Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Aug. 11, 2014 |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'COLE CREDIT PROPERTY TRUST IV, INC. | ' |
Entity Central Index Key | '0001498547 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity common stock, shares outstanding | ' | 301.5 |
Condensed_Consolidated_Unaudit
Condensed Consolidated Unaudited Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment in real estate assets: | ' | ' |
Land | $679,468 | $537,714 |
Buildings and improvements, less accumulated depreciation of $46,385 and $23,377, respectively | 1,825,868 | 1,399,617 |
Intangible lease assets, less accumulated amortization of $28,698 and $14,498, respectively | 277,017 | 246,601 |
Total investment in real estate assets, net | 2,782,353 | 2,183,932 |
Investment in unconsolidated joint venture | 19,255 | 19,124 |
Total investment in real estate and related assets, net | 2,801,608 | 2,203,056 |
Cash and cash equivalents | 481,341 | 300,574 |
Restricted cash | 4,864 | 8,193 |
Rents and tenant receivables, less allowance for doubtful accounts of $138 and $50, respectively | 21,653 | 14,440 |
Property escrow deposits, prepaid expenses and other assets | 9,275 | 10,942 |
Deferred financing costs, less accumulated amortization of $5,175 and $3,580, respectively | 13,524 | 14,444 |
Total assets | 3,332,265 | 2,551,649 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ' | ' |
Notes payable and credit facility | 747,687 | 696,946 |
Accounts payable and accrued expenses | 17,105 | 12,675 |
Escrowed investor proceeds | 0 | 5,147 |
Due to affiliates | 971 | 7,512 |
Acquired below market lease intangibles, less accumulated amortization of $4,699 and $2,237, respectively | 43,732 | 37,485 |
Distributions payable | 15,403 | 10,569 |
Deferred rental income and other liabilities | 19,498 | 12,859 |
Total liabilities | 844,396 | 783,193 |
Commitments and contingencies | ' | ' |
Redeemable common stock and noncontrolling interest | 72,237 | 26,484 |
STOCKHOLDERS’ EQUITY | ' | ' |
Preferred stock, $0.01 par value; 10,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 490,000,000 shares authorized, 299,808,958 and 211,026,672 shares issued and outstanding, respectively | 2,998 | 2,110 |
Capital in excess of par value | 2,607,505 | 1,850,702 |
Accumulated distributions in excess of earnings | -189,652 | -108,588 |
Accumulated other comprehensive loss | -5,219 | -2,252 |
Total stockholders’ equity | 2,415,632 | 1,741,972 |
Total liabilities and stockholders’ equity | $3,332,265 | $2,551,649 |
Condensed_Consolidated_Unaudit1
Condensed Consolidated Unaudited Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Buildings and improvements, accumulated depreciation | $46,385 | $23,377 |
Acquired intangible lease assets, accumulated amortization | 28,698 | 14,498 |
Allowance for doubtful accounts receivable | 138 | 50 |
Deferred financing costs, accumulated amortization | 5,175 | 3,580 |
Acquired below market lease intangibles, accumulated amortization | $4,699 | $2,237 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 490,000,000 | 490,000,000 |
Common stock, shares issued | 299,808,958 | 211,026,672 |
Common stock, shares outstanding | 299,808,958 | 211,026,672 |
Condensed_Consolidated_Unaudit2
Condensed Consolidated Unaudited Statement of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Rental and other property income | $49,076 | $19,395 | $93,348 | $29,915 |
Tenant reimbursement income | 7,785 | 2,378 | 15,064 | 3,263 |
Total revenue | 56,861 | 21,773 | 108,412 | 33,178 |
Expenses: | ' | ' | ' | ' |
General and administrative expenses | 3,470 | 1,502 | 5,991 | 2,497 |
Property operating expenses | 8,516 | 2,598 | 16,496 | 3,635 |
Advisory fees and expenses | 5,267 | 2,101 | 10,067 | 3,290 |
Acquisition related expenses | 10,113 | 14,551 | 18,746 | 20,190 |
Depreciation | 12,098 | 4,526 | 23,006 | 6,957 |
Amortization | 6,607 | 2,546 | 12,752 | 3,715 |
Total operating expenses | 46,071 | 27,824 | 87,058 | 40,284 |
Operating income (loss) | 10,790 | -6,051 | 21,354 | -7,106 |
Other expense: | ' | ' | ' | ' |
Interest expense and other | -7,600 | -5,618 | -15,218 | -8,358 |
Net income (loss) | 3,190 | -11,669 | 6,136 | -15,464 |
Net loss allocated to noncontrolling interest | -14 | 0 | -14 | 0 |
Net income (loss) attributable to the Company | $3,204 | ($11,669) | $6,150 | ($15,464) |
Weighted average number of common shares outstanding: | ' | ' | ' | ' |
Basic and diluted (in shares) | 298,907,190 | 56,492,187 | 281,135,954 | 47,032,328 |
Net income (loss) attributable to the Company per common share: | ' | ' | ' | ' |
Basic and diluted (in dollars per shares) | $0.01 | ($0.21) | $0.02 | ($0.33) |
Distributions declared per common share | $0.16 | $0.16 | $0.31 | $0.31 |
Condensed_Consolidated_Unaudit3
Condensed Consolidated Unaudited Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | $3,190 | ($11,669) | $6,136 | ($15,464) |
Net loss allocated to noncontrolling interest | -14 | 0 | -14 | 0 |
Net income (loss) attributable to the Company | 3,204 | -11,669 | 6,150 | -15,464 |
Other comprehensive loss: | ' | ' | ' | ' |
Unrealized loss on interest rate swaps | -2,296 | -337 | -2,967 | -337 |
Total comprehensive income (loss) attributable to the Company | $908 | ($12,006) | $3,183 | ($15,801) |
Condensed_Consolidated_Unaudit4
Condensed Consolidated Unaudited Statement of Stockholder's Equity (USD $) | Total | Common Stock | Capital in Excess of Par Value | Accumulated Distributions in Excess of Earnings | Accumulated Other Comprehensive Loss |
In Thousands, except Share data, unless otherwise specified | |||||
Balance at Dec. 31, 2013 | $1,741,972 | $2,110 | $1,850,702 | ($108,588) | ($2,252) |
Balance, shares at Dec. 31, 2013 | 211,026,672 | 211,026,672 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Issuance of common stock, shares | ' | 89,144,146 | ' | ' | ' |
Issuance of common stock | 885,953 | 892 | 885,061 | ' | ' |
