributions authorized by our board of directors will be periodic, special distributions as opposed to regular monthly or quarterly distributions. On November 20, 2015, our board of directors authorized a special cash distribution of $1.50 per share of common stock, payable to stockholders of record as of December 31, 2015. The Company paid this special cash distribution of $38.4 million on January 5, 2016. On March 18, 2015, our board of directors authorized a special cash distribution of $1.00 per share of common stock, payable to stockholders of record as of March 30, 2015. This special cash distribution of $25.7 million was paid on March 31, 2015. These special cash distributions represented a portion of proceeds from asset sales.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Advisor The Advisor and certain of its affiliates may receive fees and compensation in connection with the management and sale of our assets based on the advisory management agreement, as amended and restated. Fifth Amended and Restated Advisory Management Agreement On July 25, 2016, we entered into the Fifth Amended and Restated Advisory Management Agreement (the “Fifth Advisory Agreement”) with our Advisor to, among other things, revise the administrative services fee, amend the non-solicitation provision, and extend the term of the agreement to June 6, 2017. The Fifth Advisory Agreement is effective as of June 6, 2016. 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 receive acquisition and advisory fees of 1.5% of the funds advanced in respect of a loan investment. We incurred no acquisition and advisory fees payable to the Advisor for the nine months ended September 30, 2016. We incurred acquisition and advisory fees payable to the Advisor of less than $0.1 million for the nine months ended September 30, 2015 as a result of improvements made to our assets. During the nine months ended September 30, 2016 and 2015, we had no acquisitions. 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. 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 nine months ended September 30, 2016, we incurred no acquisition expense reimbursements. For the nine months ended September 30, 2015, we incurred less than $0.1 million in acquisition expense reimbursements. 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 pay directly all third-party costs associated with obtaining the debt financing. We incurred no debt financing fees for the nine months ended September 30, 2016 and 2015. 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 nine months ended September 30, 2016 and 2015. We pay the Advisor or its affiliates a monthly asset management fee of 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). For the nine months ended September 30, 2016 and 2015, we expensed $1.6 million and $2 million , respectively, of asset management fees payable to the Advisor. The totals for the nine months ended September 30, 2016 and 2015 include asset management fees related to our disposed properties. The Advisor is responsible for paying all of the expenses it incurs associated with persons employed by the Advisor to the extent that they provide services related to us for which the Advisor receives an acquisition, asset management, or debt financing fee, including wages and benefits of the personnel. Instead of reimbursing the Advisor for specific expenses paid or incurred in connection with providing services to us, we 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 Fifth Advisory Agreement, the administrative services fee is the lesser of (i) $1.3 million per calendar year, and (ii) the costs of providing administrative services to us under the Fifth Advisory Agreement, payable in four equal quarterly installments within 45 days of the end of each calendar quarter. For the calendar year ending December 31, 2015, the administrative services fee was $1.5 million . In addition, under the advisory management agreement, we are to reimburse the Advisor for certain due diligence services provided in connection with asset dispositions or debt financings separately from the administrative services fee. For the nine months ended September 30, 2016 and 2015, we incurred and expensed such costs for administrative services and due diligence services of approximately $0.9 million and $1.2 million , respectively. Included in that amount is less than $0.1 million related to certain due diligence services provided in connection with asset dispositions during the nine months ended September 30, 2016 and 2015. Notwithstanding the fees and cost reimbursements payable to our Advisor pursuant to the Fifth Advisory Agreement, 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 September 30, 2016, our total operating expenses (including the asset management fee) were not excessive. Property Manager We pay our property manager and affiliate of the Advisor, Behringer Harvard Opportunity II Management Services, LLC or its affiliates (collectively, our “Property Manager”), fees for the management, leasing, and construction supervision of our properties which is 4.0% of gross revenues of the properties managed by our Property Manager. We pay our Property Manager an oversight fee equal to 0.5% of the gross revenues of the property managed for any property for which we contract directly with a third-party property manager. In no event will our Property Manager 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 our Property Manager directly for its services, we will pay our Property Manager 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 our Property Manager of approximately $0.4 million and $0.5 million for the nine months ended September 30, 2016 and 2015, respectively. We pay our Property Manager 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 no construction management fees for the nine months ended September 30, 2016 and 2015. We are dependent on the Advisor and our Property Manager for certain services that are essential to us, including asset 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 Informat

Supplemental Cash Flow Information	9 Months Ended
	Sep. 30, 2016
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information Supplemental cash flow information is summarized below: Nine months ended September 30, Description 2016 2015 Interest paid, net of amounts capitalized 4,484 $ 4,959 Income taxes paid, net 175 856 Non-cash investing activities and financing activities: Proceeds held in escrow through sale of real estate interests — 912 Capital expenditures for real estate in accrued liabilities 139 414 Accrued distributions to noncontrolling interest 21 40

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Share Redemption Program On November 9, 2016, our board of directors approved redemptions for the fourth quarter of 2016 totaling 141,841 shares with an aggregate redemption payment of approximately $0.7 million . See Part II, Item 2, “Unregistered Sales of Equity Securities and Use of Proceeds” for a full description of the price at which we redeem shares under our share redemption program. ******

