Carter Validus Mission Critical REIT 10-Q 12 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares shares in Thousands	3 Months Ended
	Mar. 31, 2017	May 09, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Entity Registrant Name	Carter Validus Mission Critical REIT, Inc.
Entity Central Index Key	1,482,974
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		186,120

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Real estate:
Land ($4,280 and $4,280, respectively, related to VIE)	$ 181,960	$ 181,960
Buildings and improvements, less accumulated depreciation of $166,250 and $152,486, respectively ($84,149 and $84,760, respectively, related to VIE)	1,819,566	1,812,769
Construction in process	0	16,143
Total real estate, net ($88,429 and $89,040, respectively, related to VIE)	2,001,526	2,010,872
Cash and cash equivalents ($2,440 and $2,308, respectively, related to VIE)	48,467	42,613
Acquired intangible assets, less accumulated amortization of $57,612 and $53,372, respectively ($6,282 and $6,465, respectively, related to VIE)	174,190	178,430
Other assets, net ($9,185 and $8,525, respectively, related to VIE)	106,321	105,739
Total assets	2,330,504	2,337,654
Liabilities:
Notes payable, net of deferred financing costs of $2,160 and $2,542, respectively ($51,073 and $51,283, respectively, related to VIE)	476,192	484,270
Credit facility, net of deferred financing costs of $1,506 and $1,789, respectively	376,494	356,211
Accounts payable due to affiliates ($30 and $54, respectively, related to VIE)	2,773	2,635
Accounts payable and other liabilities ($4,002 and $3,825, respectively, related to VIE)	38,374	40,196
Intangible lease liabilities, less accumulated amortization of $17,201 and $16,332, respectively ($7,774 and $8,030, respectively, related to VIE)	48,529	49,398
Total liabilities	942,362	932,710
Stockholders’ equity:
Preferred stock, $0.01 par value per share, 50,000,000 shares authorized; none issued and outstanding
Common stock, $0.01 par value per share, 300,000,000 shares authorized; 191,592,393 and 189,848,165 shares issued, respectively; 185,421,813 and 184,909,673 shares outstanding, respectively	1,854	1,849
Additional paid-in capital	1,630,395	1,625,862
Accumulated distributions in excess of earnings	(281,968)	(258,878)
Accumulated other comprehensive income	3,326	1,823
Total stockholders’ equity	1,353,607	1,370,656
Noncontrolling interests	34,535	34,288
Total equity	1,388,142	1,404,944
Total liabilities and stockholders’ equity	$ 2,330,504	$ 2,337,654

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Land	$ 181,960	$ 181,960
Buildings and improvements, accumulated depreciation	166,250	152,486
Buildings and improvements, net	1,819,566	1,812,769
Total real estate, net	2,001,526	2,010,872
Cash and cash equivalents	48,467	42,613
Acquired intangible assets, accumulated amortization	57,612	53,372
Acquired intangible assets, net	174,190	178,430
Other assets	106,321	105,739
Notes payable, deferred financing costs	2,160	2,542
Notes payable, net of deferred financing costs	476,192	484,270
Credit facility, deferred financing costs	1,506	1,789
Accounts payable due to affiliates	2,773	2,635
Accounts payable and other liabilities	38,374	40,196
Intangible lease liabilities, accumulated amortization	17,201	16,332
Intangible lease liabilities, net	$ 48,529	$ 49,398
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	191,592,393	189,848,165
Common stock, shares outstanding	185,421,813	184,909,673
Variable Interest Entity, Primary Beneficiary [Member]
Land	$ 4,280	$ 4,280
Buildings and improvements, net	84,149	84,760
Total real estate, net	88,429	89,040
Cash and cash equivalents	2,440	2,308
Acquired intangible assets, net	6,282	6,465
Other assets	9,185	8,525
Notes payable, net of deferred financing costs	51,073	51,283
Accounts payable due to affiliates	30	54
Accounts payable and other liabilities	4,002	3,825
Intangible lease liabilities, net	$ 7,774	$ 8,030

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue:
Rental and parking revenue	$ 47,810	$ 52,189
Tenant reimbursement revenue	3,580	4,321
Total revenue	51,390	56,510
Expenses:
Rental and parking expenses	7,391	6,639
General and administrative expenses	1,683	1,581
Change in fair value of contingent consideration	(1,140)	120
Asset management fees	4,819	4,787
Depreciation and amortization	18,067	16,999
Total expenses	30,820	30,126
Income from operations	20,570	26,384
Other income (expense):
Other interest and dividend income	563	2,822
Interest expense, net	(8,665)	(10,614)
Provision for loan losses	(2,484)	0
Total other expense	(10,586)	(7,792)
Net income	9,984	18,592
Net income attributable to noncontrolling interests in consolidated partnerships	(1,081)	(928)
Net income attributable to common stockholders	8,903	17,664
Other comprehensive income (loss):
Unrealized income (loss) on interest rate swaps, net	1,503	(3,863)
Other comprehensive income (loss)	1,503	(3,863)
Comprehensive income	11,487	14,729
Comprehensive income attributable to noncontrolling interests in consolidated partnerships	(1,081)	(928)
Comprehensive income attributable to common stockholders	$ 10,406	$ 13,801
Weighted average number of common shares outstanding:
Basic (in shares)	185,300,384	181,975,405
Diluted (in shares)	185,317,075	181,992,093
Net income per common share attributable to common stockholders:
Basic (in dollars per share)	$ 0.05	$ 0.10
Diluted (in dollars per share)	0.05	0.10
Distributions declared per common share	$ 0.17	$ 0.17

Condensed Consolidated Stateme5

Condensed Consolidated Statement Of Stockholders' Equity - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid in Capital [Member]	Accumulated Distributions in Excess of Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Total Stockholders' Equity [Member]	Noncontrolling Interests [Member]
Balance, (in shares) at Dec. 31, 2016	184,909,673	184,909,673
Balance, at Dec. 31, 2016	$ 1,404,944	$ 1,849	$ 1,625,862	$ (258,878)	$ 1,823	$ 1,370,656	$ 34,288
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Vesting of restricted stock (in shares)		0
Vesting of restricted stock	23		23			23	0
Issuance of common stock under the distribution reinvestment plan (in shares)		1,744,228
Issuance of common stock under the distribution reinvestment plan	16,621	$ 17	16,604			16,621	0
Distributions to noncontrolling interests	(834)					0	(834)
Distributions declared to common stockholders	(31,993)			(31,993)		(31,993)	0
Other offering costs	(5)		(5)			(5)	0
Repurchase of common stock (in shares)		(1,232,088)
Repurchase of common stock	(12,101)	$ (12)	(12,089)			(12,101)	0
Other comprehensive income	1,503				1,503	1,503	0
Net income	$ 9,984			8,903		8,903	1,081
Balance, (in shares) at Mar. 31, 2017	185,421,813	185,421,813
Balance, at Mar. 31, 2017	$ 1,388,142	$ 1,854	$ 1,630,395	$ (281,968)	$ 3,326	$ 1,353,607	$ 34,535

Condensed Consolidated Stateme6

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income	$ 9,984	$ 18,592
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	18,067	16,999
Amortization of deferred financing costs	941	1,151
Amortization of above-market leases	93	116
Amortization of intangible lease liabilities	(869)	(975)
Provision for doubtful accounts	7,664	0
Provision for loan losses	2,484	0
Loss on debt extinguishment	0	1,133
Straight-line rent	(3,849)	(6,551)
Stock-based compensation	23	23
Change in fair value of contingent consideration	(1,140)	120
Changes in operating assets and liabilities:
Accounts payable and other liabilities	(488)	(940)
Accounts payable due to affiliates	146	9
Other assets	(3,437)	(509)
Net cash provided by operating activities	29,619	29,168
Cash flows from investing activities:
Capital expenditures	(4,501)	(10,432)
Real estate deposits, net	0	16
Notes receivable advances	(500)	(1,619)
Net cash used in investing activities	(5,001)	(12,035)
Cash flows from financing activities:
Payments on notes payable	(8,459)	(34,437)
Proceeds from credit facility	20,000	50,000
Payments of deferred financing costs	(1,417)	(34)
Repurchase of common stock	(12,101)	(8,393)
Offering costs	(5)	(10)
Distributions to stockholders	(15,309)	(14,559)
Payments to escrow funds	(866)	(1,457)
Collections of escrow funds	227	222
Distributions to noncontrolling interests in consolidated partnerships	(834)	(557)
Net cash used in financing activities	(18,764)	(9,225)
Net change in cash and cash equivalents	5,854	7,908
Cash and cash equivalents - Beginning of period	42,613	28,527
Cash and cash equivalents - End of period	48,467	36,435
Supplemental cash flow disclosure:
Interest paid, net of interest capitalized of $861 and $251, respectively	8,525	8,698
Supplemental disclosure of non-cash transactions:
Common stock issued through distribution reinvestment plan	16,621	17,084
Net unrealized gain (loss) on interest rate swap	$ 1,503	$ (3,863)

Condensed Consolidated Stateme7

Condensed Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Cash Flows [Abstract]
Interest capitalized	$ 861	$ 251