Distributions to investors | -87,214 | ' | ' | -87,214 | ' |
Commissions on stock sales and related dealer manager fees | -72,706 | ' | -72,706 | ' | ' |
Other offering costs | -7,271 | ' | -7,271 | ' | ' |
Redemptions and net cancellations of common stock, shares | ' | -361,860 | ' | ' | ' |
Redemptions and net cancellations of common stock | -3,495 | -4 | -3,491 | ' | ' |
Changes in redeemable common stock | -44,790 | ' | -44,790 | ' | ' |
Comprehensive income (loss) | 3,183 | ' | ' | 6,150 | -2,967 |
Balance at Jun. 30, 2014 | $2,415,632 | $2,998 | $2,607,505 | ($189,652) | ($5,219) |
Balance, shares at Jun. 30, 2014 | 299,808,958 | 299,808,958 | ' | ' | ' |
Condensed_Consolidated_Unaudit5
Condensed Consolidated Unaudited Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $6,136 | ($15,464) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation | 23,006 | 6,957 |
Amortization of intangible lease assets and below market lease intangible, net | 12,131 | 3,609 |
Amortization of deferred financing costs | 1,595 | 1,234 |
Amortization of fair value adjustments of mortgage notes payable assumed | -44 | 0 |
Bad debt expense | 128 | 19 |
Equity in income of unconsolidated joint venture | -355 | 0 |
Return on investment from unconsolidated joint venture | 224 | 0 |
Changes in assets and liabilities: | ' | ' |
Rents and tenant receivables | -7,341 | -3,802 |
Prepaid expenses and other assets | 160 | -222 |
Accounts payable and accrued expenses | 4,114 | 4,165 |
Deferred rental income and other liabilities | -1,322 | 1,496 |
Due to affiliates | -1,604 | 308 |
Net cash provided by (used in) operating activities | 36,828 | -1,700 |
Cash flows from investing activities: | ' | ' |
Investment in real estate assets and capital expenditures | -595,674 | -719,841 |
Payment of property escrow deposits | -5,248 | -13,298 |
Refund of property escrow deposits | 6,210 | 12,548 |
Change in restricted cash | 3,329 | -7,577 |
Net cash used in investing activities | -591,383 | -728,168 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock | 837,668 | 368,276 |
Redemptions and cancellations of common stock | -3,495 | -100 |
Offering costs on issuance of common stock | -84,914 | -37,891 |
Distributions to investors | -34,095 | -6,100 |
Proceeds from notes payable and borrowing facilities | 25,000 | 527,491 |
Repayments of notes payable and borrowing facilities | -194 | -124,667 |
Payment of loan deposits | 0 | -776 |
Refund of loan deposits | 545 | 596 |
Change in escrowed investor proceeds | -5,147 | 5,064 |
Deferred financing costs paid | -675 | -3,697 |
Contributions from noncontrolling interests | 977 | 0 |
Other financing activities | -348 | 0 |
Net cash provided by financing activities | 735,322 | 728,196 |
Net increase (decrease) in cash and cash equivalents | 180,767 | -1,672 |
Cash and cash equivalents, beginning of period | 300,574 | 13,895 |
Cash and cash equivalents, end of period | $481,341 | $12,223 |
Organization_and_Business
Organization and Business | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
ORGANIZATION AND BUSINESS | ' |
ORGANIZATION AND BUSINESS | |
Cole Credit Property Trust IV, Inc. (the “Company”) is a Maryland corporation that was formed on July 27, 2010, which has elected to be taxed, and currently qualifies, as a real estate investment trust (“REIT”) for federal income tax purposes. The Company is the sole general partner of and owns, directly or indirectly, 100% of the partnership interests in Cole Operating Partnership IV, LP, a Delaware limited partnership. The Company is externally managed by Cole REIT Advisors IV, LLC (“CR IV Advisors”), an affiliate of the Company’s sponsor, Cole Capital™, which is a trade name used to refer to a group of affiliated entities directly or indirectly controlled by American Realty Capital Properties, Inc. (“ARCP”), a self-managed publicly traded REIT, organized as a Maryland corporation, listed on The NASDAQ Global Select Market. On February 7, 2014, ARCP acquired Cole Real Estate Investments, Inc. (“Cole”), which, prior to its acquisition, indirectly owned and/or controlled the Company’s external advisor, CR IV Advisors, the Company’s dealer manager, Cole Capital Corporation (“CCC”), the Company’s property manager, CREI Advisors, LLC (“CREI Advisors”), and the Company’s sponsor, Cole Capital. As a result of ARCP’s acquisition of Cole, ARCP indirectly owns and/or controls CR IV Advisors, CCC, CREI Advisors and Cole Capital. | |
On January 26, 2012, pursuant to a Registration Statement on Form S-11 (Registration No. 333-169533) (the “Registration Statement”) filed under the Securities Act of 1933, as amended (the “Securities Act”), the Company commenced its initial public offering on a “best efforts” basis of up to a maximum of $2.975 billion in shares of common stock (the “Offering”). On November 25, 2013, the Company reallocated $400.0 million in shares from its distribution reinvestment plan (the “DRIP”) to the primary portion of the Offering, and on February 18, 2014, the Company reallocated an additional $23.0 million in shares from the DRIP to the primary portion of the Offering. As a result of these reallocations, the Offering offered up to a maximum of approximately 292.3 million shares of common stock at a price of $10.00 per share in the primary portion of the Offering and up to approximately 5.5 million additional shares pursuant to the DRIP under which the Company’s stockholders could have elected to have distributions reinvested in additional shares of common stock at a price of $9.50 per share. | |
As of February 25, 2014, the Company no longer accepted subscription agreements in connection with the Offering because it had received subscription agreements that allowed it to reach the maximum primary offering. The Company ceased issuing shares in the Offering on April 4, 2014. At the completion of the Offering, a total of approximately 297.4 million shares of common stock had been issued, including approximately 292.3 million shares of common stock sold to the public pursuant to the primary portion of the Offering and approximately 5.1 million shares of common stock sold pursuant to the DRIP. The remaining approximately 404,000 unsold shares from the Offering were deregistered. | |