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
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 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 condensed consolidated financial statements include our accounts and the accounts of other subsidiaries over which we have control. All inter-company transactions, balances, profits, and the accounts of variable interest entities, if any, in which we are the primary beneficiary 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, substantive participating rights or both 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
Real Estate Held for Sale and Discontinued Operations	Real Estate Held for Sale 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 did not have any real estate assets classified as held for sale as of September 30, 2016 or December 31, 2015.
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 those 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 principal executive officer and principal financial 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. In addition, we may incur impairment charges on assets classified as held for sale in the future if the carrying amount of the asset upon classification as held for sale exceeds the estimated fair value, less costs to sell. 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 assets and our investment in an unconsolidated joint venture is currently recoverable. There were no impairment charges for the three and nine months ended September 30, 2016 and 2015. 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 an 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 it has 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 9, Investment in Unconsolidated Joint Venture, for further discussion.
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 income of less than $0.1 million recognized in rental revenues for the three and nine months ended September 30, 2016 and 2015. Leases associated with our multifamily, student housing, and hotel assets are generally short-term in nature, and thus have no straight-line rent. Net above-market lease amortization was a charge of less than $0.1 million recognized in rental revenues for the three and nine months ended September 30, 2016. Net below-market lease amortization was income of less than $0.1 million recognized in rental revenues for the three and nine months ended September 30, 2015. Hotel revenue is derived from the operations of the Courtyard Kauai 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
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 . Furniture, fixtures, and equipment associated with properties classified as held for sale are not depreciated. Maintenance and repairs are charged to operations as incurred.
Deferred Financing Fees	Deferred Financing Fees Deferred financing fees are recorded at cost and are amortized to interest expense using a straight-line method that approximates the effective interest method over the life of the related debt.
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 currently 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. As a result of the sale of one of our foreign investments during the first quarter of 2015, Alte Jakobstraße (“AJS”), we recorded estimated foreign income tax of approximately $2.2 million during the period ended March 31, 2015. During the second quarter of 2015, we recorded a credit of $0.5 million to the provision for income tax based on a change in the estimated taxes payable on the sale of AJS. We recorded a provision for income tax of approximately $1 million in the third quarter of 2015 as a result of estimated foreign income tax related to the sale of Holstenplatz, resulting in a total income tax provision of $2.7 million for the nine months ended September 30, 2015. During the third quarter of 2016, we recorded a credit of less than $0.1 million to the provision for income tax based on the difference in the actual taxes due and the originally estimated taxes payable on the sale of Holstenplatz. The foreign income tax recorded during 2015 was calculated on gains recognized at the exchange rate in effect on the date of sale and calculated using current tax rates. 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	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). Gains and losses resulting from foreign currency transactions are included in the condensed consolidated statements of operations and comprehensive income (loss). The Euro is the functional currency for the operations of AJS and Holstenplatz, which were both sold in 2015. We sold AJS on February 21, 2015 and Holstenplatz on September 1, 2015. We maintain a Euro-denominated bank account that is comprised primarily of the remaining proceeds from the sale of these properties and is translated into U.S. dollars at the current exchange rate at each reporting period. For the three and nine months ended September 30, 2016, the foreign currency translation adjustment was a gain of less than $0.1 million and a gain of $0.1 million , respectively. For the three and nine months ended September 30, 2015, the foreign currency translation adjustment was a gain of $0.1 million and a loss of $0.2 million , respectively. When the Company has substantially liquidated its investment in a foreign entity, the cumulative translation adjustment (“CTA”) balance is required to be released into earnings. In accordance with ASU 2013-05, upon disposal of the property, we would recognize the CTA as an adjustment to the gain on sale.
Concentration of Credit Risk	Concentration of Credit Risk At September 30, 2016 and December 31, 2015, 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 and Asset Type Concentration Our investments may at times be concentrated in certain asset types that are subject to higher risk of foreclosure, or secured by assets concentrated in a limited number of geographic locations. For the nine months ended September 30, 2016, excluding sold assets, 44% and 15% of our total revenues were derived from our properties located in Hawaii and Florida, respectively. Additionally, excluding our property sold in 2016, 44% , 30% , and 21% of our total revenues for the nine months ended September 30, 2016 were from our hotel, multifamily, and student housing investments, respectively. To the extent that our portfolio is concentrated in limited geographic regions or types of assets, downturns relating generally to such region or type of asset 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 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.
Subsequent Events	Subsequent Events We have evaluated subsequent events for recognition or disclosure in our condensed consolidated financial statements.

