FSP 303 East Wacker Drive 10-Q 12 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Oct. 31, 2013
Document and Entity Information	'	'
Entity Registrant Name	'FSP 303 East Wacker Drive Corp.	'
Entity Central Index Key	'0001431766	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
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	'	1
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Real estate investments, at cost:	'	'
Land	$26,200	$26,200
Building and improvements	143,817	138,564
Furniture and equipment	590	590
Real estate investments, gross	170,607	165,354
Less accumulated depreciation	25,204	22,639
Real estate investments, net	145,403	142,715
Acquired real estate leases, net of accumulated amortization of $3,923 and $3,487, respectively	798	1,234
Acquired favorable real estate leases, net of accumulated amortization of $3,964 and $3,524, respectively	807	1,247
Cash and cash equivalents	18,725	18,820
Restricted cash	3,284	1,930
Restricted investments	21,993	29,997
Tenant rent receivable, less allowance for doubtful accounts of $30 and $64, respectively	403	276
Step rent receivable	3,474	2,207
Deferred leasing costs, net of accumulated amortization of $798 and $560, respectively	3,414	3,256
Deferred financing costs, net of accumulated amortization of $65 and $43, respectively	239	261
Prepaid expenses and other assets	102	30
Total assets	198,642	201,973
Liabilities:	'	'
Accounts payable and accrued expenses	4,522	6,406
Tenant security deposits	447	566
Loan payable	35,000	35,000
Acquired unfavorable real estate leases, net of accumulated amortization of $113 and $101, respectively	49	61
Total liabilities	40,018	42,033
Commitments and Contingencies	'	'
Stockholders' Equity:	'	'
Preferred Stock, $.01 par value, 2,210 shares authorized, issued and outstanding at September 30, 2013 and December 31, 2012, aggregate liquidation preference $221,000	'	'
Common Stock, $.01 par value, 1 share authorized, issued and outstanding	'	'
Additional paid-in capital	197,162	197,162
Retained earnings and distributions in excess of earnings	-38,538	-37,222
Total stockholders' equity	158,624	159,940
Total liabilities and stockholders' equity	$198,642	$201,973

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, except Share data, unless otherwise specified
Consolidated Balance Sheets	'	'
Acquired real estate leases, accumulated amortization	$3,923	$3,487
Acquired favorable real estate leases, accumulated amortization	3,964	3,524
Tenant rent receivable, allowance for doubtful accounts (in dollars)	30	64
Deferred leasing costs, accumulated amortization	798	560
Deferred financing costs, accumulated amortization	65	43
Acquired unfavorable real estate leases, accumulated amortization	113	101
Preferred Stock, par value (in dollars per share)	$0.01	$0.01
Preferred Stock, shares authorized (in shares)	2,210	2,210
Preferred Stock, shares issued (in shares)	2,210	2,210
Preferred Stock, shares outstanding (in shares)	2,210	2,210
Preferred Stock, aggregate liquidation preference	$221,000	$221,000
Common Stock, par value (in dollars per share)	$0.01	$0.01
Common Stock, share authorized (in shares)	1	1
Common Stock, share issued (in shares)	1	1
Common Stock, share outstanding (in shares)	1	1

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues:	'	'	'	'
Rental	$3,737	$4,651	$10,931	$16,425
Total revenue	3,737	4,651	10,931	16,425
Expenses:	'	'	'	'
Rental operating expenses	1,455	1,499	3,969	4,857
Real estate taxes and insurance	1,219	963	2,877	3,355
Depreciation and amortization	1,433	1,338	4,151	4,340
Interest expense	430	431	1,290	1,291
Total expenses	4,537	4,231	12,287	13,843
Income (loss) before interest income	-800	420	-1,356	2,582
Interest income	13	21	40	75
Net income (loss) attributable to preferred stockholders	($787)	$441	($1,316)	$2,657
Weighted average number of preferred shares outstanding, basic and diluted (in shares)	2,210	2,210	2,210	2,210
Net income (loss) per preferred share, basic and diluted (in dollars per share)	($356)	$200	($595)	$1,202