In addition, the Company registered 26.0 million shares of common stock under the DRIP pursuant to a Registration Statement filed on Form S-3 (Registration No. 333-192958) (the “DRIP Offering” and collectively with the Offering, the “Offerings”), which was filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 19, 2013 and automatically became effective with the SEC upon filing. The Company has issued, and expects that it will continue to issue, shares of common stock in the DRIP Offering. | |
As of June 30, 2014, the Company had issued approximately 300.3 million shares of its common stock in the Offerings, including 2.9 million shares issued in the DRIP Offering, for gross offering proceeds of $3.0 billion before organization and offering costs, selling commissions and dealer manager fees of $305.9 million. As of June 30, 2014, the Company owned 509 properties, which include properties owned through a consolidated joint venture arrangement (the “Consolidated Joint Venture”), comprising 14.7 million rentable square feet of commercial space located in 44 states. As of June 30, 2014, the rentable space at these properties was 99% leased. In addition, through an unconsolidated joint venture arrangement, as of June 30, 2014, the Company had an interest in one property comprising 176,000 rentable square feet of commercial space (the “Unconsolidated Joint Venture”). |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | |
Jun. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Principles of Consolidation and Basis of Presentation | ||
The condensed consolidated unaudited financial statements of the Company have been prepared in accordance with the rules and regulations of the SEC regarding interim financial reporting, including the instructions to Form 10-Q and Article 10 of Regulation S-X, and do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of management, the statements for the interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Results for these interim periods are not necessarily indicative of full year results. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended December 31, 2013, and related notes thereto set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The condensed consolidated unaudited financial statements should also be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this Quarterly Report on Form 10-Q. | ||
The condensed consolidated unaudited 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”). A VIE is broadly defined as an entity where either (1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity’s economic performance or (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company consolidates any VIEs when it is determined to be the primary beneficiary of the VIE’s operations. | ||
A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to 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, its form of ownership interest, its representation on the entity’s governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity. | ||
The Company continually evaluates the need to consolidate its joint venture arrangements based on standards set forth in GAAP. In determining whether the Company has a controlling interest in a joint venture arrangement and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, power to make decisions and contractual and substantive participating rights of the partners/members as well as whether the entity is a VIE for which the Company may be the primary beneficiary. As of June 30, 2014, the Company determined that it had a controlling interest in the Consolidated Joint Venture, and, therefore, met the GAAP requirements for consolidation. As of June 30, 2014, the Consolidated Joint Venture held real estate assets with an aggregate book value of $19.2 million. As of June 30, 2014 and December 31, 2013, the Company was not required to consolidate the Unconsolidated Joint Venture as the applicable joint venture entity did not qualify as a VIE and the Company did not meet the control requirement for consolidation. | ||
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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Investment in and Valuation of Real Estate Assets | ||
Real estate assets are stated at cost, less accumulated depreciation and amortization. Amounts capitalized to real estate assets consist of the cost of acquisition, excluding acquisition related expenses, construction and any tenant improvements, major improvements and betterments that extend the useful life of the real estate assets and leasing costs. All repairs and maintenance are expensed as incurred. | ||
The Company is required to make subjective assessments as to the useful lives of its depreciable assets. The Company considers the period of future benefit of each respective asset to determine the appropriate useful life of the assets. Real estate assets, other than land, are depreciated or amortized on a straight-line basis. The estimated useful lives of the Company’s real estate assets by class are generally as follows: | ||
Buildings | 40 years | |
Tenant improvements | Lesser of useful life or lease term | |
Intangible lease assets | Lease term | |
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 is determined using a discounted cash flow analysis and recent comparable sales transactions. No impairment indicators were identified and no impairment losses were recorded during the six months ended June 30, 2014 or 2013. | ||