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Schedule of accumulated depreciation and amortization related to entity's consolidated investments in real estate assets and intangibles	ccumulated depreciation and amortization related to our consolidated investments in real estate assets and intangibles were as follows: September 30, 2016 Buildings and Improvements Land and Improvements Lease Intangibles Acquired Cost $ 163,620 $ 45,884 $ 1,546 $ (137 ) Less: depreciation and amortization (29,791 ) (3,022 ) (1,219 ) 68 Net $ 133,829 $ 42,862 $ 327 $ (69 ) December 31, 2015 Buildings and Improvements Land and Improvements Lease Intangibles Acquired Cost $ 211,635 $ 54,068 $ 3,083 $ (184 ) Less: depreciation and amortization (26,422 ) (2,686 ) (2,749 ) 104 Net $ 185,213 $ 51,382 $ 334 $ (80 )
Schedule of anticipated amortization expense associated with the acquired lease intangibles excluding properties classified as discontinued operations	Anticipated net amortization expense (accretion) associated with the acquired lease intangibles for each of the following five years as of September 30, 2016 is as follows: Year Lease / Other Intangibles October 1, 2016 - December 31, 2016 $ 9 2017 20 2018 (14 ) 2019 (12 ) 2020 (10 )
Schedule of adoption of new standards	The adoption of the new standard resulted in the following reclassifications of unamortized deferred financing fees as of December 31, 2015: December 31, 2015 Originally Reported Reclassification Adjusted Deferred financing fees, net $ 1,656 $ (1,656 ) $ — Notes payable 178,692 (1,656 ) 177,036

Assets and Liabilities Measur25

Assets and Liabilities Measured at Fair Value (Tables)	9 Months Ended
	Sep. 30, 2016
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 December 31, 2015: December 31, 2015 Level 1 Level 2 Level 3 Total Assets Derivative financial instruments $ — $ 2 $ — $ 2

Real Estate and Real Estate-R26

Real Estate and Real Estate-Related Investments (Tables)	9 Months Ended
	Sep. 30, 2016
Real Estate [Abstract]
Schedule of information pertaining to consolidated investments	As of September 30, 2016, we consolidated seven real estate assets in our condensed consolidated balance sheet. The following table presents certain information about our consolidated investments as of September 30, 2016: Property Name Description Location Date Acquired Ownership Interest Gardens Medical Pavilion Medical office building Palm Beach Gardens, Florida October 20, 2010 81.8% 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% Lakes of Margate Multifamily Margate, Florida October 19, 2011 92.5% Arbors Harbor Town Multifamily Memphis, Tennessee December 20, 2011 94% 22 Exchange Student housing Akron, Ohio April 16, 2013 90% Parkside Apartments (“Parkside”) Multifamily Sugar Land, Texas August 8, 2013 90%
Net income for real Estate sold during period	The following table presents our sales of real estate for the nine months ended September 30, 2016 and 2015 (in millions): Date of Sale Property Ownership Interest Sales Contract Price Net Cash Proceeds (1) Gain on Sale of Real Estate August 16, 2016 Lakewood Flats 100% $ 68.8 $ 68.5 $ 11.5 January 8, 2015 Babcock Self Storage 85% $ 5.4 $ 5.2 $ 2.0 February 21, 2015 Alte Jakobstraße 99.7% $ 14.1 $ 13.0 $ 3.3 September 1, 2015 Holstenplatz 100.0% $ 18.4 $ 18.0 $ 8.6 September 9, 2015 Wimberly at Deerwood 95.0% $ 43.5 $ 42.9 $ 8.9 ______________________________________ (1) A portion of the net cash proceeds was used to pay off the property-associated debt of $33.5 million , $2.1 million , $6.5 million , and $26.4 million for Lakewood Flats, Babcock Self Storage (“Babcock”), AJS, and Wimberly at Deerwood (“Wimberly”), respectively. The Holstenplatz debt was paid off on April 30, 2015.

Investment in Unconsolidated 27

Investment in Unconsolidated Joint Venture (Tables)	9 Months Ended
	Sep. 30, 2016
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: Ownership Interest Carrying Amount Property Name September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Prospect Park N/A N/A $ 14,658 $ 14,482

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of information on notes payable	The following table sets forth information on our notes payable as of September 30, 2016 and December 31, 2015: Notes Payable as of Description September 30, 2016 December 31, 2015 Interest Rate Maturity Date Courtyard Kauai Coconut Beach Hotel $ 38,000 $ 38,000 30-day LIBOR + .95% (1) 5/9/2017 Gardens Medical Pavilion 13,001 13,298 4.9% 1/1/2018 River Club and the Townhomes at River Club 24,016 24,299 5.26% 5/1/2018 Lakes of Margate 14,309 14,496 5.49% and 5.92% 1/1/2020 Arbors Harbor Town 24,775 25,130 3.985% 1/1/2019 22 Exchange 19,392 19,500 3.93% 5/5/2023 Parkside (2) 10,193 10,469 5% 6/1/2018 Lakewood Flats (3) — 33,500 30-day LIBOR + 1.5% (1) 11/5/2019 Total debt 143,686 178,692 Deferred financing fees (4) (897 ) (1,656 ) Notes payable, net of deferred financing fees 142,789 177,036 Total notes payable obligations $ 142,789 $ 177,036 _________________________________ (1) 30-day London Interbank Offered Rate (“LIBOR”) was 0.53% at September 30, 2016. (2) Includes approximately $0.3 million of unamortized premium related to debt we assumed at acquisition. (3) On August 16, 2016, we sold Lakewood Flats to an unaffiliated third party. A portion of the proceeds from the sale were used to payoff the existing indebtedness associated with the property. (4) Effective January 1, 2016, we adopted ASU 2015-03, which requires companies to present the debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of the related debt liability. See Note 3, Summary of Significant Accounting Policies, for further details.
Contractual obligations for principal payments	The following table summarizes our contractual obligations for principal payments as of September 30, 2016: Year Amount Due October 1, 2016 - December 31, 2016 $ 524 2017 40,151 2018 46,807 2019 24,308 2020 13,771 Thereafter 17,845 Total contractual obligations for principal payments 143,406 Unamortized premium 280 Total notes payable 143,686 Less: Deferred financing fees, net (897 ) Notes payable, net $ 142,789