Organization and Business Opera

Organization and Business Operations	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business Operations	Organization and Business Operations Carter Validus Mission Critical REIT, Inc., or the Company, a Maryland corporation, was incorporated on December 16, 2009 and elected to be taxed and currently qualifies as a real estate investment trust, or a REIT, under the Internal Revenue Code of 1986, as amended, or the Code, for federal income tax purposes. The Company was organized to acquire and operate a diversified portfolio of income-producing commercial real estate, with a focus on the data center and healthcare property sectors, net leased to creditworthy tenants, as well as to make other real estate-related investments that relate to such property types. The Company operates through two reportable segments—commercial real estate investments in data centers and healthcare. Substantially all of the Company’s business is conducted through Carter/Validus Operating Partnership, LP, a Delaware limited partnership, or the Operating Partnership. The Company is the sole general partner of the Operating Partnership. Carter/Validus Advisors, LLC, or the Advisor, the Company’s affiliated advisor, is the sole limited partner of the Operating Partnership. As of March 31, 2017 , the Company owned 49 real estate investments (including one real estate investment owned through a consolidated partnership ), consisting of 84 properties located in 46 metropolitan statistical areas, or MSAs. The Company ceased offering shares of common stock in its initial public offering, or the Offering, on June 6, 2014. At the completion of the Offering, the Company raised gross proceeds of approximately $1,716,046,000 (including shares of common stock issued pursuant to a distribution reinvestment plan, or the DRIP). The Company will continue to issue shares of common stock under the DRIP Offering until such time as the Company sells all of the shares registered for sale under the DRIP Offering, unless the Company files a new registration statement with the Securities and Exchange Commission, or the SEC, or the DRIP Offering is terminated by the Company’s board of directors. We refer to our DRIP Offering and Offering together as the "Offerings." Effective January 1, 2017, shares are offered pursuant to the DRIP Offering for a price per share of $9.519 , which is the greater of (i) 95% of the fair market value per share as determined by our board of directors as of September 30, 2016 and (ii) $9.50 per share, until such time as our board of directors determines a new estimated share value. As of March 31, 2017 , the Company had issued approximately 191,535,000 shares of common stock in the Offerings for gross proceeds of $1,896,389,000 , before share repurchases of $59,963,000 and offering costs, selling commissions and dealer manager fees of $174,798,000 . Except as the context otherwise requires, “we,” “our,” “us,” and the “Company” refer to Carter Validus Mission Critical REIT, Inc., the Operating Partnership, all majority-owned subsidiaries and controlled subsidiaries.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies The summary of significant accounting policies presented below is designed to assist in understanding the Company’s condensed consolidated financial statements. Such condensed consolidated financial statements and the accompanying notes thereto are the representation of management. The accompanying condensed consolidated unaudited financial statements of the Company have been prepared in accordance with the accounting principles generally accepted in the United States, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal and recurring nature considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ended December 31, 2017 . The condensed consolidated balance sheet at December 31, 2016 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended December 31, 2016 and related notes thereto set forth in the Company’s Annual Report on Form 10-K, filed with the SEC on March 30, 2017. Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company, the Operating Partnership, all majority-owned subsidiaries and controlled subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP necessarily 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 condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. Allowance for Uncollectible Accounts Tenant receivables and unbilled deferred rent receivables are carried net of the allowances for uncollectible amounts. An allowance will be maintained for estimated losses resulting from the inability of certain tenants to meet the contractual obligations under their lease agreements. The Company also maintains an allowance for deferred rent receivables arising from the straight-lining of rents. The Company’s determination of the adequacy of these allowances is based primarily upon evaluations of historical loss experience, the tenant’s financial condition, security deposits, letters of credit, lease guarantees and current economic conditions and other relevant factors. For the three months ended March 31, 2017, the Company recorded $7,664,000 in provision for doubtful accounts related to reserves for rental and parking revenue and tenant reimbursement revenue, which are recognized in the accompanying condensed consolidated statements of comprehensive income as a deduction from rental and parking revenue and tenant reimbursement revenue. The provision for doubtful accounts is the result of two tenants experiencing financial difficulties, which the Company believes will result in material new lease terms. Notes Receivable Notes receivable are reported at their outstanding principal balance, net of any unearned income, unamortized deferred fees and costs and allowances for doubtful accounts. The unamortized deferred fees and costs are amortized over the life of the notes receivable, as applicable, and recorded in other interest and dividend income in the accompanying condensed consolidated statements of comprehensive income . The Company evaluates the collectability of both interest and principal on each note receivable to determine whether it is collectible primarily through the evaluation of credit quality indicators, such as the tenant's financial condition, evaluations of historical loss experience, current economic conditions and other relevant factors. Impairment occurs when it is determined probable that the Company will not be able to collect principal and interest amounts due according to the contractual terms of the note. Evaluating a note receivable for potential impairment requires management to exercise significant judgment. As of March 31, 2017 and December 31, 2016 , the aggregate balance on the Company's notes receivable before allowances for loan losses was $20,275,000 and $19,422,000 , respectively. For the three months ended March 31, 2017 the Company recorded $2,484,000 as an allowance to reduce the carrying value of two notes receivable and accrued interest in provision for loan losses in the accompanying condensed consolidated financial statements. Concentration of Credit Risk and Significant Leases As of March 31, 2017 , the Company had cash on deposit, including restricted cash, in certain financial institutions that had deposits in excess of current federally insured levels; however, the Company has not experienced any losses in such accounts. The Company limits its cash investments to financial institutions with high credit standings; therefore, the Company believes it is not exposed to any significant credit risk on its cash deposits. To date, the Company has experienced no loss of or lack of access to cash in its accounts. As of March 31, 2017 , the Company owned real estate investments in 46 MSAs, (including one real estate investment owned through a consolidated partnership), two of which accounted for 10.0% or more of contractual rental revenue. Real estate investments located in the Dallas-Ft. Worth-Arlington, Texas MSA and the Chicago-Naperville-Elgin, Illinois-Indiana-Wisconsin MSA accounted for an aggregate of 12.2% and 11.8% , respectively, of contractual rental revenue for the three months ended March 31, 2017 . As of March 31, 2017 , the Company had one exposure to tenant concentration that accounted for 10.0% or more of rental revenue. The leases with AT&T Services, Inc. accounted for 11.7% of rental revenue for the three months ended March 31, 2017 . Share Repurchase Program The Company’s share repurchase program allows for repurchases of shares of the Company’s common stock when certain criteria are met. The share repurchase program provides that all repurchases during any calendar year, including those redeemable upon death or a qualifying disability of a stockholder, are limited to those that can be funded with equivalent reinvestments pursuant to the DRIP Offerings during the prior calendar year and other operating funds, if any, as the board of directors, in its sole discretion, may reserve for this purpose. Repurchases of shares of the Company’s common stock are at the sole discretion of the Company’s board of directors. In addition, the Company’s board of directors, in its sole discretion, may amend, suspend, reduce, terminate or otherwise change the share repurchase program upon 30 days ' prior notice to the Company’s stockholders for any reason it deems appropriate. The share repurchase program provides that the Company will limit the number of shares repurchased during any calendar year to 5.0% of the number of shares of common stock outstanding as of December 31st of the previous calendar year. During the three months ended March 31, 2017 , the Company received valid repurchase requests related to approximately 1,232,000 shares of common stock, all of which were repurchased in full for an aggregate purchase price of approximately $12,101,000 (an average of $9.82 per share). During the three months ended March 31, 2016 , the Company received valid repurchase requests related to approximately 871,000 shares of common stock, all of which were repurchased in full for an aggregate purchase price of approximately $8,393,000 (an average of $9.64 per share). Earnings Per Share Basic earnings per share for all periods presented are computed by dividing net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Shares of non-vested restricted common stock give rise to potentially dilutive shares of common stock. Diluted earnings per share are computed based on the weighted average number of shares outstanding and all potentially dilutive securities. For the three months ended March 31, 2017 and 2016 , diluted earnings per share reflected the effect of approximately 17,000 for each period of non-vested shares of restricted common stock that were outstanding as of such period. Recently Issued Accounting Pronouncements On May 28, 2014, the Financial Accounting Standards Board, or the FASB, issued ASU 2014-09, Revenue from Contracts with Customers , or ASU 2014-09. The objective of ASU 2014-09 is to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle, which may require more judgment and estimates within the revenue recognition process than are required under existing GAAP. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date , or ASU 2015-14. ASU 2015-14 defers the effective date of ASU 2014-09 by one year to fiscal years and interim periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date, which was annual reporting periods beginning after December 15, 2016, and the interim periods within that year. On March 17, 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers Principal versus Agent Considerations (Reporting Revenue Gross versus Net), or ASU 2016-08, which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard. ASU 2016-08 clarifies that an entity is a principal when it controls the specified good or service before that good or service is transferred to the customer, and is an agent when it does not control the specified good or service before it is transferred to the customer. The effective date and transition of this update is the same as the effective date and transition of ASU 2015-14. The Company believes the adoption of ASUs 2014-09 and 2016-08 will not have a material impact on the Company’s consolidated financial statements, but may result in additional disclosures. On February 25, 2016, the FASB issued ASU 2016-02 , Leases , or ASU 2016-02. ASU 2016-02 establishes the principles to increase the transparency about the assets and liabilities arising from leases. ASU 2016-02 results in a more faithful representation of the rights and obligations arising from leases by requiring lessees to recognize the lease assets and lease liabilities that arise from leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions and aligns lessor accounting and sale leaseback transactions guidance more closely to comparable guidance in Topic 606, Revenue from Contracts with Customers , and Topic 610, Other Income . ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is in process of evaluating the impact ASU 2016-02 will have on the Company’s consolidated financial statements. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses, or ASU 2016-13. ASU 2016-13 requires more timely recording of credit losses on loans and other financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other such commitments. ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 require the Company to measure all expected credit losses based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets and eliminates the “incurred loss” methodology in current GAAP. ASU 2016-13 is effective for fiscal years, and interim periods within, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within, beginning after December 15, 2018. The Company is in the process of evaluating the impact ASU 2016-13 will have on the Company’s consolidated financial statements. On November 17, 2016, the FASB issued ASU 2016-18, Restricted Cash , or ASU 2016-18. ASU 2016-18 requires that a statement of cash flows explain the change during a reporting period in the total of cash, cash equivalents, and amounts generally described as restricted cash and restricted cash equivalents. This ASU states that transfers between cash, cash equivalents, and restricted cash are not part of the entity’s operating, investing, and financing activities. Therefore, restricted cash should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. This ASU should be applied using a retrospective transition method to each period presented. The Company is in the process of evaluating the impact ASU 2016-18 will have on the Company’s consolidated statements of cash flows. On January 5, 2017, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Update, or ASU, 2017-01, Business Combinations , or ASU 2017-01. ASU 2017-01 clarifies the definition of a business. The objective of ASU 2017-01 is to add further guidance that assists entities in evaluating whether a transaction will be accounted for as an acquisition of an asset or a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the set of transferred asset and activities is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted using a prospective transition method. The Company adopted ASU 2017-01 effective October 1, 2016. On February 23, 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, or ASU 2017-05. ASU 2017-05 clarifies the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets. Partial sales of nonfinancial assets are common in the real estate industry and include transactions in which the seller retains an equity interest in the entity that owns the assets or has an equity interest in the buyer. ASU 2017-05 is effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those fiscal years. Early adoption is permitted. The Company is in process of evaluating the impact ASU 2017-05 will have on the Company’s condensed consolidated financial statements. Reclassifications Certain prior period amounts have been reclassified to conform to the current financial statement presentation, with no effect on the Company’s condensed consolidated financial position or results of operations.

Acquired Intangible Assets, Net

Acquired Intangible Assets, Net	3 Months Ended
	Mar. 31, 2017
Finite-Lived Intangible Assets, Net [Abstract]
Acquired Intangible Assets, Net	Acquired Intangible Assets, Net Acquired intangible assets, net, consisted of the following as of March 31, 2017 and December 31, 2016 (amounts in thousands, except weighted average life amounts): March 31, 2017 December 31, 2016 In-place leases, net of accumulated amortization of $55,984 and $51,837, respectively (with a weighted average remaining life of 12.7 years and 12.9 years, respectively) $ 168,644 $ 172,791 Above-market leases, net of accumulated amortization of $1,383 and $1,303, respectively (with a weighted average remaining life of 10.0 years and 10.3 years, respectively) 2,977 3,057 Ground lease interest, net of accumulated amortization of $245 and $232, respectively (with a weighted average remaining life of 59.3 years and 59.5 years, respectively) 2,569 2,582 $ 174,190 $ 178,430 The aggregate weighted average remaining life of the acquired intangible assets was 13.3 years and 13.5 years as of March 31, 2017 and December 31, 2016 , respectively. Amortization of the acquired intangible assets for the three months ended March 31, 2017 and 2016 was $4,240,000 and $4,346,000 , respectively. Amortization of the above-market leases is recorded as an adjustment to rental and parking revenue, amortization expense for the in-place leases is included in depreciation and amortization and amortization expense for the ground lease interest is included in rental and parking expenses in the accompanying condensed consolidated statements of comprehensive income .

Intangible Lease Liabilities, N

Intangible Lease Liabilities, Net	3 Months Ended
	Mar. 31, 2017
Intangible Lease Liabilities, Net [Abstract]
Intangible Lease Liabilities, Net	Intangible Lease Liabilities, Net Intangible lease liabilities, net, consisted of the following as of March 31, 2017 and December 31, 2016 (amounts in thousands, except weighted average life amounts): March 31, 2017 December 31, 2016 Below-market leases, net of accumulated amortization of $16,869 and $16,031, respectively (with a weighted average remaining life of 16.9 years and 17.1 years, respectively) $ 43,536 $ 44,374 Ground leasehold liabilities, net of accumulated amortization of $332 and $301, respectively (with a weighted average remaining life of 42.0 years and 42.2 years, respectively) 4,993 5,024 $ 48,529 $ 49,398 The aggregate weighted average remaining life of intangible lease liabilities was 19.5 years and 19.6 years as of March 31, 2017 and December 31, 2016 , respectively. Amortization of the intangible lease liabilities for the three months ended March 31, 2017 and 2016 was $869,000 and $975,000 , respectively. Amortization of below-market leases is recorded as an adjustment to rental and parking revenue and amortization expense of ground leasehold liabilities is included in rental and parking expenses in the accompanying condensed consolidated statements of comprehensive income .

Other Assets, Net

Other Assets, Net	3 Months Ended
	Mar. 31, 2017
Other Assets [Abstract]
Other Assets, Net	Other Assets, Net Other assets, net consisted of the following as of March 31, 2017 and December 31, 2016 (amounts in thousands): March 31, 2017 December 31, 2016 Deferred financing costs related to the revolver portion of the unsecured credit facility, net of accumulated amortization of $6,113 and $5,833, respectively $ 2,017 $ 877 Lease commissions, net of accumulated amortization of $698 and $557, respectively 5,019 4,869 Investments in unconsolidated partnerships 119 113 Tenant receivables, net of allowances for doubtful accounts of $13,671 and $6,007, respectively 5,808 10,475 Notes receivable, net of allowances for loan losses of $6,778 and $4,294, respectively 13,497 15,128 Real estate-related notes receivable 514 514 Straight-line rent receivable 57,843 53,545 Restricted cash held in escrow 14,521 13,882 Restricted cash 1,285 1,110 Derivative assets 3,900 3,070 Prepaid and other assets 1,798 2,156 $ 106,321 $ 105,739

Accounts Payable and Other Liab

Accounts Payable and Other Liabilities	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Accounts Payable and Other Liabilities	Accounts Payable and Other Liabilities Accounts payable and other liabilities, as of March 31, 2017 and December 31, 2016 , were comprised of the following (amounts in thousands): March 31, 2017 December 31, 2016 Accounts payable and accrued expenses $ 7,286 $ 7,200 Accrued interest expense 2,901 2,855 Accrued property taxes 2,870 4,277 Contingent consideration obligations 4,500 5,640 Distributions payable to stockholders 11,032 10,968 Tenant deposits 1,039 1,039 Deferred rental income 8,172 6,970 Derivative liabilities 574 1,247 $ 38,374 $ 40,196

