Document and Entity Information
Document and Entity Information - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 26, 2018 | Jun. 30, 2017 | |
Entity Registrant Name | COLE REAL ESTATE INCOME STRATEGY (DAILY NAV), INC. | ||
Entity Central Index Key | 1,498,542 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 397.7 | ||
W Shares Common Stock | |||
Entity Common Stock, Shares Outstanding | 16,600 | ||
A Shares Common Stock | |||
Entity Common Stock, Shares Outstanding | 9,500 | ||
I Shares Common Stock | |||
Entity Common Stock, Shares Outstanding | 953 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Real estate assets: | ||
Land | $ 129,344 | $ 86,858 |
Buildings and improvements | 488,741 | 319,589 |
Intangible lease assets | 93,891 | 52,965 |
Total real estate assets, at cost | 711,976 | 459,412 |
Less: accumulated depreciation and amortization | (40,550) | (22,638) |
Total real estate assets, net | 671,426 | 436,774 |
Investment in marketable securities | 5,496 | 5,563 |
Total real estate assets and marketable securities, net | 676,922 | 442,337 |
Cash and cash equivalents | 2,923 | 4,671 |
Restricted cash | 1 | 600 |
Rents and tenant receivables, net | 7,377 | 4,206 |
Derivative assets, property escrow deposits and other assets | 2,731 | 684 |
Deferred costs, net | 1,359 | 1,074 |
Due from affiliates | 100 | 0 |
Assets held for sale | 8,050 | 0 |
Total assets | 699,463 | 453,572 |
LIABILITIES AND EQUITY | ||
Notes payable and credit facility, net | 274,830 | 159,143 |
Accrued expenses and accounts payable | 3,374 | 2,798 |
Escrowed stockholder proceeds | 0 | 75 |
Due to affiliates | 21,980 | 14,786 |
Intangible lease liabilities, net | 12,753 | 5,798 |
Distributions payable | 2,126 | 1,444 |
Deferred rental income, derivative liabilities and other liabilities | 1,930 | 1,442 |
Total liabilities | 316,993 | 185,486 |
Commitments and contingencies | ||
Redeemable common stock | 47,024 | 32,076 |
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, $0.01 par value; 10,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Capital in excess of par value | 378,266 | 259,817 |
Accumulated distributions in excess of earnings | (45,506) | (24,399) |
Accumulated other comprehensive income (loss) | 1,657 | (372) |
Total stockholders’ equity | 334,674 | 235,224 |
Non-controlling interests | 772 | 786 |
Total equity | 335,446 | 236,010 |
Total liabilities, redeemable common stock, and equity | 699,463 | 453,572 |
W Shares Common Stock | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, value | 158 | 125 |
A Shares Common Stock | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, value | 88 | 45 |
I Shares Common Stock | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, value | $ 11 | $ 8 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 490,000,000 | |
Common stock, shares outstanding (in shares) | 30,700,000 | |
W Shares Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 164,000,000 | 164,000,000 |
Common stock, shares issued (in shares) | 15,837,102 | 12,461,616 |
Common stock, shares outstanding (in shares) | 15,837,102 | 12,461,616 |
A Shares Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 163,000,000 | 163,000,000 |
Common stock, shares issued (in shares) | 8,793,223 | 4,449,352 |
Common stock, shares outstanding (in shares) | 8,793,223 | 4,449,352 |
I Shares Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 163,000,000 | 163,000,000 |
Common stock, shares issued (in shares) | 1,065,232 | 788,270 |
Common stock, shares outstanding (in shares) | 1,065,232 | 788,270 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||
Rental income | $ 43,670,000 | $ 24,574,000 | $ 17,345,000 |
Tenant reimbursement income | 4,355,000 | 2,620,000 | 1,688,000 |
Interest income on marketable securities | 121,000 | 117,000 | 76,000 |
Total revenues | 48,146,000 | 27,311,000 | 19,109,000 |
Operating expenses: | |||
General and administrative | 6,563,000 | 4,544,000 | 1,794,000 |
Property operating | 1,740,000 | 1,090,000 | 644,000 |
Real estate tax | 3,358,000 | 2,055,000 | 1,204,000 |
Advisory fees and expenses | 4,910,000 | 2,760,000 | 2,536,000 |
Acquisition-related | 2,174,000 | 3,251,000 | 809,000 |
Depreciation and amortization | 18,536,000 | 9,533,000 | 6,457,000 |
Impairment | 227,000 | 0 | 0 |
Total operating expenses | 37,508,000 | 23,233,000 | 13,444,000 |
Operating income | 10,638,000 | 4,078,000 | 5,665,000 |
Other income (expense): | |||
Interest expense and other, net | (10,291,000) | (5,380,000) | (3,980,000) |
Income (loss) before real estate dispositions: | 347,000 | (1,302,000) | 1,685,000 |
Gain on disposition of real estate, net | 0 | 0 | 5,642,000 |
Net income (loss) | 347,000 | (1,302,000) | 7,327,000 |
Net income (loss) allocated to noncontrolling interest | 35,000 | (10,000) | 0 |
Net income (loss) attributable to the Company | 312,000 | (1,292,000) | 7,327,000 |
W Shares Common Stock | |||
Other income (expense): | |||
Net income (loss) attributable to the Company | $ 242,000 | $ (952,000) | $ 6,025,000 |
Basic and diluted weighted average number of common shares outstanding (shares) | 14,374,833 | 9,986,524 | 6,506,020 |
Basic and diluted net income (loss) per common share (in dollars per share) | $ 0.02 | $ (0.10) | $ 0.93 |
Distributions declared per common share (in dollars per share) | $ 0.98 | $ 0.98 | $ 0.98 |
A Shares Common Stock | |||
Other income (expense): | |||
Net income (loss) attributable to the Company | $ 45,000 | $ (276,000) | $ 911,000 |
Basic and diluted weighted average number of common shares outstanding (shares) | 6,590,846 | 2,713,815 | 986,216 |
Basic and diluted net income (loss) per common share (in dollars per share) | $ 0.01 | $ (0.10) | $ 0.92 |
Distributions declared per common share (in dollars per share) | $ 0.98 | $ 0.98 | $ 0.98 |
I Shares Common Stock | |||
Other income (expense): | |||
Net income (loss) attributable to the Company | $ 25,000 | $ (64,000) | $ 391,000 |
Basic and diluted weighted average number of common shares outstanding (shares) | 936,555 | 718,206 | 420,662 |
Basic and diluted net income (loss) per common share (in dollars per share) | $ 0.03 | $ (0.09) | $ 0.93 |
Distributions declared per common share (in dollars per share) | $ 0.98 | $ 0.98 | $ 0.98 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 347 | $ (1,302) | $ 7,327 |
Other comprehensive income (loss): | |||
Unrealized holding gain (loss) on marketable securities | 27 | 44 | (93) |
Less: reclassification adjustment for (gain) loss included in income as other expense | (5) | 0 | 17 |
Unrealized gain (loss) on interest rate swaps | 1,344 | (580) | (586) |
Amount of loss reclassified from other comprehensive income into income as interest expense | 663 | 539 | 284 |
Total other comprehensive income (loss) | 2,029 | 3 | (378) |
Comprehensive income (loss) | 2,376 | (1,299) | 6,949 |
Comprehensive income (loss) allocated to noncontrolling interest | 35 | (10) | 0 |
Comprehensive income (loss) attributable to the Company | $ 2,341 | $ (1,289) | $ 6,949 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | W Shares Common Stock | A Shares Common Stock | I Shares Common Stock | Common Stock | Common StockW Shares Common Stock | Common StockA Shares Common Stock | Common StockI Shares Common Stock | Capital in Excess of Par Value | Accumulated Distributions in Excess of Earnings | Accumulated Other Comprehensive Income (Loss) | Parent | Noncontrolling Interest |
Balance, shares (in shares) at Dec. 31, 2014 | 6,012,043 | 897,376 | 256,525 | ||||||||||
Balance at Dec. 31, 2014 | $ 90,039 | $ 60 | $ 9 | $ 3 | $ 99,503 | $ (9,539) | $ 3 | $ 90,039 | $ 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of common stock (in shares) | 2,689,946 | 541,431 | 175,819 | ||||||||||
Issuance of common stock | 62,171 | $ 27 | $ 6 | $ 2 | 62,136 | 62,171 | |||||||
Conversion of shares (in shares) | (226,091) | 225,280 | |||||||||||
Conversion of shares | 0 | $ (2) | $ 2 | 0 | |||||||||
Distributions declared | (7,737) | (7,737) | (7,737) | ||||||||||
Commissions, dealer manager and distribution fees | (2,602) | (2,602) | (2,602) | ||||||||||
Other offering costs | (464) | (464) | (464) | ||||||||||
Redemptions (in shares) | (650,835) | (67,044) | |||||||||||
Redemptions of common stock | (12,957) | $ (7) | $ (1) | (12,949) | (12,957) | ||||||||
Changes in redeemable common stock | (5,422) | (5,422) | (5,422) | ||||||||||
Comprehensive income (loss) | 6,949 | 7,327 | (378) | 6,949 | |||||||||
Balance, shares (in shares) at Dec. 31, 2015 | 7,825,063 | 1,371,763 | 657,624 | ||||||||||
Balance at Dec. 31, 2015 | 129,977 | $ 78 | $ 14 | $ 7 | 140,202 | (9,949) | (375) | 129,977 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of common stock (in shares) | 5,418,786 | 3,181,316 | 130,646 | ||||||||||
Issuance of common stock | 161,035 | $ 55 | $ 32 | $ 1 | 160,947 | 161,035 | |||||||
Distributions declared | (13,158) | (13,158) | (13,158) | ||||||||||
Commissions, dealer manager and distribution fees | (9,904) | (9,904) | (9,904) | ||||||||||
Other offering costs | (1,192) | (1,192) | (1,192) | ||||||||||
Redemptions (in shares) | (782,233) | (103,727) | |||||||||||
Redemptions of common stock | (16,136) | $ (8) | $ (1) | (16,127) | (16,136) | ||||||||
Changes in redeemable common stock | (14,109) | (14,109) | (14,109) | ||||||||||
Contributions from non-controlling interests | 796 | 0 | 796 | ||||||||||
Comprehensive income (loss) | (1,299) | (1,292) | 3 | (1,289) | (10) | ||||||||
Balance, shares (in shares) at Dec. 31, 2016 | 12,461,616 | 4,449,352 | 788,270 | 12,461,616 | 4,449,352 | 788,270 | |||||||
Balance at Dec. 31, 2016 | 236,010 | $ 125 | $ 45 | $ 8 | 259,817 | (24,399) | (372) | 235,224 | 786 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of common stock (in shares) | 10,300,000 | 5,206,244 | 4,661,884 | 464,022 | |||||||||
Issuance of common stock | 189,596 | $ 189,600 | $ 51 | $ 46 | $ 5 | 189,494 | 189,596 | ||||||
Conversion of shares (in shares) | (55,096) | 54,673 | |||||||||||
Conversion of shares | 0 | 0 | |||||||||||
Distributions declared | (21,419) | (21,419) | (21,419) | ||||||||||
Commissions, dealer manager and distribution fees | (12,424) | (12,424) | (12,424) | ||||||||||
Other offering costs | (1,400) | (1,400) | (1,400) | ||||||||||
Redemptions (in shares) | (1,776,000) | (318,000) | (242,000) | (1,775,662) | (318,013) | (241,733) | |||||||
Redemptions of common stock | (42,296) | $ (32,200) | $ (5,700) | $ (4,400) | $ (18) | $ (3) | $ (2) | (42,273) | (42,296) | ||||
Changes in redeemable common stock | (14,948) | (14,948) | (14,948) | ||||||||||
Distributions to non-controlling interests | (49) | (49) | |||||||||||
Comprehensive income (loss) | $ 2,376 | 312 | 2,029 | 2,341 | 35 | ||||||||
Balance, shares (in shares) at Dec. 31, 2017 | 30,700,000 | 15,837,102 | 8,793,223 | 1,065,232 | 15,837,102 | 8,793,223 | 1,065,232 | ||||||
Balance at Dec. 31, 2017 | $ 335,446 | $ 158 | $ 88 | $ 11 | $ 378,266 | $ (45,506) | $ 1,657 | $ 334,674 | $ 772 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 347,000 | $ (1,302,000) | $ 7,327,000 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization, net | 18,117,000 | 9,538,000 | 6,630,000 |
Straight-line rental income | (1,860,000) | (1,067,000) | (717,000) |
Amortization of deferred financing costs | 1,813,000 | 716,000 | 465,000 |
Amortization on marketable securities | 13,000 | 16,000 | 12,000 |
Gain on disposition of real estate assets, net | 0 | 0 | (5,642,000) |
(Gain) loss on sale of marketable securities | (5,000) | 0 | 17,000 |
Ineffectiveness of interest rate swaps | (37,000) | 0 | 0 |
Write-off of deferred financing costs | 97,000 | 0 | 0 |
Bad debt expense | 0 | 17,000 | 2,000 |
Impairment of real estate assets, net | 227,000 | 0 | 0 |
Changes in assets and liabilities: | |||
Rents and tenant receivables | (1,311,000) | (501,000) | (1,077,000) |
Prepaid expenses and other assets | (267,000) | 4,000 | 114,000 |
Accounts payable and accrued expenses | 413,000 | 664,000 | 884,000 |
Deferred rental income and other liabilities | 842,000 | 253,000 | 233,000 |
Due from affiliates | (100,000) | 0 | 0 |
Due to affiliates | 1,022,000 | (45,000) | (14,000) |
Net cash provided by operating activities | 19,311,000 | 8,293,000 | 8,234,000 |
Cash flows from investing activities: | |||
Investment in real estate assets and capital expenditures | (253,928,000) | (186,432,000) | (52,555,000) |
Investment in marketable securities | (1,513,000) | (1,638,000) | (6,954,000) |
Proceeds from sale and maturities of marketable securities | 1,594,000 | 1,340,000 | 2,102,000 |
Proceeds from disposition of real estate assets | 0 | 0 | 21,398,000 |
Payment of property escrow deposits | (5,140,000) | (4,817,000) | 0 |
Refund of property escrow deposits | 5,050,000 | 4,407,000 | 0 |
Net cash used in investing activities | (253,937,000) | (187,140,000) | (36,009,000) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 179,307,000 | 155,051,000 | 58,835,000 |
Offering costs on issuance of common stock | (7,652,000) | (4,500,000) | (1,414,000) |
Redemptions of common stock | (42,296,000) | (16,136,000) | (12,957,000) |
Distributions to stockholders | (10,448,000) | (6,518,000) | (4,208,000) |
Proceeds from credit facility and notes payable | 308,065,000 | 69,675,000 | 82,190,000 |
Repayments of credit facility | (191,000,000) | (28,000,000) | (83,000,000) |
Proceeds from line of credit with affiliate | 0 | 0 | 10,000,000 |
Repayments of line of credit with affiliate | 0 | 0 | (10,000,000) |
Payment of loan deposits | (85,000) | 0 | 0 |
Refund of loan deposits | 85,000 | 0 | 0 |
Deferred financing costs paid | (3,573,000) | (1,233,000) | (1,252,000) |
Contributions from noncontrolling interest | 0 | 796,000 | 0 |
Distributions to noncontrolling interest | (49,000) | 0 | 0 |
Change in escrowed stockholder proceeds liability | (75,000) | 25,000 | 25,000 |
Net cash provided by financing activities | 232,279,000 | 169,160,000 | 38,219,000 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (2,347,000) | (9,687,000) | 10,444,000 |
Cash and cash equivalents and restricted cash, beginning of period | 5,271,000 | 14,958,000 | 4,514,000 |
Cash and cash equivalents and restricted cash, end of period | $ 2,924,000 | $ 5,271,000 | $ 14,958,000 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BUSINESS | ORGANIZATION AND BUSINESS Cole Real Estate Income Strategy (Daily NAV), Inc. (the “Company”) is a Maryland corporation, incorporated on July 27, 2010, that qualified as a real estate investment trust (“REIT”) for U.S. federal income tax purposes beginning with its taxable year ended December 31, 2012. Substantially all of the Company’s business is conducted through Cole Real Estate Income Strategy (Daily NAV) Operating Partnership, LP (“Cole OP”), a Delaware limited partnership. The Company is the sole general partner of, and owns, directly or indirectly, 100% of the partnership interests in, Cole OP. On November 13, 2017, VEREIT Operating Partnership, L.P. (“VEREIT OP”), a former affiliated entity of our sponsor, CCO Group (as defined below), entered into a Purchase and Sale Agreement with CCA Acquisition, LLC (“CCA”), a newly-formed affiliate of CIM Group, LLC (“CIM”), pursuant to which CCA agreed to acquire all of the issued and outstanding shares of common stock of Cole Capital Advisors, Inc., the direct or indirect owner of Cole Real Estate Income Strategy (Daily NAV) Advisors, LLC (“Cole Income NAV Strategy Advisors”), Cole Capital Corporation and CREI Advisors, LLC (“CREI Advisors”), our external advisor, dealer manager and property manager, respectively (the “Transaction”). On February 1, 2018, the Transaction was completed. Immediately following the completion of the Transaction, Cole Capital Advisors, Inc. and our dealer manager were each converted into Delaware limited liability companies, Cole Capital Advisors, Inc.’s name was changed to CCO Group, LLC, and our dealer manager’s name was changed to CCO Capital, LLC (“CCO Capital”). As a result of the Transaction, CIM owns and/or controls CCO Group, LLC and its subsidiaries (collectively, “CCO Group”), and CCO Group, LLC owns and controls Cole Income NAV Strategy Advisors, CCO Capital and CREI Advisors, our external advisor, dealer manager for the Offerings (as defined below) and property manager, respectively. In addition, as part of the Transaction, VEREIT OP and CCO Group, LLC entered into a services agreement (the “Services Agreement”) pursuant to which VEREIT OP will continue to provide certain services to CCO Group and to us, Cole Credit Property Trust IV, Inc. (“CCPT IV”), Cole Credit Property Trust V, Inc. (“CCPT V”), Cole Office & Industrial REIT (CCIT II), Inc. (“CCIT II”), and Cole Office & Industrial REIT (CCIT III), Inc. (“CCIT III”) (CCPT IV, CCPT V, CCIT II, CCIT III, and us collectively, the “Cole REITs”), including operational real estate support. VEREIT OP will continue to provide such services through March 31, 2019 (or, if later, the date of the last government filing other than a tax filing made by any of the Cole REITs with respect to its 2018 fiscal year) (the “Initial Services Term”) and will provide consulting and research services through December 31, 2023 as requested by CCO Group, LLC. Despite the indirect change of ownership and control of our advisor, dealer manager, property manager and sponsor, we expect that, during the Initial Services Term of the Services Agreement, the advisory, dealer manager and property management services the Company receives will continue without any material changes in personnel (except as supplemented by the management oversight of CIM personnel) or material change in service procedures. During the Initial Services Term of the Services Agreement, CCO Group, LLC intends to evaluate and effectuate an appropriate transition of VEREIT OP’s services under the Services Agreement to other CIM affiliates or third parties with the goal of ensuring continuity and minimizing disruption. On December 6, 2011, pursuant to a registration statement filed on Form S-11 (Registration No. 333-169535) (the “Initial Registration Statement”) under the Securities Act of 1933, as amended (the “Securities Act”), the Company commenced its initial public offering on a “best efforts” basis of $4.0 billion in shares of common stock. On August 26, 2013, pursuant to a registration statement filed on Form S-11 (Registration No. 333-186656) (the “Multi-Class Registration Statement”) under the Securities Act, the Company designated the existing shares of the Company’s common stock that were sold prior to such date to be Wrap Class shares (“W Shares”) of common stock and registered two new classes of the Company’s common stock, Advisor Class shares (“A Shares”) and Institutional Class shares (“I Shares”). Pursuant to a registration statement filed on Form S-11 (Registration No. 333-213271) on February 10, 2017 (the “Continuing Offering Registration Statement”), the Company is offering up to $4.0 billion in shares of common stock of the three classes (the “Offering”), consisting of $3.5 billion in shares in the Company’s primary offering (the “Primary Offering”) and $500.0 million in shares pursuant to a distribution reinvestment plan (the “DRIP”). The Company is offering to sell any combination of W Shares, A Shares and I Shares with a dollar value up to the maximum offering amount. As of December 31, 2017 , the Company had issued approximately 30.7 million shares of common stock in the Offering for gross offering proceeds of $550.6 million before offering costs and selling commissions of $10.0 million , and the current portion of dealer manager fees and distribution fees of $6.1 million . The per share purchase price for each class of common stock varies from day-to-day and, on each business day, is equal to, for each class of common stock, the Company’s net asset value (“NAV”) for such class, divided by the number of shares of that class outstanding as of the close of business on such a day, plus, for A Shares sold in the Primary Offering, applicable selling commissions. The Company’s NAV per share is calculated daily as of the close of business by an independent fund accountant using a process that reflects (1) estimated values of each of the Company’s commercial real estate assets, related liabilities and notes receivable secured by real estate provided periodically by the Company’s independent valuation expert in individual appraisal reports, (2) daily updates in the price of liquid assets for which third party market quotes are available, (3) accruals of daily distributions, and (4) estimates of daily accruals, on a net basis, of operating revenues, expenses, debt service costs and fees. As of December 31, 2017 , the NAV per share for W Shares, A Shares, and I Shares was $18.37 , $18.15 , and $18.55 , respectively. The Company’s NAV is not audited or reviewed by its independent registered public accounting firm. The Company intends to use substantially all of the net proceeds from the Offering to acquire and operate a diversified portfolio primarily consisting of (1) necessity retail, office and industrial properties that are leased to creditworthy tenants under long-term net leases, and are strategically located throughout the United States, (2) notes receivable and other investments secured by commercial real estate, including the origination of loans, and (3) U.S. government securities, agency securities, corporate debt and other investments for which there is reasonable liquidity. As of December 31, 2017 , the Company owned 139 commercial properties, which includes properties owned through a consolidated joint venture arrangement (the “Consolidated Joint Venture”), located in 36 states, containing 4.4 million rentable square feet of commercial space, including the square feet of buildings which are on land subject to ground leases. As of December 31, 2017 , the rentable square feet at these properties was 99.4% leased, including month-to-month agreements, if any. The Company is structured as a perpetual-life, non-exchange traded REIT. This means that, subject to regulatory approval of its filing for additional offerings, the Company will be selling shares of common stock on a continuous basis and for an indefinite period of time to the extent permissible under applicable law. The Company will endeavor to take all reasonable actions to avoid interruptions in the continuous offering of shares of common stock. The Company reserves the right to terminate the Offering at any time. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 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 consolidated financial statements. These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) in all material respects, and have been consistently applied in preparing the accompanying consolidated financial statements. Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and the Consolidated Joint Venture in which the Company has a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. The Company evaluates its relationships and investments to determine if it has variable interests. A variable interest is an investment or other interest that will absorb portions of an entity’s expected losses or receive portions of the entity’s expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity (“VIE”). VIEs are entities where stockholders lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support or where equity investors, as a group, lack one of the following characteristics: (a) the power to direct the activities that most significantly impact the entity’s economic performance, (b) the obligation to absorb the expected losses of the entity, or (c) the right to receive the expected returns of the entity. The Company consolidates any VIEs when it is determined to be the primary beneficiary of the VIE’s operations. For legal entities being evaluated for consolidation, the Company must first determine whether the interests that it holds and fees it receives qualify as variable interests in the entity. A variable interest is an investment or other interest that will absorb portions of an entity’s expected losses or receive portions of the entity’s expected residual returns. The Company’s evaluation includes consideration of fees paid to the Company where the Company acts as a decision maker or service provider to the entity being evaluated. If the Company determines that it holds a variable interest in an entity, it evaluates whether that entity is a VIE. A VIE must be consolidated by its primary beneficiary, which is generally defined as the party who has a controlling financial interest in the VIE. The Company qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors include, but are not limited to, the Company’s ability to direct the activities that most significantly impact the entity’s economic performance and its obligation to absorb losses from or right to receive benefits of the VIE that could potentially be significant to the VIE. The Company consolidates any VIEs when the Company is determined to be the primary beneficiary of the VIE and the difference between consolidating the VIE and accounting for it using the equity method could be material to the Company’s consolidated financial statements. The Company continually evaluates the need to consolidate any VIEs based on standards set forth in GAAP as described above. As of December 31, 2017 , the Company determined that it had a controlling interest in the Consolidated Joint Venture and therefore met the GAAP requirements for consolidation. Reclassifications In connection with the adoption of Accounting Standards Update (“ASU”) ASU 2016-18, discussed in “Recent Accounting Pronouncements,” certain reclassifications have been made to prior period balances to conform to current presentation in the consolidated statement of cash flows. Under ASU 2016-18, transfers to or from restricted cash which have previously been shown in the Company’s investing activities section of the consolidated statements of cash flows are now required to be shown as part of the total change in cash, cash equivalents and restricted cash in the consolidated statements of cash flows. This change resulted in a decrease in cash flows from investing activities of $482,000 and $93,000 , respectively, during the year ended December 31, 2016 and 2015 . Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Real Estate Assets Real estate assets are stated at cost, less accumulated depreciation and amortization. The Company considers the period of future benefit of each respective asset to determine the appropriate useful life. The estimated useful lives of the Company’s real estate assets by class are generally as follows: Buildings 40 years Site improvements 15 years Tenant improvements Lesser of useful life or lease term Intangible lease assets Lease term Recoverability of Real Estate Assets The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate assets may not be recoverable. Impairment indicators that the Company considers include, but are not limited to, bankruptcy or other credit concerns of a property’s major tenant, such as a history of late payments, rental concessions and other factors, a significant decrease in a property’s revenues due to lease terminations, vacancies, co-tenancy clauses, reduced lease rates or other circumstances. When indicators of potential impairment are present, the Company assesses the recoverability of the assets by determining whether the carrying amount of the assets will be recovered through the undiscounted future cash flows expected from the use of the assets and their eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying amount, the Company will adjust the real estate assets to their respective fair values and recognize an impairment loss. Generally, fair value will be determined using a discounted cash flow analysis and recent comparable sales transactions. During the year ended December 31, 2017 , the Company recorded impairment charges of $227,000 , related to one multi-tenant property held for sale, due to the carrying value being greater than the selling price. The assumptions and uncertainties utilized in the evaluation of the impairment of real estate assets are discussed in detail in Note 3 — Fair Value Measurements. See also Note 4 — Real Estate Assets for further discussion regarding real estate acquisition and disposition activity. No impairment indicators were identified and no impairment losses were recorded during the years ended December 31, 2016 or 2015 . Assets Held for Sale When a real estate asset is identified by the Company as held for sale, the Company will cease depreciation and amortization of the assets related to the property and estimate the fair value, net of selling costs. If, in management’s opinion, the fair value, net of selling costs, of the asset is less than the carrying amount of the asset, an adjustment to the carrying amount would be recorded to reflect the estimated fair value of the property, net of selling costs. During the year ended December 31, 2017 , the Company identified one property as held for sale, which was sold subsequent to December 31, 2017 , as discussed in Note 18 — Subsequent Events. There were no assets identified as held for sale as of December 31, 2016 . Allocation of Purchase Price of Real Estate Assets Upon the acquisition of real properties, the Company allocates the purchase price to acquired tangible assets, consisting of land, buildings and improvements, and identified intangible assets and liabilities, consisting of the value of above- and below-market leases and the value of in-place leases, based in each case on their respective fair values. The Company utilizes independent appraisals to assist in the determination of the fair values of the tangible assets of an acquired property (which includes land and buildings). The information in the appraisal, along with any additional information available to the Company’s management, is used in estimating the amount of the purchase price that is allocated to land. Other information in the appraisal, such as building value and market rents, may be used by the Company’s management in estimating the allocation of purchase price to the building and to intangible lease assets and liabilities. The appraisal firm has no involvement in management’s allocation decisions other than providing this market information. The fair values of above- and below-market lease intangibles are recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between (1) the contractual amounts to be paid pursuant to the in-place leases and (2) an estimate of fair market lease rates for the corresponding in-place leases, which is generally obtained from independent appraisals, measured over a period equal to the remaining non-cancelable term of the lease including, for below-market leases, any bargain renewal periods. The above- and below-market lease intangibles are capitalized as intangible lease assets or liabilities, respectively. Above-market leases are amortized as a reduction to rental income over the remaining terms of the respective leases. Below-market leases are amortized as an increase to rental income over the remaining terms of the respective leases, including any bargain renewal periods. In considering whether or not the Company expects a tenant to execute a bargain renewal option, the Company evaluates economic factors and certain qualitative factors at the time of acquisition, such as the financial strength of the tenant, the remaining lease term, the tenant mix of the leased property, the Company’s relationship with the tenant and the availability of competing tenant space. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above- or below-market lease intangibles relating to that lease would be recorded as an adjustment to rental income. The fair values of in-place leases include estimates of direct costs associated with obtaining a new tenant and opportunity costs associated with lost rental and other property income which are avoided by acquiring a property with an in-place lease. Direct costs associated with obtaining a new tenant include leasing commissions, legal and other related expenses and are estimated in part by utilizing information obtained from independent appraisals and management’s consideration of current market costs to execute a similar lease. The intangible values of opportunity costs, which are calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease, are capitalized as intangible lease assets and are amortized to expense over the remaining term of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed. The Company may acquire certain properties subject to contingent consideration arrangements that may obligate the Company to pay additional consideration to the seller based on the outcome of future events. Additionally, the Company may acquire certain properties for which it funds certain contingent consideration amounts into an escrow account pending the outcome of certain future events. The outcome may result in the release of all or a portion of the escrow funds to the Company or the seller or a combination thereof. Prior to the adoption of ASU 2017-01 (as defined below) in April 2017, contingent consideration arrangements, including amounts funded through an escrow account, were recorded upon acquisition of the respective property at their estimated fair value, and any changes to the estimated fair value subsequent to acquisition were reflected in the accompanying consolidated statements of operations in acquisition-related fees and expenses. Upon adoption of ASU 2017-01 in April 2017, contingent consideration arrangements for asset acquisitions are recognized when the contingency is resolved. The determination of the amount of contingent consideration arrangements is based on the probability of several possible outcomes as identified by management. The Company will estimate the fair value of assumed mortgage notes payable based upon indications of current market pricing for similar types of debt financing with similar maturities. Assumed mortgage notes payable will initially be recorded at their estimated fair value as of the assumption date, and any difference between such estimated fair value and the mortgage note’s outstanding principal balance will be amortized or accreted to interest expense over the term of the respective mortgage note payable. The determination of the fair values of the real estate assets and liabilities acquired requires the use of significant assumptions with regard to the current market rental rates, rental growth rates, capitalization and discount rates, interest rates and other variables. The use of alternative estimates may result in a different allocation of the Company’s purchase price, which could materially impact the Company’s results of operations. In April 2017, the Company elected to early adopt ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”), which clarifies the definition of a business by adding guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Beginning in April 2017, all real estate acquisitions qualified as asset acquisitions, and as such, acquisition-related fees and certain acquisition-related expenses related to these asset acquisitions were capitalized and allocated to tangible and intangible assets and liabilities as described above. Prior to the adoption of ASU 2017-01 in April 2017, all of the Company’s real estate acquisitions were accounted for as business combinations, and as such, acquisition-related expenses related to these business combination acquisitions were expensed as incurred. Prior to April 2017, acquisition-related expenses in the Company’s consolidated statements of operations primarily consisted of legal, deed transfer and other costs related to real estate purchase transactions, including costs incurred for deals that were not consummated. The Company expects its future acquisitions to qualify as asset acquisitions, and as such, the Company will allocate the purchase price to acquired tangible assets, consisting of land, buildings and improvements, and to identified intangible assets and liabilities, consisting of the value of above- and below-market leases and the value of in-place leases, based in each case on a relative fair value basis. Investment in Marketable Securities Investment in marketable securities consists primarily of the Company ’ s investment in corporate and government debt securities. The Company determines the appropriate classification for debt securities at the time of purchase and reevaluates such designation as of each balance sheet date. As of December 31, 2017 , the Company classified its investments as available-for-sale as the Company is not actively trading the securities; however, the Company may sell them prior to their maturity. These investments are carried at their estimated fair value with unrealized gains and losses reported in other comprehensive income (loss). The Company monitors its available-for-sale securities for impairments. A loss is recognized when the Company determines that a decline in the estimated fair value of a security below its amortized cost is other-than-temporary. The Company considers many factors in determining whether the impairment of a security is deemed to be other-than-temporary, including, but not limited to, the length of time the security has had a decline in estimated fair value below its amortized cost, the amount of the unrealized loss, the intent and ability of the Company to hold the security for a period of time sufficient for a recovery in value, recent events specific to the issuer or industry, external credit ratings and recent changes in such ratings. The analysis of determining whether the impairment of a security is deemed to be other-than-temporary requires significant judgments and assumptions. The use of alternative judgments and assumptions could result in a different conclusion. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity computed under the effective interest method and is recorded in the accompanying consolidated statements of operations in interest and other expense, net. Upon the sale of a security, the realized net gain or loss is computed on the specific identification method. Noncontrolling Interest in Consolidated Joint Venture On December 16, 2016, the Company completed the formation of the Consolidated Joint Venture. The Company determined it had a controlling interest in the Consolidated Joint Venture and, therefore, met the GAAP requirements for consolidation. The Company recorded net income of $35,000 and paid distributions of $49,000 related to the noncontrolling interest during the year ended December 31, 2017 . The Company recorded the noncontrolling interest of $772,000 and $786,000 as of December 31, 2017 and 2016 , respectively, on the consolidated balance sheet. Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include cash in bank accounts, as well as investments in highly-liquid money market funds. The Company deposits cash with several high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company (“FDIC”) up to an insurance limit of $250,000. At times, the Company’s cash and cash equivalents may exceed federally insured levels. Although the Company bears risk on amounts in excess of those insured by the FDIC, it has not experienced and does not anticipate any losses due to the high quality of the institutions where the deposits are held. The Company had $1,000 and $600,000 in restricted cash as of December 31, 2017 and 2016 , respectively. Included in restricted cash as of December 31, 2016 was $500,000 held by a lender in an escrow account for a certain property in accordance with the associate loan agreement. Additionally, as part of certain debt agreements, rent from certain of the Company’s tenants is deposited directly into a lockbox account, from which funds in excess of the required minimum balance are disbursed on a weekly basis to the Company. As of December 31, 2017 and 2016 , the Company had $1,000 and $25,000 , respectively, held in a lockbox account. In addition, restricted cash included $75,000 of escrowed stockholder proceeds for which shares of common stock had not been issued as of December 31, 2016 . The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the accompanying consolidated balance sheets to the combined amounts shown on the accompanying consolidated statements of cash flows (in thousands): As of December 31, 2017 2016 2015 Cash and cash equivalents $ 2,923 $ 4,671 $ 14,840 Restricted cash 1 600 118 Total cash and cash equivalents and restricted cash shown in the statement of cash flows $ 2,924 $ 5,271 $ 14,958 Deferred Financing Costs Deferred financing costs represent commitment fees, legal fees and other costs associated with obtaining commitments for financing. The presentation of all deferred financing costs, other than those associated with the revolving loan portion of the credit facility, are classified such that the debt issuance costs related to a recognized debt liability are presented on the consolidated balance sheets as a direct deduction from the carrying amount of the related debt liability rather than as an asset. Debt issuance costs related to securing a revolving line of credit are presented as an asset and amortized ratably over the term of the line of credit arrangement. As such, the Company’s current and corresponding prior period total deferred financing costs, net in the accompanying consolidated balance sheets relate only to the revolving loan portion of the credit facility and the historical presentation, amortization and treatment of unamortized costs are still applicable. As of December 31, 2017 and 2016 , the Company had $1.4 million and $1.1 million , respectively, of deferred financing costs, net of accumulated amortization, related to the revolving credit facility. Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined the financing will not close. Derivative Instruments and Hedging Activities The Company accounts for its derivative instruments at fair value. Accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative instrument and the designation of the derivative instrument. The change in fair value of the effective portion of any derivative instrument that is designated as a hedge is recorded as other comprehensive income (loss) . The changes in fair value for derivative instruments that are not designated as hedges or that do not meet the hedge accounting criteria are recorded as a gain or loss to operations. Due to Affiliates Cole Income NAV Strategy Advisors and certain of its affiliates received, and will continue to receive, fees, reimbursements and compensation in connection with services provided relating to the Offering and the acquisition, management and performance of the Company’s assets. As of December 31, 2017 and 2016 , $22.0 million and $14.8 million , respectively, was due to Cole Income NAV Strategy Advisors and its affiliates for such services, as discussed in Note 12 — Related-Party Transactions and Arrangements to these consolidated financial statements. Redeemable Common Stock The Company has adopted a share redemption program that permits its stockholders to redeem their shares, subject to certain limitations discussed in Note 14 — Stockholders’ Equity to these consolidated financial statements. The Company records amounts that are redeemable under the share redemption program as redeemable common stock outside of permanent equity on its consolidated balance sheets. Redeemable common stock is recorded at the greater of the carrying amount or redemption value each reporting period. Changes in the value from period to period are recorded as an adjustment to capital in excess of par value. As of December 31, 2017 and 2016 , the quarterly redemption capacity was equal to 10% of the Company’s NAV and this amount was recorded as redeemable common stock on the consolidated balance sheets for a total of $47.0 million and $32.1 million , respectively. As of December 31, 2017 and 2016 , certain shares were not permitted to be redeemed subject to certain limitations as discussed in Note 14 — Stockholders’ Equity to these consolidated financial statements. Dealer Manager and Distribution Fees The Company pays CCO Capital dealer manager and distribution fees, which are calculated on a daily basis in the amount of 1/365th of the amount indicated in the table below for each class of common stock: Dealer Manager Fee Distribution Fee W Shares 0.55 % — A Shares 0.55 % 0.50 % I Shares 0.25 % — The dealer manager and distribution fees are paid monthly in arrears. An estimated liability for future dealer manager and distribution fees payable to CCO Capital is recognized at the time each share is sold and included in due to affiliates in the consolidated balance sheets with a corresponding decrease to capital in excess of par value. The Company recognized a liability for future dealer manager and distribution fees payable to CCO Capital of $19.2 million and $12.5 million , as of December 31, 2017 and 2016 , respectively. Revenue Recognition Certain properties have leases where minimum rental payments increase during the term of the lease. The Company records rental income for the full term of each lease on a straight-line basis when earned and collectability is reasonably assured. When the Company acquires a property, the terms of existing leases are considered to commence as of the acquisition date for the purpose of this calculation. The Company defers the recognition of contingent rental income, such as percentage rents, until the specific target that triggers the contingent rental income is achieved. Expected reimbursements from tenants for recoverable real estate taxes and operating expenses are included in tenant reimbursement income in the period when such costs are incurred. The Company continually reviews receivables related to rent, including any straight-line rent, and current and future operating expense reimbursements from tenants and determines collectability by taking into consideration the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. In the event that the collectability of a receivable is uncertain, the Company will record an increase in the allowance for uncollectible accounts. As of December 31, 2017 , the Company had no allowances. As of December 31, 2016 , the Company had an allowance for uncollectible accounts of $2,000 . Income Taxes The Company elected to be taxed, and currently qualifies, as a REIT for federal income tax purposes under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). The Company generally is not subject to federal corporate income tax to the extent it distributes its taxable income to its stockholders, and so long as it, among other things, distributes at least 90% of its annual taxable income (computed without regard to the dividends paid deduction and excluding net capital gains). REITs are subject to a number of other organizational and operational requirements. Even if the Company maintains its qualification for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. On December 22, 2017, the Tax Cuts and Jobs Act was signed into law. See Note 15 — Income Taxes for further discussion regarding the Tax Cuts and Jobs Act. Earnings (Loss) and Distributions Per Share The Company has three classes of common stock with nonforfeitable dividend rights that are determined based on a different NAV for each class. Accordingly, the Company utilizes the two-class method to determine its earnings per share, which results in different earnings per share for each of the classes. Under the two-class method, earnings per share of each class of common stock are computed by dividing the sum of the distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of shares for each class of common stock for the respective period. Diluted income per share, when applicable, considers the effect of any potentially dilutive share equivalents, of which the Company had none for each of the years ended December 31, 2017 , 2016 or 2015 . Distributions per share is calculated based on the authorized daily distribution rate. Offering and Related Costs Cole Income NAV Strategy Advisors funds all of the organization and offering costs associated with the sale of the Company’s common stock (excluding selling commissions, the distribution fee and the dealer manager fee) and is reimbursed for such costs up to 0.75% of gross proceeds from the Offering, excluding selling commissions charged on A Shares sold in the Primary Offering. As of December 31, 2017 , Cole Income NAV Strategy Advisors, or its affiliates, had paid organization and offering costs in excess of the 0.75% in connection with the Offering. These excess costs were not included in the financial statements of the Company because such costs were not a liability of the Company as they exceeded 0.75% of gross proceeds from the Offering. As the Company raises additional proceeds from the Offering, these excess costs may become payable to Cole Income NAV Strategy Advisors. Reportable Segments The Company’s commercial real estate assets primarily consist of single-tenant, necessity commercial properties, which are leased to creditworthy tenants under long-term net leases and provide current operating cash flow. The commercial properties are geographically diversified throughout the United States and have similar economic characteristics. The Company’s management evaluates operating performance on an overall portfolio level; therefore the Company’s properties are one reportable segment. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by various standard setting bodies that may have an impact on the Company’s accounting and reporting. Except as otherwise stated below, the Company is currently evaluating the effect that certain of these new accounting requirements may have on the Company’s accounting and related reporting and disclosures in the Company’s consolidated financial statements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in Revenue Recognition, Accounting Standards Codification (“ASC”) (Topic 605) and will require an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public business entities, the guidance should be applied to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. In accordance with the Company’s plan for the adoption of ASU 2014-09, the Company’s implementation team has identified all of the Company’s revenue streams and real estate sales and concluded that upon adoption, there will not be a material impact on the Company’s consolidated financial statements and disclosures. The Company plans to adopt ASU 2014-09 effective January 1, 2018 using the modified retrospective approach. In addition, the Company evaluated controls around the implementation of ASU 2014-09 and has concluded there will be no significant impact on the Company’s control structure. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which will require that a lessee recognize assets and liabilities on the balance sheet for all leases with a lease term of more than 12 months, with the result being the recognition of a right of use asset and a lease liability and the disclosure of key information about the entity’s leasing arrangements. The lessor accounting model under ASU 2016-02 is similar to current guidance; however it limits the capitalization of initial direct leasing costs, such as internally generated costs. ASU 2016-02 retains a distinction between finance leases (i.e., capital leases under current GAAP) and operating leases. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. A modified retrospective approach is required for existing leases that have not expired upon adoption and provides for certain practical expedients. The Company is still evaluating the full impact of ASU 2016-02 on its consolidated financial statements; however, the Company plans to adopt ASU 2016-02 as of January 1, 2019 and anticipates that it will elect a practical expedient offered in ASU 2016-02 that allows an entity to not reassess the following upon adoption (elected as a group): (i) whether an expired or existing contract contains a lease arrangement; (ii) lease classification rela |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS GAAP defines fair value, establishes a framework for measuring fair value and requires disclosures about fair value measurements. GAAP emphasizes that fair value is intended to be a market-based measurement, as opposed to a transaction-specific measurement. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate the fair value. Assets and liabilities are measured using inputs from three levels of the fair value hierarchy, as follows: Level 1 — Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 — Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active (markets with few transactions), inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs). Level 3 — Unobservable inputs, which are only used to the extent that observable inputs are not available, reflect the Company’s assumptions about the pricing of an asset or liability. The following describes the methods the Company uses to estimate the fair value of the Company’s financial assets and liabilities: Notes payable and line of credit — The fair value is estimated by discounting the expected cash flows based on estimated borrowing rates available to the Company as of the measurement date. Current and prior period liabilities’ carrying and fair values exclude net deferred financing costs. These financial instruments are valued using Level 2 inputs. As of December 31, 2017 , the estimated fair value of the Company’s debt was $274.0 million , compared to the carrying value of $278.2 million . The estimated fair value and the carrying value of the Company’s debt were each $161.2 million as of December 31, 2016 . Marketable securities — The Company’s marketable securities are carried at fair value and are valued using Level 1 inputs. The estimated fair value of the Company’s marketable securities are based on quoted market prices that are readily and regularly available in an active market. Derivative instruments — The Company’s derivative instruments are comprised of interest rate swaps. All derivative instruments are carried at fair value and are valued using Level 2 inputs. The fair value of these instruments is determined using interest rate market pricing models. In addition, credit valuation adjustments are incorporated into the fair values to account for the Company’s potential nonperformance risk and the performance risk of the respective counterparties. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with those derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. However, as of December 31, 2017 and 2016 , the Company has assessed the overall 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 the Company’s derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Other financial instruments — The Company considers the carrying values of its cash and cash equivalents, restricted cash, tenant receivables, accounts payable and accrued expenses, other liabilities, due to affiliates and distributions payable to approximate their fair values because of the short period of time between their origination and their expected realization as well as their highly-liquid nature. Due to the short-term maturities of these instruments, Level 1 inputs are utilized to estimate the fair value of these financial instruments. Considerable judgment is necessary to develop estimated fair values of financial assets and liabilities. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize, or be liable for, upon disposition of the financial assets and liabilities. As of December 31, 2017 and 2016 , there have been no transfers of financial assets or liabilities between fair value hierarchy levels. In accordance with the fair value hierarchy described above, the following tables show 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 December 31, 2017 and 2016 (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2017 (Level 1) (Level 2) (Level 3) Financial asset: Interest rate swaps $ 1,718 $ — $ 1,718 $ — Marketable securities 5,496 5,496 — — Total financial assets $ 7,214 $ 5,496 $ 1,718 $ — Financial liabilities: Interest rate swaps $ (17 ) $ — $ (17 ) $ — Balance as of Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2016 (Level 1) (Level 2) (Level 3) Financial asset: Interest rate swaps $ 28 $ — $ 28 $ — Marketable securities 5,563 5,563 — — Total financial assets $ 5,591 $ 5,563 $ 28 $ — Financial liabilities: Interest rate swaps $ (371 ) $ — $ (371 ) $ — Items Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges) Certain financial and nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The Company’s process for identifying and recording impairment related to real estate assets and intangible assets is discussed in Note 2 — Summary of Significant Accounting Policies. As discussed in Note 4 — Real Estate Assets, during the year ended December 31, 2017 , real estate assets related to one multi-tenant property held for sale and totaling approximately 62,000 square feet was deemed to be impaired, due to the carrying value being greater than the selling price. The carrying value was reduced to an estimated fair value of $8.1 million , resulting in impairment charges of $227,000 . The Company determined that the selling price used to determine the fair value was a Level 2 input. The following table presents the impairment charges by asset class recorded during the year ended December 31, 2017 (in thousands): Year Ended December 31, 2017 Asset class impaired: Land $ 3 Buildings and improvements 210 Intangible lease assets 14 Total impairment loss $ 227 |
Real Estate Assets
Real Estate Assets | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
REAL ESTATE ASSETS | REAL ESTATE ASSETS 2017 Property Acquisitions During the year ended December 31, 2017 , the Company acquired a 100% interest in 31 commercial properties, of which 19 were accounted for as asset acquisitions and 12 were acquired prior to the Company’s adoption of ASU 2017-01 in April 2017 and thus were accounted for as business combinations for an aggregate purchase price of $253.4 million (the “ 2017 Acquisitions ”). The Company funded the 2017 Acquisitions with net proceeds from the Offering and available borrowings. The Company allocated the purchase price of these properties to the fair value of the assets acquired and liabilities assumed. The following table summarizes the consideration transferred for the properties purchased during the year ended December 31, 2017 (in thousands): 2017 Acquisitions Real estate assets: Purchase price of asset acquisitions $ 200,991 Purchase price of business combinations 52,457 Total purchase price of real estate assets acquired (1) $ 253,448 ______________________ (1) The weighted average amortization period for the 2017 Acquisitions is 12.6 years for acquired in-place leases and other intangibles, 15.7 years for acquired above-market leases and 13.8 years for acquired intangible lease liabilities. During the year ended December 31, 2017 , the Company acquired a 100% interest in 19 commercial properties for an aggregate purchase price of $201.0 million (the “2017 Asset Acquisitions”), which includes $1.5 million of external acquisition-related expenses that were capitalized in accordance with ASU 2017-01. Prior to the adoption of ASU 2017-01, costs related to property acquisitions were expensed as incurred. The following table summarizes the purchase price allocation for the 2017 Asset Acquisitions purchased during the year ended December 31, 2017 (in thousands): 2017 Asset Acquisitions Land $ 30,220 Building and improvements 152,840 Acquired in-place leases and other intangibles 23,164 Acquired above-market leases 1,522 Intangible lease liabilities (6,755 ) Total purchase price $ 200,991 During the year ended December 31, 2017 , the Company acquired a 100% interest in 12 commercial properties for an aggregate purchase price of $52.5 million which were accounted for as business combinations (the “2017 Business Combination Acquisitions”). The Company allocated the purchase price of these properties to the fair value of the assets acquired and liabilities assumed. The following table summarizes the purchase price allocation for the 2017 Business Combination Acquisitions purchased during the year ended December 31, 2017 (in thousands): 2017 Business Combinations Land $ 14,232 Building and improvements 22,292 Acquired in-place leases and other intangibles 15,911 Acquired above-market leases 1,423 Intangible lease liabilities (1,401 ) Total purchase price $ 52,457 The Company recorded revenue of $3.3 million and net income of $650,000 for the year ended December 31, 2017 related to the 2017 Business Combination Acquisitions. In addition, the Company recorded $426,000 of acquisition-related expenses for the year ended December 31, 2017 , which is included in acquisition-related expenses on the consolidated statements of operations. The following table summarizes selected financial information of the Company, as if all of the 2017 Business Combination Acquisitions were completed on January 1, 2016 for each period presented below. The table below presents the Company’s estimated revenue and net income (loss), on a pro forma basis, for the years ended December 31, 2017 and 2016 (in thousands): Year Ended December 31, 2017 December 31, 2016 Pro forma basis (unaudited): Revenue $ 48,362 $ 30,872 Net income (loss) $ 702 $ (1,805 ) The unaudited pro forma information for the year ended December 31, 2017 was adjusted to exclude $426,000 of acquisition-related expenses recorded during such periods related to the 2017 Business Combination Acquisitions. Accordingly, these expenses were instead recognized in the pro forma information for the year ended December 31, 2016 . The pro forma information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of 2016 , nor does it purport to represent the results of future operations. 2017 Impairment of a Property The Company performs quarterly impairment review procedures, primarily through continuous monitoring of events and changes in circumstances that could indicate that the carrying value of certain of its real estate assets may not be recoverable. See Note 2 — Summary of Significant Accounting Policies for a discussion on the Company’s accounting policies regarding impairment of real estate assets. During the year ended December 31, 2017 , one property with a carrying value of $8.3 million was deemed to be impaired and its carrying value was reduced to an estimated fair value of $8.1 million , resulting in impairment charges of $227,000 , which were recorded in the consolidated statements of operations. See Note 3 — Fair Value Measurements for a further discussion on these impairment charges. Consolidated Joint Venture As of December 31, 2017 , the Company had an interest in a Consolidated Joint Venture that owns and manages two properties, with total assets of $7.8 million , which included $1.4 million of land, $5.8 million of building and improvements, and $641,000 of intangible assets, net of accumulated depreciation and amortization of $238,000 , and total liabilities of $222,000 . The Consolidated Joint Venture does not have any debt outstanding as of December 31, 2017 . The Company has the ability to control operating and financial policies of the Consolidated Joint Venture. There are restrictions on the use of these assets as the Company would generally be required to obtain the approval of the partner (the “Consolidated Joint Venture Partner”) in accordance with the joint venture agreement for any major transactions. The Company and the Consolidated Joint Venture Partner are subject to the provisions of the joint venture agreement, which includes provisions for when additional contributions may be required to fund certain cash shortfalls. 2016 Property Acquisitions During the year ended December 31, 2016 , the Company acquired 31 commercial properties, including properties held in the Consolidated Joint Venture, for an aggregate purchase price of $186.3 million (the “ 2016 Acquisitions ”). The 2016 Acquisitions were accounted for as business combinations. The Company funded the 2016 Acquisitions with net proceeds from the Offering and available borrowings. The Company allocated the purchase price of these properties to the fair value of the assets acquired and liabilities assumed. The following table summarizes the purchase price allocation for the acquisitions purchased during the year ended December 31, 2016 (in thousands): 2016 Acquisitions Land $ 37,073 Building and improvements 131,828 Acquired in-place leases and other intangibles (1) 17,293 Acquired above-market leases (2) 2,828 Intangible lease liabilities (3) (2,733 ) Total purchase price $ 186,289 ______________________ (1) The weighted average amortization period for acquired in-place leases and other intangibles was 15.9 years for the 2016 Acquisitions . (2) The weighted average amortization period for acquired above-market leases was 16.6 years for the 2016 Acquisitions . (3) The weighted average amortization period for acquired intangible lease liabilities was 15.5 years for the 2016 Acquisitions . The Company recorded revenue of $4.1 million and net income of $1.0 million for the year ended December 31, 2016 related to the 2016 Acquisitions . In addition, the Company recorded $1.4 million of acquisition-related expenses for the year ended December 31, 2016 , which is included in acquisition-related expenses on the consolidated statements of operations. The following table summarizes selected financial information of the Company, as if all of the 2016 Acquisitions were completed on January 1, 2015 for each period presented below. The table below presents the Company’s estimated revenue and net income, on a pro forma basis, for the years ended December 31, 2016 and 2015 (in thousands): Year Ended December 31, 2016 December 31, 2015 Pro forma basis (unaudited): Revenue $ 37,204 $ 33,132 Net income $ 963 $ 9,254 The unaudited pro forma information for the year ended December 31, 2016 was adjusted to exclude acquisition-related expenses recorded during such periods related to the 2016 Acquisitions . Accordingly, these expenses were instead recognized in the pro forma information for the year ended December 31, 2015 . The pro forma information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of 2015 , nor does it purport to represent the results of future operations. 2015 Property Acquisitions During the year ended December 31, 2015 , the Company acquired a 100% interest in seven commercial properties for an aggregate purchase price of $52.3 million (the “ 2015 Acquisitions ”). The 2015 Acquisitions were accounted for as business combinations. The Company funded the 2015 Acquisitions with net proceeds from the Offering and available borrowings. The Company allocated the purchase price of these properties to the fair value of the assets acquired and liabilities assumed. The following table summarizes the purchase price allocation for the acquisitions purchased during the year ended December 31, 2015 (in thousands): 2015 Acquisitions Land $ 11,505 Building and improvements 37,381 Acquired in-place leases and other intangibles (1) 5,054 Acquired above-market leases (2) 28 Intangible lease liabilities (3) (1,694 ) Total purchase price $ 52,274 ______________________ (1) The weighted average amortization period for acquired in-place leases and other intangibles was 10.0 years for the 2015 Acquisitions . (2) The weighted average amortization period for acquired above-market leases was 8.5 years for the 2015 Acquisitions . (3) The weighted average amortization period for acquired intangible lease liabilities was 9.8 years for the 2015 Acquisitions . The Company recorded revenue of $425,000 and net loss of $267,000 for the year ended December 31, 2015 related to the 2015 Acquisitions. In addition, the Company recorded $809,000 of acquisition-related expenses for the year ended December 31, 2015 , which is included in acquisition-related expenses on the consolidated statements of operations. The following information summarizes selected financial information of the Company, as if all of the 2015 Acquisitions were completed on January 1, 2014 for each period presented below. The table below presents the Company’s estimated revenue and net income, on a pro forma basis, for the years ended December 31, 2015 and 2014 (in thousands): Year Ended December 31, 2015 December 31, 2014 Pro forma basis (unaudited): Revenue $ 23,322 $ 17,943 Net income $ 9,296 $ 1,523 The unaudited pro forma information for the year ended December 31, 2015 was adjusted to exclude acquisition-related expenses recorded during such periods related to the 2015 Acquisitions . These expenses were instead recognized in the pro forma information for the year ended December 31, 2014 . The pro forma information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of 2014 , nor does it purport to represent the results of future operations. 2015 Property Dispositions During the year ended December 31, 2015 , the Company disposed of four retail properties and one anchored shopping center property, for an aggregate gross sales price of $21.9 million and a gain of $5.6 million . No disposition fees were paid to affiliates in connection with the sale of the properties and the Company has no continuing involvement with these properties. The gain on sale of real estate is included in gain on disposition of real estate, net in the consolidated statements of operations for all periods presented. The Company did not dispose of any properties during the years ended December 31, 2017 or 2016 . |
Intangible Lease Assets