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net income (loss)	($1,316,000)	$2,657,000
Adjustments to reconcile net income (loss) to net cash used for operating activities:	'	'
Depreciation and amortization	4,173,000	4,363,000
Amortization of favorable real estate leases	440,000	490,000
Amortization of unfavorable real estate leases	-12,000	-13,000
Increase (decrease) in bad debt reserve	-34,000	24,000
Changes in operating assets and liabilities:	'	'
Restricted cash	-1,354,000	-4,235,000
Tenant rent receivable	-93,000	185,000
Step rent receivable	-1,267,000	283,000
Prepaid expenses and other assets	-72,000	51,000
Accounts payable and accrued expenses	-1,755,000	-2,984,000
Tenant security deposits	-119,000	-23,000
Payment of deferred leasing costs	-545,000	-1,622,000
Net cash used for operating activities	-1,954,000	-824,000
Cash flows from investing activities:	'	'
Purchase of real estate assets	-6,145,000	-26,000
Redemptions of restricted investments	8,004,000	6,001,000
Net cash provided by investing activities	1,859,000	5,975,000
Cash flows from financing activities:	'	'
Distributions to stockholders	'	-5,695,000
Net cash used for financing activities	'	-5,695,000
Net decrease in cash and cash equivalents	-95,000	-544,000
Cash and cash equivalents, beginning of period	18,820,000	19,384,000
Cash and cash equivalents, end of period	18,725,000	18,840,000
Supplemental disclosure of cash flow information:	'	'
Cash paid for interest	1,268,000	1,268,000
Disclosure of non-cash investing activities:	'	'
Accrued costs for purchase of real estate assets	$785,000	$128,000

Organization_Basis_of_Presenta

Organization, Basis of Presentation, Real Estate and Depreciation, Financial Instruments, and Restricted Cash / Investments	9 Months Ended
	Sep. 30, 2013
Organization, Basis of Presentation, Real Estate and Depreciation, Financial Instruments, and Restricted Cash / Investments	'
Organization, Basis of Presentation, Real Estate and Depreciation, Financial Instruments, and Restricted Cash / Investments	'
	1.     Organization, Basis of Presentation, Real Estate and Depreciation, Financial Instruments, and Restricted Cash / Investments
	Organization
	FSP 303 East Wacker Drive Corp. (the “Company”) was organized on December 13, 2006 as a corporation under the laws of the State of Delaware to purchase, own, and operate a twenty-eight story multi-tenant office tower containing approximately 859,187 rentable square feet of office and retail space and a 294-stall underground parking garage located in downtown Chicago, Illinois (the “Property”).  The Company acquired the Property and commenced operations on January 5, 2007. Franklin Street Properties Corp. (“Franklin Street”) (NYSE MKT: FSP) holds the sole share of the Company’s common stock, $.01 par value per share (the “Common Stock”).  Between February 2007 and December 2007, FSP Investments LLC (member, FINRA and SIPC), a wholly-owned subsidiary of Franklin Street, completed the sale on a best efforts basis of 2,210 shares of preferred stock, $.01 par value per share (the “Preferred Stock”) in the Company.  FSP Investments LLC sold the Preferred Stock in a private placement offering to “accredited investors” within the meaning of Regulation D under the Securities Act of 1933.
	All references to the Company refer to FSP 303 East Wacker Drive Corp. and its consolidated subsidiary, collectively, unless the context otherwise requires.
	Basis of Presentation
	The unaudited consolidated financial statements of the Company include all the accounts of the Company and its wholly owned subsidiary.  These financial statements should be read in conjunction with the Company’s financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission (“SEC”).
	The accompanying interim financial statements are unaudited; however, the financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America for interim financial information and in conjunction with the rules and regulations of the SEC.  Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting solely of normal recurring matters) necessary for a fair presentation of the financial statements for these interim periods have been included.  Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013 or for any other period.
	Real Estate and Depreciation
	Real estate assets are stated at the lower of cost or fair value, as appropriate, less accumulated depreciation.
	Costs related to property acquisition and improvements are capitalized.  Typical capital items include new roofs, site improvements, various exterior building improvements and major interior renovations.
	Routine replacements and ordinary maintenance and repairs that do not extend the life of the asset are expensed as incurred.  Funding for repairs and maintenance items typically is provided by cash flows from operating activities.
	Depreciation is computed using the straight-line method over the assets’ estimated useful lives as follows:
	Category	Years
	Buildings	39
	Building Improvements	15-39
	Furniture and Equipment	7-May
	The Company reviews the Property to determine if the carrying amount will be recovered from future cash flows if certain indicators of impairment are identified at the Property.  The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results in future periods.  When indicators of impairment are present and the sum of the undiscounted future cash flows is less than the carrying value of such asset, an impairment loss is recorded equal to the difference between the asset’s current carrying value and its fair value based on discounting its estimated future cash flows.  At September 30, 2013 and December 31, 2012, no impairment charges were recorded.
	Financial Instruments
	The Company estimates that the carrying value of cash and cash equivalents, restricted cash, restricted investments and loan payable approximate their fair values based on their short-term maturity and prevailing interest rates.
	Restricted Cash and Investments
	The Company is required under the loan payable to hold proceeds from the loan in a restricted reserve account or accounts.  Restricted investment under the loan payable consists of investments in certificates of deposit and a U.S. Treasury Bill which the Company has the ability and intent to hold until their maturity. As of September 30, 2013, the Company held various certificates of deposit with original maturities of four to five months at a total carrying value of $13,000,000.  The Company also held an investment in a U.S. Treasury Bill that matures on March 6, 2014 with the value of $11,993,000.