Notes Payable and Unsecured Cre

Notes Payable and Unsecured Credit Facility	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Notes Payable and Unsecured Credit Facility	Notes Payable and Unsecured Credit Facility The Company's debt outstanding as of March 31, 2017 and December 31, 2016 consisted of the following (amounts in thousands): March 31, 2017 December 31, 2016 Notes payable: Fixed rate notes payable $ 108,472 $ 114,783 Variable rate notes payable fixed through interest rate swaps 328,643 330,425 Variable rate notes payable 41,237 41,604 Total notes payable, principal amount outstanding 478,352 486,812 Unamortized deferred financing costs related to notes payable (2,160 ) (2,542 ) Total notes payable, net of deferred financing costs 476,192 484,270 Unsecured credit facility: Revolving line of credit 168,000 148,000 Term loan 210,000 210,000 Total unsecured credit facility, principal amount outstanding 378,000 358,000 Unamortized deferred financing costs related to the term loan of the unsecured credit facility (1,506 ) (1,789 ) Total unsecured credit facility, net of deferred financing costs 376,494 356,211 Total debt outstanding $ 852,686 $ 840,481 Significant debt activity since December 31, 2016 , excluding scheduled principal payments, includes: • On January 31, 2017, the Operating Partnership and certain of the Company’s subsidiaries entered into an amendment related to the unsecured credit facility to extend the maturity date and modify the extension options of the revolving line of credit portion of the unsecured credit facility. In connection with the amendment to the unsecured credit facility, the maturity date of the revolving line of credit was changed from May 28, 2017 to May 28, 2018 , subject to the Operating Partnership's right to two 12 -month extension periods (the Operating Partnership previously had a right to one 12 -month extension period). • On February 10, 2017 the Company paid off its debt in connection with one of the Company's notes payable, the maturity date of which was February 10, 2017 , with an outstanding principal balance of $5,645,000 at the time of repayment. • During the three months ended March 31, 2017 the Company made a draw of $20,000,000 on its unsecured credit facility. • As of March 31, 2017 , the Company had a total unencumbered pool availability under the unsecured credit facility of $514,575,000 and an aggregate outstanding principal balance of $378,000,000 . As of March 31, 2017 , $136,575,000 remained available to be drawn on the unsecured credit facility. The principal payments due on the notes payable and unsecured credit facility for the nine months ending December 31, 2017 and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount Nine months ending December 31, 2017 $ 182,535 (1) 2018 317,008 2019 170,647 2020 136,160 2021 1,239 Thereafter 48,763 $ 856,352 (1) Of this amount, $105,850,000 relates to one loan agreement with a maturity date of August 21, 2017 , subject to the Company's right to a two -year extension and $18,707,000 relates to one loan agreement, the maturity date of which is October 11, 2017 , subject to the Company's right to two one -year extensions. The Company may refinance these loan agreements or exercise the extension options depending upon refinancing terms available at the time. In addition, $51,161,000 relates to three loan agreements of which the Company may elect to add to the unencumbered pool of the unsecured credit facility.

Related-Party Transactions and

Related-Party Transactions and Arrangements	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related-Party Transactions and Arrangements	Related-Party Transactions and Arrangements The Company pays to the Advisor 2.0% of the contract purchase price of each property or asset acquired, 2.0% of the cost of development/redevelopment projects, other than the initial acquisition of the property and 2.0% of the amount advanced with respect to a mortgage loan. For the three months ended March 31, 2017 and 2016 , the Company did not incur acquisition fees to the Advisor or its affiliates related to investments in real estate. The Company pays the Advisor an annual asset management fee of 0.85% of the aggregate asset value plus costs and expenses incurred by the Advisor in providing asset management services. The fee is payable monthly in an amount equal to 0.07083% of the aggregate asset value as of the last day of the immediately preceding month. For the three months ended March 31, 2017 and 2016 , the Company incurred $4,819,000 and $4,787,000 , respectively, in asset management fees to the Advisor. The Company reimburses the Advisor for all expenses it paid or incurred in connection with the services provided to the Company, subject to certain limitations. The Company will not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives an acquisition and advisory fee or a disposition fee. For the three months ended March 31, 2017 and 2016 , the Advisor allocated $455,000 and $428,000 , respectively, in operating expenses incurred on the Company’s behalf. The Company has no direct employees. The employees of the Advisor and other affiliates provide services to the Company related to acquisitions, property management, asset management, accounting, investor relations, and all other administrative services. If the Advisor or its affiliates provides a substantial amount of services, as determined by a majority of the Company’s independent directors, in connection with the sale of one or more properties, the Company will pay the Advisor a disposition fee up to the lesser of 1.0% of the contract sales price and one-half of the brokerage commission paid if a third party broker is involved. In no event will the combined real estate commission paid to the Advisor, its affiliates and unaffiliated third parties exceed 6.0% of the contract sales price. Notwithstanding the terms of the advisory agreement, the Advisor agreed to receive a reduced disposition fee payable to the Advisor or its affiliates in the event of a disposition of all or substantially all of the assets of the Company, a sale of the Company, or a merger with a change of control of the Company, of up to the lesser of 50% of the fees paid in the aggregate to third party investment bankers for such transaction, not to exceed 0.5% of the transaction price. The disposition fee is otherwise payable in accordance with the advisory agreement. This reduction in the disposition fee would not impact a disposition fee paid in the event of a sale of an individual property or portfolio of properties. The reduced disposition fee in such situations was approved by the Company's board of directors on May 5, 2016. In addition, after investors have received a return on their net capital contributions and an 8.0% cumulative non-compounded annual return, then the Advisor is entitled to receive 15.0% of the remaining net sale proceeds. As of March 31, 2017 , the Company has not incurred a disposition fee or a subordinated participation in net sale proceeds to the Advisor or its affiliates. Upon listing of the Company’s common stock on a national securities exchange, the Company will pay the Advisor a subordinated incentive listing fee equal to 15.0% of the amount by which the market value of the Company’s outstanding stock plus all distributions paid by the Company prior to listing exceeds the sum of the total amount of capital raised from investors and the amount of cash flow necessary to generate an 8.0% cumulative, non-compounded annual return to investors. As of March 31, 2017 , the Company has not incurred a subordinated incentive listing fee. Upon termination or non-renewal of the Advisory Agreement, with or without cause, the Advisor will be entitled to receive distributions from the Operating Partnership equal to 15.0% of the amount by which the sum of the Company’s adjusted market value plus distributions exceeds the sum of the aggregate capital contributed by investors plus an amount equal to an annual 8.0% cumulative, non-compounded return to investors. In addition, the Advisor may elect to defer its right to receive a subordinated distribution upon termination until either shares of the Company’s common stock are listed and traded on a national securities exchange or another liquidity event occurs. As of March 31, 2017 , the Company has not incurred any subordinated termination fees to the Advisor or its affiliates. The Company pays Carter Validus Real Estate Management Services, LLC, or the Property Manager, leasing and property management fees for the Company’s properties. Such fees equal 3.0% of monthly gross revenues from single-tenant properties and 4.0% of monthly gross revenues from multi-tenant properties. The Company will reimburse the Property Manager and its affiliates for property-level expenses that any of them pay or incur on the Company’s behalf, including salaries, bonuses and benefits of persons employed by the Property Manager and its affiliates, except for the salaries, bonuses and benefits of persons who also serve as one of the Company’s executive officers. The Property Manager and its affiliates may subcontract the performance of their duties to third parties and pay all or a portion of the property management fee to the third parties with whom they contract for these services. If the Company contracts directly with third parties for such services at customary market fees, the Company may pay the Property Manager an oversight fee equal to 1.0% of the gross revenues of the property managed. In no event will the Company pay the Property Manager, the Advisor or its affiliates both a property management fee and an oversight fee with respect to any particular property. The Company will pay the Property Manager a separate fee for the one-time initial rent-up, lease renewals or leasing-up of newly constructed properties. For the three months ended March 31, 2017 and 2016 , the Company incurred $1,432,000 and $1,287,000 , respectively, in property management fees to the Property Manager, which are recorded in rental and parking expenses in the accompanying condensed consolidated statements of comprehensive income . For the three months ended March 31, 2017 the Company incurred $277,000 in leasing commissions to the Property Manager. Leasing commission fees are capitalized in other assets, net in the accompanying condensed consolidated balance sheets . For acting as general contractor and/or construction manager to supervise or coordinate projects or to provide major repairs or rehabilitation on our properties, the Company may pay the Property Manager up to 5.0% of the cost of the projects, repairs and/or rehabilitation, as applicable, or construction management fees. For the three months ended March 31, 2017 the Company incurred $91,000 in construction management fees to the Property Manager. Construction management fees are capitalized in buildings and improvements in the accompanying condensed consolidated balance sheets . Accounts Payable Due to Affiliates The following amounts were due to affiliates as of March 31, 2017 and December 31, 2016 (amounts in thousands): Entity Fee March 31, 2017 December 31, 2016 Carter/Validus Advisors, LLC and its affiliates Asset management fees $ 1,608 $ 1,604 Carter Validus Real Estate Management Services, LLC Property management fees 908 791 Carter/Validus Advisors, LLC and its affiliates General, administrative and other costs 199 174 Carter Validus Real Estate Management Services, LLC Construction management fees 58 66 $ 2,773 $ 2,635

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting Management reviews the performance of individual properties and aggregates individual properties based on operating criteria into two reportable segments—commercial real estate investments in data centers and healthcare—and makes operating decisions based on these two reportable segments. The Company’s commercial real estate investments in data centers and healthcare are based on certain underwriting assumptions and operating criteria, which are different for data centers and healthcare. There were no intersegment sales or transfers during the three months ended March 31, 2017 and 2016 . The Company evaluates performance based on net operating income of the individual properties in each segment. Net operating income, a non-GAAP financial measure, is defined as total revenues, less rental and parking expenses, which excludes depreciation and amortization, general and administrative expenses, asset management fees, change in fair value of contingent consideration, interest expense, net, provision for loan losses and other interest and dividend income. The Company believes that segment net operating income serves as a useful supplement to net income because it allows investors and management to measure unlevered property-level operating results and to compare operating results to the operating results of other real estate companies between periods on a consistent basis. Segment net operating income should not be considered as an alternative to net income determined in accordance with GAAP as an indicator of financial performance, and accordingly, the Company believes that in order to facilitate a clear understanding of the consolidated historical operating results, segment net operating income should be examined in conjunction with net income as presented in the accompanying condensed consolidated financial statements and data included elsewhere in this Quarterly Report on Form 10-Q . Non-segment assets primarily consist of corporate assets, including cash and cash equivalents, real estate and escrow deposits, deferred financing costs attributable to the revolving line of credit portion of the Company's unsecured credit facility, real estate-related notes receivable and other assets not attributable to individual properties. Summary information for the reportable segments during the three months ended March 31, 2017 and 2016 , is as follows (amounts in thousands): Data Healthcare Three Months Ended Revenue: Rental, parking and tenant reimbursement revenue $ 29,694 $ 21,696 $ 51,390 Expenses: Rental and parking expenses (4,784 ) (2,607 ) (7,391 ) Segment net operating income $ 24,910 $ 19,089 43,999 Expenses: General and administrative expenses (1,683 ) Change in fair value of contingent consideration 1,140 Asset management fees (4,819 ) Depreciation and amortization (18,067 ) Income from operations 20,570 Other income (expense): Other interest and dividend income 563 Interest expense, net (8,665 ) Provision for loan losses (2,484 ) Net income $ 9,984 Data Healthcare Three Months Ended Revenue: Rental, parking and tenant reimbursement revenue $ 28,662 $ 27,848 $ 56,510 Expenses: Rental and parking expenses (4,823 ) (1,816 ) (6,639 ) Segment net operating income $ 23,839 $ 26,032 49,871 Expenses: General and administrative expenses (1,581 ) Change in fair value of contingent consideration (120 ) Asset management fees (4,787 ) Depreciation and amortization (16,999 ) Income from operations 26,384 Other income (expense): Other interest and dividend income 2,822 Interest expense, net (10,614 ) Net income $ 18,592 Assets by each reportable segment as of March 31, 2017 and December 31, 2016 are as follows (amounts in thousands): March 31, 2017 December 31, 2016 Assets by segment: Data centers $ 1,094,095 $ 1,102,550 Healthcare 1,185,575 1,190,087 All other 50,834 45,017 Total assets $ 2,330,504 $ 2,337,654 Capital additions by reportable segments for the three months ended March 31, 2017 and 2016 are as follows (amounts in thousands): Three Months Ended 2017 2016 Capital additions by segment: Data centers $ 58 $ 182 Healthcare 4,443 10,250 Total capital additions $ 4,501 $ 10,432

Future Minimum Rent

Future Minimum Rent	3 Months Ended
	Mar. 31, 2017
Leases [Abstract]
Future Minimum Rent	Future Minimum Rent Rental Income The Company’s real estate assets are leased to tenants under operating leases with varying terms. The leases frequently have provisions to extend the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. The future minimum rent to be received from the Company’s investments in real estate assets under non-cancelable operating leases, including optional renewal periods for which exercise is reasonably assured, for the nine months ending December 31, 2017 and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount Nine months ending December 31, 2017 $ 138,908 2018 188,689 2019 191,957 2020 192,829 2021 187,931 Thereafter 1,378,068 $ 2,278,382 Rental Expense The Company has ground lease obligations that generally require fixed annual rental payments and may also include escalation clauses and renewal options. The future minimum rent obligations under non-cancelable ground leases for the nine months ending December 31, 2017 and for each of the next four years ended December 31 and thereafter, are as follows (amounts in thousands): Year Amount Nine months ending December 31, 2017 $ 525 2018 702 2019 746 2020 746 2021 753 Thereafter 37,083 $ 40,555