Leasing Activity (Tables)

Leasing Activity (Tables)	9 Months Ended
	Sep. 30, 2016
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 remaining office property due to us under non-cancelable leases in effect as of September 30, 2016 are as follows: Year Amount Due October 1, 2016 - December 31, 2016 $ 308 2017 1,250 2018 980 2019 919 2020 927 Thereafter 3,000 Total $ 7,384

Derivative Instruments and He30

Derivative Instruments and Hedging Activities (Tables)	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of notional value of derivative financial instruments	The following table summarizes the notional value of our derivative financial instrument. The notional value provides an indication of the extent of our involvement in this instrument, but does not represent exposure to credit, interest rate, or market risks: Type / Description Notional Value Interest Rate / Strike Rate Index Maturity Date Not designated as hedging instrument Interest rate cap - Courtyard Kauai Coconut Beach Hotel $ 38,000 3.00% 30-day LIBOR May 15, 2017
Summary of fair value of derivative financial instruments	The table below presents the fair value of our derivative financial instrument, as well as its classification on the consolidated balance sheets as of September 30, 2016 and December 31, 2015: Derivative not designated as hedging instrument: Asset Derivative (1) Balance Sheet Location September 30, 2016 December 31, 2015 Interest rate derivative contract Prepaid expenses and other assets $ — $ 2
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 nine months ended September 30, 2016 and 2015: Derivatives Not Designated as Hedging Instruments (1) Amount of Loss Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 $ — $ — $ 2 $ 15 ______________________________________ (1) Courtyard Kauai Coconut Beach Hotel interest rate cap had a nominal value and was our only remaining asset with an interest rate cap during the three and nine months ended September 30, 2016 and 2015.

Supplemental Cash Flow Inform31

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Sep. 30, 2016
Supplemental Cash Flow Information [Abstract]
Schedule of supplemental cash flow information	Supplemental cash flow information is summarized below: Nine months ended September 30, Description 2016 2015 Interest paid, net of amounts capitalized 4,484 $ 4,959 Income taxes paid, net 175 856 Non-cash investing activities and financing activities: Proceeds held in escrow through sale of real estate interests — 912 Capital expenditures for real estate in accrued liabilities 139 414 Accrued distributions to noncontrolling interest 21 40

Business and Organization (Deta

Business and Organization (Details)	9 Months Ended
	Sep. 30, 2016real_estate_investmentshares	Dec. 31, 2015shares	Jan. 19, 2007shares
Business and Organization
Number of real estate investments | real_estate_investment	8
Number of real estate assets consolidated | real_estate_investment	7
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 (in shares)	25,360,610	25,585,198
Common stock, shares outstanding (in shares)	25,360,610	25,585,198
Convertible stock outstanding (in shares)	1,000	1,000
Initial Capitalization | Behringer Harvard Holdings
Business and Organization
Common stock, shares issued (in shares)			22,471
Convertible stock issued (in shares)			1,000
Convertible stock outstanding (in shares)	1,000
Wholly Owned Properties
Business and Organization
Number of real estate assets consolidated | real_estate_investment	1
Partially Owned Properties
Business and Organization
Number of real estate assets consolidated | real_estate_investment	6

Summary of Significant Accoun33

Summary of Significant Accounting Policies - Real Estate (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Schedule of Real Estate Properties and Related Lease Intangibles [Line Items]
Real Estate Investment Property, Net	$ 176,691	$ 236,771
Lease intangibles, net	327	334
October 1, 2016 - December 31, 2016	9
2,017	20
2,018	(14)
2,019	(12)
2,020	(10)
Building and Building Improvements [Member]
Schedule of Real Estate Properties and Related Lease Intangibles [Line Items]
Real Estate Investment Property, at Cost	163,620	211,635
Real Estate Investment Property, Accumulated Depreciation	29,791	26,422
Real Estate Investment Property, Net	133,829	185,213
Land and Land Improvements [Member]
Schedule of Real Estate Properties and Related Lease Intangibles [Line Items]
Real Estate Investment Property, at Cost	45,884	54,068
Real Estate Investment Property, Accumulated Depreciation	3,022	2,686
Real Estate Investment Property, Net	42,862	51,382
Leases, Acquired-in-Place [Member]
Schedule of Real Estate Properties and Related Lease Intangibles [Line Items]
Finite-Lived Intangible Assets, Gross	1,546	3,083
Finite-Lived Intangible Assets, Accumulated Amortization	1,219	2,749
Lease intangibles, net	327	334
Leases, Acquired-in-Place, Market Adjustment [Member]
Schedule of Real Estate Properties and Related Lease Intangibles [Line Items]
Finite-Lived Intangible Assets, Gross	(137)	(184)
Finite-Lived Intangible Assets, Accumulated Amortization	(68)	(104)
Lease intangibles, net	$ (69)	$ (80)