Income_Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2013
Income Taxes	'
Income Taxes	'
	2.     Income Taxes
	The Company has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended.  As a REIT, the Company generally is entitled to a tax deduction for dividends paid to its stockholders, thereby effectively subjecting the distributed net income of the Company to taxation at the shareholder level only.  The Company must comply with a variety of restrictions to maintain its status as a REIT.  These restrictions include the type of income it can earn, the type of assets it can hold, the number of stockholders it can have and the concentration of their ownership, and the amount of the Company’s income that must be distributed annually.
	Accrued interest and penalties will be recorded as income tax expense, if the Company records a liability in the future.  The Company files income tax returns in the U.S. federal jurisdiction and the State of Illinois jurisdiction.  The statute of limitations for the Company’s income tax returns is generally three years and as such, the Company’s returns that remain subject to examination would be primarily from 2010 and thereafter.

Loan_Payable

Loan Payable	9 Months Ended
	Sep. 30, 2013
Loan Payable	'
Loan Payable	'
	3.    Loan Payable
	On August 3, 2011, the Company entered into a mortgage note in favor of John Hancock Life Insurance Company (U.S.A.) (the “Lender”) to evidence a loan (the “Loan”) in the original principal amount of $35,000,000 that matures on September 1, 2021.  The remaining proceeds of the Loan are being held by the Lender for the Company’s benefit in a restricted reserve account or accounts to be drawn upon by the Company from time to time for tenant improvement costs and leasing commissions at the Property upon satisfaction of certain conditions.  The Loan bears interest at the fixed rate of 4.83% per annum.  The Company is obligated to make monthly payments of interest only for the initial 60 months of the Loan.  Thereafter, the Company is obligated to make monthly payments of principal and interest for the remaining 60 months, based on a 25-year amortization schedule, until the maturity date, when all outstanding amounts become due.  The Loan is secured, in part, by a mortgage, assignment of leases and rents and security agreement (the “Mortgage”) from the Company in favor of the Lender.  The Mortgage constitutes a lien against the Property and has been recorded in the land records of Cook County, Illinois.  Subject to customary exceptions, the Loan is nonrecourse to the Company.  As of September 30, 2013, we had made aggregate draw requests under the Loan of $9,740,000.  Interest expense paid on the Loan for the nine months ended September 30, 2013 and 2012 was $1,268,000 for both periods.  The documents evidencing and securing the Loan include restrictions on property liens and require compliance with various financial covenants.  Financial covenants include the requirement that the Company provide annual reporting.  The Company was in compliance with the Loan covenants as of September 30, 2013 and December 31, 2012.
	Fees paid associated with the Loan were $304,000 and are being amortized on the straight-line basis over the term of the loan.  Amortization expense for the nine months ended September 30, 2013 and 2012 is $22,000 for both periods and is included in interest expense in the Company’s Consolidated Statements of Operations.