Intangible Lease Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE LEASE ASSETS | INTANGIBLE LEASE ASSETS Intangible lease assets of the Company consisted of the following as of December 31, 2017 and 2016 (in thousands, except weighted average life amounts): As of December 31, 2017 2016 In-place leases and other intangibles, net of accumulated amortization of $12,955 and $6,942, respectively (with a weighted average life remaining of 10.7 years and 12.0 years, respectively). $ 71,543 $ 39,353 Acquired above-market leases, net of accumulated amortization of $1,522 and $927, respectively (with a weighted average life remaining of 12.3 years and 12.3 years, respectively). 7,871 5,743 $ 79,414 $ 45,096 Amortization of the above-market leases is recorded as a reduction to rental revenue, and amortization expense related to the in-place leases and other intangibles is included in depreciation and amortization in the accompanying consolidated statement of operations. The following table summarizes the amortization expense related to the intangible lease assets for the years ended December 31, 2017 , 2016 and 2015 (in thousands): Year Ended December 31, 2017 2016 2015 In-place lease and other intangible amortization $ 6,491 $ 2,969 $ 2,120 Above-market lease amortization $ 745 $ 417 $ 347 As of December 31, 2017 , the estimated amortization expense relating to the intangible lease assets for each of the five succeeding fiscal years is as follows (in thousands): Amortization Year ending December 31, In-Place Leases and Other Intangibles Above-Market Leases 2018 $ 7,463 $ 759 2019 $ 7,403 $ 746 2020 $ 7,200 $ 740 2021 $ 7,019 $ 740 2022 $ 6,963 $ 738 |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | MARKETABLE SECURITIES The Company owned marketable securities with an estimated fair value of $5.5 million and $5.6 million as of December 31, 2017 and 2016 , respectively. The following is a summary of the Company’s available-for-sale securities as of December 31, 2017 (in thousands): Available-for-sale securities Amortized Cost Basis Unrealized (Loss) Gain Fair Value U.S. Treasury Bonds $ 1,991 $ (24 ) $ 1,967 U.S. Agency Bonds 620 (5 ) 615 Corporate Bonds 2,892 22 2,914 Total available-for-sale securities $ 5,503 $ (7 ) $ 5,496 The following table provides the activity for the marketable securities during the year ended December 31, 2017 (in thousands): Amortized Cost Basis Unrealized (Loss) Gain Fair Value Marketable securities as of January 1, 2017 $ 5,592 $ (29 ) $ 5,563 Face value of marketable securities acquired 1,494 — 1,494 Premiums and discounts on purchase of marketable securities, net of acquisition costs 19 — 19 Amortization on marketable securities (13 ) — (13 ) Sales and maturities of securities (1,589 ) (5 ) (1,594 ) Unrealized gain on marketable securities — 27 27 Marketable securities as of December 31, 2017 $ 5,503 $ (7 ) $ 5,496 During the year ended December 31, 2017 , the Company sold 67 marketable securities for aggregate proceeds of $1.6 million . Unrealized gains (losses) on marketable securities are recorded in other comprehensive income (loss), with a portion of the amount subsequently reclassified into other expense, net on the accompanying consolidated statements of operations as securities are sold and gains (losses) are recognized. In addition, the Company recorded an unrealized gain of $27,000 on its investments, which is included in accumulated other comprehensive income (loss) on the accompanying consolidated statement of changes in equity for the year ended December 31, 2017 and the consolidated balance sheet as of December 31, 2017 . The following table shows the fair value and gross unrealized losses of the Company’s available-for-sale securities as of December 31, 2017 and the length of time the available-for-sale securities have been in the unrealized loss position (in thousands): Less than 12 Months 12 Months or More Total Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses U.S. Treasury Bonds $ 1,059 $ (6 ) $ 774 $ (17 ) $ 1,833 $ (23 ) U.S. Agency Bonds 615 (5 ) — — 615 (5 ) Corporate Bonds 1,059 (6 ) 41 (1 ) 1,100 (7 ) Total temporarily impaired securities $ 2,733 $ (17 ) $ 815 $ (18 ) $ 3,548 $ (35 ) The scheduled maturities of the Company’s marketable securities as of December 31, 2017 are as follows (in thousands): Available-for-sale securities Amortized Cost Estimated Fair Value Due within one year $ 957 $ 954 Due after one year through five years 2,064 2,059 Due after five years through ten years 2,348 2,350 Due after ten years 134 133 Total $ 5,503 $ 5,496 Actual maturities of marketable securities can differ from contractual maturities because borrowers on certain debt securities may have the right to prepay their respective debt obligations at any time. In addition, factors such as prepayments and interest rates may affect the yields on such securities. In estimating other-than-temporary impairment losses, management considers a variety of factors, including (1) whether the Company has the intent to sell the impaired security, (2) whether the Company expects to hold the investment for a period of time sufficient to allow for anticipated recovery in fair value, and (3) whether the Company expects to recover the entire amortized cost basis of the security. The Company believes that none of the unrealized losses on investment securities are other-than-temporary as management expects the Company will fully recover the entire amortized cost basis of all securities. As of December 31, 2017 , the Company had no other-than-temporary impairment losses. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES In the normal course of business, the Company uses certain types of derivative instruments for the purpose of managing or hedging its interest rate risk. During the year ended December 31, 2017 , the Company entered into five interest rate swap agreements. As of December 31, 2017 the Company had eight interest rate swap agreements. The following table summarizes the terms of the Company’s executed interest rate swap agreements designated as hedging instruments as of December 31, 2017 and 2016 (dollar amounts in thousands): Outstanding Notional Amount as of December 31, 2017 Fair Value of Assets and (Liabilities) Balance Sheet Location Interest Rates (1) Effective Dates Maturity Dates December 31, 2017 December 31, 2016 Interest Rate Swaps Derivative assets, property escrow deposits and other assets $ 174,305 3.13% to 4.14% 6/30/2015 to 9/29/2017 9/12/2019 to 8/1/2022 $ 1,718 $ 28 Interest Rate Swaps Deferred rental income, derivative liabilities and other liabilities $ 16,400 4.17% 12/16/2016 1/1/2022 $ (17 ) $ (371 ) ____________________________________ (1) The interest rates consist of the underlying index swapped to a fixed rate and the applicable interest rate spread as of December 31, 2017 . Additional disclosures related to the fair value of the Company’s derivative instruments are included in Note 3 — Fair Value Measurements to these consolidated financial statements. The notional amount under the interest rate swap agreements is an indication of the extent of the Company’s involvement in each instrument, 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 in order to hedge the variability of the anticipated cash flows on its variable rate debt. The change in fair value of the effective portion of the derivative instruments that are designated as hedges is recorded in other comprehensive income (loss), with a portion of the amount subsequently reclassified to interest expense as interest payments are made on the Company’s variable rate debt. For the years ended December 31, 2017 , and 2016 , the amounts reclassified were $663,000 and $539,000 , respectively. During the next 12 months, the Company estimates that an additional $5,000 will be reclassified from other comprehensive income (loss) as a decrease to interest expense. Any ineffective portion of the change in fair value of the derivative instruments is recorded in interest expense. During the year ended December 31, 2017 , $37,000 of the change in the fair value of the interest rate swaps was considered ineffective. There were no portions of the change in the fair value of the interest rate swaps that were considered ineffective during the year ended December 31, 2016 . The Company has agreements with each of its derivative counterparties that contain provisions whereby, if the Company defaults on certain of its unsecured indebtedness, the Company could also be declared in default on its derivative obligations resulting in an acceleration of payment. If the Company had breached any of these provisions, it could have been required to settle its obligations, under the agreements at an aggregate termination value, inclusive of interest payments, of $29,000 , which includes accrued interest, at December 31, 2017 . In addition, the Company is exposed to credit risk in the event of non-performance by its derivative counterparties. 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 credit quality of the Company and the respective counterparty. There were no termination events or events of default related to the interest rate swaps as of December 31, 2017 . |
Notes Payable and Credit Facili
Notes Payable and Credit Facility | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE AND CREDIT FACILITY | NOTES PAYABLE AND CREDIT FACILITY As of December 31, 2017 , the Company had $274.8 million of debt outstanding, including net deferred financing costs, with weighted average years to maturity of 4.5 and a weighted average interest rate of 3.58% . The weighted average years to maturity is computed using the scheduled repayment date as specified in each loan agreement where applicable. The weighted average interest rate is computed using the interest rate in effect until the scheduled repayment date. Should a loan not be repaid by its scheduled repayment date, the applicable interest rate will increase as specified in the respective loan agreement until the extended maturity date. The following table summarizes the debt balances as of December 31, 2017 and 2016 , and the debt activity for the year ended December 31, 2017 (in thousands): During the Year Ended December 31, 2017 Balance as of January 1, 2017 Debt Issuances, Net (1) Repayments Amortization Balance as of Credit facility $ 64,000 $ 255,500 $ (191,000 ) $ — $ 128,500 Fixed rate debt 97,169 52,565 — — 149,734 Total debt 161,169 308,065 (191,000 ) — 278,234 Deferred costs (2) (2,026 ) (1,951 ) 97 (3) 476 (3,404 ) Total debt, net $ 159,143 $ 306,114 $ (190,903 ) $ 476 $ 274,830 ____________________________________ (1) Includes deferred financing costs incurred during the period. (2) Deferred costs relate to mortgage notes payable and the term portion of the credit facility, as discussed in Note 2 — Summary of Significant Accounting Policies. (3) Represents deferred financing costs of the term portion of the credit facility written off during the period resulting from the Second Amended and Restated Credit Agreement, as defined below. As of December 31, 2017 , the Company had fixed rate debt outstanding of $149.7 million , including $78.2 million of variable rate debt that is fixed through interest rate swap agreements, which has the effect of fixing the variable interest rate per annum through the maturity date of the variable rate debt. The fixed rate debt has interest rates ranging from 3.37% to 4.17% per annum and as of December 31, 2017 , the fixed rate debt had a weighted average interest rate of 3.87% . The fixed rate debt outstanding matures on various dates from December 2020 to February 2025 . The aggregate balance of gross real estate assets, net of gross intangible lease liabilities, securing the fixed rate debt outstanding was $266.1 million as of December 31, 2017 . Each of the mortgage notes payable comprising the fixed rate debt is secured by the respective properties on which the debt was placed. During the year ended December 31, 2017 , the Company entered into a second amended and restated credit agreement (the “Second Amended Credit Agreement”) with JPMorgan Chase Bank, N.A. as administrative agent (“JPMorgan Chase”), that provides for borrowings up to $425.0 million , which is comprised of up to $212.5 million in unsecured revolving loans (the “Revolving Loans”) and up to $212.5 million in unsecured term loans (the “Term Loans”) (collectively, with the Revolving Loans the “Credit Facility”). The Term Loans mature on September 6, 2022 and the Revolving Loans mature on September 6, 2021; however, the Company may elect to extend the maturity date for the Revolving Loans for up to two six -month periods, but no later than September 6, 2022 , subject to satisfying certain conditions contained in the Second Amended Credit Agreement. Depending upon the type of loan specified and overall leverage ratio, the Credit Facility bears interest at (i) the one-month, two-month, three-month or six-month London Interbank Offered Rate (“LIBOR”) multiplied by the statutory reserve rate (the “Eurodollar Rate”) plus an interest rate spread ranging from 1.70% to 2.20% for Revolving Loans and 1.60% to 2.10% for Term Loans; or (ii) a base rate ranging from 0.70% to 1.20% for Revolving Loans and 0.60% to 1.10% for Term Loans, plus the greater of: (a) JPMorgan Chase’s Prime Rate (as defined in the Second Amended Credit Agreement); (b) the Federal Funds Effective Rate (as defined in the Second Amended Credit Agreement) plus 0.50% ; or (c) the one-month LIBOR multiplied by the statutory reserve rate plus 1.0% . As of December 31, 2017 , the Revolving Loans outstanding totaled $16.0 million at an interest rate of 3.27% and the Term Loans outstanding totaled $112.5 million , all of which is subject to interest rate swap agreements (the “Swapped Term Loans”). The interest rate swap agreements have the effect of fixing the Eurodollar Rate per annum of the Swapped Term Loans. As of December 31, 2017 , the weighted average all-in rate for the Swapped Term Loan was 3.25% . As of December 31, 2017 , the Company had $128.5 million outstanding under the Credit Facility at a weighted average interest rate of 3.25% and $296.5 million in unused capacity, subject to borrowing availability. The Second Amended Credit Agreement contains provisions with respect to covenants, events of default and remedies customary for facilities of this nature. In particular, the Second Amended Credit Agreement requires the Company to maintain a minimum consolidated net worth greater than or equal to the sum of (i) $367.1 million plus (ii) 75% of the equity issued (iii) minus the aggregate amount of any redemptions or similar transaction from the date of the Second Amended Credit Agreement, a leverage ratio less than or equal to 60% , a fixed charge coverage ratio equal to or greater than 1.50 , an unsecured debt to unencumbered asset value ratio equal to or less than 60% , an unsecured debt service coverage ratio greater than 1.75 , a secured debt ratio equal to or less than 40% , and the amount of secured debt that is recourse debt at no greater than 15% of total asset value. As of December 31, 2017 , the Company believes it was in compliance with the financial covenants of the Second Amended Credit Agreement, as well as the financial covenants under the Company’s various fixed and variable rate debt agreements. Maturities The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt as of December 31, 2017 for each of the five succeeding fiscal years and the period thereafter (in thousands): Year ending December 31, Principal Repayments 2018 $ — 2019 — 2020 9,240 2021 47,717 2022 204,327 Thereafter 16,950 Total $ 278,234 |
Intangible Lease Liabilities
Intangible Lease Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
INTANGIBLE LEASE LIABILITIES | INTANGIBLE LEASE LIABILITIES Intangible lease liabilities of the Company consisted of the following (in thousands, except weighted average life): As of December 31, 2017 2016 Acquired below-market liabilities, net of accumulated amortization of $2,075 and $929, respectively (with a weighted average life remaining of 11.2 years and 11.9 years, respectively) $ 12,753 $ 5,798 Amortization of below-market leases is recorded as an increase to rental revenue in the accompanying consolidated statements of operations. The following table summarizes the amortization of below-market leases related to the intangible lease liabilities for the years ended December 31, 2017 , 2016 and 2015 (in thousands): Year Ended December 31, 2017 2016 2015 Amortization of below-market leases $ 1,200 $ 448 $ 209 As of December 31, 2017 , the estimated amortization of the intangible lease liabilities for each of the five succeeding fiscal years is as follows (in thousands): Amortization of Year ending December 31, Below-Market Leases 2018 $ 1,403 2019 $ 1,392 2020 $ 1,365 2021 $ 1,124 2022 $ 1,083 |
Supplemental Cash Flow Disclosu
Supplemental Cash Flow Disclosures | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW DISCLOSURES | SUPPLEMENTAL CASH FLOW DISCLOSURES Supplemental cash flow disclosures for the years ended December 31, 2017 , 2016 and 2015 are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Supplemental Disclosures of Non-Cash Investing and Financing Activities: Change in accrued dealer manager fee, distribution fee, and other offering costs $ 9,460 $ 7,782 $ 2,303 Distributions to stockholders declared and unpaid $ 2,126 $ 1,444 $ 788 Common stock issued through distribution reinvestment plan $ 10,289 $ 5,984 $ 3,336 Change in fair value of marketable securities $ 22 $ 44 $ (73 ) Change in fair value of interest rate swaps $ 2,007 $ (41 ) $ (302 ) Accrued capital expenditures $ 163 $ 12 $ 50 Supplemental Cash Flow Disclosures: Interest paid $ 7,864 $ 4,346 $ 3,404 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 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 and claims. The Company is not aware of any material pending legal proceedings, other than ordinary routine litigation incidental to the Company’s business, to which the Company is a party or of which the Company’s properties are the subject. Purchase Commitments As of December 31, 2017 , the Company had entered into a purchase agreement with an unaffiliated third-party seller to acquire a 100% interest in one retail property, subject to meeting certain criteria, for an aggregate purchase price of $13.8 million , exclusive of closing costs. As of December 31, 2017 , the Company had $500,000 of property escrow deposits held by an escrow agent in connection with this future property acquisition. This deposit is included in the consolidated balance sheets in derivative assets, property escrow deposits and other assets. As of December 31, 2017 , this escrow deposit has not been forfeited. Environmental Matters In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. In addition, the Company may own or acquire certain properties that are subject to environmental remediation. Generally, the seller of the property, the tenant of the property and/or another third party is responsible for environmental remediation costs related to a property. Additionally, in connection with the purchase of certain properties, the respective sellers and/or tenants may agree to indemnify the Company against future remediation costs. The Company also carries environmental liability insurance on its properties that provides limited coverage for any remediation liability and/or pollution liability for third-party bodily injury and/or property damage claims for which the Company may be liable. The Company is not aware of any environmental matters which it believes are reasonably likely to have a material effect on its results of operations, financial condition or liquidity. |
Related-Party Transactions and
Related-Party Transactions and Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS | RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS The Company has incurred, and will continue to incur, commissions, fees and expenses payable to Cole Income NAV Strategy Advisors and certain of its affiliates in connection with the Offering, and the acquisition, management and performance of the Company’s assets. Selling commissions, dealer manager and distribution fees In connection with the Offering, CCO Capital, the Company’s dealer manager, will receive selling commissions, an asset-based dealer manager fee and/or an asset-based distribution fee, as summarized in the table below for each class of common stock: Selling Commission (1) Dealer Manager Fee (2) Distribution Fee (2) W Shares — 0.55 % — A Shares up to 3.75% 0.55 % 0.50 % I Shares — 0.25 % — ____________________________________ (1) The selling commission is based on the offering price for A Shares. The selling commission expressed as a percentage of NAV per A Share, rather than the offering price, is up to 3.90% , subject to rounding and the effect of volume discounts the Company is offering on certain purchases of $150,001 or more of A Shares. Selling commissions are deducted directly from the offering price for A Shares and paid to CCO Capital. The Company has been advised that CCO Capital intends to reallow 100% of the selling commissions on A Shares to participating broker-dealers. (2) The dealer manager and distribution fees will be calculated on a daily basis in an amount equal to 1/365th of the percentage of NAV per W Share, A Share or I Share, as applicable, for such day on a continuous basis. CCO Capital, in its sole discretion, may reallow a portion of the dealer manager fee and distribution fee to participating broker-dealers. Other organization and offering expenses All other organization and offering expenses associated with the sale of the Company’s common stock (excluding selling commissions, the distribution fee and the dealer manager fee) are paid for by Cole Income NAV Strategy Advisors or its affiliates and can be reimbursed by the Company up to 0.75% of the aggregate gross offering proceeds, excluding selling commissions charged on A Shares sold in the Primary Offering. As of December 31, 2017 , Cole Income NAV Strategy Advisors or its affiliates had paid organization and offering expenses in excess of the 0.75% in connection with the Offering. These excess amounts were not included in the financial statements of the Company because such amounts were not a liability of the Company as they exceeded 0.75% of gross proceeds from the Offering. As the Company raises additional proceeds from the Offering, these excess amounts may become payable to Cole Income NAV Strategy Advisors. Advisory fees and expenses The Company pays Cole Income NAV Strategy Advisors an asset-based advisory fee that is payable in arrears on a monthly basis and accrues daily in an amount equal to 1/365th of 0.90% of the Company’s NAV for each class of common stock, for each day. Operating expenses The Company reimburses Cole Income NAV Strategy Advisors for the operating expenses it paid or incurred in connection with the services provided to the Company, subject to the limitation that the Company will not reimburse for any amount by which its operating expenses (including the advisory fee) at the end of the four preceding fiscal quarters exceeds the greater of (1) 2% of average invested assets, or (2) 25% of net income other than any additions to reserves for depreciation, bad debts or other similar non-cash reserves and excluding any gain from the sale of assets for that period. Cole Income NAV Strategy Advisors waived its right to receive operating expense reimbursements for the year ended December 31, 2015; accordingly, the Company did not reimburse Cole Income NAV Strategy Advisors for any such expenses during the year ended December 31, 2015. Expense Cap Cole Income NAV Strategy Advisors had an expense cap in place from October 1, 2013 through December 31, 2015, whereby Cole Income NAV Strategy Advisors funded all general and administrative expenses of the Company that were in excess of an amount calculated by multiplying the average NAV for the respective three month period by an annualized rate of 1.25% (the “Excess G&A”). During the year ended December 31, 2015, the Company incurred $773,000 of Excess G&A which was reimbursed by Cole Income NAV Strategy Advisors, of which $248,000 was included as a reduction to amounts due to affiliates on the consolidated balance sheet. Beginning January 1, 2016, Cole Income NAV Strategy Advisors ceased to fund Excess G&A. Acquisition expenses In addition, the Company reimburses Cole Income NAV Strategy Advisors for all out-of-pocket expenses incurred in connection with the acquisition of the Company’s investments. While most of the acquisition expenses are expected to be paid to third parties, a portion of the out-of-pocket acquisition expenses may be reimbursed to Cole Income NAV Strategy Advisors or its affiliates. Acquisition expenses, together with any acquisition fees paid to third parties for a particular real estate-related asset, will in no event exceed 6% of the gross purchase price of such asset. Performance Fee As compensation for services provided pursuant to the advisory agreement, the Company will also pay Cole Income NAV Strategy Advisors a performance-based fee calculated based on the Company’s annual total return to stockholders for each class of common stock (defined below), payable annually in arrears. The performance fee will be calculated such that for any calendar year in which the total return per share for a particular class exceeds 6% (the “ 6% Return”), Cole Income NAV Strategy Advisors will receive 25% of the excess total return on such class above the 6% Return allocable to that class, but in no event will the Company pay Cole Income NAV Strategy Advisors more than 10% of the aggregate total return, for that class, for such year. However, in the event the NAV per share of the Company’s W Shares, A Shares and I Shares decreases below the base NAV for the respective share class ( $15.00 , $16.72 and $16.82 for the W Shares, A Shares and I Shares, respectively) (the “Base NAV”), the performance-based fee for a respective class will not be calculated on any increase in NAV up to the Base NAV for the respective share class. In addition, the performance fee will not be paid with respect to any calendar year in which the NAV per share as of the last business day of the calendar year (the “Ending NAV”) for the respective share class is less than the Base NAV of that class. The Base NAV of any share class is subject to downward adjustment in the event that the Company’s board of directors, including a majority of the independent directors, determines that such an adjustment is necessary to provide an appropriate incentive to Cole Income NAV Strategy Advisors to perform in a manner that seeks to maximize stockholder value and is in the best interests of the Company’s stockholders. In the event of any stock dividend, stock split, recapitalization or similar change in the Company’s capital structure, the Base NAV for the respective share class shall be ratably adjusted to reflect the effect of any such event. The total return to stockholders is defined, for each class of the Company’s common stock, as the change in NAV per share plus distributions per share for such class. The NAV per share for a class calculated on the last trading day of a calendar year shall be the amount against which changes in NAV per share for such class are measured during the subsequent calendar year. Therefore, for each class of the Company’s common stock, payment of the performance-based component of the advisory fee (1) is contingent upon the Company’s actual annual total return exceeding the 6% Return and the Ending NAV per share for the respective share class being greater than the Base NAV of that class, (2) will vary in amount based on the Company’s actual performance, (3) cannot cause the Company’s total return as a percentage of stockholders’ invested capital for the year to be reduced below 6% , and (4) is payable to Cole Income NAV Strategy Advisors if the Company’s total return exceeds the 6% Return in a particular calendar year, even if the total return to stockholders (or any particular stockholder) on a cumulative basis over any longer or shorter period has been less than 6% per annum. Cole Income NAV Strategy Advisors will not be obligated to return any portion of advisory fees paid based on the Company’s subsequent performance. The Company did not reach the 6% Return during the year ended December 31, 2016 . The Company incurred commissions, fees and expense reimbursements as shown in the table below for services provided by Cole Income NAV Strategy Advisors and its affiliates related to the services described above during the years indicated (in thousands): Year Ended December 31, 2017 2016 2015 Offering: Selling commissions $ 2,964 $ 2,121 $ 301 Distribution fee (1) $ 592 $ 246 $ 89 Dealer manager fees (1) $ 2,128 $ 1,310 $ 764 Organization and offering expense reimbursement $ 1,400 $ 1,192 $ 464 Acquisition expense reimbursement $ 1,594 $ 1,622 $ 369 Advisory fee $ 4,263 $ 2,760 $ 1,290 Operating expense reimbursement $ 2,740 $ 1,656 $ — Performance fee $ 647 $ — $ 1,246 ______________________ (1) Amounts are calculated for the respective period in accordance with the dealer manager agreement and exclude the estimated liability for the future dealer manager and distribution fees payable to CCO Capital, which are included in due to affiliates in the consolidated balance sheets, with a corresponding decrease to capital in excess of par value, as described in Note 2 – Summary of Significant Accounting Policies. As of December 31, 2017 and December 31, 2016 , $2.5 million and $2.3 million of the amounts shown above had been incurred, but not yet paid, for services provided by Cole Income NAV Strategy Advisors or its affiliates in connection with the acquisitions and operations stage and was a liability of the Company. Cole Income NAV Strategy Advisors waived its right to receive operating expense reimbursements for the twelve months ended December 31, 2015, accordingly, the Company did not reimburse Cole Income NAV Strategy Advisors for any such expenses during the twelve months ended during that period. During the year ended December 31, 2015, Cole Income NAV Strategy Advisors permanently waived its right to receive expense reimbursements totaling $1.3 million . Services Agreement Pursuant to the Services Agreement, VEREIT OP will continue to provide certain services to CCO Group and to the Company, including operational real estate support. VEREIT OP will continue to provide such services through March 31, 2019 (or, if later, the date of the last government filing other than a tax filing made by any of the Cole REITs with respect to its 2018 fiscal year) and will provide consulting and research services through December 31, 2023 as requested by CCO Group, LLC. Despite the indirect change of ownership and control of our advisor, dealer manager, property manager and sponsor, the Company expects that, during the Initial Services Term of the Services Agreement, the advisory, dealer manager and property management services the Company receives will continue without any material changes in personnel (except as supplemented by the management oversight of CIM personnel) or material change in service procedures. During the Initial Services Term of the Services Agreement, CCO Group, LLC intends to evaluate and effectuate an appropriate transition of VEREIT OP’s services under the Services Agreement to other CIM affiliates or third parties with the goal of ensuring continuity and minimizing disruption. Due to/from Affiliates As of December 31, 2017 and December 31, 2016 , $22.0 million and $14.8 million , respectively, was due to Cole Income NAV Strategy Advisors or its affiliates primarily related to the estimated liability for current and future dealer manager and distribution fees, advisory fees, the reimbursement of organization and offering expenses, performance fee, and acquisition expenses, which were included in amounts due to affiliates on the consolidated balance sheets. As of December 31, 2017 , $100,000 was due from Cole Income NAV Strategy Advisors or its affiliates related to amounts received by affiliates of the advisor which were due to the Company. No such amounts were due from Cole Income NAV Strategy Advisors or its affiliates as of December 31, 2016 . |
Economic Dependency
Economic Dependency | 12 Months Ended |
Dec. 31, 2017 | |
Economic Dependency [Abstract] | |