Summary of Significant Accoun34

Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Investment Impairment (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Accounting Policies [Abstract]
Impairment of Real Estate	$ 0	$ 0	$ 0	$ 0	$ 1,400,000

Summary of Significant Accoun35

Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accounting Policies [Abstract]
Straight Line Rent	$ 0.1	$ 0.1	$ 0.1	$ 0.1
Market Lease Amortization Included in Rental Revenues	$ 0.1	$ (0.1)	$ 0.1	$ (0.1)

Summary of Significant Accoun36

Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Real Estate Properties [Line Items]
Straight Line Rental Revenue Receivables	$ 0.3	$ 0.3
Consolidated Properties [Member]
Real Estate Properties [Line Items]
Accounts Receivable, Net, Current	$ 1.5	$ 2.4

Summary of Significant Accoun37

Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Furniture, Fixtures, and Equipment (Details) - Office Equipment [Member] - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Real Estate Properties [Line Items]
SEC Schedule III, Real Estate Accumulated Depreciation	$ 9.4	$ 8.1
Minimum [Member]
Real Estate Properties [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Maximum [Member]
Real Estate Properties [Line Items]
Property, Plant and Equipment, Useful Life	7 years

Summary of Significant Accoun38

Summary of Significant Accounting Policies - Deferred Financing Fees (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated amortization, deferred financing fees	$ 1,800	$ 2,500
Deferred financing fees, net	897	1,656
Notes payable, net	142,789	177,036
Accounting Standards Update 2015-03
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred financing fees, net	$ 900	1,700
Accounting Standards Update 2015-03 | Originally Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Notes payable, net		178,692
Accounting Standards Update 2015-03 | Reclassification
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Notes payable, net		1,656
Deferred Financing Fees, Net [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred financing fees, net		0
Deferred Financing Fees, Net [Member] | Accounting Standards Update 2015-03 | Originally Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred financing fees, net		1,656
Deferred Financing Fees, Net [Member] | Accounting Standards Update 2015-03 | Reclassification
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred financing fees, net		$ 1,656

Summary of Significant Accoun39

Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Sep. 30, 2016	Sep. 30, 2015
Real Estate Properties [Line Items]
Minimum Percentage of Ordinary Taxable Income Distribution Requirement					90.00%
Foreign Tax Authority [Member]
Real Estate Properties [Line Items]
Income Tax Provision, Sale of Real Estate Investment						$ (2.7)
Alte Jakobstrabe Berlin [Member] | Foreign Tax Authority [Member]
Real Estate Properties [Line Items]
Income Tax Provision, Sale of Real Estate Investment			$ 0.5	$ (2.2)
Holstenplatz Hamburg [Member] | Foreign Tax Authority [Member]
Real Estate Properties [Line Items]
Income Tax Provision, Sale of Real Estate Investment	$ 0.1	$ (1)

Summary of Significant Accoun40

Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Foreign Currency Translation (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Mar. 31, 2015	Sep. 30, 2016	Sep. 30, 2015
Real Estate Properties [Line Items]
Foreign Currency Transaction Gain (Loss), before Tax	$ 100	$ 100		$ 100	$ (200)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax	$ 0	$ 346		$ 0	(250)
Alte Jakobstrabe Berlin [Member]
Real Estate Properties [Line Items]
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax			$ 600
Holstenplatz Hamburg [Member]
Real Estate Properties [Line Items]
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax					$ 400

Summary of Significant Accoun41

Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Geographic and Asset Type Concentration (Details) - Sales Revenue, Net [Member]	9 Months Ended
	Sep. 30, 2016
Hotel [Member] | Real Estate Asset Concentration Risk [Member]
Real Estate Properties [Line Items]
Concentration Risk, Percentage	44.00%
Multifamily [Member] | Real Estate Asset Concentration Risk [Member]
Real Estate Properties [Line Items]
Concentration Risk, Percentage	30.00%
Student Housing [Member] | Real Estate Asset Concentration Risk [Member]
Real Estate Properties [Line Items]
Concentration Risk, Percentage	21.00%
HAWAII | Geographic Concentration Risk [Member]
Real Estate Properties [Line Items]
Concentration Risk, Percentage	44.00%
FLORIDA | Geographic Concentration Risk [Member]
Real Estate Properties [Line Items]
Concentration Risk, Percentage	15.00%

Assets and Liabilities Measur42

Assets and Liabilities Measured at Fair Value (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Assets measured at fair value on a recurring and nonrecurring basis
Impairment of Real Estate	$ 0	$ 0	$ 0	$ 0	$ 1,400,000
Recurring
Assets measured at fair value on a recurring and nonrecurring basis
Derivative financial instruments	$ 0		$ 0		2,000
Nonrecurring
Assets measured at fair value on a recurring and nonrecurring basis
Investment Buildings and Building Improvements, Net, Fair Value Disclosure					25,000,000
Level 1 | Recurring
Assets measured at fair value on a recurring and nonrecurring basis
Derivative financial instruments					0
Level 2 | Recurring
Assets measured at fair value on a recurring and nonrecurring basis
Derivative financial instruments					2,000
Level 3 | Recurring
Assets measured at fair value on a recurring and nonrecurring basis
Derivative financial instruments					$ 0
Level 3 | Nonrecurring | Investment Building and Building Improvements [Member] | Minimum [Member] | Income Approach Valuation Technique [Member]
Assets measured at fair value on a recurring and nonrecurring basis
Fair Value Inputs, Discount Rate					6.50%
Fair Value Inputs, Terminal Capitalization Rate					7.50%
Level 3 | Nonrecurring | Investment Building and Building Improvements [Member] | Maximum [Member] | Income Approach Valuation Technique [Member]
Assets measured at fair value on a recurring and nonrecurring basis
Fair Value Inputs, Discount Rate					7.50%
Fair Value Inputs, Terminal Capitalization Rate					8.00%