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value	Fair Value Notes payable – Fixed Rate —The estimated fair value of notes payable – fixed rate measured using quoted prices and observable inputs from similar liabilities (Level 2) was approximately $109,586,000 and $116,402,000 as of March 31, 2017 and December 31, 2016 , respectively, as compared to the outstanding principal of $108,472,000 and $114,783,000 as of March 31, 2017 and December 31, 2016 , respectively. The estimated fair value of notes payable – variable rate fixed through interest rate swap agreements (Level 2) was approximately $326,393,000 and $328,512,000 as of March 31, 2017 and December 31, 2016 , respectively, as compared to the outstanding principal of $328,643,000 and $330,425,000 as of March 31, 2017 and December 31, 2016 , respectively. Notes payable – Variable —The outstanding principal of the notes payable – variable was $41,237,000 and $41,604,000 as of March 31, 2017 and December 31, 2016 , respectively, which approximated its fair value. The fair value of the Company's variable rate notes payable is estimated based on the interest rates currently offered to the Company by financial institutions. Unsecured credit facility —The outstanding principal balance of the unsecured credit facility – variable was $168,000,000 and $148,000,000 , which approximated its fair value, as of March 31, 2017 and December 31, 2016 , respectively. The estimated fair value of the unsecured credit facility – variable rate fixed through interest rate swap agreements (Level 2) was approximately $204,591,000 and $203,055,000 as of March 31, 2017 and December 31, 2016 , respectively, as compared to the outstanding principal of $210,000,000 and $210,000,000 as of March 31, 2017 and December 31, 2016 , respectively. Notes receivable —The outstanding principal balance of the notes receivable approximated the fair value as of March 31, 2017 . The fair value of the Company’s notes receivable is estimated using significant unobservable inputs not based on market activity, but rather through particular valuation techniques (Level 3). The fair value was measured based on the income approach valuation methodology, which requires certain judgments to be made by management. Contingent consideration —The Company has a contingent consideration obligation to pay a former owner in conjunction with a certain acquisition if specified future operational objectives are met over future reporting periods. Liabilities for contingent consideration will be measured at fair value each reporting period, with the acquisition-date fair value included as part of the consideration transferred, and subsequent changes in fair value recorded in earnings as change in fair value of contingent consideration. The estimated fair value of the contingent consideration was $4,500,000 and $5,640,000 as of March 31, 2017 and December 31, 2016 , respectively, which is reported in the accompanying condensed consolidated balance sheets in accounts payable and other liabilities. The Company uses an income approach to value the contingent consideration liability, which is determined based on the present value of probability-weighted future cash flows. The significant inputs to the discounted cash flow model were the discount rate and weighted probability scenarios. The Company has classified the contingent consideration liability as Level 3 of the fair value hierarchy due to the lack of relevant observable market data over fair value inputs such as probability-weighting for payment outcomes. Increases in the assessed likelihood of a high payout under a contingent consideration arrangement contributes to increases in the fair value of the related liability. Conversely, decreases in the assessed likelihood of a higher payout under a contingent consideration arrangement contributes to decreases in the fair value of the related liability. Changes in assumptions could have an impact on the payout of the contingent consideration arrangement with a maximum payout of $8,450,000 and a minimum payout of $0 as of March 31, 2017 . Derivative instruments — Considerable judgment is necessary to develop estimated fair values of financial instruments. Accordingly, the estimates presented herein are not necessarily indicative of the amount the Company could realize, or be liable for, on disposition of the financial instruments. The Company has determined that the majority of the inputs used to value its interest rate swaps fall within Level 2 of the fair value hierarchy. The credit valuation adjustments associated with these instruments utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and the respective counterparty. However, as of March 31, 2017 , the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions, and has determined that the credit valuation adjustments are not significant to the overall valuation of its interest rate swaps. As a result, the Company determined that its interest rate swaps valuation in its entirety is classified in Level 2 of the fair value hierarchy. See Note 12—"Derivative Instruments and Hedging Activities" for a further discussion of the Company’s derivative instruments. The following table shows the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 (amounts in thousands): March 31, 2017 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 3,900 $ — $ 3,900 Total assets at fair value $ — $ 3,900 $ — $ 3,900 Liabilities: Derivative liabilities $ — $ (574 ) $ — $ (574 ) Contingent consideration obligation — — (4,500 ) (4,500 ) Total liabilities at fair value $ — $ (574 ) $ (4,500 ) $ (5,074 ) December 31, 2016 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 3,070 $ — $ 3,070 Total assets at fair value $ — $ 3,070 $ — $ 3,070 Liabilities: Derivative liabilities $ — $ (1,247 ) $ — $ (1,247 ) Contingent consideration obligation — — (5,640 ) (5,640 ) Total liabilities at fair value $ — $ (1,247 ) $ (5,640 ) $ (6,887 ) The following table provides a rollforward of the fair value of recurring Level 3 fair value measurements for the three months ended March 31, 2017 and 2016 (amounts in thousands): Three Months Ended 2017 2016 Liabilities: Contingent consideration obligation: Beginning balance $ 5,640 $ 5,340 Additions to contingent consideration obligation — — Total changes in fair value included in earnings (1,140 ) 120 Ending balance $ 4,500 $ 5,460 Unrealized (gains) losses still held (1) $ (1,140 ) $ 120 (1) Represents the unrealized (gains) losses recorded in earnings or other comprehensive income (loss) during the period for liabilities classified as Level 3 that are still held at the end of the period.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated, and that qualify, as cash flow hedges is recorded in accumulated other comprehensive income in the accompanying condensed consolidated statement of stockholders' equity and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three months ended March 31, 2017 , such derivatives were used to hedge the variable cash flows associated with variable rate debt. The ineffective portion of changes in fair value of the derivatives is recognized directly in earnings. During the three months ended March 31, 2017 , no gains or losses were recognized due to ineffectiveness of hedges of interest rate risk. During the three months ended March 31, 2016 , the Company accelerated the reclassification of amounts in other comprehensive income to earnings as a result of a hedged forecasted transaction becoming probable not to occur due to a related debt extinguishment. The accelerated amount was a loss of $728,000 , which was recorded in interest expense, net in the accompanying condensed consolidated statement of comprehensive income. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable rate debt. During the next twelve months, the Company estimates that an additional $327,000 will be reclassified from accumulated other comprehensive income as an increase to interest expense. See Note 11—"Fair Value" for a further discussion of the fair value of the Company’s derivative instruments. The following table summarizes the notional amount and fair value of the Company’s derivative instruments (amounts in thousands): Derivatives Balance Effective Maturity March 31, 2017 December 31, 2016 Outstanding Fair Value of Outstanding Fair Value of Asset (Liability) Asset (Liability) Interest rate swaps Other assets, net/Accounts 10/12/2012 to 10/11/2017 to $ 538,643 $ 3,900 $ (574 ) $ 540,425 $ 3,070 $ (1,247 ) The notional amount under the agreements is an indication of the extent of the Company’s involvement in each instrument at the time, but does not represent exposure to credit, interest rate or market risks. Accounting for changes in the fair value of a derivative instrument depends on the intended use and designation of the derivative instrument. The Company designated the interest rate swaps as cash flow hedges to hedge the variability of the anticipated cash flows on its variable rate notes payable. The change in fair value of the effective portion of the derivative instrument that is designated as a hedge is recorded in other comprehensive income (loss), or OCI, in the accompanying condensed consolidated statements of comprehensive income . The table below summarizes the amount of income and loss recognized on interest rate derivatives designated as cash flow hedges for the three months ended March 31, 2017 and 2016 (amounts in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Income (Loss) Recognized Location Of Loss Amount of Loss Three Months Ended March 31, 2017 Interest rate swaps $ 834 Interest Expense, Net $ (669 ) Total $ 834 $ (669 ) Three Months Ended March 31, 2016 Interest rate swaps $ (5,640 ) Interest Expense, Net $ (1,777 ) Total $ (5,640 ) $ (1,777 ) Credit Risk-Related Contingent Features The Company has agreements with each of its derivative counterparties that contain cross-default provisions, whereby if the Company defaults on certain of its unsecured indebtedness, then the Company could also be declared in default on its derivative obligations, resulting in an acceleration of payment thereunder. In addition, the Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. The Company believes it mitigates its credit risk by entering into agreements with creditworthy counterparties. The Company records credit risk valuation adjustments on its interest rate swaps based on the respective credit quality of the Company and the counterparty. As of March 31, 2017 , the fair value of derivatives in a net liability position, including accrued interest but excluding any adjustment for nonperformance risk related to these agreements, was $689,000 . Tabular Disclosure Offsetting Derivatives The Company has elected not to offset derivative positions in its condensed consolidated financial statements. The following table presents the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of March 31, 2017 and December 31, 2016 (amounts in thousands): Offsetting of Derivative Assets Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net March 31, 2017 $ 3,900 $ — $ 3,900 $ (29 ) $ — $ 3,871 December 31, 2016 $ 3,070 $ — $ 3,070 $ (10 ) $ — $ 3,060 Offsetting of Derivative Liabilities Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net March 31, 2017 $ 574 $ — $ 574 $ (29 ) $ — $ 545 December 31, 2016 $ 1,247 $ — $ 1,247 $ (10 ) $ — $ 1,237 The Company reports derivatives in the accompanying condensed consolidated balance sheets as other assets, net and accounts payable and other liabilities.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Accumulated Other Comprehensive Income	Accumulated Other Comprehensive Income The following table presents a rollforward of amounts recognized in accumulated other comprehensive income (loss), net of noncontrolling interests, by component for the three months ended March 31, 2017 and 2016 (amounts in thousands): Unrealized (Loss) Income on Derivative Accumulated Other Balance as of December 31, 2016 $ 2,303 $ 1,823 Other comprehensive income before reclassification 834 834 Amount of loss reclassified from accumulated other comprehensive income to net income (effective portion) 669 669 Other comprehensive income 1,503 1,503 Balance as of March 31, 2017 $ 3,806 $ 3,326 Unrealized (Loss) Income on Derivative Accumulated Other Balance as of December 31, 2015 $ (2,100 ) $ (2,580 ) Other comprehensive loss before reclassification (5,640 ) (5,640 ) Amount of loss reclassified from accumulated other comprehensive loss to net income (effective portion and missed forecast) 1,777 1,777 Other comprehensive loss (3,863 ) (3,863 ) Balance as of March 31, 2016 $ (5,963 ) $ (6,443 ) The following table presents reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2017 and 2016 (amounts in thousands): Details about Accumulated Other Amounts Reclassified from Affected Line Items in the Condensed Consolidated Statements of Comprehensive Three Months Ended 2017 2016 Interest rate swap contracts $ 669 $ 1,777 Interest expense, net

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation In the ordinary course of business, the Company may become subject to litigation or claims. As of March 31, 2017 , there were, and currently there are, no material pending legal proceedings to which the Company is a party.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Distributions Paid On April 3, 2017 , the Company paid aggregate distributions of $11,032,000 ( $5,359,000 in cash and $5,673,000 in shares of the Company’s common stock issued pursuant to the DRIP Offering), which related to distributions declared for each day in the period from March 1, 2017 through March 31, 2017. On May 1, 2017, the Company paid aggregate distributions of $10,685,000 ( $5,174,000 in cash and $5,511,000 in shares of the Company’s common stock issued pursuant to the DRIP Offering), which related to distributions declared for each day in the period from April 1, 2017 through April 30, 2017. Distributions Declared On May 4, 2017, the board of directors of the Company approved and declared a distribution to the Company’s stockholders of record as of the close of business on each day of the period commencing on June 1, 2017 and ending on August 31, 2017. The distributions will be calculated based on 365 days in the calendar year and will be equal to $0.001917808 per share of common stock. The distributions declared for each record date in June 2017, July 2017 and August 2017 will be paid in July 2017, August 2017 and September 2017, respectively. The distributions will be payable to stockholders from legally available funds therefor. Lease Termination On April 25, 2017, the Company terminated a lease agreement with one of its tenants due to several events of default under the lease agreement by the tenant, which included the tenant's failure to pay certain rental amounts and failure to comply with certain financial covenants set forth in the lease agreement. After the lease termination, the tenant will continue to operate the property for a reasonable amount of time in a manner compliant with the state law requirements. Tenant Experiencing Financial Difficulty A tenant comprising approximately 5.0% of the Company’s rental revenue at March 31, 2017, has been experiencing financial difficulty and may undergo a restructuring of its liabilities. As of May 12, 2017, the tenant is and has been current with rental payments.