ECONOMIC DEPENDENCY | ECONOMIC DEPENDENCY Under various agreements, the Company has engaged and may in the future engage Cole Income NAV Strategy Advisors or its affiliates to provide certain services that are essential to the Company, including asset management services, supervision of the management and leasing of properties owned by the Company, asset acquisition and disposition decisions, the sale of shares of the Company’s common stock available for issuance, as well as other administrative responsibilities for the Company including accounting services and stockholder relations. As a result of these relationships, the Company is dependent upon Cole Income NAV Strategy Advisors or its affiliates. In the event that these companies are unable to provide the Company with these services, the Company would be required to find alternative providers of these services. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY As of December 31, 2017 , the Company was authorized to issue up to 500,000,000 shares of capital stock. Of the total number of shares of capital stock authorized (a) 490,000,000 shares are designated as common stock, 164,000,000 of which are classified as W Shares, 163,000,000 of which are classified as A Shares, and 163,000,000 of which are classified as I Shares, and (b) 10,000,000 shares are designated as preferred stock. All shares of such stock have a par value of $0.01 per share. The Company’s board of directors may amend the charter from time to time to increase or decrease the aggregate number of authorized shares of capital stock or the number of authorized shares of capital stock of any class or series without stockholder approval. During the year ended December 31, 2017 , the Company issued a total of 10.3 million shares, including 569,000 shares issued under the DRIP, for gross proceeds of $189.6 million . As of December 31, 2017 , the Company had issued 30.7 million shares of common stock for cumulative gross proceeds of $550.6 million . NAV per Share Calculation The Company’s per share purchase and redemption price for each class varies from day-to-day. The Company has engaged an independent valuation expert which has expertise in appraising commercial real estate assets and related liabilities, to provide, on a rolling quarterly basis, valuations of each of the Company’s commercial real estate assets and related liabilities to be set forth in individual appraisal reports, and to adjust those valuations for events known to the independent valuation expert that it believes are likely to have a material impact on previously provided estimates of the value of the affected commercial real estate assets or related real estate liabilities. In addition, the calculation of NAV for each class includes liquid assets, which are priced daily using third party pricing services, and cash and cash equivalents. The Company has retained an independent fund accountant to calculate the daily NAV for each class, which uses a process that reflects (1) estimated values of each of the Company’s commercial real estate assets, related liabilities and notes receivable secured by real estate provided periodically by the Company’s independent valuation expert, in individual appraisal reports, (2) daily updates in the price of liquid assets for which third party market quotes are available, (3) accruals of the daily distributions for each class, and (4) estimates of daily accruals, on a net basis, of the Company’s operating revenues, expenses, including class-specific expenses, debt service costs and fees, including class-specific fees. Selling commissions will have no effect on the NAV of any class. NAV is intended to reflect the Company’s estimated value on the date that the NAV is determined, and the NAV of any class at any given time will not reflect any obligation to pay future trail fees that may become payable after the date the NAV is determined. As a result, the estimated liability for the future dealer manager and distribution fees, which is accrued at the time each share is sold, will have no effect on the NAV of any class. The result of this calculation is the NAV for each class of shares as of the end of any business day. The NAV per share is determined by allocating the NAV to each share class based on its respective ownership percentage. The NAV for each class is then adjusted for contributions, redemptions and accruals of the class’s daily distributions and estimates of class-specific fee and expense accruals. Distributions reflect the daily distribution rate set by the Company’s board of directors, which may vary for each class. The NAV per share for each class is determined by dividing such class’s NAV on such day by the number of shares outstanding for that class as of the end of such business day, prior to giving effect to any share purchases or redemptions to be effected on such day. At regularly scheduled board of directors meetings, the Company’s board of directors reviews the process by which the Company’s advisor estimated the daily accruals and the independent fund accountant calculated the NAV per share, and the operation and results of the process to determine NAV per share generally. The Company’s NAV is not calculated in accordance with GAAP and is not audited by the independent registered public accounting firm. Distribution Reinvestment Plan Pursuant to the DRIP, the Company allows stockholders to elect to have their distributions reinvested in additional shares of the Company’s common stock. The purchase price for shares under the DRIP is equal to the NAV per share on the date that the distribution is payable, after giving effect to the distribution. During the years ended December 31, 2017 , 2016 and 2015 , 569,000 , 328,000 and 185,000 shares were purchased under the DRIP for $10.3 million , $6.0 million and $3.3 million , respectively. Share Redemption Program The Company has adopted a share redemption plan whereby, on any business day, stockholders may request that the Company redeem all or any portion of their shares, subject to certain limitations described below. Pursuant to the share redemption program, the Company will initially redeem shares at a redemption price per share on any business day equal to the Company’s NAV per share for the class of shares being redeemed, without giving effect to any share purchases or redemptions to be effected on such day, less any applicable short-term trading fees. Subject to limited exceptions, stockholders who redeem their shares within the first 365 days from the date of purchase will be subject to a short-term trading fee of 2% of the aggregate NAV per share of the shares of common stock received. In each calendar quarter, net redemptions will be limited to 5% of the Company’s total NAV as of the end of the immediately preceding quarter. If less than the full 5% limit available for a quarter is used, the unused percentage will be carried over to the next quarter (the “Carryover Percent”), but the maximum carryover percentage will never exceed 15% in the aggregate, and net redemptions in any quarter may never exceed 10% of the prior quarter’s NAV. On each business day, the Company will calculate the maximum amount available for redemptions as 5% plus the Carryover Percent times the prior quarter-end’s NAV, plus share sales for the quarter, minus share redemptions for the quarter (the “Quarterly Limit”). Redemption requests will be satisfied on a first-come-first-served basis up to the Quarterly Limit. A redemption request must be received by 4:00 p.m. Eastern Time on the last business day that the New York Stock Exchange is open for trading prior to the end of a calendar quarter in order for the current Quarterly Limit to apply. For the quarter following a quarter in which the Company reached its Quarterly Limit (a “Limit Quarter”), a 5% per quarter redemption limitation will apply on a stockholder by stockholder basis, such that each of the Company’s stockholders will be allowed to request a redemption, at any time during that quarter, for a total of up to 5% of the shares they held as of the last day of the Limit Quarter, plus shares, if any, that the stockholder purchases during the in-progress quarter (the “Flow-regulator”). This prospective methodology for allocating available funds daily during a quarter for which a Flow-regulator is in effect (a “Flow-regulated Quarter”) is designed to treat all stockholders equally during the quarter as a whole, regardless of the particular day during the quarter when they choose to submit their redemption requests, based on the number of shares held by each stockholder as of the prior quarter-end. If, during a Flow-regulated Quarter, total redemptions for all stockholders in the aggregate are more than two and one-half percent of the Company’s total NAV as of the end of the immediately preceding quarter, then the Flow-regulator will continue to apply for the next succeeding quarter. If total redemptions for all stockholders in the aggregate during a Flow-regulated Quarter are equal to or less than two and one-half percent of the Company’s total NAV as of the end of the immediately preceding quarter, then the first-come, first-served Quarterly Limit discussed above will come back into effect for the next succeeding quarter, with the Quarterly Limit consisting of five percent plus any remaining amount of the Carryover Percent from the last quarter before the Flow-regulated Quarter (subject to the 10% quarterly limit). The Company adopted several restrictions with respect to the redemption of certain shares owned by CHC Investments, LLC, an affiliate of a former officer and director of the Company. This stockholder was not permitted to redeem its shares until the Company had raised $100.0 million in the Offering. Thereafter, redemption requests made for these shares would only be accepted (1) on the last business day of a calendar quarter, (2) after all redemption requests from all other stockholders for such quarter have been accepted and (3) to the extent that such redemptions do not cause net redemptions to exceed 5% of the Company’s total NAV as of the end of the immediately preceding quarter. Redemption requests for these shares would otherwise be subject to the same limitations as other stockholder redemption requests as described above. During the year ended December 31, 2016, redemption requests were made that conformed to these requirements, resulting in redemptions by CHC Investments, LLC of 178,264 shares during the year. As of December 31, 2017 , CHC Investments, LLC had no shares outstanding. In addition, as of December 31, 2017 , VEREIT Properties Operating Partnership, L.P. (formerly known as ARC Properties Operating Partnership, L.P.) (“VEREIT OP”), as the successor to CHC, owned 13,333 W Shares. On February 1, 2018, VEREIT OP transferred these 13,333 W Shares to Cole Income NAV Strategy Advisors and pursuant to the Company’s charter, Cole Income NAV Strategy Advisors is prohibited from selling these shares, which represents the initial investment in the Company, for so long as the CCO Group remains the Company’s sponsor; provided, however, that Cole Income NAV Strategy Advisors could transfer ownership of all or a portion of such shares to other affiliates of the Company’s sponsor. The Company may fund redemptions with proceeds from any available source, including, but not limited to, available cash, proceeds from sales of additional shares, excess cash flow from operations, sales of liquid investments, incurrence of indebtedness and, if necessary, proceeds from the disposition of real estate properties or real estate-related assets. The Company may reserve borrowing capacity under its Credit Facility and elect to borrow against the Credit Facility in part to redeem shares presented for redemption during periods when the Company does not have sufficient proceeds from the sale of shares to fund all redemption requests. Additionally, the Company’s board of directors may modify or suspend its redemption plan at any time in its sole discretion if it believes that such action is in the best interests of the stockholders. As of December 31, 2017 , the quarterly redemption capacity was equal to 10% of the Company’s NAV and this amount was recorded as redeemable common stock on the consolidated balance sheet for a total of $47.0 million . During the year ended December 31, 2017 , the Company received redemption requests for, and redeemed approximately 1.8 million W Shares of common stock for $32.2 million , 318,000 A Shares of common stock for $5.7 million , and 242,000 I Shares of common stock for $4.4 million . Distributions Payable and Distribution Policy The Company’s board of directors authorized a daily distribution, based on 365 days in the calendar year of $0.002678083 per share for stockholders of record as of the close of business on each day of the period commencing on January 1, 2017 and ending on June 30, 2018 . The daily distribution amount for each class of outstanding common stock is adjusted based on the relative NAV of the various classes each day so that, from day to day, distributions constitute a uniform percentage of the NAV per share of all classes. As a result, from day to day, the per share daily distribution for each outstanding class of common stock may be higher or lower than the daily distribution amount authorized by the Company’s board of directors. As of December 31, 2017 , the Company had distributions payable of $2.1 million . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For federal income tax purposes, distributions to stockholders are characterized as ordinary dividends, capital gain distributions, or nondividend distributions. Nondividend distributions will reduce U.S stockholders’ basis (but not below zero) in their shares. The following table shows the character of the distributions paid on a percentage basis for the years ended December 31, 2017 , 2016 , and 2015 : Character of Distributions: 2017 2016 2015 (1) Ordinary dividends 37.3 % 33.0 % 44.9 % Nondividend distributions 62.7 % 67.0 % — % Capital gain distributions — % — % 55.1 % Total 100 % 100 % 100 % ____________________________________ (1) Includes dividend paid on January 4, 2016. During the years ended December 31, 2017 , 2016 and 2015 , the Company distributed as dividends to its stockholders 100% of its taxable income for federal income tax purposes. Accordingly, no provision for federal income taxes related to such taxable income was recorded in the Company’s consolidated financial statements. During the years ended December 31, 2017 , 2016 and 2015 , the Company incurred state and local income and franchise taxes of $201,000 , $88,000 and $120,000 , respectively, which were recorded in general and administrative expenses on the consolidated statements of operations. The Company had no unrecognized tax benefits as of or during the years ended December 31, 2017 , 2016 and 2015 . Any interest and penalties related to unrecognized tax benefits would be recognized within the provision for income taxes in the accompanying consolidated statements of operations. The Company files income tax returns in the U.S. federal jurisdiction, as well as various state jurisdictions, and is subject to routine examinations by the respective tax authorities. In December 2017, the Tax Cuts and Jobs Act was signed into law which, in addition to reducing corporate and individual tax rates, eliminates or restricts various deductions. The Tax Cuts and Jobs Act makes numerous large and small changes to the tax rules that do not affect the Company’s REIT qualification rules directly. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
OPERATING LEASES | OPERATING LEASES The Company’s real estate assets are leased to tenants under operating leases for which the terms and expirations vary. As of December 31, 2017 , the leases had a weighted-average remaining term of 10.8 years . Certain leases include provisions to extend the lease agreements, options for early termination after paying a specified penalty, rights of first refusal to purchase the property at competitive market rates, and other negotiated terms and conditions. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. As of December 31, 2017 , the future minimum rental income from the Company’s real estate assets under non-cancelable operating leases, assuming no exercise of renewal options for the succeeding five fiscal years and thereafter, was as follows (in thousands): Year ending December 31, Future Minimum Rental Income 2018 $ 50,109 2019 50,435 2020 50,420 2021 50,433 2022 50,409 Thereafter 317,052 Total $ 568,858 |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY RESULTS (UNAUDITED) | QUARTERLY RESULTS (UNAUDITED) Presented below is a summary of the unaudited quarterly financial information for the years ended December 31, 2017 and 2016 (in thousands, except per share amounts). In the opinion of management, the information for the interim periods presented include all adjustments, which are of a normal and recurring nature, necessary to present a fair presentation of the results for each period. December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 10,026 $ 11,126 $ 13,244 $ 13,750 Operating income $ 1,950 $ 2,744 $ 3,365 $ 2,579 Net (loss) income $ (77 ) $ 524 $ 76 $ (176 ) Net (loss) income attributable to the Company $ (86 ) $ 515 $ 68 $ (185 ) Basic and diluted net (loss) income per share - Class W common stock (1) $ — $ 0.03 $ — $ (0.01 ) Distributions declared per common share - Class W common stock $ 0.24 $ 0.24 $ 0.25 $ 0.25 Basic and diluted net (loss) income per share - Class A common stock (1) $ (0.01 ) $ 0.02 $ — $ (0.01 ) Distributions declared per common share - Class A common stock $ 0.24 $ 0.24 $ 0.25 $ 0.25 Basic and diluted net (loss) income per share - Class I common stock (1) $ — $ 0.03 $ 0.01 $ — Distributions declared per common share - Class I common stock $ 0.24 $ 0.24 $ 0.25 $ 0.25 ____________________________________ (1) The sum of the quarterly net loss income per share amounts does not agree to the full year net loss per share amounts. The Company calculates net loss income per share and distributions declared per share based on the weighted-average number of outstanding shares of common stock during the reporting period. The average number of shares fluctuates throughout the year and can therefore produce a full year result that does not agree to the sum of the individual quarters. December 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 5,954 $ 6,341 $ 6,889 $ 8,127 Operating income $ 1,210 $ 972 $ 956 $ 940 Net loss $ (17 ) $ (280 ) $ (370 ) $ (625 ) Basic and diluted net (loss) per share - Class W common stock (1) $ — $ (0.02 ) $ (0.03 ) $ (0.04 ) Distributions declared per common share - Class W common stock $ 0.24 $ 0.24 $ 0.25 $ 0.25 Basic and diluted net loss per share - Class A common stock (1) $ — $ (0.03 ) $ (0.03 ) $ (0.04 ) Distributions declared per common share - Class A common stock $ 0.24 $ 0.24 $ 0.25 $ 0.25 Basic and diluted net loss per share - Class I common stock (1) $ — $ (0.02 ) $ (0.03 ) $ (0.04 ) Distributions declared per common share - Class I common stock $ 0.24 $ 0.24 $ 0.25 $ 0.25 ____________________________________ (1) The sum of the quarterly net (loss) income per share amounts does not agree to the full year net income per share amounts. The Company calculates net (loss) income per share and distributions declared per share based on the weighted-average number of outstanding shares of common stock during the reporting period. The average number of shares fluctuates throughout the year and can therefore produce a full year result that does not agree to the sum of the individual quarters. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The following events occurred subsequent to December 31, 2017: Acquisition of Real Estate Assets Subsequent to December 31, 2017 , the Company acquired six real estate properties, which were accounted for as asset acquisitions, for an aggregate purchase price of $109.0 million . The acquisitions were funded with net proceeds from the Offering and available borrowings. The Company has not completed its initial purchase price allocations with respect to these properties and therefore cannot provide similar disclosures to those included in Note 4 in these consolidated financial statements for these properties. Property Disposition As of December 31, 2017 , one property was classified as held for sale, as discussed in Note 2 — Summary of Significant Accounting Policies. Subsequent to December 31, 2017 , the Company disposed of this property for a gross sales price of $8.1 million , resulting in proceeds of $7.8 million after closing costs and a loss of $209,000 . No disposition fees were paid to affiliates in connection with the sale of the property and the Company has no continuing involvement with this property. Sale of Cole Capital As described in Note 1 — Organization and Business, on February 1, 2018, the Transaction was completed. Immediately following the completion of the Transaction, Cole Capital Advisors, Inc. and the Company’s dealer manager were each converted into Delaware limited liability companies, Cole Capital Advisors, Inc.’s name was changed to CCO Group, LLC, and the Company’s dealer manager’s name was changed to CCO Capital, LLC (CCO Capital”). As a result of the Transaction, CIM owns and/or controls CCO Group, LLC and its subsidiaries, and CCO Group, LLC owns and controls Cole Income NAV Strategy Advisors, CCO Capital and CREI Advisors, the Company’s external advisor, dealer manager for the Offerings and property manager, respectively. In addition, as part of the Transaction, VEREIT OP and CCO Group, LLC entered into the Services Agreement pursuant to which VEREIT OP will continue to provide certain services to CCO Group and to the Cole REITs, including operational real estate support. VEREIT OP will continue to provide such services through March 31, 2019 (or, if later, the date of the last government filing other than a tax filing made by any of the Cole REITs with respect to its 2018 fiscal year) and will provide consulting and research services through December 31, 2023 as requested by CCO Group, LLC. |
SCHEDULE III _ Real Estate Asse
SCHEDULE III – Real Estate Assets and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2017 | |
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III - REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION | Gross Amount at Which Initial Costs to Company Total Carried At Accumulated Buildings & Adjustment December 31, 2017 Depreciation Date Date Description (a) Encumbrances Land Improvements to Basis (b) (c) (d) (e) (f) Acquired Constructed Real Estate Held for Investment the Company Has Invested in Under Operating Leases: 7-Eleven Gloucester, VA (g) $ 355 $ 674 $ — $ 1,029 $ 25 2/9/2017 2011 Hampton (Mercury ), VA (g) 652 394 — 1,046 17 2/9/2017 1979 Hampton (Ocean), VA (g) 1,045 446 — 1,491 17 2/9/2017 1962 Hampton (Village ), VA (g) 1,316 464 — 1,780 17 2/9/2017 2001 Newport New s, VA (g) 566 510 — 1,076 18 2/9/2017 2000 Poquoson, V A (g) 288 565 — 853 24 2/9/2017 2012 Surry, VA (g) 495 522 — 1,017 19 2/9/2017 1981 Williamsbur g (Bypass), VA (g) 958 379 — 1,337 15 2/9/2017 1997 Williamsb urg (John Tyler), VA (g) 421 281 — 702 13 2/9/2017 1977 Advance Auto Macomb Township, MI (g) 718 1,146 — 1,864 187 12/20/2011 2009 Ravenswood, WV (g) 150 645 58 853 44 6/17/2015 1996 Sedalia, MO (g) 374 1,187 — 1,561 139 9/23/2013 2013 Algonac Plaza Algonac, MI (g) 1,097 7,718 — 8,815 990 8/30/2013 2002 Amcor Rigid Plastics Ames, IA $8,300 775 12,179 — 12,954 1,002 9/19/2014 1996 Apex Technologies Mason, OH (g) 997 11,657 — 12,654 15 12/19/2017 1999 Art Van Furniture Monroeville, PA (g) 1,023 9,607 — 10,630 34 11/22/2017 2004 York, PA (g) 1,720 6,628 — 8,348 24 11/22/2017 1978 Aspen Dental Somerset, KY (g) 285 1,037 — 1,322 94 8/18/2014 2014 At Home Colorado Springs, CO (g) 989 9,347 — 10,336 318 9/9/2016 1969 O'Fallon, IL (g) 2,521 7,336 — 9,857 274 9/9/2016 1998 AT&T Oklahoma City, OK (g) 622 1,493 — 2,115 177 5/1/2014 2013 AutoZone Jesup, GA (g) 209 781 — 990 25 10/25/2016 2005 Vandalia, OH 532 778 — — 778 — 10/10/2014 2014 Biolife Plasma Services: Fort Wayne, IN 692 2,662 — 3,354 84 12/16/2016 2007 Moorhead, MN 728 3,109 — 3,837 94 12/16/2016 2008 Bob Evans Defiance, OH (g) 391 1,674 — 2,065 42 4/28/2017 2011 Dover, OH (g) 362 1,495 — 1,857 36 4/28/2017 2008 Dundee, MI (g) 403 1,438 — 1,841 33 4/28/2017 2000 Hamilton, OH (g) 393 1,305 — 1,698 32 4/28/2017 1997 Hummelstown, PA (g) 1,184 1,165 — 2,349 25 4/28/2017 1994 Mayfield Heights, OH (g) 721 919 — 1,640 23 4/28/2017 2003 Richmond, VA (g) 785 688 — 1,473 15 4/28/2017 1990 Burger King Midwest City, OK 765 576 413 — 989 34 9/30/2014 2015 Caliber Collision Houston, TX (g) 466 4,929 — 5,395 190 8/11/2016 2016 Gross Amount at Which Initial Costs to Company Total Carried At Accumulated Buildings & Adjustment December 31, 2017 Depreciation Date Date Description (a) Encumbrances Land Improvements to Basis (b) (c) (d) (e) (f) Acquired Constructed Caliber Collision (continued) San Antonio , TX (g) $ 196 $ 2,918 $ — $ 3,114 $ 80 1/19/2017 1963 Venice, FL (g) 857 2,662 — 3,519 104 8/12/2016 2015 CarMax Tinley Park, IL $15,800 3,282 21,974 — 25,256 346 6/27/2017 1998 Carrier Rental Systems Houston, TX 2,800 749 3,832 — 4,581 324 9/4/2014 2006 Chili's and PetSmart Center Panama City, FL (g) 1,371 4,411 129 5,911 269 12/10/2015 2005 Cottage Plaza Pawtucket , RI (g) 5,431 15,582 5 21,018 264 6/29/2017 2004 CVS Austin, TX (g) 1,417 1,579 — 2,996 249 12/8/2011 1997 Eri e, PA (g) 1,007 1,157 — 2,164 179 12/9/2011 1999 Mansfield, OH (g) 270 1,691 — 1,961 262 12/9/2011 1998 Wisconsi n Rapids, WA 1,790 517 2,148 — 2,665 225 12/13/2013 2013 DaVita Dialys is Austell, GA (g) 581 2,359 — 2,940 220 5/6/2014 2009 Dollar General Ada, MN (g) 144 867 — 1,011 40 4/8/2016 2015 Berwick, LA (g) 141 1,448 — 1,589 201 11/30/2012 2012 Erie, I L (g) 67 974 — 1,041 40 6/30/2016 2016 Gladwin, MI 780 121 1,119 — 1,240 119 1/24/2014 2013 Glasford , IL (g) 167 904 — 1,071 38 6/24/2016 2016 Independenc e, MO 837 276 1,017 — 1,293 131 3/15/2013 2012 Lexington, M I 707 89 1,033 — 1,122 110 1/24/2014 2013 New Richland, MN (g) 173 900 — 1,073 38 6/24/2016 2016 Ocala, FL (g) 205 1,308 — 1,513 123 5/7/2014 2013 Pine River, MN (g) 230 872 — 1,102 40 4/8/2016 2016 Redfield, SD (g) 43 839 — 882 76 9/5/2014 2014 Sardis City, A L (g) 334 1,058 — 1,392 145 6/26/2013 2012 Sioux Falls, SD (g) 293 989 — 1,282 100 6/25/201 4 2014 Stacy, MN 658 84 810 — 894 65 11/6/2014 2014 Starbuck, MN (g) 76 946 — 1,022 43 4/15/2016 2016 St. Josep h, MO (g) 197 972 — 1,169 124 4/2/2013 2013 Topeka, KS 794 176 882 — 1,058 77 10/22/201 4 2014 Trimble, MO (g) 212 802 — 1,014 33 6/30/2016 2016 Wheaton, M N (g) 134 874 — 1,008 40 4/22/2016 2016 Winthrop, M N (g) 130 876 — 1,006 40 4/8/2016 2016 Enid Crossi ng Enid, OK 3,407 685 4,426 — 5,111 507 6/30/2014 2013 Family Dollar Centrevi lle, AL (g) 50 1,122 — 1,172 108 4/29/2014 2013 Danville, VA (g) 228 774 — 1,002 90 6/17/2014 2013 Darby, MT 881 244 889 — 1,133 83 9/30/2014 2014 Denton, NC (g) 334 545 — 879 59 6/17/2014 2012 Deridder, LA (g) 183 746 — 929 82 9/3/2014 2014 Hampton, A R 651 131 741 — 872 85 9/15/2014 2014 Londonderry, OH (g) 65 1,078 — 1,143 112 9/3/2014 2014 Tatum, NM 700 130 805 — 935 88 3/31/2014 2014 West Portsmouth , OH (g) 214 768 — 982 68 9/23/2014 2004 Gross Amount at Which Initial Costs to Company Total Carried At Accumulated Buildings & Adjustment December 31, 2017 Depreciation Date Date Description (a) Encumbrances Land Improvements to Basis (b) (c) (d) (e) (f) Acquired Constructed FedEx Elko, NV (g) $ 186 $ 2,024 $ — $ 2,210 $ 245 5/28/2013 2012 Norfo lk, NE (g) 618 2,499 — 3,117 295 8/19/2013 2013 Spirit L ake, IA (g) 115 2,501 — 2,616 268 12/12/2013 2013 FleetPride Mobile, AL (g) 695 2,445 — 3,140 187 10/22/2015 2015 Fresh Thym e Indianapol is, IN (g) 1,074 7,452 — 8,526 71 9/26/2017 2016 Worthington, OH (g) 2,648 6,498 — 9,146 240 8/9/2016 2015 Great White Oklahoma City, OK (g) 323 4,031 — 4,354 402 5/29/2014 1973 Headwaters Bryan, TX (g) 273 961 — 1,234 86 7/23/2014 2014 Home Depot Center Orland Pa rk, IL $11,275 5,694 13,100 605 19,399 915 12/31/2015 1993 Jo-Ann's Roseville, MI (g) 506 2,747 — 3,253 370 9/30/2013 2013 Kum & Go Cedar Rapids, IA 1,501 630 1,679 — 2,309 208 5/3/2013 2011 LA Fitne ss Pawtucket, RI (g) 5,556 7,071 — 12,627 350 10/11/2016 2015 Rock Hill, SC (g) 630 7,858 — 8,488 175 4/6/2017 2015 Lowe's Fremont, OH 5,312 1,287 7,125 278 8,690 887 12/11/2013 1996 North Dartmouth, MA (g) 7,334 11,976 — 19,310 407 1/4/2017 2004 Marshalls Wilkesboro, NC (g) 968 1,775 — 2,743 64 10/20/2016 1999 Marshalls & Petco Blaine, MN (g) 1,642 5,170 — 6,812 198 12/29/2016 2016 Mattress Firm Fairview P ark, OH (g) 646 830 — 1,476 84 6/16/2014 2014 Gadsden, AL (g) 393 1,413 — 1,806 170 6/10/2013 2012 Phoenix, AZ (g) 550 956 — 1,506 99 2/26/2014 2014 Mattress Fi rm & AT&T Woodbury, M N (g) 812 2,238 — 3,050 248 1/24/2014 2013 Mattress Firm & Pane ra Bread Elyria, OH (g) 1,100 2,836 — 3,936 151 4/7/2016 2015 McAlister's Deli Amarillo, TX (g) 435 1,050 — 1,485 120 3/27/2014 2010 Shawnee, OK (g) 601 1,054 — 1,655 115 3/27/2014 2007 Mister Carwa sh Hudson, FL (g) 1,014 843 — 1,857 26 10/19/201 6 2007 Spring Hill, F L (g) 961 1,156 — 2,117 36 10/19/2016 2008 National T ire & Battery Conyers, GA 1,657 522 1,845 — 2,367 160 9/26/2014 1995 Natural Grocers Prescott, A Z 2,367 795 2,802 — 3,597 381 5/6/2013 2012 North Lake Squa re Gainesville, GA 13,365 1,318 22,598 — 23,916 302 7/26/2017 2015 Northern Tool Hoover, AK (g) 691 2,150 — 2,841 199 8/15/2014 2014 O'Reilly Auto Parts Decatur, G A (g) 491 985 — 1,476 33 9/12/2016 2007 Fayetteville, NC (g) 132 1,246 — 1,378 119 3/18/2014 2012 Gross Amount at Which Initial Costs to Company Total Carried At Accumulated Buildings & Adjustment December 31, 2017 Depreciation Date Date Description (a) Encumbrances Land Improvements to Basis (b) (c) (d) (e) (f) Acquired Constructed PetSmart Lexington, NC (g) $ 605 $ 3,162 $ — $ 3,767 $ 98 1/27/2017 2016 Little R ock, AR (g) 1,283 2,820 — 4,103 352 7/19/2013 1996 McAllen, TX $2,924 1,961 1,994 — 3,955 270 9/30/2014 1995 Raising Cane's Avondale, A Z (g) 1,435 1,857 — 3,292 — 5/23/2014 2013 Sam's Club Timonium, MD 9,150 6,194 11,042 — 17,236 472 11/28/2016 2000 Sherwin-Wi lliams Douglasville , GA (g) 417 578 — 995 68 8/2/2013 2009 Fort Myers, FL (g) 515 703 — 1,218 17 4/26/2017 2016 Lawrenceville, G A (g) 320 845 — 1,165 106 9/24/2013 2013 Pigeon Forge, TN (g) 393 661 — 1,054 20 11/1/2016 2015 Shopko Larned, KS (g) 49 1,727 — 1,776 169 6/30/2014 2008 Nephi, UT (g) 180 2,872 — 3,052 139 3/4/2016 2015 Shoppes at Battle Bridge Raleigh, NC 6,300 1,450 8,436 (8,544 ) (h) 1,342 — 9/4/2014 2008 Sleepy's Roanoke Rap ids, NC (g) 238 1,267 — 1,505 79 8/17/2015 2015 Sunoco Merritt Island, FL (g) 577 1,762 — 2,339 208 4/12/2013 2008 Tailwi nds Denton, TX (g) 884 7,747 — 8,631 645 9/30/2014 2013 Tellico G reens Loudon, TN 3,000 823 3,959 — 4,782 422 12/20/2013 2008 Tempe Commerce Tempe, AZ 1,975 12,512 — 14,487 18 12/22/2017 1998 Teradata Miami Township, OH (g) 1,161 9,181 — 10,342 315 12/12/2016 2010 The Toro Company Windom, MN (g) 73 8,708 — 8,781 362 5/19/2016 2016 Time Warner Streetsboro, OH 3,543 811 3,849 — 4,660 334 9/30/2014 2003 Tire Centers Decatur, AL 1,311 208 1,329 — 1,537 121 10/3/2014 1998 Title Resource Group Mt. Laurel, NJ 9,240 2,188 12,380 — 14,568 1,047 11/24/2015 2004 TJ Maxx Danville, IL (g) 271 2,528 — 2,799 341 9/23/2013 2013 Triangle Town Place Raleigh, NC 16,400 4,694 23,044 — 27,738 644 12/15/2016 2004 Valeo Production Facility East Liberty, OH (g) 268 5,564 — 5,832 85 6/2/2017 2016 Walgreens Albuquerque, NM (g) 789 1,609 11 2,409 247 12/7/2011 1995 Coweta, OK 2,600 725 3,246 — 3,971 289 6/30/2014 2009 Reidsville, NC 3,603 610 3,801 — 4,411 592 12/8/2011 2008 St. Louis, MO 2,534 307 3,205 — 3,512 272 8/8/2014 2007 Walgreens Distribution Facility Findlay Township, PA (g) 2,203 11,146 — 13,349 578 2/29/2016 2015 Gross Amount at Which Initial Costs to Company Total Carried At Accumulated Buildings & Adjustment December 31, 2017 Depreciation Date Date Description (a) Encumbrances Land Improvements to Basis (b) (c) (d) (e) (f) Acquired Constructed Walmart Randallstown, MD $14,250 $ 7,748 $ 22,021 $ — $ 29,769 $ 427 5/17/2017 2012 West Marine Mystic, CT (g) 1,168 3,132 — 4,300 202 9/11/2015 2014 $ 149,734 $ 129,452 $ 496,091 $ (7,458 ) $ 618,085 $ 26,073 ____________________________________ (a) As of December 31, 2017 , the Company owned 114 retail, eight anchored shopping centers, 13 industrial and distribution and four office properties. (b) Gross intangible lease assets of $93.9 million and the associated accumulated amortization of $14.5 million are not reflected in the table above. (c) The aggregate cost for federal income tax purposes was approximately $704.2 million . (d) The following is a reconciliation of total real estate carrying value for the years ended December 31: 2017 2016 2015 Balance, beginning of period $ 406,447 $ 237,401 $ 203,111 Additions Acquisitions 219,584 168,901 48,885 Improvements 598 145 226 Total additions $ 220,182 $ 169,046 $ 49,111 Deductions Dispositions — — (14,821 ) Impairments (227 ) — — Reclassified to assets held for sale (8,317 ) — — Total deductions $ (8,544 ) $ — $ (14,821 ) Balance, end of period $ 618,085 $ 406,447 $ 237,401 (e) The following is a reconciliation of accumulated depreciation for the years ended December 31: 2017 2016 2015 Balance, beginning of period $ 14,768 $ 8,168 $ 4,459 Additions Acquisitions - depreciation Expense 11,537 6,576 4,358 Improvements - depreciation Expense 544 24 14 Total additions $ 12,081 $ 6,600 $ 4,372 Deductions Impairments (10 ) — — Dispositions — — (663 ) Reclassified to assets held for sale (766 ) — — Total deductions $ (776 ) $ — $ (663 ) Balance, end of period $ 26,073 $ 14,768 $ 8,168 (f) The Company’s assets are depreciated or amortized using the straight-line method over the useful lives of the assets by class. Generally, buildings are depreciated over 40 years , site improvements are depreciated over 15 years , and tenant improvements are amortized over the remaining life of the lease or the useful life, whichever is shorter. (g) Part of the Credit Facility’s Borrowing Base. As of December 31, 2017 , the Company had $128.5 million outstanding under the Credit Facility. (h) Asset held for sale as of December 31, 2017 . |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The summary of significant accounting policies presented below is designed to assist in understanding the Company’s consolidated financial statements. These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) in all material respects, and have been consistently applied in preparing the accompanying consolidated financial statements. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and the Consolidated Joint Venture in which the Company has a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. The Company evaluates its relationships and investments to determine if it has variable interests. A variable interest is an investment or other interest that will absorb portions of an entity’s expected losses or receive portions of the entity’s expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity (“VIE”). VIEs are entities where stockholders lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support or where equity investors, as a group, lack one of the following characteristics: (a) the power to direct the activities that most significantly impact the entity’s economic performance, (b) the obligation to absorb the expected losses of the entity, or (c) the right to receive the expected returns of the entity. The Company consolidates any VIEs when it is determined to be the primary beneficiary of the VIE’s operations. For legal entities being evaluated for consolidation, the Company must first determine whether the interests that it holds and fees it receives qualify as variable interests in the entity. A variable interest is an investment or other interest that will absorb portions of an entity’s expected losses or receive portions of the entity’s expected residual returns. The Company’s evaluation includes consideration of fees paid to the Company where the Company acts as a decision maker or service provider to the entity being evaluated. If the Company determines that it holds a variable interest in an entity, it evaluates whether that entity is a VIE. A VIE must be consolidated by its primary beneficiary, which is generally defined as the party who has a controlling financial interest in the VIE. The Company qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors include, but are not limited to, the Company’s ability to direct the activities that most significantly impact the entity’s economic performance and its obligation to absorb losses from or right to receive benefits of the VIE that could potentially be significant to the VIE. The Company consolidates any VIEs when the Company is determined to be the primary beneficiary of the VIE and the difference between consolidating the VIE and accounting for it using the equity method could be material to the Company’s consolidated financial statements. The Company continually evaluates the need to consolidate any VIEs based on standards set forth in GAAP as described above. As of December 31, 2017 , the Company determined that it had a controlling interest in the Consolidated Joint Venture and therefore met the GAAP requirements for consolidation. |