Related_Party_Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2013
Related Party Transactions	'
Related Party Transactions	'
	4.   Related Party Transactions
	Asset Management Agreement
	The Company has in the past engaged in and currently engages in transactions with a related party, Franklin Street, and its subsidiaries, FSP Investments LLC and FSP Property Management LLC (collectively “FSP”).  The Company expects to continue to have related party transactions with FSP in the form of management fees paid to FSP to manage the Company on behalf of its stockholders.  FSP Property Management LLC currently provides the Company with asset management and financial reporting services.  The asset management agreement between the Company and FSP Property Management LLC requires the Company to pay FSP Property Management LLC a monthly fee equal to one-half of one percent (.5%) of the gross revenues of the Property.  The asset management agreement between the Company and FSP Property Management LLC may be terminated by either party without cause at any time, upon at least thirty (30) days’ written notice.  For the nine months ended September 30, 2013 and 2012, management fees paid were approximately $50,000 and $83,000, respectively.
	Investor Services Agreement
	On August 14, 2012, the Company entered into an Investor Services Agreement (the “FSPI Agreement”) with FSP Investments LLC for the provision of investor services to holders of the Company’s preferred stock.  FSP Investments LLC is a wholly-owned subsidiary of Franklin Street, which is the sole holder of the Company’s one share of Common Stock that is issued and outstanding.  FSP Investments LLC acted as a real estate investment firm and broker/dealer with respect to (a) the Company’s organization, (b) the Company’s acquisition of the Property and (c) the sale of the Company’s equity interests.  The FSPI Agreement requires the Company to pay a monthly service fee of $500 for services performed under the FSPI Agreement, and to reimburse FSP Investments LLC for its reasonable out-of-pocket expenses incurred in connection with the FSPI Agreement.  The FSPI Agreement may be terminated by either party with thirty days written notice or immediately upon certain events of default set forth in the FSPI Agreement.  For the nine months ended September 30, 2013 and 2012, investor services fees and expenses paid were approximately $11,000 and $1,000, respectively.
	Ownership of Preferred Stock and Common Stock
	On December 27, 2007, Franklin Street purchased 965.75 shares of the Preferred Stock (or approximately 43.7%) of the Company for consideration totaling $82,813,000.  Prior to purchasing any shares of the Preferred Stock, Franklin Street agreed to vote any shares held by it on any matter presented to the holders of the Preferred Stock in a manner that approximates as closely as possible the votes cast in favor of and opposed to such matter by the holders of the Preferred Stock other than Franklin Street and its affiliates.  For purposes of determining how Franklin Street votes its shares of the Preferred Stock, abstentions and non-votes by stockholders other than Franklin Street are not considered. Franklin Street is entitled to distributions that are declared on the Preferred Stock.
	Franklin Street is the sole holder of the Company’s one share of Common Stock that is issued and outstanding.  Subsequent to the completion of the private placement of the Preferred Stock in December 2007, Franklin Street has not been entitled to share in our earnings or any dividend related to the Common Stock.

Net_Income_Per_Share

Net Income Per Share	9 Months Ended
	Sep. 30, 2013
Net Income Per Share	'
Net Income Per Share	'
	5.   Net Income Per Share
	Basic net income per share is computed by dividing net income by the weighted average number of shares of Preferred Stock outstanding during the period.  Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue shares were exercised or converted into shares.  There were no potential dilutive shares outstanding at September 30, 2013 and 2012.

Segment_Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2013
Segment Reporting	'
Segment Reporting	'
	6.              Segment Reporting
	The Company operates in one industry segment, which is real estate ownership of commercial property.  The Company owned and operated the Property for all periods presented.

Cash_Distributions

Cash Distributions	9 Months Ended
	Sep. 30, 2013
Cash Distributions	'
Cash Distributions	'
	7.     Cash Distributions
	The Company’s board of directors declared and paid cash distributions as follows:
	Quarter Paid	Distributions		Total
		Per Preferred		Distributions
		Share
	First quarter of 2013	$	—	$	—
	Second quarter of 2013	$	—	$	—
	Third quarter of 2013	$	—	$	—
	First quarter of 2012	$	859	$	1,898,390
	Second quarter of 2012	$	859	$	1,898,390
	Third quarter of 2012	$	859	$	1,898,390