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company, the Operating Partnership, all majority-owned subsidiaries and controlled subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP necessarily 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 condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates.
Allowance for Uncollectible Accounts	Allowance for Uncollectible Accounts Tenant receivables and unbilled deferred rent receivables are carried net of the allowances for uncollectible amounts. An allowance will be maintained for estimated losses resulting from the inability of certain tenants to meet the contractual obligations under their lease agreements. The Company also maintains an allowance for deferred rent receivables arising from the straight-lining of rents. The Company’s determination of the adequacy of these allowances is based primarily upon evaluations of historical loss experience, the tenant’s financial condition, security deposits, letters of credit, lease guarantees and current economic conditions and other relevant factors. For the three months ended March 31, 2017, the Company recorded $7,664,000 in provision for doubtful accounts related to reserves for rental and parking revenue and tenant reimbursement revenue, which are recognized in the accompanying condensed consolidated statements of comprehensive income as a deduction from rental and parking revenue and tenant reimbursement revenue. The provision for doubtful accounts is the result of two tenants experiencing financial difficulties, which the Company believes will result in material new lease terms.
Notes Receivable	Notes Receivable Notes receivable are reported at their outstanding principal balance, net of any unearned income, unamortized deferred fees and costs and allowances for doubtful accounts. The unamortized deferred fees and costs are amortized over the life of the notes receivable, as applicable, and recorded in other interest and dividend income in the accompanying condensed consolidated statements of comprehensive income . The Company evaluates the collectability of both interest and principal on each note receivable to determine whether it is collectible primarily through the evaluation of credit quality indicators, such as the tenant's financial condition, evaluations of historical loss experience, current economic conditions and other relevant factors. Impairment occurs when it is determined probable that the Company will not be able to collect principal and interest amounts due according to the contractual terms of the note. Evaluating a note receivable for potential impairment requires management to exercise significant judgment. As of March 31, 2017 and December 31, 2016 , the aggregate balance on the Company's notes receivable before allowances for loan losses was $20,275,000 and $19,422,000 , respectively. For the three months ended March 31, 2017 the Company recorded $2,484,000 as an allowance to reduce the carrying value of two notes receivable and accrued interest in provision for loan losses in the accompanying condensed consolidated financial statements.
Concentration of Credit Risk and Significant Leases	Concentration of Credit Risk and Significant Leases As of March 31, 2017 , the Company had cash on deposit, including restricted cash, in certain financial institutions that had deposits in excess of current federally insured levels; however, the Company has not experienced any losses in such accounts. The Company limits its cash investments to financial institutions with high credit standings; therefore, the Company believes it is not exposed to any significant credit risk on its cash deposits. To date, the Company has experienced no loss of or lack of access to cash in its accounts. As of March 31, 2017 , the Company owned real estate investments in 46 MSAs, (including one real estate investment owned through a consolidated partnership), two of which accounted for 10.0% or more of contractual rental revenue. Real estate investments located in the Dallas-Ft. Worth-Arlington, Texas MSA and the Chicago-Naperville-Elgin, Illinois-Indiana-Wisconsin MSA accounted for an aggregate of 12.2% and 11.8% , respectively, of contractual rental revenue for the three months ended March 31, 2017 . As of March 31, 2017 , the Company had one exposure to tenant concentration that accounted for 10.0% or more of rental revenue. The leases with AT&T Services, Inc. accounted for 11.7% of rental revenue for the three months ended March 31, 2017 .
Share Repurchase Program	Share Repurchase Program The Company’s share repurchase program allows for repurchases of shares of the Company’s common stock when certain criteria are met. The share repurchase program provides that all repurchases during any calendar year, including those redeemable upon death or a qualifying disability of a stockholder, are limited to those that can be funded with equivalent reinvestments pursuant to the DRIP Offerings during the prior calendar year and other operating funds, if any, as the board of directors, in its sole discretion, may reserve for this purpose. Repurchases of shares of the Company’s common stock are at the sole discretion of the Company’s board of directors. In addition, the Company’s board of directors, in its sole discretion, may amend, suspend, reduce, terminate or otherwise change the share repurchase program upon 30 days ' prior notice to the Company’s stockholders for any reason it deems appropriate. The share repurchase program provides that the Company will limit the number of shares repurchased during any calendar year to 5.0% of the number of shares of common stock outstanding as of December 31st of the previous calendar year. During the three months ended March 31, 2017 , the Company received valid repurchase requests related to approximately 1,232,000 shares of common stock, all of which were repurchased in full for an aggregate purchase price of approximately $12,101,000 (an average of $9.82 per share). During the three months ended March 31, 2016 , the Company received valid repurchase requests related to approximately 871,000 shares of common stock, all of which were repurchased in full for an aggregate purchase price of approximately $8,393,000 (an average of $9.64 per share).
Earnings Per Share	Earnings Per Share Basic earnings per share for all periods presented are computed by dividing net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Shares of non-vested restricted common stock give rise to potentially dilutive shares of common stock. Diluted earnings per share are computed based on the weighted average number of shares outstanding and all potentially dilutive securities. For the three months ended March 31, 2017 and 2016 , diluted earnings per share reflected the effect of approximately 17,000 for each period of non-vested shares of restricted common stock that were outstanding as of such period.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements On May 28, 2014, the Financial Accounting Standards Board, or the FASB, issued ASU 2014-09, Revenue from Contracts with Customers , or ASU 2014-09. The objective of ASU 2014-09 is to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle, which may require more judgment and estimates within the revenue recognition process than are required under existing GAAP. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date , or ASU 2015-14. ASU 2015-14 defers the effective date of ASU 2014-09 by one year to fiscal years and interim periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date, which was annual reporting periods beginning after December 15, 2016, and the interim periods within that year. On March 17, 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers Principal versus Agent Considerations (Reporting Revenue Gross versus Net), or ASU 2016-08, which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard. ASU 2016-08 clarifies that an entity is a principal when it controls the specified good or service before that good or service is transferred to the customer, and is an agent when it does not control the specified good or service before it is transferred to the customer. The effective date and transition of this update is the same as the effective date and transition of ASU 2015-14. The Company believes the adoption of ASUs 2014-09 and 2016-08 will not have a material impact on the Company’s consolidated financial statements, but may result in additional disclosures. On February 25, 2016, the FASB issued ASU 2016-02 , Leases , or ASU 2016-02. ASU 2016-02 establishes the principles to increase the transparency about the assets and liabilities arising from leases. ASU 2016-02 results in a more faithful representation of the rights and obligations arising from leases by requiring lessees to recognize the lease assets and lease liabilities that arise from leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions and aligns lessor accounting and sale leaseback transactions guidance more closely to comparable guidance in Topic 606, Revenue from Contracts with Customers , and Topic 610, Other Income . ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is in process of evaluating the impact ASU 2016-02 will have on the Company’s consolidated financial statements. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses, or ASU 2016-13. ASU 2016-13 requires more timely recording of credit losses on loans and other financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other such commitments. ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 require the Company to measure all expected credit losses based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets and eliminates the “incurred loss” methodology in current GAAP. ASU 2016-13 is effective for fiscal years, and interim periods within, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within, beginning after December 15, 2018. The Company is in the process of evaluating the impact ASU 2016-13 will have on the Company’s consolidated financial statements. On November 17, 2016, the FASB issued ASU 2016-18, Restricted Cash , or ASU 2016-18. ASU 2016-18 requires that a statement of cash flows explain the change during a reporting period in the total of cash, cash equivalents, and amounts generally described as restricted cash and restricted cash equivalents. This ASU states that transfers between cash, cash equivalents, and restricted cash are not part of the entity’s operating, investing, and financing activities. Therefore, restricted cash should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. This ASU should be applied using a retrospective transition method to each period presented. The Company is in the process of evaluating the impact ASU 2016-18 will have on the Company’s consolidated statements of cash flows. On January 5, 2017, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Update, or ASU, 2017-01, Business Combinations , or ASU 2017-01. ASU 2017-01 clarifies the definition of a business. The objective of ASU 2017-01 is to add further guidance that assists entities in evaluating whether a transaction will be accounted for as an acquisition of an asset or a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the set of transferred asset and activities is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted using a prospective transition method. The Company adopted ASU 2017-01 effective October 1, 2016. On February 23, 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, or ASU 2017-05. ASU 2017-05 clarifies the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets. Partial sales of nonfinancial assets are common in the real estate industry and include transactions in which the seller retains an equity interest in the entity that owns the assets or has an equity interest in the buyer. ASU 2017-05 is effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those fiscal years. Early adoption is permitted. The Company is in process of evaluating the impact ASU 2017-05 will have on the Company’s condensed consolidated financial statements.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to the current financial statement presentation, with no effect on the Company’s condensed consolidated financial position or results of operations.

Acquired Intangible Assets, N24

Acquired Intangible Assets, Net (Tables)	3 Months Ended
	Mar. 31, 2017
Finite-Lived Intangible Assets, Net [Abstract]
Schedule of Acquired Intangible Assets, Net	Acquired intangible assets, net, consisted of the following as of March 31, 2017 and December 31, 2016 (amounts in thousands, except weighted average life amounts): March 31, 2017 December 31, 2016 In-place leases, net of accumulated amortization of $55,984 and $51,837, respectively (with a weighted average remaining life of 12.7 years and 12.9 years, respectively) $ 168,644 $ 172,791 Above-market leases, net of accumulated amortization of $1,383 and $1,303, respectively (with a weighted average remaining life of 10.0 years and 10.3 years, respectively) 2,977 3,057 Ground lease interest, net of accumulated amortization of $245 and $232, respectively (with a weighted average remaining life of 59.3 years and 59.5 years, respectively) 2,569 2,582 $ 174,190 $ 178,430

Intangible Lease Liabilities,25

Intangible Lease Liabilities, Net (Tables)	3 Months Ended
	Mar. 31, 2017
Intangible Lease Liabilities, Net [Abstract]
Schedule of Intangible Lease Liabilities, Net	Intangible lease liabilities, net, consisted of the following as of March 31, 2017 and December 31, 2016 (amounts in thousands, except weighted average life amounts): March 31, 2017 December 31, 2016 Below-market leases, net of accumulated amortization of $16,869 and $16,031, respectively (with a weighted average remaining life of 16.9 years and 17.1 years, respectively) $ 43,536 $ 44,374 Ground leasehold liabilities, net of accumulated amortization of $332 and $301, respectively (with a weighted average remaining life of 42.0 years and 42.2 years, respectively) 4,993 5,024 $ 48,529 $ 49,398

Other Assets, Net (Tables)

Other Assets, Net (Tables)	3 Months Ended
	Mar. 31, 2017
Other Assets [Abstract]
Schedule of Other Assets, Net	Other assets, net consisted of the following as of March 31, 2017 and December 31, 2016 (amounts in thousands): March 31, 2017 December 31, 2016 Deferred financing costs related to the revolver portion of the unsecured credit facility, net of accumulated amortization of $6,113 and $5,833, respectively $ 2,017 $ 877 Lease commissions, net of accumulated amortization of $698 and $557, respectively 5,019 4,869 Investments in unconsolidated partnerships 119 113 Tenant receivables, net of allowances for doubtful accounts of $13,671 and $6,007, respectively 5,808 10,475 Notes receivable, net of allowances for loan losses of $6,778 and $4,294, respectively 13,497 15,128 Real estate-related notes receivable 514 514 Straight-line rent receivable 57,843 53,545 Restricted cash held in escrow 14,521 13,882 Restricted cash 1,285 1,110 Derivative assets 3,900 3,070 Prepaid and other assets 1,798 2,156 $ 106,321 $ 105,739

Accounts Payable and Other Li27

Accounts Payable and Other Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Other Liabilities	Accounts payable and other liabilities, as of March 31, 2017 and December 31, 2016 , were comprised of the following (amounts in thousands): March 31, 2017 December 31, 2016 Accounts payable and accrued expenses $ 7,286 $ 7,200 Accrued interest expense 2,901 2,855 Accrued property taxes 2,870 4,277 Contingent consideration obligations 4,500 5,640 Distributions payable to stockholders 11,032 10,968 Tenant deposits 1,039 1,039 Deferred rental income 8,172 6,970 Derivative liabilities 574 1,247 $ 38,374 $ 40,196

Notes Payable and Unsecured C28

Notes Payable and Unsecured Credit Facility (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Schedule of Debt	The Company's debt outstanding as of March 31, 2017 and December 31, 2016 consisted of the following (amounts in thousands): March 31, 2017 December 31, 2016 Notes payable: Fixed rate notes payable $ 108,472 $ 114,783 Variable rate notes payable fixed through interest rate swaps 328,643 330,425 Variable rate notes payable 41,237 41,604 Total notes payable, principal amount outstanding 478,352 486,812 Unamortized deferred financing costs related to notes payable (2,160 ) (2,542 ) Total notes payable, net of deferred financing costs 476,192 484,270 Unsecured credit facility: Revolving line of credit 168,000 148,000 Term loan 210,000 210,000 Total unsecured credit facility, principal amount outstanding 378,000 358,000 Unamortized deferred financing costs related to the term loan of the unsecured credit facility (1,506 ) (1,789 ) Total unsecured credit facility, net of deferred financing costs 376,494 356,211 Total debt outstanding $ 852,686 $ 840,481
Schedule of Future Principal Payments Due on Notes Payable and Unsecured Credit Facility	The principal payments due on the notes payable and unsecured credit facility for the nine months ending December 31, 2017 and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount Nine months ending December 31, 2017 $ 182,535 (1) 2018 317,008 2019 170,647 2020 136,160 2021 1,239 Thereafter 48,763 $ 856,352 (1) Of this amount, $105,850,000 relates to one loan agreement with a maturity date of August 21, 2017 , subject to the Company's right to a two -year extension and $18,707,000 relates to one loan agreement, the maturity date of which is October 11, 2017 , subject to the Company's right to two one -year extensions. The Company may refinance these loan agreements or exercise the extension options depending upon refinancing terms available at the time. In addition, $51,161,000 relates to three loan agreements of which the Company may elect to add to the unencumbered pool of the unsecured credit facility.