Reclassifications | Reclassifications In connection with the adoption of Accounting Standards Update (“ASU”) ASU 2016-18, discussed in “Recent Accounting Pronouncements,” certain reclassifications have been made to prior period balances to conform to current presentation in the consolidated statement of cash flows. Under ASU 2016-18, transfers to or from restricted cash which have previously been shown in the Company’s investing activities section of the consolidated statements of cash flows are now required to be shown as part of the total change in cash, cash equivalents and restricted cash in the consolidated statements of cash flows. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Real Estate Assets, Recoverability of Real Estate Assets, and Assets Held for Sale | Real Estate Assets Real estate assets are stated at cost, less accumulated depreciation and amortization. The Company considers the period of future benefit of each respective asset to determine the appropriate useful life. The estimated useful lives of the Company’s real estate assets by class are generally as follows: Buildings 40 years Site improvements 15 years Tenant improvements Lesser of useful life or lease term Intangible lease assets Lease term Recoverability of Real Estate Assets The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate assets may not be recoverable. Impairment indicators that the Company considers include, but are not limited to, bankruptcy or other credit concerns of a property’s major tenant, such as a history of late payments, rental concessions and other factors, a significant decrease in a property’s revenues due to lease terminations, vacancies, co-tenancy clauses, reduced lease rates or other circumstances. When indicators of potential impairment are present, the Company assesses the recoverability of the assets by determining whether the carrying amount of the assets will be recovered through the undiscounted future cash flows expected from the use of the assets and their eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying amount, the Company will adjust the real estate assets to their respective fair values and recognize an impairment loss. Generally, fair value will be determined using a discounted cash flow analysis and recent comparable sales transactions. During the year ended December 31, 2017 , the Company recorded impairment charges of $227,000 , related to one multi-tenant property held for sale, due to the carrying value being greater than the selling price. The assumptions and uncertainties utilized in the evaluation of the impairment of real estate assets are discussed in detail in Note 3 — Fair Value Measurements. See also Note 4 — Real Estate Assets for further discussion regarding real estate acquisition and disposition activity. No impairment indicators were identified and no impairment losses were recorded during the years ended December 31, 2016 or 2015 . Assets Held for Sale When a real estate asset is identified by the Company as held for sale, the Company will cease depreciation and amortization of the assets related to the property and estimate the fair value, net of selling costs. If, in management’s opinion, the fair value, net of selling costs, of the asset is less than the carrying amount of the asset, an adjustment to the carrying amount would be recorded to reflect the estimated fair value of the property, net of selling costs. |
Allocation of Purchase Price of Real Estate Assets | Allocation of Purchase Price of Real Estate Assets Upon the acquisition of real properties, the Company allocates the purchase price to acquired tangible assets, consisting of land, buildings and improvements, and identified intangible assets and liabilities, consisting of the value of above- and below-market leases and the value of in-place leases, based in each case on their respective fair values. The Company utilizes independent appraisals to assist in the determination of the fair values of the tangible assets of an acquired property (which includes land and buildings). The information in the appraisal, along with any additional information available to the Company’s management, is used in estimating the amount of the purchase price that is allocated to land. Other information in the appraisal, such as building value and market rents, may be used by the Company’s management in estimating the allocation of purchase price to the building and to intangible lease assets and liabilities. The appraisal firm has no involvement in management’s allocation decisions other than providing this market information. The fair values of above- and below-market lease intangibles are recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between (1) the contractual amounts to be paid pursuant to the in-place leases and (2) an estimate of fair market lease rates for the corresponding in-place leases, which is generally obtained from independent appraisals, measured over a period equal to the remaining non-cancelable term of the lease including, for below-market leases, any bargain renewal periods. The above- and below-market lease intangibles are capitalized as intangible lease assets or liabilities, respectively. Above-market leases are amortized as a reduction to rental income over the remaining terms of the respective leases. Below-market leases are amortized as an increase to rental income over the remaining terms of the respective leases, including any bargain renewal periods. In considering whether or not the Company expects a tenant to execute a bargain renewal option, the Company evaluates economic factors and certain qualitative factors at the time of acquisition, such as the financial strength of the tenant, the remaining lease term, the tenant mix of the leased property, the Company’s relationship with the tenant and the availability of competing tenant space. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above- or below-market lease intangibles relating to that lease would be recorded as an adjustment to rental income. The fair values of in-place leases include estimates of direct costs associated with obtaining a new tenant and opportunity costs associated with lost rental and other property income which are avoided by acquiring a property with an in-place lease. Direct costs associated with obtaining a new tenant include leasing commissions, legal and other related expenses and are estimated in part by utilizing information obtained from independent appraisals and management’s consideration of current market costs to execute a similar lease. The intangible values of opportunity costs, which are calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease, are capitalized as intangible lease assets and are amortized to expense over the remaining term of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed. The Company may acquire certain properties subject to contingent consideration arrangements that may obligate the Company to pay additional consideration to the seller based on the outcome of future events. Additionally, the Company may acquire certain properties for which it funds certain contingent consideration amounts into an escrow account pending the outcome of certain future events. The outcome may result in the release of all or a portion of the escrow funds to the Company or the seller or a combination thereof. Prior to the adoption of ASU 2017-01 (as defined below) in April 2017, contingent consideration arrangements, including amounts funded through an escrow account, were recorded upon acquisition of the respective property at their estimated fair value, and any changes to the estimated fair value subsequent to acquisition were reflected in the accompanying consolidated statements of operations in acquisition-related fees and expenses. Upon adoption of ASU 2017-01 in April 2017, contingent consideration arrangements for asset acquisitions are recognized when the contingency is resolved. The determination of the amount of contingent consideration arrangements is based on the probability of several possible outcomes as identified by management. The Company will estimate the fair value of assumed mortgage notes payable based upon indications of current market pricing for similar types of debt financing with similar maturities. Assumed mortgage notes payable will initially be recorded at their estimated fair value as of the assumption date, and any difference between such estimated fair value and the mortgage note’s outstanding principal balance will be amortized or accreted to interest expense over the term of the respective mortgage note payable. The determination of the fair values of the real estate assets and liabilities acquired requires the use of significant assumptions with regard to the current market rental rates, rental growth rates, capitalization and discount rates, interest rates and other variables. The use of alternative estimates may result in a different allocation of the Company’s purchase price, which could materially impact the Company’s results of operations. In April 2017, the Company elected to early adopt ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”), which clarifies the definition of a business by adding guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Beginning in April 2017, all real estate acquisitions qualified as asset acquisitions, and as such, acquisition-related fees and certain acquisition-related expenses related to these asset acquisitions were capitalized and allocated to tangible and intangible assets and liabilities as described above. Prior to the adoption of ASU 2017-01 in April 2017, all of the Company’s real estate acquisitions were accounted for as business combinations, and as such, acquisition-related expenses related to these business combination acquisitions were expensed as incurred. Prior to April 2017, acquisition-related expenses in the Company’s consolidated statements of operations primarily consisted of legal, deed transfer and other costs related to real estate purchase transactions, including costs incurred for deals that were not consummated. The Company expects its future acquisitions to qualify as asset acquisitions, and as such, the Company will allocate the purchase price to acquired tangible assets, consisting of land, buildings and improvements, and to identified intangible assets and liabilities, consisting of the value of above- and below-market leases and the value of in-place leases, based in each case on a relative fair value basis. |
Investment in Marketable Securities | Investment in Marketable Securities Investment in marketable securities consists primarily of the Company ’ s investment in corporate and government debt securities. The Company determines the appropriate classification for debt securities at the time of purchase and reevaluates such designation as of each balance sheet date. As of December 31, 2017 , the Company classified its investments as available-for-sale as the Company is not actively trading the securities; however, the Company may sell them prior to their maturity. These investments are carried at their estimated fair value with unrealized gains and losses reported in other comprehensive income (loss). The Company monitors its available-for-sale securities for impairments. A loss is recognized when the Company determines that a decline in the estimated fair value of a security below its amortized cost is other-than-temporary. The Company considers many factors in determining whether the impairment of a security is deemed to be other-than-temporary, including, but not limited to, the length of time the security has had a decline in estimated fair value below its amortized cost, the amount of the unrealized loss, the intent and ability of the Company to hold the security for a period of time sufficient for a recovery in value, recent events specific to the issuer or industry, external credit ratings and recent changes in such ratings. The analysis of determining whether the impairment of a security is deemed to be other-than-temporary requires significant judgments and assumptions. The use of alternative judgments and assumptions could result in a different conclusion. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity computed under the effective interest method and is recorded in the accompanying consolidated statements of operations in interest and other expense, net. Upon the sale of a security, the realized net gain or loss is computed on the specific identification method. |
Noncontrolling Interest in Consolidated Joint Venture | Noncontrolling Interest in Consolidated Joint Venture On December 16, 2016, the Company completed the formation of the Consolidated Joint Venture. The Company determined it had a controlling interest in the Consolidated Joint Venture and, therefore, met the GAAP requirements for consolidation. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include cash in bank accounts, as well as investments in highly-liquid money market funds. The Company deposits cash with several high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company (“FDIC”) up to an insurance limit of $250,000. At times, the Company’s cash and cash equivalents may exceed federally insured levels. Although the Company bears risk on amounts in excess of those insured by the FDIC, it has not experienced and does not anticipate any losses due to the high quality of the institutions where the deposits are held. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs represent commitment fees, legal fees and other costs associated with obtaining commitments for financing. The presentation of all deferred financing costs, other than those associated with the revolving loan portion of the credit facility, are classified such that the debt issuance costs related to a recognized debt liability are presented on the consolidated balance sheets as a direct deduction from the carrying amount of the related debt liability rather than as an asset. Debt issuance costs related to securing a revolving line of credit are presented as an asset and amortized ratably over the term of the line of credit arrangement. As such, the Company’s current and corresponding prior period total deferred financing costs, net in the accompanying consolidated balance sheets relate only to the revolving loan portion of the credit facility and the historical presentation, amortization and treatment of unamortized costs are still applicable. As of December 31, 2017 and 2016 , the Company had $1.4 million and $1.1 million , respectively, of deferred financing costs, net of accumulated amortization, related to the revolving credit facility. Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined the financing will not close. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company accounts for its derivative instruments at fair value. Accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative instrument and the designation of the derivative instrument. The change in fair value of the effective portion of any derivative instrument that is designated as a hedge is recorded as other comprehensive income (loss) . The changes in fair value for derivative instruments that are not designated as hedges or that do not meet the hedge accounting criteria are recorded as a gain or loss to operations. |
Due to affiliates | Due to Affiliates Cole Income NAV Strategy Advisors and certain of its affiliates received, and will continue to receive, fees, reimbursements and compensation in connection with services provided relating to the Offering and the acquisition, management and performance of the Company’s assets. |
Redeemable Common Stock | Redeemable Common Stock The Company has adopted a share redemption program that permits its stockholders to redeem their shares, subject to certain limitations discussed in Note 14 — Stockholders’ Equity to these consolidated financial statements. The Company records amounts that are redeemable under the share redemption program as redeemable common stock outside of permanent equity on its consolidated balance sheets. Redeemable common stock is recorded at the greater of the carrying amount or redemption value each reporting period. Changes in the value from period to period are recorded as an adjustment to capital in excess of par value. |
Dealer Manager and Distribution Fees | Dealer Manager and Distribution Fees The Company pays CCO Capital dealer manager and distribution fees, which are calculated on a daily basis in the amount of 1/365th of the amount indicated in the table below for each class of common stock: Dealer Manager Fee Distribution Fee W Shares 0.55 % — A Shares 0.55 % 0.50 % I Shares 0.25 % — The dealer manager and distribution fees are paid monthly in arrears. An estimated liability for future dealer manager and distribution fees payable to CCO Capital is recognized at the time each share is sold and included in due to affiliates in the consolidated balance sheets with a corresponding decrease to capital in excess of par value. |
Revenue Recognition | Revenue Recognition Certain properties have leases where minimum rental payments increase during the term of the lease. The Company records rental income for the full term of each lease on a straight-line basis when earned and collectability is reasonably assured. When the Company acquires a property, the terms of existing leases are considered to commence as of the acquisition date for the purpose of this calculation. The Company defers the recognition of contingent rental income, such as percentage rents, until the specific target that triggers the contingent rental income is achieved. Expected reimbursements from tenants for recoverable real estate taxes and operating expenses are included in tenant reimbursement income in the period when such costs are incurred. The Company continually reviews receivables related to rent, including any straight-line rent, and current and future operating expense reimbursements from tenants and determines collectability by taking into consideration the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. In the event that the collectability of a receivable is uncertain, the Company will record an increase in the allowance for uncollectible accounts. |
Income Taxes | Income Taxes The Company elected to be taxed, and currently qualifies, as a REIT for federal income tax purposes under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). The Company generally is not subject to federal corporate income tax to the extent it distributes its taxable income to its stockholders, and so long as it, among other things, distributes at least 90% of its annual taxable income (computed without regard to the dividends paid deduction and excluding net capital gains). REITs are subject to a number of other organizational and operational requirements. Even if the Company maintains its qualification for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. On December 22, 2017, the Tax Cuts and Jobs Act was signed into law. See Note 15 — Income Taxes for further discussion regarding the Tax Cuts and Jobs Act. |
Earnings (Loss) and Distributions Per Share | Earnings (Loss) and Distributions Per Share The Company has three classes of common stock with nonforfeitable dividend rights that are determined based on a different NAV for each class. Accordingly, the Company utilizes the two-class method to determine its earnings per share, which results in different earnings per share for each of the classes. Under the two-class method, earnings per share of each class of common stock are computed by dividing the sum of the distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of shares for each class of common stock for the respective period. Diluted income per share, when applicable, considers the effect of any potentially dilutive share equivalents, of which the Company had none for each of the years ended December 31, 2017 , 2016 or 2015 . Distributions per share is calculated based on the authorized daily distribution rate. |
Offering and Related Costs | Offering and Related Costs Cole Income NAV Strategy Advisors funds all of the organization and offering costs associated with the sale of the Company’s common stock (excluding selling commissions, the distribution fee and the dealer manager fee) and is reimbursed for such costs up to 0.75% of gross proceeds from the Offering, excluding selling commissions charged on A Shares sold in the Primary Offering. As of December 31, 2017 , Cole Income NAV Strategy Advisors, or its affiliates, had paid organization and offering costs in excess of the 0.75% in connection with the Offering. These excess costs were not included in the financial statements of the Company because such costs were not a liability of the Company as they exceeded 0.75% of gross proceeds from the Offering. As the Company raises additional proceeds from the Offering, these excess costs may become payable to Cole Income NAV Strategy Advisors. |
Reportable Segments | Reportable Segments The Company’s commercial real estate assets primarily consist of single-tenant, necessity commercial properties, which are leased to creditworthy tenants under long-term net leases and provide current operating cash flow. The commercial properties are geographically diversified throughout the United States and have similar economic characteristics. The Company’s management evaluates operating performance on an overall portfolio level; therefore the Company’s properties are one reportable segment. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by various standard setting bodies that may have an impact on the Company’s accounting and reporting. Except as otherwise stated below, the Company is currently evaluating the effect that certain of these new accounting requirements may have on the Company’s accounting and related reporting and disclosures in the Company’s consolidated financial statements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in Revenue Recognition, Accounting Standards Codification (“ASC”) (Topic 605) and will require an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public business entities, the guidance should be applied to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. In accordance with the Company’s plan for the adoption of ASU 2014-09, the Company’s implementation team has identified all of the Company’s revenue streams and real estate sales and concluded that upon adoption, there will not be a material impact on the Company’s consolidated financial statements and disclosures. The Company plans to adopt ASU 2014-09 effective January 1, 2018 using the modified retrospective approach. In addition, the Company evaluated controls around the implementation of ASU 2014-09 and has concluded there will be no significant impact on the Company’s control structure. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which will require that a lessee recognize assets and liabilities on the balance sheet for all leases with a lease term of more than 12 months, with the result being the recognition of a right of use asset and a lease liability and the disclosure of key information about the entity’s leasing arrangements. The lessor accounting model under ASU 2016-02 is similar to current guidance; however it limits the capitalization of initial direct leasing costs, such as internally generated costs. ASU 2016-02 retains a distinction between finance leases (i.e., capital leases under current GAAP) and operating leases. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. A modified retrospective approach is required for existing leases that have not expired upon adoption and provides for certain practical expedients. The Company is still evaluating the full impact of ASU 2016-02 on its consolidated financial statements; however, the Company plans to adopt ASU 2016-02 as of January 1, 2019 and anticipates that it will elect a practical expedient offered in ASU 2016-02 that allows an entity to not reassess the following upon adoption (elected as a group): (i) whether an expired or existing contract contains a lease arrangement; (ii) lease classification related to expired or existing lease arrangements; or (iii) whether costs incurred on expired or existing leases qualify as initial direct costs. As a result of the adoption, all leases for which the Company is the lessee, including ground leases (if any), will be recorded on the Company’s consolidated financial statements as either financing leases or operating leases with a related right of use asset and lease liability. In addition, certain executory and non-lease components, such as common area maintenance, may need to be accounted for separately from the lease component of the lease. Lease components will continue to be recognized on a straight-line basis over the lease term and certain non-lease components will be accounted for under the new revenue recognition guidance in ASU 2014-09 as mentioned above. In January 2018, the FASB proposed amending Topic 842 to allow lessors the option to combine lease and non-lease components when certain criteria are met. ASU No. 2016-01, Financial Instruments (Subtopic 825-10) (“ASU 2016-01”) — The amendments in this update require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those that result in consolidation of the investee). The amendments in this update also require an entity to present separately in other comprehensive income (loss), the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this update require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the consolidated balance sheets or the accompanying notes to the consolidated financial statements. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will adopt ASU 2016-01 during the first quarter of fiscal year 2018 and does not expect it will have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) (“ASU 2016-13”). ASU 2016-13 is intended to improve financial reporting requiring more timely recognition 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 under current GAAP. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently evaluating the impact this amendment will have on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which is intended to address diversity in practice related to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted, and requires retrospective adoption unless it is impracticable to apply, in which case it is to be applied prospectively as of the earliest date practicable. The Company adopted ASU 2016-15 during the fourth quarter of fiscal year 2017 and has determined that this standard is relevant to its presentation of debt prepayment and debt extinguishment costs and contingent consideration payments made after a business combination. Following the retrospective adoption of this standard, the Company determined these items did not have a material impact on the consolidated statements of cash flows. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), which provides guidance on the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. In accordance with ASU 2016-18, restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statements of cash flows. The amendments of ASU 2016-18 are effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company adopted ASU 2016-18 during the fourth quarter of 2017 and applied the standard retrospectively for all periods presented. Accordingly, for the years ended December 31, 2017, 2016 and 2015, the Company included restricted cash within cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statements of cash flows and removed the change in restricted cash from cash flows from investing activities. This change resulted in an increase in cash flows from investing activities of $482,000 and $93,000 during the years ended December 31, 2016 and 2015, respectively. In February 2017, the FASB issued ASU No. 2017-05, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets (“ASU 2017-05), which clarifies the following: (1) nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty; (2) an entity should allocate consideration to each distinct asset by applying the guidance in Topic 606 on allocating the transaction price to performance obligations; and (3) entities are required to derecognize a distinct nonfinancial asset or distinct in substance nonfinancial asset in a partial sale transaction when it (a) does not have (or ceases to have) a controlling financial interest in the legal entity that holds the asset in accordance with Subtopic 810 and (b) transfers control of the asset in accordance with Topic 606. The adoption of this standard may result in higher gains on the sale of partial real estate interests, including contributions of nonfinancial assets to a joint venture or other noncontrolling investee, due to recognizing the full gain when the derecognition criteria are met and recording the retained noncontrolling interest at its fair value. ASU 2017-05 is effective for annual periods, and interim periods therein, beginning after December 15, 2017. Early adoption is permitted. The standard is applied prospectively to sales of nonfinancial assets on or after the adoption date. The Company plans to adopt ASU 2017-05 effective January 1, 2018 using the modified retrospective approach and does not expect it will have a material impact on the Company’s consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). The targeted amendments in this ASU help simplify certain aspects of hedge accounting and result in a more accurate portrayal of the economics of an entity’s risk management activities in its financial statements. This ASU applies to the Company’s interest rate swaps designated as cash flow hedges. Upon adoption of this ASU, all changes in the fair value of highly effective cash flow hedges will be recorded in accumulated other comprehensive income rather than recognized directly in earnings. Under current GAAP, the ineffective portion of the change in fair value of cash flow hedges is recognized directly in earnings. This eliminates the requirement to separately measure and disclose ineffectiveness for qualifying cash flow hedges. ASU 2017-12 is effective for public entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The ASU is required to be adopted using a modified retrospective approach with early adoption permitted. The Company plans to adopt ASU 2017-12 during the first quarter of fiscal year 2018 and does not expect that it will have a material impact on its consolidated financial statements. |
Fair Value Measurement | GAAP defines fair value, establishes a framework for measuring fair value and requires disclosures about fair value measurements. GAAP emphasizes that fair value is intended to be a market-based measurement, as opposed to a transaction-specific measurement. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate the fair value. Assets and liabilities are measured using inputs from three levels of the fair value hierarchy, as follows: Level 1 — Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 — Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active (markets with few transactions), inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs). Level 3 — Unobservable inputs, which are only used to the extent that observable inputs are not available, reflect the Company’s assumptions about the pricing of an asset or liability. |
Fair Value of Financial Instruments | The following describes the methods the Company uses to estimate the fair value of the Company’s financial assets and liabilities: Notes payable and line of credit — The fair value is estimated by discounting the expected cash flows based on estimated borrowing rates available to the Company as of the measurement date. Current and prior period liabilities’ carrying and fair values exclude net deferred financing costs. These financial instruments are valued using Level 2 inputs. As of December 31, 2017 , the estimated fair value of the Company’s debt was $274.0 million , compared to the carrying value of $278.2 million . The estimated fair value and the carrying value of the Company’s debt were each $161.2 million as of December 31, 2016 . Marketable securities — The Company’s marketable securities are carried at fair value and are valued using Level 1 inputs. The estimated fair value of the Company’s marketable securities are based on quoted market prices that are readily and regularly available in an active market. Derivative instruments — The Company’s derivative instruments are comprised of interest rate swaps. All derivative instruments are carried at fair value and are valued using Level 2 inputs. The fair value of these instruments is determined using interest rate market pricing models. In addition, credit valuation adjustments are incorporated into the fair values to account for the Company’s potential nonperformance risk and the performance risk of the respective counterparties. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with those derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. However, as of December 31, 2017 and 2016 , the Company has assessed the overall 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 the Company’s derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Other financial instruments — The Company considers the carrying values of its cash and cash equivalents, restricted cash, tenant receivables, accounts payable and accrued expenses, other liabilities, due to affiliates and distributions payable to approximate their fair values because of the short period of time between their origination and their expected realization as well as their highly-liquid nature. Due to the short-term maturities of these instruments, Level 1 inputs are utilized to estimate the fair value of these financial instruments. Considerable judgment is necessary to develop estimated fair values of financial assets and liabilities. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize, or be liable for, upon disposition of the financial assets and liabilities. |
Environmental Matters | Environmental Matters In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. In addition, the Company may own or acquire certain properties that are subject to environmental remediation. Generally, the seller of the property, the tenant of the property and/or another third party is responsible for environmental remediation costs related to a property. Additionally, in connection with the purchase of certain properties, the respective sellers and/or tenants may agree to indemnify the Company against future remediation costs. The Company also carries environmental liability insurance on its properties that provides limited coverage for any remediation liability and/or pollution liability for third-party bodily injury and/or property damage claims for which the Company may be liable. The Company is not aware of any environmental matters which it believes are reasonably likely to have a material effect on its results of operations, financial condition or liquidity. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Investment in and valuation of real estate and related assets | The estimated useful lives of the Company’s real estate assets by class are generally as follows: Buildings 40 years Site improvements 15 years Tenant improvements Lesser of useful life or lease term Intangible lease assets Lease term |
Schedule of reconciliation of cash and cash equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the accompanying consolidated balance sheets to the combined amounts shown on the accompanying consolidated statements of cash flows (in thousands): As of December 31, 2017 2016 2015 Cash and cash equivalents $ 2,923 $ 4,671 $ 14,840 Restricted cash 1 600 118 Total cash and cash equivalents and restricted cash shown in the statement of cash flows $ 2,924 $ 5,271 $ 14,958 |