Organization_Basis_of_Presenta1

Organization, Basis of Presentation, Real Estate and Depreciation, Financial Instruments, and Restricted Cash / Investments (Policies)	9 Months Ended
	Sep. 30, 2013
Organization, Basis of Presentation, Real Estate and Depreciation, Financial Instruments, and Restricted Cash / Investments	'
Basis of Presentation	'
	Basis of Presentation
	The unaudited consolidated financial statements of the Company include all the accounts of the Company and its wholly owned subsidiary.  These financial statements should be read in conjunction with the Company’s financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission (“SEC”).
	The accompanying interim financial statements are unaudited; however, the financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America for interim financial information and in conjunction with the rules and regulations of the SEC.  Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting solely of normal recurring matters) necessary for a fair presentation of the financial statements for these interim periods have been included.  Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013 or for any other period.
Real Estate and Depreciation	'
	Real Estate and Depreciation
	Real estate assets are stated at the lower of cost or fair value, as appropriate, less accumulated depreciation.
	Costs related to property acquisition and improvements are capitalized.  Typical capital items include new roofs, site improvements, various exterior building improvements and major interior renovations.
	Routine replacements and ordinary maintenance and repairs that do not extend the life of the asset are expensed as incurred.  Funding for repairs and maintenance items typically is provided by cash flows from operating activities.
	Depreciation is computed using the straight-line method over the assets’ estimated useful lives as follows:
	Category	Years
	Buildings	39
	Building Improvements	15-39
	Furniture and Equipment	7-May
	The Company reviews the Property to determine if the carrying amount will be recovered from future cash flows if certain indicators of impairment are identified at the Property.  The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results in future periods.  When indicators of impairment are present and the sum of the undiscounted future cash flows is less than the carrying value of such asset, an impairment loss is recorded equal to the difference between the asset’s current carrying value and its fair value based on discounting its estimated future cash flows.  At September 30, 2013 and December 31, 2012, no impairment charges were recorded.
Financial Instruments	'
	Financial Instruments
	The Company estimates that the carrying value of cash and cash equivalents, restricted cash, restricted investments and loan payable approximate their fair values based on their short-term maturity and prevailing interest rates.
Restricted Cash and Investments	'
	Restricted Cash and Investments
	The Company is required under the loan payable to hold proceeds from the loan in a restricted reserve account or accounts.  Restricted investment under the loan payable consists of investments in certificates of deposit and a U.S. Treasury Bill which the Company has the ability and intent to hold until their maturity. As of September 30, 2013, the Company held various certificates of deposit with original maturities of four to five months at a total carrying value of $13,000,000.  The Company also held an investment in a U.S. Treasury Bill that matures on March 6, 2014 with the value of $11,993,000.

Organization_Basis_of_Presenta2

Organization, Basis of Presentation, Real Estate and Depreciation, Financial Instruments, and Restricted Cash / Investments (Tables)	9 Months Ended
	Sep. 30, 2013
Organization, Basis of Presentation, Real Estate and Depreciation, Financial Instruments, and Restricted Cash / Investments	'
Schedule of estimated useful lives of real estate assets	'
	Category	Years
	Buildings	39
	Building Improvements	15-39
	Furniture and Equipment	7-May

Cash_Distributions_Tables

Cash Distributions (Tables)	9 Months Ended
	Sep. 30, 2013
Cash Distributions	'
Schedule of distributions declared and paid by the company	'
	Quarter Paid	Distributions		Total
		Per Preferred		Distributions
		Share
	First quarter of 2013	$	—	$	—
	Second quarter of 2013	$	—	$	—
	Third quarter of 2013	$	—	$	—
	First quarter of 2012	$	859	$	1,898,390
	Second quarter of 2012	$	859	$	1,898,390
	Third quarter of 2012	$	859	$	1,898,390