Related-Party Transactions an29

Related-Party Transactions and Arrangements (Tables)	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Schedule of Accounts Payable Due to Affiliates	The following amounts were due to affiliates as of March 31, 2017 and December 31, 2016 (amounts in thousands): Entity Fee March 31, 2017 December 31, 2016 Carter/Validus Advisors, LLC and its affiliates Asset management fees $ 1,608 $ 1,604 Carter Validus Real Estate Management Services, LLC Property management fees 908 791 Carter/Validus Advisors, LLC and its affiliates General, administrative and other costs 199 174 Carter Validus Real Estate Management Services, LLC Construction management fees 58 66 $ 2,773 $ 2,635

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Schedule of Information for Reportable Segments	Summary information for the reportable segments during the three months ended March 31, 2017 and 2016 , is as follows (amounts in thousands): Data Healthcare Three Months Ended Revenue: Rental, parking and tenant reimbursement revenue $ 29,694 $ 21,696 $ 51,390 Expenses: Rental and parking expenses (4,784 ) (2,607 ) (7,391 ) Segment net operating income $ 24,910 $ 19,089 43,999 Expenses: General and administrative expenses (1,683 ) Change in fair value of contingent consideration 1,140 Asset management fees (4,819 ) Depreciation and amortization (18,067 ) Income from operations 20,570 Other income (expense): Other interest and dividend income 563 Interest expense, net (8,665 ) Provision for loan losses (2,484 ) Net income $ 9,984 Data Healthcare Three Months Ended Revenue: Rental, parking and tenant reimbursement revenue $ 28,662 $ 27,848 $ 56,510 Expenses: Rental and parking expenses (4,823 ) (1,816 ) (6,639 ) Segment net operating income $ 23,839 $ 26,032 49,871 Expenses: General and administrative expenses (1,581 ) Change in fair value of contingent consideration (120 ) Asset management fees (4,787 ) Depreciation and amortization (16,999 ) Income from operations 26,384 Other income (expense): Other interest and dividend income 2,822 Interest expense, net (10,614 ) Net income $ 18,592
Schedule of Assets by Reportable Segments	Assets by each reportable segment as of March 31, 2017 and December 31, 2016 are as follows (amounts in thousands): March 31, 2017 December 31, 2016 Assets by segment: Data centers $ 1,094,095 $ 1,102,550 Healthcare 1,185,575 1,190,087 All other 50,834 45,017 Total assets $ 2,330,504 $ 2,337,654
Schedule of Capital Additions by Reportable Segments	Capital additions by reportable segments for the three months ended March 31, 2017 and 2016 are as follows (amounts in thousands): Three Months Ended 2017 2016 Capital additions by segment: Data centers $ 58 $ 182 Healthcare 4,443 10,250 Total capital additions $ 4,501 $ 10,432

Future Minimum Rent (Tables)

Future Minimum Rent (Tables)	3 Months Ended
	Mar. 31, 2017
Leases [Abstract]
Schedule of Future Minimum Rental Income from Non-Cancelable Operating Leases	The future minimum rent to be received from the Company’s investments in real estate assets under non-cancelable operating leases, including optional renewal periods for which exercise is reasonably assured, for the nine months ending December 31, 2017 and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount Nine months ending December 31, 2017 $ 138,908 2018 188,689 2019 191,957 2020 192,829 2021 187,931 Thereafter 1,378,068 $ 2,278,382
Schedule of Future Minimum Rental Payments Under Non-Cancelable Ground Leases	The future minimum rent obligations under non-cancelable ground leases for the nine months ending December 31, 2017 and for each of the next four years ended December 31 and thereafter, are as follows (amounts in thousands): Year Amount Nine months ending December 31, 2017 $ 525 2018 702 2019 746 2020 746 2021 753 Thereafter 37,083 $ 40,555

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following table shows the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 (amounts in thousands): March 31, 2017 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 3,900 $ — $ 3,900 Total assets at fair value $ — $ 3,900 $ — $ 3,900 Liabilities: Derivative liabilities $ — $ (574 ) $ — $ (574 ) Contingent consideration obligation — — (4,500 ) (4,500 ) Total liabilities at fair value $ — $ (574 ) $ (4,500 ) $ (5,074 ) December 31, 2016 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 3,070 $ — $ 3,070 Total assets at fair value $ — $ 3,070 $ — $ 3,070 Liabilities: Derivative liabilities $ — $ (1,247 ) $ — $ (1,247 ) Contingent consideration obligation — — (5,640 ) (5,640 ) Total liabilities at fair value $ — $ (1,247 ) $ (5,640 ) $ (6,887 )
Schedule of Reconciliation of Fair Value of Recurring Level 3 Fair Value Measurements	The following table provides a rollforward of the fair value of recurring Level 3 fair value measurements for the three months ended March 31, 2017 and 2016 (amounts in thousands): Three Months Ended 2017 2016 Liabilities: Contingent consideration obligation: Beginning balance $ 5,640 $ 5,340 Additions to contingent consideration obligation — — Total changes in fair value included in earnings (1,140 ) 120 Ending balance $ 4,500 $ 5,460 Unrealized (gains) losses still held (1) $ (1,140 ) $ 120 (1) Represents the unrealized (gains) losses recorded in earnings or other comprehensive income (loss) during the period for liabilities classified as Level 3 that are still held at the end of the period.

Derivative Instruments and He33

Derivative Instruments and Hedging Activities (Tables)	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of the Notional Amount and Fair Value of Derivative Instruments	The following table summarizes the notional amount and fair value of the Company’s derivative instruments (amounts in thousands): Derivatives Balance Effective Maturity March 31, 2017 December 31, 2016 Outstanding Fair Value of Outstanding Fair Value of Asset (Liability) Asset (Liability) Interest rate swaps Other assets, net/Accounts 10/12/2012 to 10/11/2017 to $ 538,643 $ 3,900 $ (574 ) $ 540,425 $ 3,070 $ (1,247 )
Schedule of Income or Loss Recognized on Derivative Instruments	The table below summarizes the amount of income and loss recognized on interest rate derivatives designated as cash flow hedges for the three months ended March 31, 2017 and 2016 (amounts in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Income (Loss) Recognized Location Of Loss Amount of Loss Three Months Ended March 31, 2017 Interest rate swaps $ 834 Interest Expense, Net $ (669 ) Total $ 834 $ (669 ) Three Months Ended March 31, 2016 Interest rate swaps $ (5,640 ) Interest Expense, Net $ (1,777 ) Total $ (5,640 ) $ (1,777 )
Schedule of Offsetting of Derivative Assets	The following table presents the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of March 31, 2017 and December 31, 2016 (amounts in thousands): Offsetting of Derivative Assets Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net March 31, 2017 $ 3,900 $ — $ 3,900 $ (29 ) $ — $ 3,871 December 31, 2016 $ 3,070 $ — $ 3,070 $ (10 ) $ — $ 3,060
Schedule of Offsetting of Derivative Liabilities	Offsetting of Derivative Liabilities Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net March 31, 2017 $ 574 $ — $ 574 $ (29 ) $ — $ 545 December 31, 2016 $ 1,247 $ — $ 1,247 $ (10 ) $ — $ 1,237

Accumulated Other Comprehensi34

Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Loss)	The following table presents a rollforward of amounts recognized in accumulated other comprehensive income (loss), net of noncontrolling interests, by component for the three months ended March 31, 2017 and 2016 (amounts in thousands): Unrealized (Loss) Income on Derivative Accumulated Other Balance as of December 31, 2016 $ 2,303 $ 1,823 Other comprehensive income before reclassification 834 834 Amount of loss reclassified from accumulated other comprehensive income to net income (effective portion) 669 669 Other comprehensive income 1,503 1,503 Balance as of March 31, 2017 $ 3,806 $ 3,326 Unrealized (Loss) Income on Derivative Accumulated Other Balance as of December 31, 2015 $ (2,100 ) $ (2,580 ) Other comprehensive loss before reclassification (5,640 ) (5,640 ) Amount of loss reclassified from accumulated other comprehensive loss to net income (effective portion and missed forecast) 1,777 1,777 Other comprehensive loss (3,863 ) (3,863 ) Balance as of March 31, 2016 $ (5,963 ) $ (6,443 )
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss)	The following table presents reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2017 and 2016 (amounts in thousands): Details about Accumulated Other Amounts Reclassified from Affected Line Items in the Condensed Consolidated Statements of Comprehensive Three Months Ended 2017 2016 Interest rate swap contracts $ 669 $ 1,777 Interest expense, net

Organization and Business Ope35

Organization and Business Operations (Details) $ / shares in Units, shares in Thousands, $ in Thousands	Mar. 31, 2017USD ($)real_estate_investmentmetropolitanpropertyshares	Jun. 06, 2014USD ($)	Mar. 31, 2017USD ($)real_estate_investmentmetropolitansegmentproperty	Mar. 31, 2016USD ($)	Jan. 01, 2017$ / shares
Organization and Business Operations [Line Items]
Number of reportable business segments | segment			2
Number of Company owned real estate investments | real_estate_investment	49		49
Number of Company owned properties | property	84		84
Number of metropolitan statistical areas in which Company owns real estate investments | metropolitan	46		46
Redemption of common stock			$ 12,101	$ 8,393
Initial Public Offering [Member]
Organization and Business Operations [Line Items]
Common stock offering, gross proceeds raised		$ 1,716,046
DRIP Offering [Member]
Organization and Business Operations [Line Items]
Share price (in dollars per share) | $ / shares					$ 9.519
DRIP Offering [Member] | Maximum [Member]
Organization and Business Operations [Line Items]
Share price (in dollars per share) | $ / shares					$ 9.50
Reinvestment in additional shares at percentage of fair market value per share					95.00%
Initial Public Offering and DRIP Offerings [Member]
Organization and Business Operations [Line Items]
Common stock offering, gross proceeds raised	$ 1,896,389
Common stock offering, shares issued | shares	191,535
Redemption of common stock	$ 59,963
Offering costs, selling commissions and dealer manager fees	$ 174,798
Consolidated Partnership [Member]
Organization and Business Operations [Line Items]
Number of Company owned real estate investments | real_estate_investment	1		1

Summary of Significant Accoun36

Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)receivablereal_estate_investmentmetropolitantenant$ / sharesshares	Mar. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2016USD ($)
Summary of Significant Accounting Policies [Line Items]
Provision for doubtful accounts	$ 7,664	$ 0
Number of tenants experiencing financial difficulties | tenant	2
Notes receivable before allowances for loan losses	$ 20,275		$ 19,422
Provision for loan losses	$ 2,484	0
Number of notes receivable nonperforming | receivable	2
Number of metropolitan statistical areas in which Company owns real estate investments | metropolitan	46
Number of Company owned real estate investments | real_estate_investment	49
Period of notice required for changes to share repurchase program	30 days
Maximum number of shares available for repurchase during any calendar year, as percentage of common stock outstanding at end of prior year	5.00%
Repurchase of common stock	$ 12,101	$ 8,393
Repurchase of common stock, average price per share (in dollars per share) | $ / shares	$ 9.82	$ 9.64
Diluted earnings per share outstanding adjustment (in shares) | shares	17,000	17,000
Common Stock [Member]
Summary of Significant Accounting Policies [Line Items]
Repurchase of common stock (in shares) | shares	1,232,088	871,000
Repurchase of common stock	$ 12
Rental Revenue [Member]
Summary of Significant Accounting Policies [Line Items]
Concentration risk, percentage	5.00%
Rental Revenue [Member] | Geographic Concentration Risk [Member]
Summary of Significant Accounting Policies [Line Items]
Number of metropolitan statistical areas in which Company owns real estate investments | metropolitan	2
Rental Revenue [Member] | Geographic Concentration Risk [Member] | Dallas-Ft. Worth-Arlington, Texas MSA [Member]
Summary of Significant Accounting Policies [Line Items]
Concentration risk, percentage	12.20%
Rental Revenue [Member] | Geographic Concentration Risk [Member] | Chicago-Naperville-Elgin, Illinois-Indiana-Wisconsin MSA [Member]
Summary of Significant Accounting Policies [Line Items]
Concentration risk, percentage	11.80%
Rental Revenue [Member] | Customer Concentration Risk [Member]
Summary of Significant Accounting Policies [Line Items]
Number of tenants | tenant	1
Rental Revenue [Member] | Customer Concentration Risk [Member] | AT&T Services, Inc. [Member]
Summary of Significant Accounting Policies [Line Items]
Concentration risk, percentage	11.70%
Consolidated Partnership [Member]
Summary of Significant Accounting Policies [Line Items]
Number of Company owned real estate investments | real_estate_investment	1