Schedule of dealer manager and distribution fee Calculations | The Company pays CCO Capital dealer manager and distribution fees, which are calculated on a daily basis in the amount of 1/365th of the amount indicated in the table below for each class of common stock: Dealer Manager Fee Distribution Fee W Shares 0.55 % — A Shares 0.55 % 0.50 % I Shares 0.25 % — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of company's financial assets and liabilities | In accordance with the fair value hierarchy described above, the following tables show 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 December 31, 2017 and 2016 (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2017 (Level 1) (Level 2) (Level 3) Financial asset: Interest rate swaps $ 1,718 $ — $ 1,718 $ — Marketable securities 5,496 5,496 — — Total financial assets $ 7,214 $ 5,496 $ 1,718 $ — Financial liabilities: Interest rate swaps $ (17 ) $ — $ (17 ) $ — Balance as of Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2016 (Level 1) (Level 2) (Level 3) Financial asset: Interest rate swaps $ 28 $ — $ 28 $ — Marketable securities 5,563 5,563 — — Total financial assets $ 5,591 $ 5,563 $ 28 $ — Financial liabilities: Interest rate swaps $ (371 ) $ — $ (371 ) $ — |
Summary of impairment charges by asset class | The following table presents the impairment charges by asset class recorded during the year ended December 31, 2017 (in thousands): Year Ended December 31, 2017 Asset class impaired: Land $ 3 Buildings and improvements 210 Intangible lease assets 14 Total impairment loss $ 227 |
Real Estate Assets (Tables)
Real Estate Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business combination, separately recognized transactions | The following table summarizes the consideration transferred for the properties purchased during the year ended December 31, 2017 (in thousands): 2017 Acquisitions Real estate assets: Purchase price of asset acquisitions $ 200,991 Purchase price of business combinations 52,457 Total purchase price of real estate assets acquired (1) $ 253,448 ______________________ (1) The weighted average amortization period for the 2017 Acquisitions is 12.6 years for acquired in-place leases and other intangibles, 15.7 years for acquired above-market leases and 13.8 years for acquired intangible lease liabilities. |
Schedule of asset acquisitions | The following table summarizes the purchase price allocation for the 2017 Asset Acquisitions purchased during the year ended December 31, 2017 (in thousands): 2017 Asset Acquisitions Land $ 30,220 Building and improvements 152,840 Acquired in-place leases and other intangibles 23,164 Acquired above-market leases 1,522 Intangible lease liabilities (6,755 ) Total purchase price $ 200,991 |
Schedule of purchase price allocation | The following table summarizes the purchase price allocation for the 2017 Business Combination Acquisitions purchased during the year ended December 31, 2017 (in thousands): 2017 Business Combinations Land $ 14,232 Building and improvements 22,292 Acquired in-place leases and other intangibles 15,911 Acquired above-market leases 1,423 Intangible lease liabilities (1,401 ) Total purchase price $ 52,457 The following table summarizes the purchase price allocation for the acquisitions purchased during the year ended December 31, 2016 (in thousands): 2016 Acquisitions Land $ 37,073 Building and improvements 131,828 Acquired in-place leases and other intangibles (1) 17,293 Acquired above-market leases (2) 2,828 Intangible lease liabilities (3) (2,733 ) Total purchase price $ 186,289 ______________________ (1) The weighted average amortization period for acquired in-place leases and other intangibles was 15.9 years for the 2016 Acquisitions . (2) The weighted average amortization period for acquired above-market leases was 16.6 years for the 2016 Acquisitions . (3) The weighted average amortization period for acquired intangible lease liabilities was 15.5 years for the 2016 Acquisitions . The following table summarizes the purchase price allocation for the acquisitions purchased during the year ended December 31, 2015 (in thousands): 2015 Acquisitions Land $ 11,505 Building and improvements 37,381 Acquired in-place leases and other intangibles (1) 5,054 Acquired above-market leases (2) 28 Intangible lease liabilities (3) (1,694 ) Total purchase price $ 52,274 ______________________ (1) The weighted average amortization period for acquired in-place leases and other intangibles was 10.0 years for the 2015 Acquisitions . (2) The weighted average amortization period for acquired above-market leases was 8.5 years for the 2015 Acquisitions . (3) The weighted average amortization period for acquired intangible lease liabilities was 9.8 years for the 2015 Acquisitions . |
Business acquisition, pro forma information | The table below presents the Company’s estimated revenue and net income, on a pro forma basis, for the years ended December 31, 2015 and 2014 (in thousands): Year Ended December 31, 2015 December 31, 2014 Pro forma basis (unaudited): Revenue $ 23,322 $ 17,943 Net income $ 9,296 $ 1,523 The table below presents the Company’s estimated revenue and net income (loss), on a pro forma basis, for the years ended December 31, 2017 and 2016 (in thousands): Year Ended December 31, 2017 December 31, 2016 Pro forma basis (unaudited): Revenue $ 48,362 $ 30,872 Net income (loss) $ 702 $ (1,805 ) The table below presents the Company’s estimated revenue and net income, on a pro forma basis, for the years ended December 31, 2016 and 2015 (in thousands): Year Ended December 31, 2016 December 31, 2015 Pro forma basis (unaudited): Revenue $ 37,204 $ 33,132 Net income $ 963 $ 9,254 |
Intangible Lease Assets (Tables
Intangible Lease Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | Intangible lease assets of the Company consisted of the following as of December 31, 2017 and 2016 (in thousands, except weighted average life amounts): As of December 31, 2017 2016 In-place leases and other intangibles, net of accumulated amortization of $12,955 and $6,942, respectively (with a weighted average life remaining of 10.7 years and 12.0 years, respectively). $ 71,543 $ 39,353 Acquired above-market leases, net of accumulated amortization of $1,522 and $927, respectively (with a weighted average life remaining of 12.3 years and 12.3 years, respectively). 7,871 5,743 $ 79,414 $ 45,096 |
Schedule of finite-lived intangible assets amortization expense | The following table summarizes the amortization expense related to the intangible lease assets for the years ended December 31, 2017 , 2016 and 2015 (in thousands): Year Ended December 31, 2017 2016 2015 In-place lease and other intangible amortization $ 6,491 $ 2,969 $ 2,120 Above-market lease amortization $ 745 $ 417 $ 347 |
Schedule of finite-lived intangible assets, future amortization expense | As of December 31, 2017 , the estimated amortization expense relating to the intangible lease assets for each of the five succeeding fiscal years is as follows (in thousands): Amortization Year ending December 31, In-Place Leases and Other Intangibles Above-Market Leases 2018 $ 7,463 $ 759 2019 $ 7,403 $ 746 2020 $ 7,200 $ 740 2021 $ 7,019 $ 740 2022 $ 6,963 $ 738 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale securities | The following is a summary of the Company’s available-for-sale securities as of December 31, 2017 (in thousands): Available-for-sale securities Amortized Cost Basis Unrealized (Loss) Gain Fair Value U.S. Treasury Bonds $ 1,991 $ (24 ) $ 1,967 U.S. Agency Bonds 620 (5 ) 615 Corporate Bonds 2,892 22 2,914 Total available-for-sale securities $ 5,503 $ (7 ) $ 5,496 |
Schedule of available-for-sale securities reconciliation | The following table provides the activity for the marketable securities during the year ended December 31, 2017 (in thousands): Amortized Cost Basis Unrealized (Loss) Gain Fair Value Marketable securities as of January 1, 2017 $ 5,592 $ (29 ) $ 5,563 Face value of marketable securities acquired 1,494 — 1,494 Premiums and discounts on purchase of marketable securities, net of acquisition costs 19 — 19 Amortization on marketable securities (13 ) — (13 ) Sales and maturities of securities (1,589 ) (5 ) (1,594 ) Unrealized gain on marketable securities — 27 27 Marketable securities as of December 31, 2017 $ 5,503 $ (7 ) $ 5,496 |
Unrealized gain (loss) on investments | The following table shows the fair value and gross unrealized losses of the Company’s available-for-sale securities as of December 31, 2017 and the length of time the available-for-sale securities have been in the unrealized loss position (in thousands): Less than 12 Months 12 Months or More Total Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses U.S. Treasury Bonds $ 1,059 $ (6 ) $ 774 $ (17 ) $ 1,833 $ (23 ) U.S. Agency Bonds 615 (5 ) — — 615 (5 ) Corporate Bonds 1,059 (6 ) 41 (1 ) 1,100 (7 ) Total temporarily impaired securities $ 2,733 $ (17 ) $ 815 $ (18 ) $ 3,548 $ (35 ) |
Investments classified by contractual maturity date | The scheduled maturities of the Company’s marketable securities as of December 31, 2017 are as follows (in thousands): Available-for-sale securities Amortized Cost Estimated Fair Value Due within one year $ 957 $ 954 Due after one year through five years 2,064 2,059 Due after five years through ten years 2,348 2,350 Due after ten years 134 133 Total $ 5,503 $ 5,496 |
Derivative Instruments and He33
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | The following table summarizes the terms of the Company’s executed interest rate swap agreements designated as hedging instruments as of December 31, 2017 and 2016 (dollar amounts in thousands): Outstanding Notional Amount as of December 31, 2017 Fair Value of Assets and (Liabilities) Balance Sheet Location Interest Rates (1) Effective Dates Maturity Dates December 31, 2017 December 31, 2016 Interest Rate Swaps Derivative assets, property escrow deposits and other assets $ 174,305 3.13% to 4.14% 6/30/2015 to 9/29/2017 9/12/2019 to 8/1/2022 $ 1,718 $ 28 Interest Rate Swaps Deferred rental income, derivative liabilities and other liabilities $ 16,400 4.17% 12/16/2016 1/1/2022 $ (17 ) $ (371 ) ____________________________________ (1) The interest rates consist of the underlying index swapped to a fixed rate and the applicable interest rate spread as of December 31, 2017 . |
Notes Payable and Credit Faci34
Notes Payable and Credit Facility (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of debt activity | The following table summarizes the debt balances as of December 31, 2017 and 2016 , and the debt activity for the year ended December 31, 2017 (in thousands): During the Year Ended December 31, 2017 Balance as of January 1, 2017 Debt Issuances, Net (1) Repayments Amortization Balance as of Credit facility $ 64,000 $ 255,500 $ (191,000 ) $ — $ 128,500 Fixed rate debt 97,169 52,565 — — 149,734 Total debt 161,169 308,065 (191,000 ) — 278,234 Deferred costs (2) (2,026 ) (1,951 ) 97 (3) 476 (3,404 ) Total debt, net $ 159,143 $ 306,114 $ (190,903 ) $ 476 $ 274,830 ____________________________________ (1) Includes deferred financing costs incurred during the period. (2) Deferred costs relate to mortgage notes payable and the term portion of the credit facility, as discussed in Note 2 — Summary of Significant Accounting Policies. (3) Represents deferred financing costs of the term portion of the credit facility written off during the period resulting from the Second Amended and Restated Credit Agreement, as defined below. |
Schedule of maturities of long-term debt | The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt as of December 31, 2017 for each of the five succeeding fiscal years and the period thereafter (in thousands): Year ending December 31, Principal Repayments 2018 $ — 2019 — 2020 9,240 2021 47,717 2022 204,327 Thereafter 16,950 Total $ 278,234 |
Intangible Lease Liabilities (T
Intangible Lease Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of finite-lived intangible liabilities | Intangible lease liabilities of the Company consisted of the following (in thousands, except weighted average life): As of December 31, 2017 2016 Acquired below-market liabilities, net of accumulated amortization of $2,075 and $929, respectively (with a weighted average life remaining of 11.2 years and 11.9 years, respectively) $ 12,753 $ 5,798 |
Schedule of amortization of below market lease | The following table summarizes the amortization of below-market leases related to the intangible lease liabilities for the years ended December 31, 2017 , 2016 and 2015 (in thousands): Year Ended December 31, 2017 2016 2015 Amortization of below-market leases $ 1,200 $ 448 $ 209 |
Schedule of finite-lived intangible assets, future amortization | As of December 31, 2017 , the estimated amortization of the intangible lease liabilities for each of the five succeeding fiscal years is as follows (in thousands): Amortization of Year ending December 31, Below-Market Leases 2018 $ 1,403 2019 $ 1,392 2020 $ 1,365 2021 $ 1,124 2022 $ 1,083 |
Supplemental Cash Flow Disclo36
Supplemental Cash Flow Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow | Supplemental cash flow disclosures for the years ended December 31, 2017 , 2016 and 2015 are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Supplemental Disclosures of Non-Cash Investing and Financing Activities: Change in accrued dealer manager fee, distribution fee, and other offering costs $ 9,460 $ 7,782 $ 2,303 Distributions to stockholders declared and unpaid $ 2,126 $ 1,444 $ 788 Common stock issued through distribution reinvestment plan $ 10,289 $ 5,984 $ 3,336 Change in fair value of marketable securities $ 22 $ 44 $ (73 ) Change in fair value of interest rate swaps $ 2,007 $ (41 ) $ (302 ) Accrued capital expenditures $ 163 $ 12 $ 50 Supplemental Cash Flow Disclosures: Interest paid $ 7,864 $ 4,346 $ 3,404 |
Related-Party Transactions an37
Related-Party Transactions and Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | In connection with the Offering, CCO Capital, the Company’s dealer manager, will receive selling commissions, an asset-based dealer manager fee and/or an asset-based distribution fee, as summarized in the table below for each class of common stock: Selling Commission (1) Dealer Manager Fee (2) Distribution Fee (2) W Shares — 0.55 % — A Shares up to 3.75% 0.55 % 0.50 % I Shares — 0.25 % — ____________________________________ (1) The selling commission is based on the offering price for A Shares. The selling commission expressed as a percentage of NAV per A Share, rather than the offering price, is up to 3.90% , subject to rounding and the effect of volume discounts the Company is offering on certain purchases of $150,001 or more of A Shares. Selling commissions are deducted directly from the offering price for A Shares and paid to CCO Capital. The Company has been advised that CCO Capital intends to reallow 100% of the selling commissions on A Shares to participating broker-dealers. (2) The dealer manager and distribution fees will be calculated on a daily basis in an amount equal to 1/365th of the percentage of NAV per W Share, A Share or I Share, as applicable, for such day on a continuous basis. CCO Capital, in its sole discretion, may reallow a portion of the dealer manager fee and distribution fee to participating broker-dealers. The Company incurred commissions, fees and expense reimbursements as shown in the table below for services provided by Cole Income NAV Strategy Advisors and its affiliates related to the services described above during the years indicated (in thousands): Year Ended December 31, 2017 2016 2015 Offering: Selling commissions $ 2,964 $ 2,121 $ 301 Distribution fee (1) $ 592 $ 246 $ 89 Dealer manager fees (1) $ 2,128 $ 1,310 $ 764 Organization and offering expense reimbursement $ 1,400 $ 1,192 $ 464 Acquisition expense reimbursement $ 1,594 $ 1,622 $ 369 Advisory fee $ 4,263 $ 2,760 $ 1,290 Operating expense reimbursement $ 2,740 $ 1,656 $ — Performance fee $ 647 $ — $ 1,246 ______________________ (1) Amounts are calculated for the respective period in accordance with the dealer manager agreement and exclude the estimated liability for the future dealer manager and distribution fees payable to CCO Capital, which are included in due to affiliates in the consolidated balance sheets, with a corresponding decrease to capital in excess of par value, as described in Note 2 – Summary of Significant Accounting Policies. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of dividends and distributions | The following table shows the character of the distributions paid on a percentage basis for the years ended December 31, 2017 , 2016 , and 2015 : Character of Distributions: 2017 2016 2015 (1) Ordinary dividends 37.3 % 33.0 % 44.9 % Nondividend distributions 62.7 % 67.0 % — % Capital gain distributions — % — % 55.1 % Total 100 % 100 % 100 % ____________________________________ (1) Includes dividend paid on January 4, 2016. |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of future minimum rental payments for operating leases | As of December 31, 2017 , the future minimum rental income from the Company’s real estate assets under non-cancelable operating leases, assuming no exercise of renewal options for the succeeding five fiscal years and thereafter, was as follows (in thousands): Year ending December 31, Future Minimum Rental Income 2018 $ 50,109 2019 50,435 2020 50,420 2021 50,433 2022 50,409 Thereafter 317,052 Total $ 568,858 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | Presented below is a summary of the unaudited quarterly financial information for the years ended December 31, 2017 and 2016 (in thousands, except per share amounts). In the opinion of management, the information for the interim periods presented include all adjustments, which are of a normal and recurring nature, necessary to present a fair presentation of the results for each period. December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 10,026 $ 11,126 $ 13,244 $ 13,750 Operating income $ 1,950 $ 2,744 $ 3,365 $ 2,579 Net (loss) income $ (77 ) $ 524 $ 76 $ (176 ) Net (loss) income attributable to the Company $ (86 ) $ 515 $ 68 $ (185 ) Basic and diluted net (loss) income per share - Class W common stock (1) $ — $ 0.03 $ — $ (0.01 ) Distributions declared per common share - Class W common stock $ 0.24 $ 0.24 $ 0.25 $ 0.25 Basic and diluted net (loss) income per share - Class A common stock (1) $ (0.01 ) $ 0.02 $ — $ (0.01 ) Distributions declared per common share - Class A common stock $ 0.24 $ 0.24 $ 0.25 $ 0.25 Basic and diluted net (loss) income per share - Class I common stock (1) $ — $ 0.03 $ 0.01 $ — Distributions declared per common share - Class I common stock $ 0.24 $ 0.24 $ 0.25 $ 0.25 ____________________________________ (1) The sum of the quarterly net loss income per share amounts does not agree to the full year net loss per share amounts. The Company calculates net loss income per share and distributions declared per share based on the weighted-average number of outstanding shares of common stock during the reporting period. The average number of shares fluctuates throughout the year and can therefore produce a full year result that does not agree to the sum of the individual quarters. December 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 5,954 $ 6,341 $ 6,889 $ 8,127 Operating income $ 1,210 $ 972 $ 956 $ 940 Net loss $ (17 ) $ (280 ) $ (370 ) $ (625 ) Basic and diluted net (loss) per share - Class W common stock (1) $ — $ (0.02 ) $ (0.03 ) $ (0.04 ) Distributions declared per common share - Class W common stock $ 0.24 $ 0.24 $ 0.25 $ 0.25 Basic and diluted net loss per share - Class A common stock (1) $ — $ (0.03 ) $ (0.03 ) $ (0.04 ) Distributions declared per common share - Class A common stock $ 0.24 $ 0.24 $ 0.25 $ 0.25 Basic and diluted net loss per share - Class I common stock (1) $ — $ (0.02 ) $ (0.03 ) $ (0.04 ) Distributions declared per common share - Class I common stock $ 0.24 $ 0.24 $ 0.25 $ 0.25 ____________________________________ (1) The sum of the quarterly net (loss) income per share amounts does not agree to the full year net income per share amounts. The Company calculates net (loss) income per share and distributions declared per share based on the weighted-average number of outstanding shares of common stock during the reporting period. The average number of shares fluctuates throughout the year and can therefore produce a full year result that does not agree to the sum of the individual quarters. |
Organization and Business (Shar
Organization and Business (Shares offerings) (Details) | 12 Months Ended | ||||||
Dec. 31, 2017USD ($)class_of_stock$ / sharesshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Feb. 10, 2017USD ($)class_of_stock | Dec. 31, 2014shares | Aug. 26, 2013class_of_stock | Dec. 06, 2011USD ($) | |
Class of Stock [Line Items] | |||||||
Classes of common stock | class_of_stock | 3 | ||||||
Common stock, shares outstanding (in shares) | 30,700,000 | ||||||
Proceeds from issuance of common stock | $ | $ 179,307,000 | $ 155,051,000 | $ 58,835,000 | ||||
Cole op | |||||||
Class of Stock [Line Items] | |||||||
General partner partnership interest percentage | 100.00% | ||||||
W Shares Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares outstanding (in shares) | 15,837,102 | 12,461,616 | |||||
Share price (in dollars per share) | $ / shares | $ 18.37 | ||||||
A Shares Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares outstanding (in shares) | 8,793,223 | 4,449,352 | |||||
Share price (in dollars per share) | $ / shares | $ 18.15 | ||||||
I Shares Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares outstanding (in shares) | 1,065,232 | 788,270 | |||||
Share price (in dollars per share) | $ / shares | $ 18.55 | ||||||
Common Stock | W Shares Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares outstanding (in shares) | 15,837,102 | 12,461,616 | 7,825,063 | 6,012,043 | |||
Common Stock | A Shares Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares outstanding (in shares) | 8,793,223 | 4,449,352 | 1,371,763 | 897,376 | |||
Common Stock | I Shares Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares outstanding (in shares) | 1,065,232 | 788,270 | 657,624 | 256,525 | |||
Initial public offering | |||||||
Class of Stock [Line Items] | |||||||
Common stock, value authorized | $ | $ 4,000,000,000 | $ 4,000,000,000 | |||||
New classes of common stock registered | class_of_stock | 2 | ||||||
Classes of common stock | class_of_stock | 3 | ||||||
Common stock, shares outstanding (in shares) | 30,700,000 | ||||||
Initial public offering | Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Proceeds from issuance of common stock | $ | $ 550,600,000 | ||||||
Offering costs, selling commissions | $ | 10,000,000 | ||||||
Dealer manager and distribution fees | $ | $ 6,100,000 | ||||||
Primary offering | |||||||
Class of Stock [Line Items] | |||||||
Common stock, value authorized | $ | $ 3,500,000,000 | ||||||
Distribution reinvestment plan | |||||||
Class of Stock [Line Items] | |||||||
Common stock, value authorized | $ | $ 500,000,000 |
Organization and Business (Real
Organization and Business (Real Estate) (Details) - Consolidated properties ft² in Millions | Dec. 31, 2017ft²statesproperty |
Real Estate Properties [Line Items] | |
Number of owned properties | property | 139 |
Number of states in which entity owns properties | states | 36 |
Net rentable square feet | ft² | 4.4 |
Percentage of rentable space leased | 99.40% |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Other Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)class_of_stocksegmentshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Decrease in cash flow from investing activities, due to adoption of new accounting standard | $ 253,937,000 | $ 187,140,000 | $ 36,009,000 |
Deferred costs, net | 1,359,000 | 1,074,000 | |
Due to affiliates | $ 21,980,000 | $ 14,786,000 | |
Stock redemption program, number of shares authorized to be repurchased, quarterly redemption percentage of net asset value limitation | 10.00% | 10.00% | |
Redeemable common stock | $ 47,024,000 | $ 32,076,000 | |
Allowance for uncollectible accounts | $ 0 | $ 2,000 | |
Classes of common stock | class_of_stock | 3 | ||
Potentially dilutive share equivalents | shares | 0 | 0 | 0 |
Number of reportable segments | segment | 1 | ||
Accounting Standards Update 2016-18 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Decrease in cash flow from investing activities, due to adoption of new accounting standard | $ 482,000 | $ 93,000 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Real Estate Investments) (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($)property | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017building | |
Real Estate Properties [Line Items] | ||||
Impairment | $ 227,000 | $ 0 | $ 0 | |
Number of properties held for sale | 1 | 1 | ||
Real estate held for sale | $ 0 | |||
Buildings | ||||
Real Estate Properties [Line Items] | ||||
Acquired real estate asset, useful life | 40 years | |||
Site improvements | ||||
Real Estate Properties [Line Items] | ||||
Acquired real estate asset, useful life | 15 years |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Noncontrolling Interest in Consolidated Joint Venture) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Noncontrolling Interest [Line Items] | ||||
Net income (loss) allocated to noncontrolling interest | $ 35 | $ (10) | $ 0 | |
Distributions to noncontrolling interest | 49 | 0 | 0 | |
Non controlling interest | 335,446 | 236,010 | 129,977 | $ 90,039 |
Noncontrolling Interest | ||||
Noncontrolling Interest [Line Items] | ||||
Non controlling interest | $ 772 | $ 786 | $ 0 | $ 0 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies (Restricted Cash and Cash Concentrations) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 2,923 | $ 4,671 | $ 14,840 | |
Restricted cash | 1 | 600 | 118 | |
Total cash and cash equivalents and restricted cash shown in the statement of cash flows | 2,924 | 5,271 | $ 14,958 | $ 4,514 |
Lender cash management accounts | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 500 | |||
Lockbox Accounts | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 1 | 25 | ||
Escrowed Investor Proceeds | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 75 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Dealer Manager and Distribution Fees) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | ||
Due to affiliate | $ 21,980 | $ 14,786 |
Dealer manager | ||
Class of Stock [Line Items] | ||
Due to affiliate | $ 19,200 | $ 12,500 |
W Shares Common Stock | Dealer Manager Fee | Dealer manager | ||
Class of Stock [Line Items] | ||
Daily asset based related party fee percent | 0.55% | |
W Shares Common Stock | Distribution Fee | Dealer manager | ||
Class of Stock [Line Items] | ||
Daily asset based related party fee percent | 0.00% | |
A Shares Common Stock | Dealer Manager Fee | Dealer manager | ||
Class of Stock [Line Items] | ||
Daily asset based related party fee percent | 0.55% | |
A Shares Common Stock | Distribution Fee | Dealer manager | ||
Class of Stock [Line Items] | ||
Daily asset based related party fee percent | 0.50% | |
I Shares Common Stock | Dealer Manager Fee | Dealer manager | ||
Class of Stock [Line Items] | ||
Daily asset based related party fee percent | 0.25% | |
I Shares Common Stock | Distribution Fee | Dealer manager | ||
Class of Stock [Line Items] | ||
Daily asset based related party fee percent | 0.00% |
Summary of Significant Accoun48
Summary of Significant Accounting Policies (Offering and related costs) (Details) | Dec. 31, 2017 |
Organization and offering expense reimbursement | Advisors | Maximum | |
Related Party Transaction | |
Organization and offering expense (percentage) | 0.75% |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) ft² in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)ft²property | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Number of impaired properties | property | 1 | ||
Area of real estate property impaired | ft² | 62 | ||
Impairment | $ 227,000 | $ 0 | $ 0 |
Fair value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying value of impaired property | 8,100,000 | ||
Carrying amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Line of credit, fair value | 278,200,000 | ||
Carrying value of impaired property | 8,300,000 | ||
Fair value, inputs, level 2 | Fair value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Line of credit, fair value | $ 274,000,000 | 161,200,000 | |
Fair value, inputs, level 2 | Carrying amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Line of credit, fair value | $ 161,200,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of fair value of company's financial assets and liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 5,496 | $ 5,563 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 5,496 | 5,563 |
Total assets | 7,214 | 5,591 |
Fair Value, Measurements, Recurring | Fair value, inputs, level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 5,496 | 5,563 |
Total assets | 5,496 | 5,563 |
Fair Value, Measurements, Recurring | Fair value, inputs, level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Total assets | 1,718 | 28 |
Fair Value, Measurements, Recurring | Fair value, inputs, level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Total assets | 0 | 0 |
Fair Value, Measurements, Recurring | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 1,718 | 28 |
Derivative liability | (17) | (371) |
Fair Value, Measurements, Recurring | Interest rate swaps | Fair value, inputs, level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Fair Value, Measurements, Recurring | Interest rate swaps | Fair value, inputs, level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 1,718 | 28 |
Derivative liability | (17) | (371) |
Fair Value, Measurements, Recurring | Interest rate swaps | Fair value, inputs, level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | $ 0 | $ 0 |
Fair Value Measurements (Impair
Fair Value Measurements (Impairment Charges by Asset Class) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment | $ 227,000 | $ 0 | $ 0 |
Land | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment | 3,000 | ||
Buildings and improvements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment | 210,000 | ||
Intangible lease assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment | $ 14,000 |
Real Estate Assets (2017 Asset
Real Estate Assets (2017 Asset and Business Acquisitions Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)property | Dec. 31, 2016property | Dec. 31, 2015property | |
Business Combinations [Abstract] | |||
Interest in businesses and assets acquired during the period | 100.00% | ||
Number of properties acquired through business combinations and asset acquisitions in the period | 31 | ||
Number of properties acquired through asset acquisitions | 19 | ||
Number of properties acquired through business combinations (in number of properties) | 12 | 31 | 7 |
Total payments to acquire properties through asset acquisition and business combinations | $ | $ 253,448 |
Real Estate Assets (2017 Proper
Real Estate Assets (2017 Property Acquisitions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Real estate assets | |||
Purchase price of asset acquisitions | $ 200,991 | ||
Purchase price of business combinations | 52,457 | $ 186,300 | $ 52,300 |
Total purchase price of real estate assets acquired | $ 253,448 | ||
Below market lease, weighted average useful life | 11 years 2 months 11 days | 11 years 10 months 24 days | |
Acquired in-place leases and other intangibles | |||
Real estate assets | |||
Weighted average amortization period (years) | 12 years 7 months 6 days | 15 years 10 months 24 days | 10 years |
Acquired above-market leases | |||
Real estate assets | |||
Weighted average amortization period (years) | 15 years 8 months 12 days | 16 years 7 months 6 days | 8 years 6 months |
Intangible lease liabilities | |||
Real estate assets | |||
Below market lease, weighted average useful life | 13 years 9 months 18 days | 15 years 6 months | 9 years 9 months 18 days |
Real Estate Assets (2017 Asse54
Real Estate Assets (2017 Asset Acquisitions Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)property | Dec. 31, 2016USD ($) | |
Business Acquisition | ||
Percent of assets acquired | 100.00% | |
Number of properties acquired through asset acquisitions | property | 19 | |
Total purchase price | $ 711,976 | $ 459,412 |
External acquisition-related capitalized expenses | 1,500 | |
Wholly Owned Properties | ||
Business Acquisition | ||
Total purchase price | $ 200,991 |
Real Estate Assets (2017 Assets
Real Estate Assets (2017 Assets and Liabilities Acquired Through Asset Acquisition) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Real Estate [Line Items] | |||
Land | $ 129,344 | $ 86,858 | |
Buildings and improvements | 488,741 | 319,589 | |
Intangible lease assets | 93,891 | 52,965 | |
Total real estate assets, at cost | 711,976 | 459,412 | |
Intangible lease liabilities | |||
Real Estate [Line Items] | |||
Intangible lease liabilities | (1,401) | $ (2,733) | $ (1,694) |
Wholly Owned Properties | |||
Real Estate [Line Items] | |||
Land | 30,220 | ||
Buildings and improvements | 152,840 | ||
Total real estate assets, at cost | 200,991 | ||
Wholly Owned Properties | Acquired in-place leases and other intangibles | |||
Real Estate [Line Items] | |||
Intangible lease assets | 23,164 | ||
Wholly Owned Properties | Acquired above-market leases | |||
Real Estate [Line Items] | |||
Intangible lease assets | 1,522 | ||
Wholly Owned Properties | Intangible lease liabilities | |||
Real Estate [Line Items] | |||
Intangible lease liabilities | $ (6,755) |
Real Estate Assets (Business Co
Real Estate Assets (Business Combination Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)property | Dec. 31, 2016USD ($)property | Dec. 31, 2015USD ($)property | |
Business Acquisition | |||
Business acquisition, percentage of voting interests acquired | 100.00% | 100.00% | |
Number of real estate acquisitions (in number of properties) | property | 12 | 31 | 7 |
Total purchase price | $ 52,457 | $ 186,300 | $ 52,300 |
Revenue of acquiree since acquisition date | 3,300 | 4,100 | 425 |
Net income (loss) of acquiree | 650 | 1,000 | 267 |
Acquisition-related expenses | 2,174 | 3,251 | $ 809 |
2017 Acquisitions | |||
Business Acquisition | |||
Acquisition-related expenses | $ 426 | ||
2016 Acquisitions | |||
Business Acquisition | |||
Acquisition-related expenses | $ 1,400 |
Real Estate Assets (Schedule of
Real Estate Assets (Schedule of Business Combination Purchase Price allocation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||
Land | $ 14,232 | $ 37,073 | $ 11,505 |
Building and improvements | 22,292 | 131,828 | 37,381 |
Total purchase price | $ 52,457 | $ 186,289 | 52,274 |
Below market lease, weighted average useful life | 11 years 2 months 11 days | 11 years 10 months 24 days | |
Acquired in-place leases and other intangibles | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||
Intangible assets other than goodwill, acquired | $ 15,911 | $ 17,293 | $ 5,054 |
Weighted average amortization period (years) | 12 years 7 months 6 days | 15 years 10 months 24 days | 10 years |
Acquired above-market leases | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||
Intangible assets other than goodwill, acquired | $ 1,423 | $ 2,828 | $ 28 |
Weighted average amortization period (years) | 15 years 8 months 12 days | 16 years 7 months 6 days | 8 years 6 months |
Intangible lease liabilities | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||
Intangible lease liabilities | $ (1,401) | $ (2,733) | $ (1,694) |
Below market lease, weighted average useful life | 13 years 9 months 18 days | 15 years 6 months | 9 years 9 months 18 days |