When developing estimates of expected future cash flows, the Company makes certain assumptions regarding future market rental income amounts subsequent to the expiration of current lease agreements, property operating expenses, terminal capitalization and discount rates, the expected number of months it takes to re-lease the property, required tenant improvements and the number of years the property will be held for investment. The use of alternative assumptions in estimating expected future cash flows could result in a different determination of the property’s expected future cash flows and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the fair value of the real estate assets. | ||
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. There were no assets identified as held for sale as of June 30, 2014 or December 31, 2013. | ||
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 market and below market leases and the value of in-place leases, based in each case on their respective fair values. Acquisition related expenses are expensed as incurred. 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 Company obtains an independent appraisal for each real property acquisition. 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 market 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 any bargain renewal periods, with respect to a below market lease. The above market 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, 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 market 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 commissions and other direct costs 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 has acquired, and may continue to 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 (the “Contingent Payments”). 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 escrowed funds to the Company or the seller or a combination thereof. Contingent consideration arrangements are based on a predetermined formula and have set time periods regarding the obligation to make future payments, including funds released to the seller from escrow accounts, or the right to receive escrowed funds as set forth in the respective purchase and sale agreement. Contingent consideration arrangements, including amounts funded through an escrow account, are recorded upon acquisition of the respective property at their estimated fair values, and any changes to the estimated fair values, subsequent to acquisition, are reflected in the accompanying condensed consolidated unaudited statements of operations. The determination of the amount of contingent consideration arrangements is based on the probability of several possible outcomes as identified by management. | ||
The Company estimates 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 are initially 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 is amortized 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 impact the Company’s results of operations. | ||
Noncontrolling Interest-Redeemable Interest in Consolidated Joint Venture | ||
On June 27, 2014, the Company completed the formation of the Consolidated Joint Venture. Pursuant to the joint venture agreement, the joint venture partner has a right to exercise an option after two years whereby the Company will be required to purchase the ownership interest of the joint venture partner at fair market value. The Company determined it had a controlling interest in the Consolidated Joint Venture and therefore met the GAAP requirements for consolidation. The Company initially recorded the noncontrolling interest at its acquisition-date fair value of $963,000 as temporary equity, in the mezzanine section of the balance sheet, due to the redemption option existing outside the control of the Company. | ||
Investment in Unconsolidated Joint Venture | ||
The Company accounts for its unconsolidated joint venture arrangement using the equity method of accounting as the Company has the ability to exercise significant influence, but not control, over operating and financial policies of this investment. The equity method of accounting requires the investment to be initially recorded at cost and subsequently adjusted for the Company’s share of equity in the Unconsolidated Joint Venture’s earnings and distributions. The Company is required to determine whether an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of its investment in the Unconsolidated Joint Venture. If an event or change in circumstance has occurred, the Company is required to evaluate the Unconsolidated Joint Venture for potential impairment and determine if the carrying amount of its investment exceeds its fair value. An impairment charge is recorded when an impairment is deemed to be other-than-temporary. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until the carrying amount is fully recovered. The evaluation of an investment in an Unconsolidated Joint Venture for potential impairment requires the Company’s management to exercise significant judgment and to make certain assumptions. The use of different judgments and assumptions could result in different conclusions. No impairment indicators were identified and no impairment losses were recorded related to the Unconsolidated Joint Venture for the six months ended June 30, 2014. The Company did not own any interests in any joint venture arrangements for the six months ended June 30, 2013. | ||
Restricted Cash and Escrows | ||
The Company had $2.3 million and $2.6 million held by lenders in lockbox accounts as of June 30, 2014 and December 31, 2013, respectively, that was included in restricted cash. As part of certain debt agreements, rents from certain encumbered properties are deposited directly into a lockbox account, from which the monthly debt service payment is disbursed to the lender and the excess is disbursed to the Company. Also included in restricted cash was $2.6 million and $513,000 held by lenders in escrow accounts for real estate taxes and other lender reserves for certain properties, in accordance with the respective lender’s loan agreement, as of June 30, 2014 and December 31, 2013, respectively. In addition, as of December 31, 2013, $5.1 million of escrowed investor proceeds for which shares of common stock had not been issued was included in restricted cash. | ||