Financial Instruments not Rep43

Financial Instruments not Reported at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long-term Debt, Net of Unamortized (Discount) Premium	$ 143,686	$ 178,692
Deferred financing fees, net	(897)	(1,656)
Notes payable, net	142,789	177,036
Notes Payable, Fair Value Disclosure	$ 146,175	$ 179,306

Real Estate and Real Estate-R44

Real Estate and Real Estate-Related Investments (Details)	9 Months Ended
	Sep. 30, 2016real_estate_investment
Real Estate Properties [Line Items]
Number of real estate assets consolidated	7
Gardens Medical Pavilion, South Florida
Real Estate Properties [Line Items]
Ownership Interest (as a percent)	81.80%
Courtyard Kauai at Coconut Beach Hotel
Real Estate Properties [Line Items]
Ownership Interest (as a percent)	80.00%
River Club and the Townhomes at River Club, Athens, Georgia
Real Estate Properties [Line Items]
Ownership Interest (as a percent)	85.00%
Lakes of Margate, Margate, Florida
Real Estate Properties [Line Items]
Ownership Interest (as a percent)	92.50%
Arbors Harbor Town, Memphis, Tennessee
Real Estate Properties [Line Items]
Ownership Interest (as a percent)	94.00%
22 Exchange, Akron, Ohio
Real Estate Properties [Line Items]
Ownership Interest (as a percent)	90.00%
Parkside Apartments, Sugarland, Texas
Real Estate Properties [Line Items]
Ownership Interest (as a percent)	90.00%

Real Estate and Real Estate-R45

Real Estate and Real Estate-Related Investments Real Estate and Real Estate-Related Investments - Sales of Real Estate (Details) - USD ($) $ in Thousands	Aug. 16, 2016	Sep. 09, 2015	Sep. 01, 2015	Feb. 21, 2015	Jan. 08, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Real Estate Properties [Line Items]
Gain on sale of real estate						$ 11,462	$ 17,451	$ 11,462	$ 22,771
Deferred gain						1,247		1,247		$ 0
Loss on early extinguishment of debt						(500)	(613)	(500)	(732)
Repayments of Notes Payable								34,880	44,674
Net income (loss) attributable to the Company						$ 9,383	$ 12,855	$ 7,145	10,722
Lakewood Flats [Member]
Real Estate Properties [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	100.00%
Sales of Real Estate	$ 68,800
Proceeds from Sale of Real Estate	68,500
Gain on sale of real estate	11,500
Loss on early extinguishment of debt	500
Repayments of Notes Payable	33,500
Lakewood Flats [Member] | Disposal Group, Not Discontinued Operations [Member]
Real Estate Properties [Line Items]
Gain on sale of real estate									11,500
Babcock Self Storage San Antonio [Member]
Real Estate Properties [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent					85.00%
Sales of Real Estate					$ 5,400
Proceeds from Sale of Real Estate					5,200
Gain on sale of real estate					2,000
Repayments of Notes Payable					$ 2,100
Alte Jakobstrabe Berlin [Member]
Real Estate Properties [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent				99.70%
Sales of Real Estate				$ 14,100
Proceeds from Sale of Real Estate				13,000
Gain on sale of real estate				3,300
Repayments of Notes Payable				$ 6,500
Holstenplatz Hamburg [Member]
Real Estate Properties [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent			100.00%
Sales of Real Estate			$ 18,400
Proceeds from Sale of Real Estate			18,000
Gain on sale of real estate			$ 8,600
Wimberly at Deerwood [Member]
Real Estate Properties [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent		95.00%
Sales of Real Estate		$ 43,500
Proceeds from Sale of Real Estate		42,900
Gain on sale of real estate		8,900
Repayments of Notes Payable		$ 26,400
Babcock and Alte Jakobstrabe [Member] | Disposal Group, Not Discontinued Operations [Member]
Real Estate Properties [Line Items]
Gain on sale of real estate									22,800
Net income (loss) attributable to the Company									$ 17,800
Write-off of Deferred Financing Fees [Member] | Lakewood Flats [Member]
Real Estate Properties [Line Items]
Loss on early extinguishment of debt	400
Early Termination Fee [Member] | Lakewood Flats [Member]
Real Estate Properties [Line Items]
Loss on early extinguishment of debt	$ 100