Real Estate Assets (Business Ac
Real Estate Assets (Business Acquisition, Pro Forma Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
2017 Acquisitions | ||||
Pro forma basis | ||||
Revenue | $ 48,362 | $ 30,872 | ||
Net income (loss) | $ 702 | (1,805) | ||
2016 Acquisitions | ||||
Pro forma basis | ||||
Revenue | 37,204 | $ 33,132 | ||
Net income (loss) | $ 963 | 9,254 | ||
2015 Acquisitions | ||||
Pro forma basis | ||||
Revenue | 23,322 | $ 17,943 | ||
Net income (loss) | $ 9,296 | $ 1,523 |
Real Estate Assets Real Estate
Real Estate Assets Real Estate Assets (2017 Impairment of a Property) (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)property | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of impaired properties | property | 1 | ||
Impairment | $ 227,000 | $ 0 | $ 0 |
Fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of impaired property | 8,100,000 | ||
Carrying amount | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of impaired property | $ 8,300,000 |
Real Estate Assets (Consolidate
Real Estate Assets (Consolidated Joint Venture) (Details) $ in Thousands | Dec. 31, 2017USD ($)property | Dec. 31, 2016USD ($) |
Business Acquisition | ||
Assets | $ 699,463 | $ 453,572 |
Total liabilities | 316,993 | $ 185,486 |
Consolidated joint venture | ||
Business Acquisition | ||
Assets | 7,800 | |
Accumulated depreciation, depletion and amortization, property, plant, and equipment | 238 | |
Total liabilities | $ 222 | |
Consolidated properties | ||
Business Acquisition | ||
Number of owned properties | property | 139 | |
Consolidated properties | Consolidated joint venture | ||
Business Acquisition | ||
Number of owned properties | property | 2 | |
Land | Consolidated joint venture | ||
Business Acquisition | ||
Assets | $ 1,400 | |
Buildings and improvements | Consolidated joint venture | ||
Business Acquisition | ||
Assets | 5,800 | |
Intangible lease assets | Consolidated joint venture | ||
Business Acquisition | ||
Assets | $ 600 |
Real Estate Assets (2015 Proper
Real Estate Assets (2015 Property Dispositions) (Details) | 12 Months Ended | ||||
Dec. 31, 2017USD ($)multi-tenant_property | Dec. 31, 2016USD ($) | Dec. 31, 2015multi-tenant_property | Dec. 31, 2015USD ($) | Dec. 31, 2015property | |
Business Combinations [Abstract] | |||||
Number of single tenant properties sold | property | 4 | ||||
Number of multi tenant properties sold | 0 | 0 | 1 | ||
Gross sales price of real estate | $ 21,900,000 | ||||
Gain on disposition of real estate, net | $ 0 | $ 0 | 5,642,000 | ||
Disposal group, fees paid | $ 0 |
Intangible Lease Assets (Detail
Intangible Lease Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Intangible lease assets | $ 79,414 | $ 45,096 |
Intangible lease assets, accumulated amortization | 14,500 | |
In-Place Leases and Other Intangibles | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Intangible lease assets | 71,543 | 39,353 |
Intangible lease assets, accumulated amortization | $ 12,955 | $ 6,942 |
Useful life | 10 years 8 months 11 days | 12 years |
Above-Market Leases | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Intangible lease assets | $ 7,871 | $ 5,743 |
Intangible lease assets, accumulated amortization | $ 1,522 | $ 927 |
Useful life | 12 years 3 months 18 days | 12 years 3 months 18 days |
Intangible Lease Assets (Amorti
Intangible Lease Assets (Amortization Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
In-place lease and other intangible | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 6,491 | $ 2,969 | $ 2,120 |
Above-Market Leases | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 745 | $ 417 | $ 347 |
Intangible Lease Assets (Estima
Intangible Lease Assets (Estimated Amortization of Intangible lease assets) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
In-Place Leases and Other Intangibles | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,018 | $ 7,463 |
2,019 | 7,403 |
2,020 | 7,200 |
2,021 | 7,019 |
2,022 | 6,963 |
Above-Market Leases | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,018 | 759 |
2,019 | 746 |
2,020 | 740 |
2,021 | 740 |
2,022 | $ 738 |
Marketable Securities (Narrativ
Marketable Securities (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)security | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Marketable securities | $ 5,496,000 | $ 5,563,000 | |
Number of securities sold | security | 67 | ||
Proceeds from sale and maturities of marketable securities | $ 1,594,000 | $ 1,340,000 | $ 2,102,000 |
Unrealized gain on marketable securities | 27,000 | ||
Other than temporary impairment losses, investments, available-for-sale securities | $ 0 |
Marketable Securities (Schedule
Marketable Securities (Schedule of available for sale securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | $ 5,503 | $ 5,592 |
Unrealized (Loss) Gain | (7) | (29) |
Fair Value | 5,496 | $ 5,563 |
U.S. Treasury Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 1,991 | |
Unrealized (Loss) Gain | (24) | |
Fair Value | 1,967 | |
U.S. Agency Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 620 | |
Unrealized (Loss) Gain | (5) | |
Fair Value | 615 | |
Corporate Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 2,892 | |
Unrealized (Loss) Gain | 22 | |
Fair Value | $ 2,914 |
Marketable Securities (Schedu67
Marketable Securities (Schedule of available-for-sale securities reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amortized Cost Basis Rollforward | |||
Marketable securities, beginning balance | $ 5,592 | ||
Face value of marketable securities acquired | 1,494 | ||
Premiums and discounts on purchase of marketable securities, net of acquisition costs | 19 | ||
Amortization on marketable securities | (13) | ||
Sales and maturities of securities | (1,589) | ||
Marketable securities, ending balance | 5,503 | $ 5,592 | |
Unrealized Gain (Loss) Rollforward | |||
Unrealized Gain (Loss), beginning balance | (29) | ||
Sales and maturities of securities | (5) | 0 | $ 17 |
Unrealized gain on marketable securities | 27 | ||
Unrealized Gain (Loss), ending balance | (7) | (29) | |
Fair Value Rollforward | |||
Marketable securities beginning balance | 5,563 | ||
Face value of marketable securities acquired | 1,494 | ||
Premiums and discounts on purchase of marketable securities, net of acquisition costs | 19 | ||
Amortization on marketable securities | (13) | ||
Sales and maturities of securities | (1,594) | ||
Unrealized gain on marketable securities | 27 | ||
Marketable securities ending balance | $ 5,496 | $ 5,563 |
Marketable Securities (Schedu68
Marketable Securities (Schedule of unrealized gain (loss) on investments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 2,733 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, unrealized losses | (17) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 815 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | (18) |
Available-for-sale securities, continuous unrealized loss position, fair value | 3,548 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | (35) |
U.S. Treasury Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 1,059 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, unrealized losses | (6) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 774 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | (17) |
Available-for-sale securities, continuous unrealized loss position, fair value | 1,833 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | (23) |
U.S. Agency Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 615 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, unrealized losses | (5) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 0 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | 0 |
Available-for-sale securities, continuous unrealized loss position, fair value | 615 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | (5) |
Corporate Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 1,059 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, unrealized losses | (6) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 41 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | (1) |
Available-for-sale securities, continuous unrealized loss position, fair value | 1,100 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | $ (7) |
Marketable Securities (Schedu69
Marketable Securities (Schedule of investments classified by contractual maturity date) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due within one year | $ 957 | |
Due after one year through five years | 2,064 | |
Due after five years through ten years | 2,348 | |
Due after ten years | 134 | |
Total | 5,503 | |
Estimated Fair Value | ||
Due within one year | 954 | |
Due after one year through five years | 2,059 | |
Due after five years through ten years | 2,350 | |
Due after ten years | 133 | |
Total | $ 5,496 | $ 5,563 |
Derivative Instruments and He70
Derivative Instruments and Hedging Activities (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)swap_agreement | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Derivatives, Fair Value [Line Items] | |||
Amount of loss reclassified from other comprehensive (loss) income into income as interest expense | $ 663,000 | $ 539,000 | $ 284,000 |
Interest rate swaps | |||
Derivatives, Fair Value [Line Items] | |||
Number of instruments entered into | swap_agreement | 5 | ||
Number of swap agreements | swap_agreement | 8 | ||
Cash Flow Hedging | Interest rate swaps | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate cash flow hedge gain (loss) to be reclassified during next twelve months | $ 5,000 | ||
Derivative liability, event of default, termination amount | 29,000 | ||
Interest Expense | Interest rate swaps | |||
Derivatives, Fair Value [Line Items] | |||
Ineffective portion of the change in fair value of the derivative instruments recorded in interest expense | $ 37,000 | $ 0 |
Derivative Instruments and He71
Derivative Instruments and Hedging Activities (Schedule of derivative instruments) (Details) - Cash Flow Hedging - Interest rate swaps - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative assets, property escrow deposits and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional Amount | $ 174,305 | |
Fair Value of Assets | 1,718 | $ 28 |
Deferred rental income, derivative liabilities and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional Amount | $ 16,400 | |
Interest Rates | 4.17% | |
Fair Value of (Liabilities) | $ (17) | $ (371) |
Minimum | Derivative assets, property escrow deposits and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rates | 3.13% | |
Maximum | Derivative assets, property escrow deposits and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rates | 4.14% |
Notes Payable and Credit Faci72
Notes Payable and Credit Facility (Schedule of Debt) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |
Weighted average years to maturity | 4 years 6 months 7 days |
Weighted average interest rate | 3.58% |
Debt [Roll Forward] | |
Long-term debt, gross, beginning balance | $ 161,169 |
Deferred costs, beginning of period | (2,026) |
Total debt, net, beginning of period | 159,143 |
Debt issuances, net | 308,065 |
Debt issuances, net | (1,951) |
Proceeds from debt, net of issuance costs | 306,114 |
Repayments | (191,000) |
Repayments, Deferred costs | 97 |
Repayments, Extinguishment and Assumptions of Debt, Net | (190,903) |
Amortization | 476 |
Amortization of deferred financing costs | 476 |
Long-term debt, gross, ending balance | 278,234 |
Deferred costs, end of period | (3,404) |
Total debt, net, end of period | 274,830 |
Line of credit | |
Debt [Roll Forward] | |
Long-term debt, gross, beginning balance | 64,000 |
Debt issuances, net | 255,500 |
Repayments | (191,000) |
Long-term debt, gross, ending balance | $ 128,500 |
Fixed Rate Debt | |
Debt Instrument [Line Items] | |
Weighted average interest rate | 3.87% |
Debt [Roll Forward] | |
Long-term debt, gross, beginning balance | $ 97,169 |
Debt issuances, net | 52,565 |
Repayments | 0 |
Long-term debt, gross, ending balance | $ 149,734 |
Notes Payable and Credit Faci73
Notes Payable and Credit Facility (Fixed rate debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 278,234 | $ 161,169 |
Weighted average interest rate | 3.58% | |
Fixed Rate Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 149,734 | $ 97,169 |
Weighted average interest rate | 3.87% | |
Debt security, amount, aggregate gross real estate assets net of gross Intangible lease liabilities | $ 266,100 | |
Fixed Rate Debt | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 3.37% | |
Fixed Rate Debt | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.165% | |
Variable Rate Debt | Interest rate swaps | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 78,200 |
Notes Payable and Credit Faci74
Notes Payable and Credit Facility (Credit facility) (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)extension | Dec. 31, 2016USD ($) | |
Line of Credit Facility [Line Items] | ||
Line of credit, amount outstanding | $ 274,830,000 | $ 159,143,000 |
Line of credit | ||
Line of Credit Facility [Line Items] | ||
Credit facility outstanding | 128,500,000 | |
Line of credit | JPMorgan Chase Bank, N.A. | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 425,000,000 | |
Line of credit, remaining borrowing capacity | 296,500,000 | |
Line of credit facility, covenant, minimum consolidated net worth | $ 367,100,000 | |
Line of credit facility, covenant, minimum consolidated net worth, percentage of equity issuance | 75.00% | |
Debt instrument, covenant, secured leverage ratio, maximum | 40.00% | |
Debt instrument, covenant, secured recourse debt coverage ratio, maximum | 15.00% | |
Line of credit | JPMorgan Chase Bank, N.A. | Interest rate swaps | ||
Line of Credit Facility [Line Items] | ||
Interest rate at period end | 3.25% | |
Line of credit | JPMorgan Chase Bank, N.A. | Minimum | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, covenant, leverage ratio | 175.00% | |
Fixed charged coverage ratio | 1.50 | |
Line of credit | JPMorgan Chase Bank, N.A. | Maximum | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, covenant, leverage ratio | 60.00% | |
Line of credit | JPMorgan Chase Bank, N.A. | Federal Funds Effective Rate | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.50% | |
Line of credit | JPMorgan Chase Bank, N.A. | One-Month LIBOR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.00% | |
Line of credit | JPMorgan Chase Bank, N.A. | Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 212,500,000 | |
Number of extensions | extension | 2 | |
Length of extension option | 6 months | |
Line of credit, amount outstanding | $ 16,000,000 | |
Interest rate at period end | 3.27% | |
Line of credit | JPMorgan Chase Bank, N.A. | Revolving credit facility | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, interest rate, stated percentage | 0.70% | |
Line of credit | JPMorgan Chase Bank, N.A. | Revolving credit facility | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, interest rate, stated percentage | 1.20% | |
Line of credit | JPMorgan Chase Bank, N.A. | Revolving credit facility | Statutory Reserve Rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.70% | |
Line of credit | JPMorgan Chase Bank, N.A. | Revolving credit facility | Statutory Reserve Rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 2.20% | |
Line of credit | JPMorgan Chase Bank, N.A. | Term Loan | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 212,500,000 | |
Line of credit, amount outstanding | $ 112,500,000 | |
Line of credit | JPMorgan Chase Bank, N.A. | Term Loan | Interest rate swaps | ||
Line of Credit Facility [Line Items] | ||
Interest rate at period end | 3.25% | |
Line of credit | JPMorgan Chase Bank, N.A. | Term Loan | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, interest rate, stated percentage | 0.60% | |
Line of credit | JPMorgan Chase Bank, N.A. | Term Loan | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, interest rate, stated percentage | 1.10% | |
Line of credit | JPMorgan Chase Bank, N.A. | Term Loan | Statutory Reserve Rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.60% | |
Line of credit | JPMorgan Chase Bank, N.A. | Term Loan | Statutory Reserve Rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 2.10% |
Notes Payable and Credit Faci75
Notes Payable and Credit Facility (Future Debt Repayments Schedule) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,018 | $ 0 | |
2,019 | 0 | |
2,020 | 9,240 | |
2,021 | 47,717 | |
2,022 | 204,327 | |
Thereafter | 16,950 | |
Total | $ 278,234 | $ 161,169 |
Intangible Lease Liabilities (D
Intangible Lease Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | ||
Below market lease, net | $ 12,753 | $ 5,798 |
Below market lease, weighted average useful life | 11 years 2 months 11 days | 11 years 10 months 24 days |
Below market lease, accumulated amortization | $ 2,075 | $ 929 |
Intangible Lease Liabilities (S
Intangible Lease Liabilities (Schedule of amortization of below market lease) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |||
Amortization of below market lease | $ 1,200 | $ 448 | $ 209 |
Intangible Lease Liabilities 78
Intangible Lease Liabilities (Schedule of fiscal year maturity) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Below Market Lease, Net, Amortization Income, Fiscal Year Maturity [Abstract] | |
2,018 | $ 1,403 |
2,019 | 1,392 |
2,020 | 1,365 |
2,021 | 1,124 |
2,022 | $ 1,083 |
Supplemental Cash Flow Disclo79
Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental disclosures of non-cash investing and financing activities: | |||
Change in accrued dealer manager fee, distribution fee, and other offering costs | $ 9,460 | $ 7,782 | $ 2,303 |
Distributions to stockholders declared and unpaid | 2,126 | 1,444 | 788 |
Common stock issued through distribution reinvestment plan | 10,289 | 5,984 | 3,336 |
Change in fair value of marketable securities | 22 | 44 | (73) |
Change in fair value of interest rate swaps | 2,007 | (41) | (302) |
Accrued capital expenditures | 163 | 12 | 50 |
Supplemental cash flow disclosures: | |||
Interest paid | $ 7,864 | $ 4,346 | $ 3,404 |
Commitments and Contingencies (
Commitments and Contingencies (Purchase Commitments) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)property | Dec. 31, 2016property | Dec. 31, 2015property | |
Long-term Purchase Commitment [Line Items] | |||
Number of real estate acquisitions (in number of properties) | property | 12 | 31 | 7 |
Real estate investments purchase commitments | |||
Long-term Purchase Commitment [Line Items] | |||
Purchase commitment, percentage of voting interests acquired | 100.00% | ||
Number of real estate acquisitions (in number of properties) | property | 1 | ||
Purchase commitment, aggregate purchase price | $ | $ 13.8 | ||
Escrow deposit | $ | $ 0.5 |
Related-Party Transactions an81
Related-Party Transactions and Arrangements (Selling commissions, dealer manager and distribution fees) (Details) - Dealer manager | Dec. 31, 2017USD ($) |
Selling commissions | |
Related Party Transaction | |
Related party transaction, expense reallowed, percent | 100.00% |
Common Class W | Selling commissions | |
Related Party Transaction | |
Daily asset based related party fee percent | 0.00% |
Common Class W | Dealer Manager Fee | |
Related Party Transaction | |
Daily asset based related party fee percent | 0.55% |
Common Class W | Distribution Fee | |
Related Party Transaction | |
Daily asset based related party fee percent | 0.00% |
Common Class A | Selling commissions | |
Related Party Transaction | |
Daily asset based related party fee percent | 3.75% |
Common stock, share purchase volume discount | $ 150,001 |
Common Class A | Selling commissions | Maximum | |
Related Party Transaction | |
Daily asset based related party fee percent | 3.90% |
Common Class A | Dealer Manager Fee | |
Related Party Transaction | |
Daily asset based related party fee percent | 0.55% |
Common Class A | Distribution Fee | |
Related Party Transaction | |
Daily asset based related party fee percent | 0.50% |
Common Class I | Selling commissions | |
Related Party Transaction | |
Daily asset based related party fee percent | 0.00% |
Common Class I | Dealer Manager Fee | |
Related Party Transaction | |
Daily asset based related party fee percent | 0.25% |
Common Class I | Distribution Fee | |
Related Party Transaction | |
Daily asset based related party fee percent | 0.00% |
Related-Party Transactions an82
Related-Party Transactions and Arrangements (Other organization and offering expenses and Advisory fees and expenses) (Details) - Advisors | 12 Months Ended |
Dec. 31, 2017 | |
Advisory Fees and Expenses | |
Related Party Transaction | |
Distribution and stockholder servicing fee, percentage of net asset value, daily accrual rate | 0.00025% |
Maximum | Organization and offering expense reimbursement | |
Related Party Transaction | |
Related party transaction, expenses from transactions with related party, percentage of gross offering proceeds | 0.75% |
Related-Party Transactions an83
Related-Party Transactions and Arrangements (Operating expenses, Expense Cap and Acquisition fees and expenses) (Details) - Advisors - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction | |||
Annualized rate, excess general and administrative expense | 1.25% | ||
Excess General And Administrative Expenses To Be Reimbursed | |||
Related Party Transaction | |||
Related party transaction, expenses from transactions with related party | $ 773 | ||
Due from related parties | 248 | ||
Acquisition expense reimbursement | |||
Related Party Transaction | |||
Related party transaction, expenses from transactions with related party | $ 1,594 | $ 1,622 | $ 369 |
Minimum | Operating expenses | |||
Related Party Transaction | |||
Operating expense reimbursement percent of average invested assets | 2.00% | ||
Operating expense reimbursement percent of net income | 25.00% | ||
Maximum | Acquisition expense reimbursement | |||
Related Party Transaction | |||
Acquisition and expenses percentage | 6.00% |
Related-Party Transactions an84
Related-Party Transactions and Arrangements (Performance Fee) (Details) | Dec. 31, 2017$ / shares |
Common Class W | |
Related Party Transaction | |
Share price, base net asset value (in dollars per share) | $ 15 |
Common Class A | |
Related Party Transaction | |
Share price, base net asset value (in dollars per share) | 16.72 |
Common Class I | |
Related Party Transaction | |
Share price, base net asset value (in dollars per share) | $ 16.82 |
Minimum | Advisors | Performance fee | |
Related Party Transaction | |
Total return threshold to receive performance fee | 6.00% |
Minimum | Advisors | Operating expenses | |
Related Party Transaction | |
Operating expense reimbursement percent of net income | 25.00% |
Maximum | Advisors | Performance fee | |
Related Party Transaction | |
Total return threshold to receive performance fee | 10.00% |
Related-Party Transactions an85
Related-Party Transactions and Arrangements (Schedule of Related Party Transaction) (Details) - Advisors - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction | |||
Due to cole advisor | $ 22,000 | $ 14,800 | |
Commissions, fees and expense reimbursements | |||
Related Party Transaction | |||
Due to cole advisor | 2,500 | 2,300 | |
Selling commissions | |||
Related Party Transaction | |||
Related party transaction, expenses from transactions with related party | 2,964 | 2,121 | $ 301 |
Distribution Fee | |||
Related Party Transaction | |||
Related party transaction, expenses from transactions with related party | 592 | 246 | 89 |
Dealer Manager Fee | |||
Related Party Transaction | |||
Related party transaction, expenses from transactions with related party | 2,128 | 1,310 | 764 |
Organization and offering expense reimbursement | |||
Related Party Transaction | |||
Related party transaction, expenses from transactions with related party | 1,400 | 1,192 | 464 |
Acquisition expense reimbursement | |||
Related Party Transaction | |||
Related party transaction, expenses from transactions with related party | 1,594 | 1,622 | 369 |
Advisory fee | |||
Related Party Transaction | |||
Related party transaction, expenses from transactions with related party | 4,263 | 2,760 | 1,290 |
Operating expense reimbursement | |||
Related Party Transaction | |||
Related party transaction, expenses from transactions with related party | 2,740 | 1,656 | 0 |
Performance fee | |||
Related Party Transaction | |||
Related party transaction, expenses from transactions with related party | 647 | $ 0 | $ 1,246 |
Waived fees and expense reimbursement | |||
Related Party Transaction | |||
Related party transaction, expenses from transactions with related party | $ 1,300 |
Related-Party Transactions an86
Related-Party Transactions and Arrangements (Due to/from Affiliates) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction | ||
Due from affiliates | $ 100,000 | $ 0 |
Advisors | ||
Related Party Transaction | ||
Due to cole advisor | 22,000,000 | 14,800,000 |
Due from affiliates | $ 100,000 | $ 0 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | ||||
Common stock and preferred stock, shares authorized (up to) | 500,000,000 | |||
Common stock, shares authorized (in shares) | 490,000,000 | |||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.01 | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Issuance of common stock | $ 189,596 | $ 161,035 | $ 62,171 | |
Common stock, shares outstanding (in shares) | 30,700,000 | |||
Proceeds from issuance of common stock | $ 550,600 | |||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Issuance of common stock (in shares) | 10,300,000 | |||
Shares issued pursuant to a distribution reinvestment plan (in shares) | 569,000 | 328,000 | 185,000 | |
Issuance of common stock | $ 189,600 | |||
W Shares Common Stock | ||||
Class of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 164,000,000 | 164,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares outstanding (in shares) | 15,837,102 | 12,461,616 | ||
W Shares Common Stock | Common Stock | ||||
Class of Stock [Line Items] | ||||
Issuance of common stock (in shares) | 5,206,244 | 5,418,786 | 2,689,946 | |
Issuance of common stock | $ 51 | $ 55 | $ 27 | |
Common stock, shares outstanding (in shares) | 15,837,102 | 12,461,616 | 7,825,063 | 6,012,043 |
A Shares Common Stock | ||||
Class of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 163,000,000 | 163,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares outstanding (in shares) | 8,793,223 | 4,449,352 | ||
A Shares Common Stock | Common Stock | ||||
Class of Stock [Line Items] | ||||
Issuance of common stock (in shares) | 4,661,884 | 3,181,316 | 541,431 | |
Issuance of common stock | $ 46 | $ 32 | $ 6 | |
Common stock, shares outstanding (in shares) | 8,793,223 | 4,449,352 | 1,371,763 | 897,376 |
I Shares Common Stock | ||||
Class of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 163,000,000 | 163,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares outstanding (in shares) | 1,065,232 | 788,270 | ||
I Shares Common Stock | Common Stock | ||||
Class of Stock [Line Items] | ||||
Issuance of common stock (in shares) | 464,022 | 130,646 | 175,819 | |
Issuance of common stock | $ 5 | $ 1 | $ 2 | |
Common stock, shares outstanding (in shares) | 1,065,232 | 788,270 | 657,624 | 256,525 |
Stockholders' Equity (Distribut
Stockholders' Equity (Distribution Reinvestment Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class of Stock [Line Items] | |||
Common stock issued through distribution reinvestment plan | $ 10,289 | $ 5,984 | $ 3,336 |
Common Stock | |||
Class of Stock [Line Items] | |||
Shares issued pursuant to a distribution reinvestment plan (in shares) | 569,000 | 328,000 | 185,000 |
Common stock issued through distribution reinvestment plan | $ 10,300 | $ 6,000 | $ 3,300 |
Stockholders' Equity (Share Red
Stockholders' Equity (Share Redemption Program) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock redemption program, short-term trading fee, percentage of aggregate net asset value per share of common stock | 2.00% | |||
Stock redemption program, number of shares authorized to be repurchased, percentage of weighted average number of shares outstanding | 5.00% | |||
Stock redemption program, number of shares authorized to be repurchased, carryover | 15.00% | |||
Stock redemption program, number of shares authorized to be repurchased, carryover percentage quarterly net asset value limitation | 10.00% | |||
Offer amount limit before the owner is permitted to redeem any of its common stock shares | $ 100,000,000 | |||
Common stock, shares outstanding (in shares) | 30,700,000 | |||
Redeemable common stock | $ 47,024,000 | $ 32,076,000 | ||
Redemptions of common stock | $ 42,296,000 | $ 16,136,000 | $ 12,957,000 | |
W Shares Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Redemptions (in shares) | 1,776,000 | |||
Common stock, shares outstanding (in shares) | 15,837,102 | 12,461,616 | ||
Redemptions of common stock | $ 32,200,000 | |||
A Shares Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Redemptions (in shares) | 318,000 | |||
Common stock, shares outstanding (in shares) | 8,793,223 | 4,449,352 | ||
Redemptions of common stock | $ 5,700,000 | |||
I Shares Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Redemptions (in shares) | 242,000 | |||
Common stock, shares outstanding (in shares) | 1,065,232 | 788,270 | ||
Redemptions of common stock | $ 4,400,000 | |||
Common Stock | CHC | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Redemptions (in shares) | 178,264 | |||
Common Stock | W Shares Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Redemptions (in shares) | 1,775,662 | 782,233 | 650,835 | |
Common stock, shares outstanding (in shares) | 15,837,102 | 12,461,616 | 7,825,063 | 6,012,043 |
Redemptions of common stock | $ 18,000 | $ 8,000 | $ 7,000 | |
Common Stock | W Shares Common Stock | Vereit Operating Partnership, L.P. | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock, shares outstanding (in shares) | 13,333 | |||
Common Stock | A Shares Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Redemptions (in shares) | 318,013 | 103,727 | 67,044 | |
Common stock, shares outstanding (in shares) | 8,793,223 | 4,449,352 | 1,371,763 | 897,376 |
Redemptions of common stock | $ 3,000 | $ 1,000 | $ 1,000 | |
Common Stock | I Shares Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Redemptions (in shares) | 241,733 | |||
Common stock, shares outstanding (in shares) | 1,065,232 | 788,270 | 657,624 | 256,525 |
Redemptions of common stock | $ 2,000 |
Stockholders' Equity (Distrib90
Stockholders' Equity (Distributions Payable and Distribution Policy) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | |||
Dividend, common stock and preferred stock, number of days in the calendar year for the daily distribution | 365 days | ||
Daily distributions payable (in dollars per share) | $ 0.002678083 | ||
Distributions to stockholders declared and unpaid | $ 2,126 | $ 1,444 | $ 788 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Ordinary dividends | 37.30% | 33.00% | 44.90% |
Nondividend distributions | 62.70% | 67.00% | 0.00% |
Capital gain distributions | 0.00% | 0.00% | 55.10% |
Total | 100.00% | 100.00% | 100.00% |
Distributions, percentage of taxable income | 100.00% | 100.00% | 100.00% |
Provision for income taxes | $ 0 | ||
State and local income tax and franchise tax expense | 201,000 | $ 88,000 | $ 120,000 |
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Operating Leases (Details)
Operating Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Leases [Abstract] | |
Weighted average remaining term of leases | 10 years 9 months 18 days |
2,018 | $ 50,109 |
2,019 | 50,435 |
2,020 | 50,420 |
2,021 | 50,433 |
2,022 | 50,409 |
Thereafter | 317,052 |
Total | $ 568,858 |
Quarterly Results (Unaudited)93
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information [Line Items] | |||||||||||
Revenues | $ 13,750 | $ 13,244 | $ 11,126 | $ 10,026 | $ 8,127 | $ 6,889 | $ 6,341 | $ 5,954 | $ 48,146 | $ 27,311 | $ 19,109 |
Operating income | 2,579 | 3,365 | 2,744 | 1,950 | 940 | 956 | 972 | 1,210 | 10,638 | 4,078 | 5,665 |
Net (loss) income | (176) | 76 | 524 | (77) | 347 | (1,302) | 7,327 | ||||
Net (loss) income attributable to the company | $ (185) | $ 68 | $ 515 | $ (86) | $ (625) | $ (370) | $ (280) | $ (17) | 312 | (1,292) | 7,327 |
W Shares Common Stock | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Net (loss) income attributable to the company | $ 242 | $ (952) | $ 6,025 | ||||||||
Basic and diluted net income (loss) per common share (in dollars per share) | $ (0.01) | $ 0 | $ 0.03 | $ 0 | $ (0.04) | $ (0.03) | $ (0.02) | $ 0 | $ 0.02 | $ (0.10) | $ 0.93 |
Distributions declared per common share (in dollars per share) | 0.25 | 0.25 | 0.24 | 0.24 | 0.25 | 0.25 | 0.24 | 0.24 | $ 0.98 | $ 0.98 | $ 0.98 |
A Shares Common Stock | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Net (loss) income attributable to the company | $ 45 | $ (276) | $ 911 | ||||||||
Basic and diluted net income (loss) per common share (in dollars per share) | (0.01) | 0 | 0.02 | (0.01) | (0.04) | (0.03) | (0.03) | 0 | $ 0.01 | $ (0.10) | $ 0.92 |
Distributions declared per common share (in dollars per share) | 0.25 | 0.25 | 0.24 | 0.24 | 0.25 | 0.25 | 0.24 | 0.24 | $ 0.98 | $ 0.98 | $ 0.98 |
I Shares Common Stock | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Net (loss) income attributable to the company | $ 25 | $ (64) | $ 391 | ||||||||
Basic and diluted net income (loss) per common share (in dollars per share) | 0 | 0.01 | 0.03 | 0 | (0.04) | (0.03) | (0.02) | 0 | $ 0.03 | $ (0.09) | $ 0.93 |
Distributions declared per common share (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.24 | $ 0.24 | $ 0.25 | $ 0.25 | $ 0.24 | $ 0.24 | $ 0.98 | $ 0.98 | $ 0.98 |
Subsequent Events (Details)
Subsequent Events (Details) | 3 Months Ended | 12 Months Ended | ||||
Mar. 26, 2018USD ($)property | Dec. 31, 2017USD ($)property | Dec. 31, 2016USD ($)property | Dec. 31, 2015USD ($)property | Dec. 31, 2017property | Dec. 31, 2017building | |
Subsequent Event [Line Items] | ||||||
Number of real estate acquisitions (in number of properties) | property | 12 | 31 | 7 | |||
Total purchase price | $ 711,976,000 | $ 459,412,000 | ||||
Number of properties held for sale | 1 | 1 | ||||
Gross sales price of real estate | $ 21,900,000 | |||||
Gain (loss) on sale of properties | $ 0 | $ 0 | 5,642,000 | |||
Disposal group, fees paid | $ 0 | |||||
Subsequent event | ||||||
Subsequent Event [Line Items] | ||||||
Number of real estate acquisitions (in number of properties) | property | 6 | |||||
Total purchase price | $ 109,000,000 | |||||
Gross sales price of real estate | 8,100,000 | |||||
Proceeds from sale of property held-for-sale, net of closing costs | 7,800,000 | |||||
Gain (loss) on sale of properties | (209,000) | |||||
Disposal group, fees paid | $ 0 |
SCHEDULE III _ Real Estate As95
SCHEDULE III – Real Estate Assets and Accumulated Depreciation (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)property | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 149,734 | |||
Initial Costs to Company | ||||
Land | 129,452 | |||
Buildings and Improvements | 496,091 | |||