Organization_Basis_of_Presenta3

Organization, Basis of Presentation, Real Estate and Depreciation, Financial Instruments, and Restricted Cash / Investments (Details) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
	item
	sqft
Organization, Basis of Presentation, Real Estate and Depreciation, Financial Instruments, and Restricted Cash / Investments	'	'
Number of stories in the multi-tenant office tower operated by the entity	28	'
Rentable square feet area of office and retail space	859,187	'
Number of stalls	294	'
Organization	'	'
Common Stock, par value (in dollars per share)	$0.01	$0.01
Real Estate and Depreciation	'	'
Impairment charges	$0	$0
Restricted Cash and Investments	'	'
Carrying value of certificates of deposit	13,000,000	'
Carrying value of U.S. treasury bill	$11,993,000	'
Minimum	'	'
Restricted Cash and Investments	'	'
Certificates of deposit, maturity term	'4 months	'
Maximum	'	'
Restricted Cash and Investments	'	'
Certificates of deposit, maturity term	'5 months	'
Buildings	'	'
Real Estate and Depreciation	'	'
Estimated useful lives	'39 years	'
Building Improvements | Minimum	'	'
Real Estate and Depreciation	'	'
Estimated useful lives	'15 years	'
Building Improvements | Maximum	'	'
Real Estate and Depreciation	'	'
Estimated useful lives	'39 years	'
Furniture and Equipment | Minimum	'	'
Real Estate and Depreciation	'	'
Estimated useful lives	'5 years	'
Furniture and Equipment | Maximum	'	'
Real Estate and Depreciation	'	'
Estimated useful lives	'7 years	'
Franklin Street	'	'
Organization	'	'
Common Stock, par value (in dollars per share)	$0.01	'
FSP Investments LLC	'	'
Organization	'	'
Preferred stock, par value of underwritten shares (in dollars per share)	$0.01	'
Preferred stock, underwritten shares issued (in shares)	2,210	'

Income_Taxes_Details

Income Taxes (Details)	9 Months Ended
	Sep. 30, 2013
Income Taxes	'
Statute of limitation, period for income tax returns	'3 years

Loan_Payable_Details

Loan Payable (Details) (Loan Payable, USD $)	0 Months Ended	9 Months Ended
	Aug. 03, 2011	Sep. 30, 2013	Sep. 30, 2012
Loan Payable	'	'	'
Loan payable	'	'	'
Principal amount of loan	$35,000,000	'	'
Debt fixed interest rate (as a percent)	4.83%	'	'
Number of monthly interest only payments	'	'60 months	'
Number of remaining monthly principal and interest repayments	'	'60 months	'
Debt amortization schedule	'	'25 years	'
Aggregate draw requests under the Loan	'	9,740,000	'
Interest expense on loan	'	1,268,000	1,268,000
Fees paid associated with the loan	'	304,000	'
Amortization expense included in interest expense	'	$22,000	$22,000

Related_Party_Transactions_Det

Related Party Transactions (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Dec. 27, 2007	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
			Franklin Street	Franklin Street	FSP Property Management LLC	FSP Property Management LLC	FSP Property Management LLC	FSP Investments LLC	FSP Investments LLC	FSP Investments LLC
							Minimum			Minimum
Related party transactions	'	'	'	'	'	'	'	'	'	'
Percentage of gross revenues of property	'	'	'	'	0.50%	'	'	'	'	'
Notice period for termination of agreement	'	'	'	'	'	'	'30 days	'	'	'30 days
Management fees paid	'	'	'	'	$50,000	$83,000	'	'	'	'
Monthly service fees payable under the agreement	'	'	'	'	'	'	'	500	'	'
Service fees paid	'	'	'	'	'	'	'	11,000	1,000	'
Number of shares of preferred stock purchased by the related party	'	'	965.75	'	'	'	'	'	'	'
Consideration paid by related party for purchase of preferred stock	'	'	$82,813,000	'	'	'	'	'	'	'
Percentage of preferred stock purchased by related party	'	'	43.70%	'	'	'	'	'	'	'
Common Stock, share issued (in shares)	1	1	'	1	'	'	'	'	'	'
Common Stock, share outstanding (in shares)	1	1	'	1	'	'	'	'	'	'

Net_Income_Per_Share_Details

Net Income Per Share (Details)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Net Income Per Share	'	'
Potential dilutive shares outstanding	0	0

Segment_Reporting_Details

Segment Reporting (Details)	9 Months Ended
	Sep. 30, 2013
	item
Segment Reporting	'
Number of industry segments	1

Cash_Distributions_Details

Cash Distributions (Details) (USD $)	3 Months Ended			9 Months Ended
	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Sep. 30, 2012
Cash Distributions	'	'	'	'
Distributions Per Preferred Share (in dollars per share)	$859	$859	$859	'
Total Distributions	$1,898,390	$1,898,390	$1,898,390	$5,695,000