Investment in Unconsolidated 46

Investment in Unconsolidated Joint Venture - Additional Information (Details) - Prospect Park - USD ($) $ in Millions	May 24, 2013	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Investment in Unconsolidated Joint Venture
Outstanding principal balance under mezzanine loan		$ 15.3		$ 15.3
Interest capitalized		$ 0.1	$ 0.1	$ 0.2	$ 0.4
Initial Advance to Joint Venture
Investment in Unconsolidated Joint Venture
Loans receivable, construction	$ 15.3
Annual interest rate (as a percent)	10.00%
Annual interest rate after two extensions of mezzanine loan (as a percent)	18.00%
Initial Advance to Joint Venture | Third-party senior construction lender
Investment in Unconsolidated Joint Venture
Loans receivable, construction	$ 40

Investment in Unconsolidated 47

Investment in Unconsolidated Joint Venture - Schedule of Ownership Interest (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Prospect Park
Investment in Unconsolidated Joint Venture
Carrying Amount	$ 14,658	$ 14,482

Variable Interest Entities (Det

Variable Interest Entities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Variable Interest Entity [Line Items]
Assets	$ 274,662	$ 342,189
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Assets	74,000	63,900
Construction in Progress, Gross	63,600	53,500
Land	9,800	9,800
Other Assets	600	500
Maximum loss exposure	14,700	14,500
Variable Interest Entity, Not Primary Beneficiary | Notes Receivable
Variable Interest Entity [Line Items]
Notes, Loans and Financing Receivable, Net, Noncurrent	35,700	26,900
Variable Interest Entity, Not Primary Beneficiary | Mezzanine Loan
Variable Interest Entity [Line Items]
Notes, Loans and Financing Receivable, Net, Noncurrent	$ 15,300	$ 15,300

Notes Payable (Details)

Notes Payable (Details) - USD ($) $ in Thousands	Aug. 16, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Notes Payable
Notes payable		$ 143,686		$ 143,686		$ 178,692
Deferred financing fees, net		(897)		(897)		(1,656)
Notes payable, net		$ 142,789		$ 142,789		177,036
LIBOR rate (as a percent)		0.53%		0.53%
Long Term Debt, Including Disposal Group		$ 142,789		$ 142,789		177,036
Repayments of Notes Payable				34,880	$ 44,674
Lakewood Flats [Member]
Notes Payable
Repayments of Notes Payable	$ 33,500
Notes Payable, Other Payables [Member] | Courtyard Kauai at Coconut Beach Hotel
Notes Payable
Notes payable		38,000		$ 38,000		38,000
Variable rate basis				30-day LIBOR
Notes Payable, Other Payables [Member] | Florida MOB Portfolio - Gardens Medical Pavilion
Notes Payable
Notes payable		$ 13,001		$ 13,001		13,298
Interest rate (as a percent)		4.90%		4.90%
Notes Payable, Other Payables [Member] | River Club and the Townhomes at River Club (formerly referred to as the UGA Portfolio)
Notes Payable
Notes payable		$ 24,016		$ 24,016		24,299
Interest rate (as a percent)		5.26%		5.26%
Notes Payable, Other Payables [Member] | Lakes of Margate
Notes Payable
Notes payable		$ 14,309		$ 14,309		14,496
Notes Payable, Other Payables [Member] | Arbors Harbor Town
Notes Payable
Notes payable		$ 24,775		$ 24,775		25,130
Interest rate (as a percent)		3.985%		3.985%
Notes Payable, Other Payables [Member] | 22 Exchange
Notes Payable
Notes payable		$ 19,392		$ 19,392		19,500
Interest rate (as a percent)		3.93%		3.93%
Notes Payable, Other Payables [Member] | Parkside
Notes Payable
Notes payable		$ 10,193		$ 10,193		10,469
Interest rate (as a percent)		5.00%		5.00%
Debt instrument, unamortized premium		$ 300		$ 300
Notes Payable, Other Payables [Member] | Lakewood Flats [Member]
Notes Payable
Notes payable						$ 33,500
Variable rate basis
Prospect Park
Notes Payable
Interest capitalized		$ 100	$ 100	$ 200	$ 400
LIBOR | Notes Payable, Other Payables [Member] | Courtyard Kauai at Coconut Beach Hotel
Notes Payable
Variable rate (as a percent)				0.95%
LIBOR | Notes Payable, Other Payables [Member] | Lakewood Flats [Member]
Notes Payable
Variable rate (as a percent)
Minimum [Member] | Notes Payable, Other Payables [Member] | Lakes of Margate
Notes Payable
Interest rate (as a percent)		5.49%		5.49%
Maximum [Member] | Notes Payable, Other Payables [Member] | Lakes of Margate
Notes Payable
Interest rate (as a percent)		5.92%		5.92%

Notes Payable - Future Principa

Notes Payable - Future Principal Payments - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Contractual obligations for principal payments
October 1, 2016 - December 31, 2016	$ 524
2,017	40,151
2,018	46,807
2,019	24,308
2,020	13,771
Thereafter	17,845
Total contractual obligations for principal payments	143,406
Unamortized premium	280
Total notes payable	143,686	$ 178,692
Deferred financing fees, net	(897)	(1,656)
Notes payable, net	$ 142,789	$ 177,036

Leasing Activity - Schedule of

Leasing Activity - Schedule of Future Minimum Payments (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)office_property
Operating Leased Assets [Line Items]
October 1, 2016 - December 31, 2016	$ 308
2,017	1,250
2,018	980
2,019	919
2,020	927
Thereafter	3,000
Total	$ 7,384
Operating Leases Period, Maximum	1 year
FLORIDA
Operating Leased Assets [Line Items]
Operating Leases of Lessor, Number of Office Properties | office_property	1