Concentration of Credit Risk | ||
As of June 30, 2014, the Company had cash on deposit, including restricted cash, at nine financial institutions, in all of which the Company had deposits in excess of federally insured levels totaling $483.5 million; however, the Company has not experienced any losses in such accounts. The Company limits significant cash deposits to accounts held by financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk on its cash deposits. | ||
As of June 30, 2014, no single tenant accounted for greater than 10% of the Company’s 2014 gross annualized rental revenues. The Company had certain geographic concentrations in its property holdings. In particular, as of June 30, 2014, 65 of the Company’s properties were located in Texas and 15 of the Company’s properties were located in California, which accounted for 11% and 10%, respectively, of the Company’s 2014 gross annualized rental revenues. In addition, the Company had tenants in the discount store and drugstore industries, which comprised 14% and 11%, respectively, of the Company’s 2014 gross annualized rental revenues. | ||
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 the 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. | ||
Redeemable Common Stock | ||
Under the Company’s share redemption program, the Company’s requirement to redeem shares of its outstanding common stock is limited, among other things, to the net proceeds received by the Company from the sale of shares under the DRIP, net of shares redeemed to date. The Company records amounts that are redeemable under the share redemption program as redeemable common stock outside of permanent equity in the accompanying condensed consolidated unaudited balance sheets. Changes in the amount of redeemable common stock from period to period are recorded as an adjustment to capital in excess of par value. | ||
Recent Accounting Pronouncements | ||
In April 2014, the U.S. Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which amends the reporting requirements for discontinued operations by updating the definition of a discontinued operation to be a component of an entity that represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results, resulting in fewer disposals that qualify for discontinued operations reporting; yet, the pronouncement also requires expanded disclosures for discontinued operations. The adoption of ASU 2014-08 did not have a material impact on the Company’s condensed consolidated unaudited financial statements because the Company did not have any discontinued operations. | ||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes the revenue recognition requirements in Revenue Recognition (Topic 605), and requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers, including real estate sales, in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. The Company does not believe ASU 2014-09, when effective, will have a material impact on the Company’s condensed consolidated unaudited financial statements because the Company currently accounts for real estate sales in a manner that is consistent with ASU 2014-09. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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. 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: | ||||||||||||||||
Cash and cash equivalents and restricted cash – The Company considers the carrying values of these financial assets to approximate fair value because of the short period of time between their origination and their expected realization. These financial assets are considered Level 1. | ||||||||||||||||
Notes payable and credit facility – 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. These financial instruments are considered Level 2. As of June 30, 2014, the estimated fair value of the Company’s debt was $743.8 million compared to the carrying value of $747.7 million. As of December 31, 2013, the estimated fair value of the Company’s debt was $682.1 million compared to the carrying value of $696.9 million. | ||||||||||||||||
Derivative instruments – The Company’s derivative instruments represent 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. The Company includes the impact of credit valuation adjustments on derivative instruments measured at fair value. | ||||||||||||||||
Contingent consideration arrangements – The contingent consideration arrangements are carried at fair value and are valued using Level 3 inputs. The fair value of the Contingent Payments is determined based on the estimated timing and probability of successfully leasing vacant space subsequent to the Company’s acquisition of certain properties. During the six months ended June 30, 2014, the Company recorded additional obligations with an aggregate estimated fair value of $5.3 million upon purchase of certain properties. The total estimated fair value of contingent consideration arrangements was $5.8 million and $784,000 as of June 30, 2014 and December 31, 2013, respectively, and is included in the accompanying condensed consolidated unaudited balance sheets in deferred rental income and other liabilities. In addition, during the six months ended June 30, 2014, the Company paid $348,000 to a seller as obligations under certain contingent consideration arrangements were satisfied. | ||||||||||||||||
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, on disposition of the financial assets and liabilities. As of June 30, 2014, 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 liabilities that are required to be measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||
Balance as of | Quoted Prices in | Significant Other | Significant | |||||||||||||
30-Jun-14 | Active Markets for | Observable Inputs | Unobservable | |||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | $ | (5,219 | ) | $ | — | $ | (5,219 | ) | $ | — | ||||||