Acquired Intangible Assets, N37

Acquired Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Depreciation and amortization	$ 18,067	$ 16,999
In-place leases, Ground lease interest and Above-market leases [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Depreciation and amortization	$ 4,240	$ 4,346

Acquired Intangible Assets, N38

Acquired Intangible Assets, Net (Schedule of Acquired Intangible Assets, Net) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible asset, net of accumulated amortization	$ 174,190	$ 178,430
Acquired intangible asset, accumulated amortization	$ 57,612	$ 53,372
Acquired intangible asset, weighted average remaining life	13 years 3 months 18 days	13 years 6 months
In-place leases [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible asset, net of accumulated amortization	$ 168,644	$ 172,791
Acquired intangible asset, accumulated amortization	$ 55,984	$ 51,837
Acquired intangible asset, weighted average remaining life	12 years 8 months 12 days	12 years 10 months 24 days
Above-market leases [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible asset, net of accumulated amortization	$ 2,977	$ 3,057
Acquired intangible asset, accumulated amortization	$ 1,383	$ 1,303
Acquired intangible asset, weighted average remaining life	10 years	10 years 3 months 18 days
Ground lease interest [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible asset, net of accumulated amortization	$ 2,569	$ 2,582
Acquired intangible asset, accumulated amortization	$ 245	$ 232
Acquired intangible asset, weighted average remaining life	59 years 3 months 18 days	59 years 6 months

Intangible Lease Liabilities,39

Intangible Lease Liabilities, Net (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Intangible Lease Liabilities, Net [Abstract]
Amortization of intangible lease liabilities	$ 869	$ 975

Intangible Lease Liabilities,40

Intangible Lease Liabilities, Net (Schedule of Intangible Lease Liabilities, Net) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Intangible Lease Liabilities, Net [Abstract]
Below-market leases, net of accumulated amortization of $16,869 and $16,031, respectively (with a weighted average remaining life of 16.9 years and 17.1 years, respectively)	$ 43,536	$ 44,374
Ground leasehold liabilities, net of accumulated amortization of $332 and $301, respectively (with a weighted average remaining life of 42.0 years and 42.2 years, respectively)	4,993	5,024
Total intangible lease liabilities, net	48,529	49,398
Below-market leases, accumulated amortization	$ 16,869	$ 16,031
Below-market leases, weighted average remaining life	16 years 10 months 24 days	17 years 1 month 6 days
Ground leasehold liabilities, accumulated amortization	$ 332	$ 301
Ground leasehold liabilities, weighted average remaining life	42 years	42 years 2 months 12 days
Intangible lease liabilities, weighted average remaining life	19 years 6 months	19 years 7 months 6 days

Other Assets, Net (Schedule of

Other Assets, Net (Schedule of Other Assets, Net) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Other Assets [Abstract]
Deferred financing costs related to the revolver portion of the unsecured credit facility, net of accumulated amortization of $6,113 and $5,833, respectively	$ 2,017	$ 877
Lease commissions, net of accumulated amortization of $698 and $557, respectively	5,019	4,869
Investments in unconsolidated partnerships	119	113
Tenant receivables, net of allowances for doubtful accounts of $13,671 and $6,007, respectively	5,808	10,475
Notes receivable, net of allowances for loan losses of $6,778 and $4,294, respectively	13,497	15,128
Real estate-related notes receivable	514	514
Straight-line rent receivable	57,843	53,545
Restricted cash held in escrow	14,521	13,882
Restricted cash	1,285	1,110
Derivative assets	3,900	3,070
Prepaid and other assets	1,798	2,156
Total other assets, net	106,321	105,739
Deferred financing costs related to the revolver portion of the unsecured credit facility, accumulated amortization	6,113	5,833
Lease commissions, accumulated amortization	698	557
Tenant receivables, allowances for doubtful accounts	13,671	6,007
Notes receivable, allowances for loan losses	$ 6,778	$ 4,294

Accounts Payable and Other Li42

Accounts Payable and Other Liabilities (Schedule of Accounts Payable and Other Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accounts payable and accrued expenses	$ 7,286	$ 7,200
Accrued interest expense	2,901	2,855
Accrued property taxes	2,870	4,277
Contingent consideration obligations	4,500	5,640
Distributions payable to stockholders	11,032	10,968
Tenant deposits	1,039	1,039
Deferred rental income	8,172	6,970
Derivative liabilities	574	1,247
Accounts payable and other liabilities	$ 38,374	$ 40,196

Notes Payable and Unsecured C43

Notes Payable and Unsecured Credit Facility (Narrative) (Details) $ in Thousands	Feb. 10, 2017USD ($)	Jan. 30, 2017extension	Mar. 31, 2017USD ($)extension	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Payments on notes payable				$ 8,459	$ 34,437
Draw on unsecured credit facility				20,000	$ 50,000
Unsecured credit facility, total unencumbered pool availability			$ 514,575	514,575
Unsecured credit facility, principal amount outstanding			378,000	378,000		$ 358,000
Unsecured credit facility, amount remaining to be drawn			$ 136,575	136,575
Revolving Line of Credit [Member]
Debt Instrument [Line Items]
Unsecured credit facility, maturity date		May 28, 2017	May 28, 2018
Unsecured credit facility, number of maturity extension periods | extension		1	2
Unsecured credit facility, available extension period		12 months	12 months
Unsecured credit facility, principal amount outstanding			$ 168,000	$ 168,000		$ 148,000
Note Payable One [Member]
Debt Instrument [Line Items]
Notes payable, maturity date	Feb. 10, 2017
Payments on notes payable	$ 5,645

Notes Payable and Unsecured C44

Notes Payable and Unsecured Credit Facility (Schedule of Debt) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Notes payable:
Notes payable, principal amount outstanding	$ 478,352	$ 486,812
Unamortized deferred financing costs related to notes payable	(2,160)	(2,542)
Notes payable, net of deferred financing costs	476,192	484,270
Unsecured credit facility:
Unsecured credit facility, principal amount outstanding	378,000	358,000
Unamortized deferred financing costs related to the term loan of the unsecured credit facility	(1,506)	(1,789)
Unsecured credit facility, net of deferred financing costs	376,494	356,211
Total debt outstanding	852,686	840,481
Revolving Line of Credit [Member]
Unsecured credit facility:
Unsecured credit facility, principal amount outstanding	168,000	148,000
Term Loan [Member]
Unsecured credit facility:
Unsecured credit facility, principal amount outstanding	210,000	210,000
Fixed Rate [Member]
Notes payable:
Notes payable, principal amount outstanding	108,472	114,783
Variable Rate Debt, Subject To Interest Rate Swap [Member]
Notes payable:
Notes payable, principal amount outstanding	328,643	330,425
Unsecured credit facility:
Unsecured credit facility, principal amount outstanding	210,000	210,000
Variable Rate [Member]
Notes payable:
Notes payable, principal amount outstanding	41,237	41,604
Unsecured credit facility:
Unsecured credit facility, principal amount outstanding	$ 168,000	$ 148,000

Notes Payable and Unsecured C45

Notes Payable and Unsecured Credit Facility (Schedule of Future Principal Payments Due on Notes Payable and Unsecured Credit Facility) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)extensionloan
Debt Instrument [Line Items]
Nine months ending December 31, 2017	$ 182,535	[1]
2,018	317,008
2,019	170,647
2,020	136,160
2,021	1,239
Thereafter	48,763
Total	856,352
Note Payable Two [Member]
Debt Instrument [Line Items]
Nine months ending December 31, 2017	$ 105,850
Notes payable, maturity date	Aug. 21, 2017
Notes payable, extension period	2 years
Note Payable Three [Member]
Debt Instrument [Line Items]
Nine months ending December 31, 2017	$ 18,707
Notes payable, maturity date	Oct. 11, 2017
Notes payable, extension period	1 year
Notes payable, number of extension periods | extension	2
Notes Payable [Member]
Debt Instrument [Line Items]
Nine months ending December 31, 2017	$ 51,161
Number of loan agreements | loan	3
[1]	Of this amount, $105,850,000 relates to one loan agreement with a maturity date of August 21, 2017, subject to the Company's right to a two-year extension and $18,707,000 relates to one loan agreement, the maturity date of which is October 11, 2017, subject to the Company's right to two one-year extensions. The Company may refinance these loan agreements or exercise the extension options depending upon refinancing terms available at the time. In addition, $51,161,000 relates to three loan agreements of which the Company may elect to add to the unencumbered pool of the unsecured credit facility.

Related-Party Transactions an46

Related-Party Transactions and Arrangements (Narrative) (Details)	Mar. 31, 2017USD ($)employee	Mar. 31, 2017USD ($)employeeproperty	Mar. 31, 2016USD ($)
Related Party Transaction [Line Items]
Asset management fees incurred		$ 4,819,000	$ 4,787,000
Number of direct employees | employee	0	0
Maximum investment banking fees paid by Company, as percentage of transaction price		0.50%
Cumulative non-compounded annual return rate to investors, as a percent		8.00%
Carter/Validus Advisors, LLC [Member]
Related Party Transaction [Line Items]
Acquisition fee, as percentage of contract purchase price of each property or asset acquired		2.00%
Acquisition fee, as percentage of cost of development or redevelopment projects		2.00%
Acquisition fee, as percentage of amount advanced on mortgage loan		2.00%
Annual asset management fee, as percentage of aggregate asset value plus costs and expenses incurred by Advisor		0.85%
Monthly asset management fee, as percentage of aggregate asset value as of the last day of the immediately preceding month		0.07083%
Asset management fees incurred		$ 4,819,000	4,787,000
Operating expenses allocated to the Company by the advisor		$ 455,000	428,000
Percentage of remaining net sales proceeds Advisor will receive after investors receive return		15.00%
Listing fee percentage		15.00%
Distribution percentage upon termination of Advisory agreement		15.00%
Carter/Validus Advisors, LLC And/Or Its Affiliates [Member]
Related Party Transaction [Line Items]
Acquisition fees incurred related to investments in real estate		$ 0	0
Minimum number of properties required to be sold to incur brokerage commission | property		1
Maximum brokerage commission paid by Company, as percentage of contract sales price		6.00%
Disposition fees incurred	$ 0
Subordinated participation in net sale proceeds	0
Subordinated incentive listing fees incurred	0
Subordinated termination fees	$ 0
Carter/Validus Advisors, LLC And/Or Its Affiliates [Member] | Maximum [Member]
Related Party Transaction [Line Items]
Disposition fee, as percentage of contract sales price		1.00%
Percentage of brokerage commission paid by Company for properties sold that required a substantial amount of services		50.00%
Percentage of investment banking fees paid by Company for disposition, sale or merger of Company		50.00%
Carter Validus Real Estate Management Services, LLC [Member]
Related Party Transaction [Line Items]
Leasing and management fees, as percentage of gross revenues from single-tenant properties		3.00%
Leasing and management fees, as percentage of gross revenues from multi-tenant properties		4.00%
Oversight fee, as percentage of gross revenues from properties managed		1.00%
Property management fees incurred		$ 1,432,000	$ 1,287,000
Leasing commissions incurred		277,000
Construction management fees		$ 91,000
Carter Validus Real Estate Management Services, LLC [Member] | Maximum [Member]
Related Party Transaction [Line Items]
Construction management fee, as percentage of cost of project		5.00%

Related-Party Transactions An47

Related-Party Transactions And Arrangements (Schedule of Accounts Payable Due to Affiliates) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Accounts payable due to affiliates	$ 2,773	$ 2,635
Carter/Validus Advisors, LLC And/Or Its Affiliates [Member] | Asset Management Fees [Member]
Related Party Transaction [Line Items]
Accounts payable due to affiliates	1,608	1,604
Carter/Validus Advisors, LLC And/Or Its Affiliates [Member] | General, Administrative and Other Costs [Member]
Related Party Transaction [Line Items]
Accounts payable due to affiliates	199	174
Carter Validus Real Estate Management Services, LLC [Member] | Property Management Fees [Member]
Related Party Transaction [Line Items]
Accounts payable due to affiliates	908	791
Carter Validus Real Estate Management Services, LLC [Member] | Construction Management Fees [Member]
Related Party Transaction [Line Items]
Accounts payable due to affiliates	$ 58	$ 66