Derivative Instruments and He52

Derivative Instruments and Hedging Activities - Additional Information (Details)	Sep. 30, 2016derivative
Interest rate cap
Derivative [Line Items]
Number of interest rate caps	1

Derivative Instruments and He53

Derivative Instruments and Hedging Activities - Summary of Notional Values (Details) - Courtyard Kauai Coconut Beach Hotel, Kauai, Hawaii - Interest rate cap $ in Thousands	Sep. 30, 2016USD ($)
LIBOR
Derivative [Line Items]
Interest Rate/ Strike Rate (as a percent)	3.00%
Derivative not designated as hedging instruments
Derivative [Line Items]
Notional Value	$ 38,000

Derivative Instruments and He54

Derivative Instruments and Hedging Activities - Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Prepaid Expenses and Other Assets | Derivative not designated as hedging instruments | Interest rate derivative contracts
Derivative [Line Items]
Derivative financial instruments	$ 0	$ 2

Derivative Instruments and He55

Derivative Instruments and Hedging Activities - Effect on Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Amount of gain or (loss) on derivative not designated as hedging instrument	$ 0	$ 0	$ 2	$ 15

Distributions (Details)

Distributions (Details) - USD ($) $ / shares in Units, $ in Millions	Jan. 05, 2016	Mar. 18, 2015	Mar. 31, 2016	Mar. 31, 2015
Distributions [Abstract]
Special distribution declared on common stock (in dollars per share)	$ 1.50	$ 1
Special distribution declared on common stock, amount			$ 38.4	$ 25.7

Related Party Transactions (Det

Related Party Transactions (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)installment	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Related Party Transaction [Line Items]
Real Estate Acquisitions			$ 0	$ 0
Asset management fees	$ 554,000	$ 657,000	$ 1,773,000	2,099,000
Behringer Harvard Opportunity II Advisors [Member]
Related Party Transaction [Line Items]
Acquisition and Advisory Fees as Percentage of Purchase Development Construction or Improvement of each Asset Acquired			1.50%
Acquisition and Advisory Fees as Percentage of Funds Advanced in Respect of Loan or Other Investment			1.50%
Acquisition and Advisory Fees Payable Incurred			$ 0	100,000
Acquisition Expense Reimbursements			$ 0	100,000
Debt Instrument Fee Percentage			0.50%
Debt Instrument, Fee Amount	$ 0	$ 0	$ 0	0
Development Fees Incurred			0	0
Asset management fees			$ 1,600,000	2,000,000
Asset Management Fee, Percentage			0.05833%
Administrative Services Costs, Real Estate Management			$ 1,300,000		$ 1,500,000
Administrative Service Costs, Number of Installment Payments | installment			4
Payment of Administrative Service Costs, Maximum Period			45 days
Costs Incurred Administrative Services			$ 900,000	1,200,000
Costs Incurred Due Diligence Service Costs			$ 100,000	$ 100,000
Asset Purchases [Member] | Behringer Harvard Opportunity II Advisors [Member]
Related Party Transaction [Line Items]
Reimbursement of Acquisition Expense Percentage			0.25%
Development, Construction or Improvement of Assets [Member] | Behringer Harvard Opportunity II Advisors [Member]
Related Party Transaction [Line Items]
Reimbursement of Acquisition Expense Percentage			0.25%
Funds Advanced for Loan Investment [Member] | Behringer Harvard Opportunity II Advisors [Member]
Related Party Transaction [Line Items]
Reimbursement of Acquisition Expense Percentage			0.25%
Minimum [Member] | Behringer Harvard Opportunity II Advisors [Member]
Related Party Transaction [Line Items]
Non Reimbursement of Operating Expenses in Excess of Average Invested Assets			2.00%
Non Reimbursement of Operating Expenses in Excess of Net Income			25.00%

Related Party Transactions Rela

Related Party Transactions Related Party Transactions - Property Manager (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Behringer Harvard Opportunity II Management Services LLC [Member]
Related Party Transaction [Line Items]
Property Management Fees as Percentage of Gross Revenues of Properties	4.00%
Oversight Fee as Percentage of Gross Revenues of Property Managed	0.50%
Property Management Fees or Oversight Fees	$ 0.4	$ 0.5
Behringer Harvard Opportunity II Advisors [Member]
Related Party Transaction [Line Items]
Construction Management Fees, Percentage	5.00%
Construction Management Fees	$ 0	$ 0

Supplemental Cash Flow Inform59

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Supplemental Cash Flow Information [Abstract]
Interest paid, net of amounts capitalized	$ 4,484	$ 4,959
Income Taxes Paid, Net	175	856
Non-cash investing activities and financing activities:
Proceeds held in escrow through sale of real estate interests	0	912
Capital expenditures for real estate in accrued liabilities	139	414
Accrued distributions to noncontrolling interest	$ 21	$ 40

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event $ in Millions	Nov. 09, 2016USD ($)shares
Subsequent Event [Line Items]
Stock redemptions approved (in shares) | shares	141,840.6220
Aggregate redemption payment of shares approved | $	$ 0.7