Contingent consideration | (5,778 | ) | — | — | (5,778 | ) | ||||||||||
Total liabilities | $ | (10,997 | ) | $ | — | $ | (5,219 | ) | $ | (5,778 | ) | |||||
Balance as of | Quoted Prices in | Significant Other | Significant | |||||||||||||
December 31, 2013 | Active Markets for | Observable Inputs | Unobservable | |||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | $ | (2,252 | ) | $ | — | $ | (2,252 | ) | $ | — | ||||||
Contingent consideration | (784 | ) | — | — | (784 | ) | ||||||||||
Total liabilities | $ | (3,036 | ) | $ | — | $ | (2,252 | ) | $ | (784 | ) | |||||
Real_Estate_Acquisitions
Real Estate Acquisitions | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Business Combinations [Abstract] | ' | |||||||||||||||
REAL ESTATE ACQUISITIONS | ' | |||||||||||||||
REAL ESTATE ACQUISITIONS | ||||||||||||||||
2014 Property Acquisitions | ||||||||||||||||
During the six months ended June 30, 2014, the Company acquired 172 commercial properties, including properties held in the Consolidated Joint Venture, for an aggregate purchase price of $624.0 million (the “2014 Acquisitions”). The Company purchased the 2014 Acquisitions with net proceeds from the Offerings 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 (in thousands): | ||||||||||||||||
June 30, 2014 | ||||||||||||||||
Land | $ | 141,754 | ||||||||||||||
Building and improvements | 447,413 | |||||||||||||||
Acquired in-place leases | 38,266 | |||||||||||||||
Acquired above market leases | 6,011 | |||||||||||||||
Acquired below market leases | (8,709 | ) | ||||||||||||||
Fair value adjustment of assumed notes payable | (765 | ) | ||||||||||||||
Total purchase price | $ | 623,970 | ||||||||||||||
The Company recorded revenue for the three and six months ended June 30, 2014 of $8.3 million and $11.3 million, respectively, and a net loss for the three and six months ended June 30, 2014 of $6.8 million and $13.4 million, respectively, related to the 2014 Acquisitions. | ||||||||||||||||
The following information summarizes selected financial information of the Company as if all of the 2014 Acquisitions were completed on January 1, 2013 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 three and six months ended June 30, 2014 and 2013 (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Pro forma basis: | ||||||||||||||||
Revenue | $ | 61,643 | $ | 34,860 | $ | 122,991 | $ | 59,030 | ||||||||
Net income (loss) | $ | 17,286 | $ | (12,097 | ) | $ | 35,158 | $ | (35,356 | ) | ||||||
The pro forma information for the three and six months ended June 30, 2014 was adjusted to exclude $10.1 million and $18.7 million, respectively, of acquisition related expenses recorded during the three and six months ended June 30, 2014. These costs were recognized in the pro forma information for the six months ended June 30, 2013. 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 2013, nor does it purport to represent the results of future operations. | ||||||||||||||||
2013 Property Acquisitions | ||||||||||||||||
During the six months ended June 30, 2013, the Company acquired 89 commercial properties for an aggregate purchase price of $717.7 million (the “2013 Acquisitions”). The Company purchased the 2013 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 (in thousands): | ||||||||||||||||
June 30, 2013 | ||||||||||||||||
Land | $ | 172,326 | ||||||||||||||
Building and improvements | 465,897 | |||||||||||||||
Acquired in-place leases | 81,243 | |||||||||||||||
Acquired above market leases | 14,594 | |||||||||||||||
Acquired below market leases | (16,324 | ) | ||||||||||||||
Total purchase price | $ | 717,736 | ||||||||||||||
The Company recorded revenue for the three and six months ended June 30, 2013 of $11.3 million and $12.2 million, respectively, and a net loss for the three and six months ended June 30, 2013 of $10.9 million and $16.2 million, respectively, related to the 2013 Acquisitions. | ||||||||||||||||
The following information summarizes selected financial information of the Company as if all of the 2013 Acquisitions were completed on January 1, 2012 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 three and six months ended June 30, 2013 and 2012 (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Pro forma basis: | ||||||||||||||||
Revenue | $ | 26,406 | $ | 16,540 | $ | 52,706 | $ | 32,392 | ||||||||
Net income (loss) | $ | 6,605 | $ | (293 | ) | $ | 15,234 | $ | (16,849 | ) | ||||||
The pro forma information for the three and six months ended June 30, 2013 was adjusted to exclude $14.6 million and $20.2 million of acquisition related expenses recorded during the three and six months ended June 30, 2013. These costs were recognized in the pro forma information for the six months ended June 30, 2013. 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 2012, nor does it purport to represent the results of future operations. |
Derivative_Instrument
Derivative Instrument | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
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 risks. The following table summarizes the terms of the Company’s executed swap agreements designated as hedging instruments as of June 30, 2014 and December 31, 2013 (dollars in thousands): | ||||||||||||||||||||
Outstanding Notional | Fair Value of Liabilities | |||||||||||||||||||
Balance Sheet | Amount as of | Interest | Effective | Maturity | June 30, | December 31, | ||||||||||||||
Location | June 30, 2014 | Rates (1) | Dates | Dates | 2014 | 2013 | ||||||||||||||
Interest Rate Swaps | Deferred rental income and other liabilities | $ | 338,737 | 3.36% to 4.75% | 6/24/2013 to 8/23/2013 | 6/24/2018 to 8/24/2020 | $ | (5,219 | ) | $ | (2,252 | ) | ||||||||
-1 | The interest rates consist of the underlying index swapped to a fixed rate and the applicable interest rate spread. | |||||||||||||||||||