Segment Reporting (Narrative) (

Segment Reporting (Narrative) (Details)	3 Months Ended
	Mar. 31, 2017USD ($)segment	Mar. 31, 2016USD ($)
Segment Reporting Information [Line Items]
Number of reportable business segments | segment	2
Revenue	$ 51,390,000	$ 56,510,000
Intersegment Elimination [Member]
Segment Reporting Information [Line Items]
Revenue	$ 0	$ 0

Segment Reporting (Schedule of

Segment Reporting (Schedule of Information for Reportable Segments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Rental and parking expenses	$ (7,391)	$ (6,639)
Income from operations	20,570	26,384
General and administrative expenses	(1,683)	(1,581)
Change in fair value of contingent consideration	1,140	(120)
Asset management fees	(4,819)	(4,787)
Depreciation and amortization	(18,067)	(16,999)
Other interest and dividend income	563	2,822
Interest expense, net	(8,665)	(10,614)
Provision for loan losses	(2,484)	0
Net income	9,984	18,592
Operating Segments [Member]
Segment Reporting Information [Line Items]
Rental, parking and tenant reimbursement revenue	51,390	56,510
Rental and parking expenses	(7,391)	(6,639)
Income from operations	43,999	49,871
Operating Segments [Member] | Data Centers [Member]
Segment Reporting Information [Line Items]
Rental, parking and tenant reimbursement revenue	29,694	28,662
Rental and parking expenses	(4,784)	(4,823)
Income from operations	24,910	23,839
Operating Segments [Member] | Healthcare [Member]
Segment Reporting Information [Line Items]
Rental, parking and tenant reimbursement revenue	21,696	27,848
Rental and parking expenses	(2,607)	(1,816)
Income from operations	$ 19,089	$ 26,032

Segment Reporting (Schedule o50

Segment Reporting (Schedule of Assets by Reportable Segments) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets by segment [Line Items]
Total assets	$ 2,330,504	$ 2,337,654
Operating Segments [Member] | Data Centers [Member]
Assets by segment [Line Items]
Total assets	1,094,095	1,102,550
Operating Segments [Member] | Healthcare [Member]
Assets by segment [Line Items]
Total assets	1,185,575	1,190,087
All Other [Member]
Assets by segment [Line Items]
Total assets	$ 50,834	$ 45,017

Segment Reporting (Schedule o51

Segment Reporting (Schedule of Capital Additions by Reportable Segments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Capital additions by segment [Line Items]
Total capital additions	$ 4,501	$ 10,432
Operating Segments [Member] | Data Centers [Member]
Capital additions by segment [Line Items]
Total capital additions	58	182
Operating Segments [Member] | Healthcare [Member]
Capital additions by segment [Line Items]
Total capital additions	$ 4,443	$ 10,250

Future Minimum Rent (Schedule o

Future Minimum Rent (Schedule of Future Minimum Rental Income from Non-Cancelable Operating Leases) (Details) $ in Thousands	Mar. 31, 2017USD ($)
Leases [Abstract]
Nine months ending December 31, 2017	$ 138,908
2,018	188,689
2,019	191,957
2,020	192,829
2,021	187,931
Thereafter	1,378,068
Total	$ 2,278,382

Future Minimum Rent (Schedule53

Future Minimum Rent (Schedule of Future Minimum Rental Payments Under Non-Cancelable Ground Leases) (Details) $ in Thousands	Mar. 31, 2017USD ($)
Leases [Abstract]
Nine months ending December 31, 2017	$ 525
2,018	702
2,019	746
2,020	746
2,021	753
Thereafter	37,083
Total	$ 40,555

Fair Value (Narrative) (Details

Fair Value (Narrative) (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Fair Value [Line Items]
Notes payable, principal amount outstanding	$ 478,352,000	$ 486,812,000
Unsecured credit facility, principal amount outstanding	378,000,000	358,000,000
Contingent consideration obligations, fair value	4,500,000	5,640,000
Contingent consideration obligations, maximum payout	8,450,000
Contingent consideration obligations, minimum payout	0
Fixed Rate [Member]
Fair Value [Line Items]
Notes payable, principal amount outstanding	108,472,000	114,783,000
Variable Rate Debt, Subject To Interest Rate Swap [Member]
Fair Value [Line Items]
Notes payable, principal amount outstanding	328,643,000	330,425,000
Unsecured credit facility, principal amount outstanding	210,000,000	210,000,000
Variable Rate [Member]
Fair Value [Line Items]
Notes payable, principal amount outstanding	41,237,000	41,604,000
Unsecured credit facility, principal amount outstanding	168,000,000	148,000,000
Significant Other Observable Inputs (Level 2) [Member] | Estimated Fair Value [Member] | Fixed Rate [Member]
Fair Value [Line Items]
Notes payable, fair value disclosure	109,586,000	116,402,000
Significant Other Observable Inputs (Level 2) [Member] | Estimated Fair Value [Member] | Variable Rate Debt, Subject To Interest Rate Swap [Member]
Fair Value [Line Items]
Notes payable, fair value disclosure	326,393,000	328,512,000
Unsecured credit facility, fair value disclosure	$ 204,591,000	$ 203,055,000

Fair Value (Schedule of Fair Va

Fair Value (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets:
Derivative assets	$ 3,900	$ 3,070
Liabilities:
Derivative liabilities	(574)	(1,247)
Contingent consideration obligation	(4,500)	(5,640)
Recurring Basis [Member]
Assets:
Derivative assets	3,900	3,070
Total assets at fair value	3,900	3,070
Liabilities:
Derivative liabilities	(574)	(1,247)
Contingent consideration obligation	(4,500)	(5,640)
Total liabilities at fair value	(5,074)	(6,887)
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring Basis [Member]
Assets:
Derivative assets	0	0
Total assets at fair value	0	0
Liabilities:
Derivative liabilities	0	0
Contingent consideration obligation	0	0
Total liabilities at fair value	0	0
Significant Other Observable Inputs (Level 2) [Member] | Recurring Basis [Member]
Assets:
Derivative assets	3,900	3,070
Total assets at fair value	3,900	3,070
Liabilities:
Derivative liabilities	(574)	(1,247)
Contingent consideration obligation	0	0
Total liabilities at fair value	(574)	(1,247)
Significant Unobservable Inputs (Level 3) [Member] | Recurring Basis [Member]
Assets:
Derivative assets	0	0
Total assets at fair value	0	0
Liabilities:
Derivative liabilities	0	0
Contingent consideration obligation	(4,500)	(5,640)
Total liabilities at fair value	$ (4,500)	$ (5,640)

Fair Value (Schedule of Reconci

Fair Value (Schedule of Reconciliation of Fair Value of Recurring Level 3 Fair Value Measurements) (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance		$ 5,640	$ 5,340
Additions to contingent consideration obligation		0	0
Total changes in fair value included in earnings		(1,140)	120
Ending balance		4,500	5,460
Unrealized (gains) losses still held	[1]	$ (1,140)	$ 120
[1]	Represents the unrealized (gains) losses recorded in earnings or other comprehensive income (loss) during the period for liabilities classified as Level 3 that are still held at the end of the period.

Derivative Instruments and He57

Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gain (loss) recognized due to ineffectiveness of hedges of interest rate risk	$ 0
Loss on discontinuation of cash flow hedge due to forecasted transaction probable of not occurring		$ 728,000
Additional amount expected to be reclassified from AOCI into earnings during next twelve months	327,000
Fair value of derivatives in a net liability position	$ 689,000

Derivative Instruments and He58

Derivative Instruments and Hedging Activities (Schedule of the Notional Amount and Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Fair Value of Asset	$ 3,900	$ 3,070
Fair Value of (Liability)	(574)	(1,247)
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Outstanding Notional Amount	538,643	540,425
Other Assets, Net [Member] | Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Fair Value of Asset	3,900	3,070
Accounts Payable and Other Liabilities [Member] | Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Fair Value of (Liability)	$ (574)	$ (1,247)
Minimum [Member] | Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Effective Dates	Oct. 12, 2012
Maturity Dates	Oct. 11, 2017
Maximum [Member] | Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Effective Dates	May 3, 2016
Maturity Dates	Aug. 21, 2020

Derivative Instruments and He59

Derivative Instruments and Hedging Activities (Schedule of Income or Loss Recognized on Derivative Instruments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Income (Loss) Recognized in OCI on Derivatives (Effective Portion)	$ 834	$ (5,640)
Amount of Loss Reclassified From Accumulated Other Comprehensive Income to Net Income (Effective Portion and Accelerated Amounts)	(669)	(1,777)
Interest Rate Swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Income (Loss) Recognized in OCI on Derivatives (Effective Portion)	834	(5,640)
Interest Rate Swaps [Member] | Interest Expense, Net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Loss Reclassified From Accumulated Other Comprehensive Income to Net Income (Effective Portion and Accelerated Amounts)	$ (669)	$ (1,777)

Derivative Instruments and He60

Derivative Instruments and Hedging Activities (Schedule of Offsetting of Derivative Assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross Amounts of Recognized Assets	$ 3,900	$ 3,070
Gross Amounts Offset in the Balance Sheet	0	0
Net Amounts of Assets Presented in the Balance Sheet	3,900	3,070
Gross Amounts Not Offset in the Balance Sheet, Financial Instruments Collateral	(29)	(10)
Gross Amounts Not Offset in the Balance Sheet, Cash Collateral	0	0
Net Amount	$ 3,871	$ 3,060

Derivative Instruments and He61

Derivative Instruments and Hedging Activities (Schedule of Offsetting of Derivative Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross Amounts of Recognized Liabilities	$ 574	$ 1,247
Gross Amounts Offset in the Balance Sheet	0	0
Net Amounts Of Liabilities Presented in the Balance Sheet	574	1,247
Gross Amounts Not Offset in the Balance Sheet, Financial Instruments Collateral	(29)	(10)
Gross Amounts Not Offset in the Balance Sheet, Cash Collateral	0	0
Net Amount	$ 545	$ 1,237

Accumulated Other Comprehensi62

Accumulated Other Comprehensive Income (Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	$ 1,370,656
Ending Balance	1,353,607
Unrealized (Loss) Income On Derivative Instruments [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	2,303	$ (2,100)
Other comprehensive income (loss) before reclassification	834	(5,640)
Amount of loss reclassified from accumulated other comprehensive income to net income (effective portion)	669	1,777
Other comprehensive income (loss) attributable to common stockholders	1,503	(3,863)
Ending Balance	3,806	(5,963)
Accumulated Other Comprehensive Income (Loss) [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	1,823	(2,580)
Other comprehensive income (loss) before reclassification	834	(5,640)
Amount of loss reclassified from accumulated other comprehensive income to net income (effective portion)	669	1,777
Other comprehensive income (loss) attributable to common stockholders	1,503	(3,863)
Ending Balance	$ 3,326	$ (6,443)

Accumulated Other Comprehensi63

Accumulated Other Comprehensive Income (Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest expense, net	$ 8,665	$ 10,614
Reclassification Out Of Accumulated Other Comprehensive Income (Loss) [Member] | Unrealized (Loss) Income On Derivative Instruments [Member] | Interest Rate Swaps [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest expense, net	$ 669	$ 1,777

Commitments and Contingencies (

Commitments and Contingencies (Details)	Mar. 31, 2017case
Commitments and Contingencies Disclosure [Abstract]
Number of material pending legal proceedings to which the Company is a party	0

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands	May 04, 2017	May 01, 2017	Apr. 03, 2017	Mar. 31, 2017	Mar. 31, 2016
Subsequent Event [Line Items]
Distributions paid in cash				$ 15,309	$ 14,559
Common stock issued through distribution reinvestment plan				$ 16,621	$ 17,084
Distributions declared per common share				$ 0.17	$ 0.17
Rental Revenue [Member]
Subsequent Event [Line Items]
Concentration risk, percentage				5.00%
Subsequent Event [Member] | March 1, 2017 To March 31, 2017 [Member]
Subsequent Event [Line Items]
Aggregate distributions paid			$ 11,032
Distributions paid in cash			5,359
Common stock issued through distribution reinvestment plan			$ 5,673
Subsequent Event [Member] | April 1, 2017 To April 30, 2017 [Member]
Subsequent Event [Line Items]
Aggregate distributions paid		$ 10,685
Distributions paid in cash		5,174
Common stock issued through distribution reinvestment plan		$ 5,511
Subsequent Event [Member] | June 1, 2017 To August 31, 2017 [Member]
Subsequent Event [Line Items]
Number of days, distribution calculation	365 days
Distributions declared per common share	$ 0.001917808