Total Adjustment to Basis | (7,458) | |||
Gross Amount at Which Carried At December 31, 2017 | 618,085 | $ 406,447 | $ 237,401 | $ 203,111 |
Accumulated Depreciation | 26,073 | 14,768 | $ 8,168 | $ 4,459 |
Intangible lease assets | 93,891 | $ 52,965 | ||
Intangible lease assets, accumulated amortization | 14,500 | |||
Property, plant, and equipment, land and real estate assets, aggregate tax basis | 704,200 | |||
Line of credit | ||||
Initial Costs to Company | ||||
Credit facility outstanding | $ 128,500 | |||
Buildings | ||||
Initial Costs to Company | ||||
Acquired real estate asset, useful life | 40 years | |||
Site improvements | ||||
Initial Costs to Company | ||||
Acquired real estate asset, useful life | 15 years | |||
7-Eleven | Gloucester, VA | ||||
Initial Costs to Company | ||||
Land | $ 355 | |||
Buildings and Improvements | 674 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,029 | |||
Accumulated Depreciation | 25 | |||
7-Eleven | Hampton (Mercury), VA | ||||
Initial Costs to Company | ||||
Land | 652 | |||
Buildings and Improvements | 394 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,046 | |||
Accumulated Depreciation | 17 | |||
7-Eleven | Hampton (Ocean), VA | ||||
Initial Costs to Company | ||||
Land | 1,045 | |||
Buildings and Improvements | 446 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,491 | |||
Accumulated Depreciation | 17 | |||
7-Eleven | Hampton (Village), VA | ||||
Initial Costs to Company | ||||
Land | 1,316 | |||
Buildings and Improvements | 464 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,780 | |||
Accumulated Depreciation | 17 | |||
7-Eleven | Newport News, VA | ||||
Initial Costs to Company | ||||
Land | 566 | |||
Buildings and Improvements | 510 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,076 | |||
Accumulated Depreciation | 18 | |||
7-Eleven | Poquoson, VA | ||||
Initial Costs to Company | ||||
Land | 288 | |||
Buildings and Improvements | 565 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 853 | |||
Accumulated Depreciation | 24 | |||
7-Eleven | Surry, VA | ||||
Initial Costs to Company | ||||
Land | 495 | |||
Buildings and Improvements | 522 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,017 | |||
Accumulated Depreciation | 19 | |||
7-Eleven | Williamsburg (Bypass), VA | ||||
Initial Costs to Company | ||||
Land | 958 | |||
Buildings and Improvements | 379 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,337 | |||
Accumulated Depreciation | 15 | |||
7-Eleven | Williamsburg (John Tyler), VA | ||||
Initial Costs to Company | ||||
Land | 421 | |||
Buildings and Improvements | 281 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 702 | |||
Accumulated Depreciation | 13 | |||
Advance Auto | Macomb Township, MI | ||||
Initial Costs to Company | ||||
Land | 718 | |||
Buildings and Improvements | 1,146 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,864 | |||
Accumulated Depreciation | 187 | |||
Advance Auto | Ravenswood, WV | ||||
Initial Costs to Company | ||||
Land | 150 | |||
Buildings and Improvements | 645 | |||
Total Adjustment to Basis | 58 | |||
Gross Amount at Which Carried At December 31, 2017 | 853 | |||
Accumulated Depreciation | 44 | |||
Advance Auto | Sedalia, MO | ||||
Initial Costs to Company | ||||
Land | 374 | |||
Buildings and Improvements | 1,187 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,561 | |||
Accumulated Depreciation | 139 | |||
Algonac Plaza | Algonac, MI | ||||
Initial Costs to Company | ||||
Land | 1,097 | |||
Buildings and Improvements | 7,718 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 8,815 | |||
Accumulated Depreciation | 990 | |||
Amcor Rigid Plastics | Ames, IA | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 8,300 | |||
Initial Costs to Company | ||||
Land | 775 | |||
Buildings and Improvements | 12,179 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 12,954 | |||
Accumulated Depreciation | 1,002 | |||
Apex Technologies | Mason, OH | ||||
Initial Costs to Company | ||||
Land | 997 | |||
Buildings and Improvements | 11,657 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 12,654 | |||
Accumulated Depreciation | 15 | |||
Art Van Furniture | Monroeville, PA | ||||
Initial Costs to Company | ||||
Land | 1,023 | |||
Buildings and Improvements | 9,607 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 10,630 | |||
Accumulated Depreciation | 34 | |||
Art Van Furniture | York, PA | ||||
Initial Costs to Company | ||||
Land | 1,720 | |||
Buildings and Improvements | 6,628 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 8,348 | |||
Accumulated Depreciation | 24 | |||
Aspen Dental | Somerset, KY | ||||
Initial Costs to Company | ||||
Land | 285 | |||
Buildings and Improvements | 1,037 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,322 | |||
Accumulated Depreciation | 94 | |||
At Home | Colorado Springs, CO | ||||
Initial Costs to Company | ||||
Land | 989 | |||
Buildings and Improvements | 9,347 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 10,336 | |||
Accumulated Depreciation | 318 | |||
At Home | O'Fallon, IL | ||||
Initial Costs to Company | ||||
Land | 2,521 | |||
Buildings and Improvements | 7,336 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 9,857 | |||
Accumulated Depreciation | 274 | |||
AT&T | Oklahoma City, OK | ||||
Initial Costs to Company | ||||
Land | 622 | |||
Buildings and Improvements | 1,493 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 2,115 | |||
Accumulated Depreciation | 177 | |||
AutoZone | Jesup, GA | ||||
Initial Costs to Company | ||||
Land | 209 | |||
Buildings and Improvements | 781 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 990 | |||
Accumulated Depreciation | 25 | |||
AutoZone | Vandalia, OH | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 532 | |||
Initial Costs to Company | ||||
Land | 778 | |||
Buildings and Improvements | 0 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 778 | |||
Accumulated Depreciation | 0 | |||
Biolife Plasma Services | Fort Wayne, IN | ||||
Initial Costs to Company | ||||
Land | 692 | |||
Buildings and Improvements | 2,662 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 3,354 | |||
Accumulated Depreciation | 84 | |||
Biolife Plasma Services | Moorehead, MN | ||||
Initial Costs to Company | ||||
Land | 728 | |||
Buildings and Improvements | 3,109 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 3,837 | |||
Accumulated Depreciation | 94 | |||
Bob Evans | Defiance, OH | ||||
Initial Costs to Company | ||||
Land | 391 | |||
Buildings and Improvements | 1,674 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 2,065 | |||
Accumulated Depreciation | 42 | |||
Bob Evans | Dover, OH | ||||
Initial Costs to Company | ||||
Land | 362 | |||
Buildings and Improvements | 1,495 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,857 | |||
Accumulated Depreciation | 36 | |||
Bob Evans | Dundee, MI | ||||
Initial Costs to Company | ||||
Land | 403 | |||
Buildings and Improvements | 1,438 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,841 | |||
Accumulated Depreciation | 33 | |||
Bob Evans | Hamilton, OH | ||||
Initial Costs to Company | ||||
Land | 393 | |||
Buildings and Improvements | 1,305 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,698 | |||
Accumulated Depreciation | 32 | |||
Bob Evans | Hummelstown, PA | ||||
Initial Costs to Company | ||||
Land | 1,184 | |||
Buildings and Improvements | 1,165 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 2,349 | |||
Accumulated Depreciation | 25 | |||
Bob Evans | Mayfield Heights, OH | ||||
Initial Costs to Company | ||||
Land | 721 | |||
Buildings and Improvements | 919 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,640 | |||
Accumulated Depreciation | 23 | |||
Bob Evans | Richmond, VA | ||||
Initial Costs to Company | ||||
Land | 785 | |||
Buildings and Improvements | 688 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,473 | |||
Accumulated Depreciation | 15 | |||
Burger King | Midwest City, OK | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 765 | |||
Initial Costs to Company | ||||
Land | 576 | |||
Buildings and Improvements | 413 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 989 | |||
Accumulated Depreciation | 34 | |||
Caliber Collision | Houston, TX | ||||
Initial Costs to Company | ||||
Land | 466 | |||
Buildings and Improvements | 4,929 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 5,395 | |||
Accumulated Depreciation | 190 | |||
Caliber Collision | San Antonio, TX | ||||
Initial Costs to Company | ||||
Land | 196 | |||
Buildings and Improvements | 2,918 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 3,114 | |||
Accumulated Depreciation | 80 | |||
Caliber Collision | Venice, FL | ||||
Initial Costs to Company | ||||
Land | 857 | |||
Buildings and Improvements | 2,662 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 3,519 | |||
Accumulated Depreciation | 104 | |||
CarMax | Tinley Park, IL | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 15,800 | |||
Initial Costs to Company | ||||
Land | 3,282 | |||
Buildings and Improvements | 21,974 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 25,256 | |||
Accumulated Depreciation | 346 | |||
Carrier Rental Systems | Houston, TX | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 2,800 | |||
Initial Costs to Company | ||||
Land | 749 | |||
Buildings and Improvements | 3,832 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 4,581 | |||
Accumulated Depreciation | 324 | |||
Chili's and PetSmart | Panama City, FL | ||||
Initial Costs to Company | ||||
Land | 1,371 | |||
Buildings and Improvements | 4,411 | |||
Total Adjustment to Basis | 129 | |||
Gross Amount at Which Carried At December 31, 2017 | 5,911 | |||
Accumulated Depreciation | 269 | |||
Cottage Plaza | Pawtucket, RI | ||||
Initial Costs to Company | ||||
Land | 5,431 | |||
Buildings and Improvements | 15,582 | |||
Total Adjustment to Basis | 5 | |||
Gross Amount at Which Carried At December 31, 2017 | 21,018 | |||
Accumulated Depreciation | 264 | |||
CVS | Austin, TX | ||||
Initial Costs to Company | ||||
Land | 1,417 | |||
Buildings and Improvements | 1,579 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 2,996 | |||
Accumulated Depreciation | 249 | |||
CVS | Erie, PA | ||||
Initial Costs to Company | ||||
Land | 1,007 | |||
Buildings and Improvements | 1,157 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 2,164 | |||
Accumulated Depreciation | 179 | |||
CVS | Mansfield, OH | ||||
Initial Costs to Company | ||||
Land | 270 | |||
Buildings and Improvements | 1,691 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,961 | |||
Accumulated Depreciation | 262 | |||
CVS | Wisconsin Rapids, WA | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 1,790 | |||
Initial Costs to Company | ||||
Land | 517 | |||
Buildings and Improvements | 2,148 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 2,665 | |||
Accumulated Depreciation | 225 | |||
DaVita Dialysis | Austell, GA | ||||
Initial Costs to Company | ||||
Land | 581 | |||
Buildings and Improvements | 2,359 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 2,940 | |||
Accumulated Depreciation | 220 | |||
Dollar General | Ada, MN | ||||
Initial Costs to Company | ||||
Land | 144 | |||
Buildings and Improvements | 867 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,011 | |||
Accumulated Depreciation | 40 | |||
Dollar General | Berwick, LA | ||||
Initial Costs to Company | ||||
Land | 141 | |||
Buildings and Improvements | 1,448 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,589 | |||
Accumulated Depreciation | 201 | |||
Dollar General | Erie, IL | ||||
Initial Costs to Company | ||||
Land | 67 | |||
Buildings and Improvements | 974 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,041 | |||
Accumulated Depreciation | 40 | |||
Dollar General | Gladwin, MI | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 780 | |||
Initial Costs to Company | ||||
Land | 121 | |||
Buildings and Improvements | 1,119 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,240 | |||
Accumulated Depreciation | 119 | |||
Dollar General | Glasford, IL | ||||
Initial Costs to Company | ||||
Land | 167 | |||
Buildings and Improvements | 904 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,071 | |||
Accumulated Depreciation | 38 | |||
Dollar General | Independence, MO | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 837 | |||
Initial Costs to Company | ||||
Land | 276 | |||
Buildings and Improvements | 1,017 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,293 | |||
Accumulated Depreciation | 131 | |||
Dollar General | Lexington, MI | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 707 | |||
Initial Costs to Company | ||||
Land | 89 | |||
Buildings and Improvements | 1,033 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,122 | |||
Accumulated Depreciation | 110 | |||
Dollar General | New Richland, MN | ||||
Initial Costs to Company | ||||
Land | 173 | |||
Buildings and Improvements | 900 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,073 | |||
Accumulated Depreciation | 38 | |||
Dollar General | Ocala, FL | ||||
Initial Costs to Company | ||||
Land | 205 | |||
Buildings and Improvements | 1,308 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,513 | |||
Accumulated Depreciation | 123 | |||
Dollar General | Pine River, MN | ||||
Initial Costs to Company | ||||
Land | 230 | |||
Buildings and Improvements | 872 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,102 | |||
Accumulated Depreciation | 40 | |||
Dollar General | Redfield, SD | ||||
Initial Costs to Company | ||||
Land | 43 | |||
Buildings and Improvements | 839 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 882 | |||
Accumulated Depreciation | 76 | |||
Dollar General | Sardis City, AL | ||||
Initial Costs to Company | ||||
Land | 334 | |||
Buildings and Improvements | 1,058 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,392 | |||
Accumulated Depreciation | 145 | |||
Dollar General | Sioux Falls, SD | ||||
Initial Costs to Company | ||||
Land | 293 | |||
Buildings and Improvements | 989 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,282 | |||
Accumulated Depreciation | 100 | |||
Dollar General | Stacy, MN | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 658 | |||
Initial Costs to Company | ||||
Land | 84 | |||
Buildings and Improvements | 810 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 894 | |||
Accumulated Depreciation | 65 | |||
Dollar General | Starbuck, MN | ||||
Initial Costs to Company | ||||
Land | 76 | |||
Buildings and Improvements | 946 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,022 | |||
Accumulated Depreciation | 43 | |||
Dollar General | St. Joseph, MO | ||||
Initial Costs to Company | ||||
Land | 197 | |||
Buildings and Improvements | 972 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,169 | |||
Accumulated Depreciation | 124 | |||
Dollar General | Topeka, KS | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 794 | |||
Initial Costs to Company | ||||
Land | 176 | |||
Buildings and Improvements | 882 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,058 | |||
Accumulated Depreciation | 77 | |||
Dollar General | Trimble, MO | ||||
Initial Costs to Company | ||||
Land | 212 | |||
Buildings and Improvements | 802 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,014 | |||
Accumulated Depreciation | 33 | |||
Dollar General | Wheaton, MN | ||||
Initial Costs to Company | ||||
Land | 134 | |||
Buildings and Improvements | 874 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,008 | |||
Accumulated Depreciation | 40 | |||
Dollar General | Winthrop, MN | ||||
Initial Costs to Company | ||||
Land | 130 | |||
Buildings and Improvements | 876 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,006 | |||
Accumulated Depreciation | 40 | |||
Enid Crossing | Enid, OK | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 3,407 | |||
Initial Costs to Company | ||||
Land | 685 | |||
Buildings and Improvements | 4,426 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 5,111 | |||
Accumulated Depreciation | 507 | |||
Family Dollar | Centreville, AL | ||||
Initial Costs to Company | ||||
Land | 50 | |||
Buildings and Improvements | 1,122 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,172 | |||
Accumulated Depreciation | 108 | |||
Family Dollar | Danville, VA | ||||
Initial Costs to Company | ||||
Land | 228 | |||
Buildings and Improvements | 774 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,002 | |||
Accumulated Depreciation | 90 | |||
Family Dollar | Darby, MT | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 881 | |||
Initial Costs to Company | ||||
Land | 244 | |||
Buildings and Improvements | 889 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,133 | |||
Accumulated Depreciation | 83 | |||
Family Dollar | Denton, NC | ||||
Initial Costs to Company | ||||
Land | 334 | |||
Buildings and Improvements | 545 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 879 | |||
Accumulated Depreciation | 59 | |||
Family Dollar | Deridder, LA | ||||
Initial Costs to Company | ||||
Land | 183 | |||
Buildings and Improvements | 746 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 929 | |||
Accumulated Depreciation | 82 | |||
Family Dollar | Hampton, AR | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 651 | |||
Initial Costs to Company | ||||
Land | 131 | |||
Buildings and Improvements | 741 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 872 | |||
Accumulated Depreciation | 85 | |||
Family Dollar | Londonderry, OH | ||||
Initial Costs to Company | ||||
Land | 65 | |||
Buildings and Improvements | 1,078 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,143 | |||
Accumulated Depreciation | 112 | |||
Family Dollar | Tatum, NM | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 700 | |||
Initial Costs to Company | ||||
Land | 130 | |||
Buildings and Improvements | 805 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 935 | |||
Accumulated Depreciation | 88 | |||
Family Dollar | West Portsmouth, OH | ||||
Initial Costs to Company | ||||
Land | 214 | |||
Buildings and Improvements | 768 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 982 | |||
Accumulated Depreciation | 68 | |||
FedEx | Elko, NV | ||||
Initial Costs to Company | ||||
Land | 186 | |||
Buildings and Improvements | 2,024 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 2,210 | |||
Accumulated Depreciation | 245 | |||
FedEx | Norfolk, NE | ||||
Initial Costs to Company | ||||
Land | 618 | |||
Buildings and Improvements | 2,499 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 3,117 | |||
Accumulated Depreciation | 295 | |||
FedEx | Spirit Lake, IA | ||||
Initial Costs to Company | ||||
Land | 115 | |||
Buildings and Improvements | 2,501 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 2,616 | |||
Accumulated Depreciation | 268 | |||
FleetPride | Mobile, AL | ||||
Initial Costs to Company | ||||
Land | 695 | |||
Buildings and Improvements | 2,445 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 3,140 | |||
Accumulated Depreciation | 187 | |||
Fresh Thyme | Indianapolis, IN | ||||
Initial Costs to Company | ||||
Land | 1,074 | |||
Buildings and Improvements | 7,452 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 8,526 | |||
Accumulated Depreciation | 71 | |||
Fresh Thyme | Worthington, OH | ||||
Initial Costs to Company | ||||
Land | 2,648 | |||
Buildings and Improvements | 6,498 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 9,146 | |||
Accumulated Depreciation | 240 | |||
Great White | Oklahoma City, OK | ||||
Initial Costs to Company | ||||
Land | 323 | |||
Buildings and Improvements | 4,031 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 4,354 | |||
Accumulated Depreciation | 402 | |||
Headwaters | Bryan, TX | ||||
Initial Costs to Company | ||||
Land | 273 | |||
Buildings and Improvements | 961 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,234 | |||
Accumulated Depreciation | 86 | |||
Home Depot Center | Orland Park, IL | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 11,275 | |||
Initial Costs to Company | ||||
Land | 5,694 | |||
Buildings and Improvements | 13,100 | |||
Total Adjustment to Basis | 605 | |||
Gross Amount at Which Carried At December 31, 2017 | 19,399 | |||
Accumulated Depreciation | 915 | |||
Jo-Ann's | Roseville, MI | ||||
Initial Costs to Company | ||||
Land | 506 | |||
Buildings and Improvements | 2,747 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 3,253 | |||
Accumulated Depreciation | 370 | |||
Kum & Go | Cedar Rapids, IA | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 1,501 | |||
Initial Costs to Company | ||||
Land | 630 | |||
Buildings and Improvements | 1,679 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 2,309 | |||
Accumulated Depreciation | 208 | |||
L.A. Fitness | Pawtucket, RI | ||||
Initial Costs to Company | ||||
Land | 5,556 | |||
Buildings and Improvements | 7,071 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 12,627 | |||
Accumulated Depreciation | 350 | |||
L.A. Fitness | Rock Hill, SC | ||||
Initial Costs to Company | ||||
Land | 630 | |||
Buildings and Improvements | 7,858 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 8,488 | |||
Accumulated Depreciation | 175 | |||
Lowe's | Fremont, OH | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 5,312 | |||
Initial Costs to Company | ||||
Land | 1,287 | |||
Buildings and Improvements | 7,125 | |||
Total Adjustment to Basis | 278 | |||
Gross Amount at Which Carried At December 31, 2017 | 8,690 | |||
Accumulated Depreciation | 887 | |||
Lowe's | North Dartmouth, MA | ||||
Initial Costs to Company | ||||
Land | 7,334 | |||
Buildings and Improvements | 11,976 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 19,310 | |||
Accumulated Depreciation | 407 | |||
Marshalls | Wilkesboro, NC | ||||
Initial Costs to Company | ||||
Land | 968 | |||
Buildings and Improvements | 1,775 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 2,743 | |||
Accumulated Depreciation | 64 | |||
Marshalls & Petco | Blaine, MN | ||||
Initial Costs to Company | ||||
Land | 1,642 | |||
Buildings and Improvements | 5,170 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 6,812 | |||
Accumulated Depreciation | 198 | |||
Mattress Firm | Fairview Park, OH | ||||
Initial Costs to Company | ||||
Land | 646 | |||
Buildings and Improvements | 830 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,476 | |||
Accumulated Depreciation | 84 | |||
Mattress Firm | Gadsden, AL | ||||
Initial Costs to Company | ||||
Land | 393 | |||
Buildings and Improvements | 1,413 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,806 | |||
Accumulated Depreciation | 170 | |||
Mattress Firm | Phoenix, AZ | ||||
Initial Costs to Company | ||||
Land | 550 | |||
Buildings and Improvements | 956 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,506 | |||
Accumulated Depreciation | 99 | |||
Mattress Firm & AT&T | Woodbury, MN | ||||
Initial Costs to Company | ||||
Land | 812 | |||
Buildings and Improvements | 2,238 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 3,050 | |||
Accumulated Depreciation | 248 | |||
Mattress Firm & Panera Bread | Elyria, OH | ||||
Initial Costs to Company | ||||
Land | 1,100 | |||
Buildings and Improvements | 2,836 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 3,936 | |||
Accumulated Depreciation | 151 | |||
McAlister's Deli | Amarillo, TX | ||||
Initial Costs to Company | ||||
Land | 435 | |||
Buildings and Improvements | 1,050 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,485 | |||
Accumulated Depreciation | 120 | |||
McAlister's Deli | Shawnee, OK | ||||
Initial Costs to Company | ||||
Land | 601 | |||
Buildings and Improvements | 1,054 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,655 | |||
Accumulated Depreciation | 115 | |||
Mister Carwash | Hudson, FL | ||||
Initial Costs to Company | ||||
Land | 1,014 | |||
Buildings and Improvements | 843 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,857 | |||
Accumulated Depreciation | 26 | |||
Mister Carwash | Spring Hill, FL | ||||
Initial Costs to Company | ||||
Land | 961 | |||
Buildings and Improvements | 1,156 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 2,117 | |||
Accumulated Depreciation | 36 | |||
National Tire & Battery | Conyers, GA | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 1,657 | |||
Initial Costs to Company | ||||
Land | 522 | |||
Buildings and Improvements | 1,845 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 2,367 | |||
Accumulated Depreciation | 160 | |||
Natural Grocers | Prescott, AZ | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 2,367 | |||
Initial Costs to Company | ||||
Land | 795 | |||
Buildings and Improvements | 2,802 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 3,597 | |||
Accumulated Depreciation | 381 | |||
North Lake Square | Gainesville, GA | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 13,365 | |||
Initial Costs to Company | ||||
Land | 1,318 | |||
Buildings and Improvements | 22,598 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 23,916 | |||
Accumulated Depreciation | 302 | |||
Northern Tool | Hoover, AK | ||||
Initial Costs to Company | ||||
Land | 691 | |||
Buildings and Improvements | 2,150 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 2,841 | |||
Accumulated Depreciation | 199 | |||
O'Reilly Auto Parts | Decatur, GA | ||||
Initial Costs to Company | ||||
Land | 491 | |||
Buildings and Improvements | 985 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,476 | |||
Accumulated Depreciation | 33 | |||
O'Reilly Auto Parts | Fayetteville, NC | ||||
Initial Costs to Company | ||||
Land | 132 | |||
Buildings and Improvements | 1,246 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,378 | |||
Accumulated Depreciation | 119 | |||
PetSmart | Lexington, NC | ||||
Initial Costs to Company | ||||
Land | 605 | |||
Buildings and Improvements | 3,162 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 3,767 | |||
Accumulated Depreciation | 98 | |||
PetSmart | Little Rock, AR | ||||
Initial Costs to Company | ||||
Land | 1,283 | |||
Buildings and Improvements | 2,820 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 4,103 | |||
Accumulated Depreciation | 352 | |||
PetSmart | McAllen, TX | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 2,924 | |||
Initial Costs to Company | ||||
Land | 1,961 | |||
Buildings and Improvements | 1,994 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 3,955 | |||
Accumulated Depreciation | 270 | |||
Raising Canes | Avondale, AZ | ||||
Initial Costs to Company | ||||
Land | 1,435 | |||
Buildings and Improvements | 1,857 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 3,292 | |||
Accumulated Depreciation | 0 | |||
Sam's Club | Timonium, MD | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 9,150 | |||
Initial Costs to Company | ||||
Land | 6,194 | |||
Buildings and Improvements | 11,042 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 17,236 | |||
Accumulated Depreciation | 472 | |||
Sherwin-Williams | Douglasville, GA | ||||
Initial Costs to Company | ||||
Land | 417 | |||
Buildings and Improvements | 578 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 995 | |||
Accumulated Depreciation | 68 | |||
Sherwin-Williams | Fort Myers, FL | ||||
Initial Costs to Company | ||||
Land | 515 | |||
Buildings and Improvements | 703 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,218 | |||
Accumulated Depreciation | 17 | |||
Sherwin-Williams | Lawrenceville, GA | ||||
Initial Costs to Company | ||||
Land | 320 | |||
Buildings and Improvements | 845 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,165 | |||
Accumulated Depreciation | 106 | |||
Sherwin-Williams | Pigeon Forge, TN | ||||
Initial Costs to Company | ||||
Land | 393 | |||
Buildings and Improvements | 661 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,054 | |||
Accumulated Depreciation | 20 | |||
Shopko | Larned, KS | ||||
Initial Costs to Company | ||||
Land | 49 | |||
Buildings and Improvements | 1,727 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,776 | |||
Accumulated Depreciation | 169 | |||
Shopko | Nephi, UT | ||||
Initial Costs to Company | ||||
Land | 180 | |||
Buildings and Improvements | 2,872 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 3,052 | |||
Accumulated Depreciation | 139 | |||
Shoppes at Battle Bridge | Raleigh, NC | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 6,300 | |||
Initial Costs to Company | ||||
Land | 1,450 | |||
Buildings and Improvements | 8,436 | |||
Total Adjustment to Basis | (8,544) | |||
Gross Amount at Which Carried At December 31, 2017 | 1,342 | |||
Accumulated Depreciation | 0 | |||
Sleepy's | Roanoke Rapids, NC | ||||
Initial Costs to Company | ||||
Land | 238 | |||
Buildings and Improvements | 1,267 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,505 | |||
Accumulated Depreciation | 79 | |||
Sunoco | Merritt Island, FL | ||||
Initial Costs to Company | ||||
Land | 577 | |||
Buildings and Improvements | 1,762 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 2,339 | |||
Accumulated Depreciation | 208 | |||
Tailwinds | Denton, TX | ||||
Initial Costs to Company | ||||
Land | 884 | |||
Buildings and Improvements | 7,747 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 8,631 | |||
Accumulated Depreciation | 645 | |||
Tellico Greens | Loudon, TN | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 3,000 | |||
Initial Costs to Company | ||||
Land | 823 | |||
Buildings and Improvements | 3,959 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 4,782 | |||
Accumulated Depreciation | 422 | |||
Tempe Commerce | Tempe, AZ | ||||
Initial Costs to Company | ||||
Land | 1,975 | |||
Buildings and Improvements | 12,512 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 14,487 | |||
Accumulated Depreciation | 18 | |||
Teredata | Miami Township, OH | ||||
Initial Costs to Company | ||||
Land | 1,161 | |||
Buildings and Improvements | 9,181 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 10,342 | |||
Accumulated Depreciation | 315 | |||
The Toro Company | Windom, MN | ||||
Initial Costs to Company | ||||
Land | 73 | |||
Buildings and Improvements | 8,708 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 8,781 | |||
Accumulated Depreciation | 362 | |||
Time Warner | Streetsboro, OH | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 3,543 | |||
Initial Costs to Company | ||||
Land | 811 | |||
Buildings and Improvements | 3,849 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 4,660 | |||
Accumulated Depreciation | 334 | |||
Tire Centers | Decatur, AL | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 1,311 | |||
Initial Costs to Company | ||||
Land | 208 | |||
Buildings and Improvements | 1,329 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 1,537 | |||
Accumulated Depreciation | 121 | |||
Title Resource | Mt. Laurel, NJ | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 9,240 | |||
Initial Costs to Company | ||||
Land | 2,188 | |||
Buildings and Improvements | 12,380 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 14,568 | |||
Accumulated Depreciation | 1,047 | |||
TJ Maxx | Danville, IL | ||||
Initial Costs to Company | ||||
Land | 271 | |||
Buildings and Improvements | 2,528 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 2,799 | |||
Accumulated Depreciation | 341 | |||
Triangle Town Place | Raleigh, NC | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 16,400 | |||
Initial Costs to Company | ||||
Land | 4,694 | |||
Buildings and Improvements | 23,044 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 27,738 | |||
Accumulated Depreciation | 644 | |||
Valeo Production Facility | East Liberty, OH | ||||
Initial Costs to Company | ||||
Land | 268 | |||
Buildings and Improvements | 5,564 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 5,832 | |||
Accumulated Depreciation | 85 | |||
Walgreens | Albuquerque, NM | ||||
Initial Costs to Company | ||||
Land | 789 | |||
Buildings and Improvements | 1,609 | |||
Total Adjustment to Basis | 11 | |||
Gross Amount at Which Carried At December 31, 2017 | 2,409 | |||
Accumulated Depreciation | 247 | |||
Walgreens | Coweta, OK | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 2,600 | |||
Initial Costs to Company | ||||
Land | 725 | |||
Buildings and Improvements | 3,246 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 3,971 | |||
Accumulated Depreciation | 289 | |||
Walgreens | Reidsville, NC | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 3,603 | |||
Initial Costs to Company | ||||
Land | 610 | |||
Buildings and Improvements | 3,801 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 4,411 | |||
Accumulated Depreciation | 592 | |||
Walgreens | St. Louis, MO | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 2,534 | |||
Initial Costs to Company | ||||
Land | 307 | |||
Buildings and Improvements | 3,205 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 3,512 | |||
Accumulated Depreciation | 272 | |||
Walgreens Distribution Facility | Findlay Township, PA | ||||
Initial Costs to Company | ||||
Land | 2,203 | |||
Buildings and Improvements | 11,146 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 13,349 | |||
Accumulated Depreciation | 578 | |||
Walmart | Randallstown, MD | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 14,250 | |||
Initial Costs to Company | ||||
Land | 7,748 | |||
Buildings and Improvements | 22,021 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 29,769 | |||
Accumulated Depreciation | 427 | |||
West Marine | Mystic, CT | ||||
Initial Costs to Company | ||||
Land | 1,168 | |||
Buildings and Improvements | 3,132 | |||
Total Adjustment to Basis | 0 | |||
Gross Amount at Which Carried At December 31, 2017 | 4,300 | |||
Accumulated Depreciation | $ 202 | |||
Retail | ||||
Initial Costs to Company | ||||
Number of properties | property | 114 | |||
Anchored Shopping Center | ||||
Initial Costs to Company | ||||
Number of properties | property | 8 | |||
Industrial Property | ||||
Initial Costs to Company | ||||
Number of properties | property | 13 | |||
Office | ||||
Initial Costs to Company | ||||
Number of properties | property | 4 |
SCHEDULE III - Reconciliation o
SCHEDULE III - Reconciliation of Total Real Estate Carrying Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||
Balance, beginning of period | $ 406,447 | $ 237,401 | $ 203,111 |
Additions | |||
Acquisitions | 219,584 | 168,901 | 48,885 |
Improvements | 598 | 145 | 226 |
Total additions | 220,182 | 169,046 | 49,111 |
Deductions | |||
Dispositions | 0 | 0 | (14,821) |
Impairments | (227) | 0 | 0 |
Reclassified to assets held for sale | (8,317) | 0 | 0 |
Total deductions | (8,544) | 0 | (14,821) |
Balance, end of period | $ 618,085 | $ 406,447 | $ 237,401 |
SCHEDULE III - Reconciliation97
SCHEDULE III - Reconciliation of Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||
Balance, beginning of period | $ 14,768 | $ 8,168 | $ 4,459 |
Additions | |||
Acquisitions - depreciation Expense | 11,537 | 6,576 | 4,358 |
Improvements - depreciation Expense | 544 | 24 | 14 |
Total additions | 12,081 | 6,600 | 4,372 |
Impairments | |||
Impairments | (10) | 0 | 0 |
Dispositions | 0 | 0 | (663) |
Reclassified to assets held for sale | (766) | 0 | 0 |
Total deductions | (776) | 0 | (663) |
Balance, end of period | $ 26,073 | $ 14,768 | $ 8,168 |