Additional disclosures related to the fair value of the Company’s derivative instruments are included in Note 3. 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, 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 is designated as hedges are recorded in other comprehensive loss. Any ineffective portion of the change in fair value of the derivative instruments is recorded in interest expense. | ||||||||||||||||||||
The following table summarizes the unrealized losses on the Company’s derivative instruments and hedging activities for the three and six months ended June 30, 2014 (in thousands): | ||||||||||||||||||||
Amount of Loss Recognized in Other Comprehensive Loss | ||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Interest Rate Swaps (1) | $ | (2,296 | ) | $ | (337 | ) | $ | (2,967 | ) | $ | (337 | ) | ||||||||
-1 | There were no portions of the change in the fair value of the interest rate swap agreements that were considered ineffective during the six months ended June 30, 2014. No previously effective portions of the losses that were recorded in accumulated other comprehensive loss during the term of the hedging relationships were reclassified into earnings during the six months ended June 30, 2014. | |||||||||||||||||||
The Company has agreements with each of its derivative counterparties that contain a provision whereby if the Company defaults on certain of its unsecured indebtedness, then the Company could also be declared in default on its derivative obligations resulting in an acceleration of payment. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value of $5.7 million at June 30, 2014. 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 respective credit quality of the Company and the counterparty. During the three and six months ended June 30, 2014, there were no termination events or events of default related to the interest rate swaps. |
Notes_Payable_And_Credit_Facil
Notes Payable And Credit Facilities | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||
NOTES PAYABLE AND CREDIT FACILITY | ' | |||||||||||||||||||
NOTES PAYABLE AND CREDIT FACILITY | ||||||||||||||||||||
As of June 30, 2014, the Company had $747.7 million of debt outstanding, with a weighted average years to maturity of 6.7 years and weighted average interest rate of 3.8%. The following table summarizes the debt balances as of June 30, 2014 and December 31, 2013 and the debt activity for the six months ended June 30, 2014 (in thousands): | ||||||||||||||||||||
During the Six Months Ended June 30, 2014 | ||||||||||||||||||||
Balance as of December 31, 2013 | Debt Issuance and Assumptions | Repayments | Other (1) | Balance as of June 30, 2014 | ||||||||||||||||
Fixed rate debt | $ | 396,946 | $ | 50,214 | $ | (194 | ) | $ | 721 | $ | 447,687 | |||||||||
Credit facility | 300,000 | — | — | — | 300,000 | |||||||||||||||
Total | $ | 696,946 | $ | 50,214 | $ | (194 | ) | $ | 721 | $ | 747,687 | |||||||||
-1 | Represents fair value adjustment of an assumed mortgage note payable, net of amortization. | |||||||||||||||||||
As of June 30, 2014, the fixed rate debt outstanding of $447.7 million included $38.7 million of variable rate debt subject to interest rate swap agreements, which had the effect of fixing the variable interest rates per annum through the maturity date of the variable rate debt. In addition, the fixed rate debt includes a mortgage note assumed with a face amount of $25.2 million and a fair value of $26.0 million at the date of assumption. The fixed rate debt has interest rates ranging from 3.35% to 4.98% per annum. The debt outstanding matures on various dates from June 2018 through February 2024. The aggregate balance of gross real estate assets, net of gross intangible lease liabilities, securing the fixed rate debt outstanding was $772.4 million as of June 30, 2014. Each of the mortgage notes payable, comprising the fixed rate debt, is secured by the respective properties on which the debt was placed. Certain notes payable contain covenants, representations, warranties and borrowing conditions customary for similar credit arrangements. These notes also include usual and customary events of default and remedies for agreements of this nature. Based on the Company’s analysis and review of its results of operations and financial condition, the Company believes it was in compliance with the covenants of such notes payable as of June 30, 2014. | ||||||||||||||||||||
The Company has an amended and restated unsecured credit facility (the “Credit Facility”) with JPMorgan Chase Bank, N.A. (“JPMorgan Chase”), which provides for borrowings of up to $900.0 million, which includes a $300.0 million unsecured term loan (the “Term Loan”) and up to $600.0 million in unsecured revolving loans (the “Revolving Loans”). The Credit Facility may be increased up to a maximum of $1.25 billion. The Term Loan matures on August 15, 2018 and the Revolving Loans mature on August 15, 2017; however, the Company may elect to extend the maturity date for the Revolving Loans to August 15, 2018 subject to satisfying certain conditions set forth in the amended and restated unsecured credit agreement among the Company and JPMorgan Chase, as administrative agent (the “Amended and Restated Credit Agreement”). Depending upon the type of loan specified and overall leverage ratio, not to exceed 65% (or 60% on or subsequent to August 15, 2014), the Revolving Loans bear interest at one-month, two-month, three-month or six-month LIBOR multiplied by the statutory reserve rate (the “Eurodollar Rate”) plus an interest rate spread ranging from 1.65% to 2.50% (the “Spread”) or a base rate, ranging from 0.65% to 1.50%, plus the greater of: (a) JPMorgan Chase’s Prime Rate; (b) the Federal Funds Effective Rate (as defined in the Amended and Restated Credit Agreement) plus 0.50%; or (c) the Eurodollar Rate plus 1.00%. The Company executed a swap agreement associated with the Term Loan, which had the effect of fixing the variable interest rate per annum on August 15, 2013 through the maturity date of the loan at 1.713% (the “Swap Rate”). The Term Loan bears interest at the Swap Rate plus the Spread, which totaled 3.36% as of June 30, 2014 based on the Company’s leverage ratio. There were no amounts outstanding under the Revolving Loans as of June 30, 2014. As of June 30, 2014, the Company had $300.0 million outstanding under the Credit Facility and $582.9 million available for borrowing based on the underlying collateral pool of $1.4 billion. | ||||||||||||||||||||
The Amended and Restated Credit Agreement contains provisions with respect to covenants, events of default, borrowing conditions and remedies customary for facilities of this nature. In particular, the Amended and Restated Credit Agreement requires the Company to maintain a minimum consolidated net worth of at least $1.9 billion as of June 30, 2014, a leverage ratio less than 65% prior to August 15, 2014 and 60% from and after August 15, 2014, a fixed charge coverage ratio equal to or greater than 1.50, an unsecured debt to unencumbered asset value ratio less than 65% prior to August 15, 2014 and 60% from and after August 15, 2014, an unsecured debt service coverage ratio equal to or greater than 1.75 and a secured debt ratio less than 50% prior to August 15, 2014, 45% from and after August 15, 2014, but prior to August 15, 2016 and 40% from and after August 15, 2016. The Company believes it was in compliance with the covenants under the Amended and Restated Credit Agreement as of June 30, 2014. |
Supplemental_Cash_Flow_Disclos
Supplemental Cash Flow Disclosures | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
SUPPLEMENTAL CASH FLOW DISCLOSURES | ' | |||||||
SUPPLEMENTAL CASH FLOW DISCLOSURES | ||||||||
Supplemental cash flow disclosures for the six months ended June 30, 2014 and 2013 are as follows (in thousands): | ||||||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Supplemental disclosures of non-cash investing and financing activities: | ||||||||
Distributions declared and unpaid | $ | 15,403 | $ | 3,296 | ||||
Accrued other offering costs due to affiliates | $ | — | $ | 3,206 | ||||
Accrued capital expenditures | $ | 2,076 | $ | 832 | ||||
Common stock issued through distribution reinvestment plan | $ | 48,285 | $ | 6,660 | ||||
Net unrealized loss on interest rate swaps | $ | (2,967 | ) | $ | (337 | ) | ||
Contingent consideration recorded upon property acquisitions | $ | 5,342 | $ | 551 | ||||
Fair value of mortgage notes assumed in real estate acquisitions at date of assumption | $ | 25,979 | $ | — | ||||
Supplemental cash flow disclosures: | ||||||||
Interest paid | $ | 14,387 | $ | 5,754 | ||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
Litigation | |
In the ordinary course of business, the Company may become subject to litigation or claims. The Company is not aware of any pending legal proceedings of which the outcome is reasonably possible to have a material effect on its results of operations, financial condition or liquidity. | |
Purchase Commitments | |
As of June 30, 2014, the Company had entered into purchase agreements with unaffiliated third-party sellers to acquire a 100% interest in 74 retail properties, subject to meeting certain criteria, for an aggregate purchase price of $129.7 million, exclusive of closing costs. As of June 30, 2014, the Company had $7.1 million of property escrow deposits held by escrow agents in connection with these future property acquisitions, of which $6.4 million will be forfeited if the transactions are not completed under certain circumstances. In connection with one of these purchase and sale agreements, the Company is contractually obligated to purchase 25 properties, of which the Company had purchased 16 properties as of June 30, 2014 and expects to purchase the remaining nine properties at a later date. If the remaining nine properties are not purchased, the Company will be obligated to pay the seller $10.0 million. These deposits are included in the accompanying condensed consolidated unaudited balance sheets in property escrow deposits, prepaid expenses and other assets. As of August 11, 2014, none of these escrow deposits had been forfeited. | |
Environmental Matters | |
In connection with the ownership and operation of real estate, the Company potentially may be liable for costs and damages related to environmental matters. The Company owns certain properties that are subject to environmental remediation. In each case, the seller of the property, the tenant of the property and/or another third party has been identified as the responsible party for environmental remediation costs related to the respective property. Additionally, in connection with the purchase of certain of the properties, the respective sellers and/or tenants have indemnified the Company against future remediation costs. In addition, the Company carries environmental liability insurance on its properties that provides limited coverage for remediation liability and pollution liability for third-party bodily injury and property damage claims. Accordingly, the Company does not believe that it is reasonably possible that the environmental matters identified at such properties will have a material effect on its results of operations, financial condition or liquidity, nor is it aware of any environmental matters at other properties which it believes are reasonably possible to have a material effect on its results of operations, financial condition or liquidity. |
RelatedParty_Transactions_and_
Related-Party Transactions and Arrangements | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS | ' | |||||||||||||||
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS | ||||||||||||||||
The Company has incurred commissions, fees and expenses payable to CR IV Advisors and certain of its affiliates in connection with the Offering and the acquisition, management and disposition of its assets. | ||||||||||||||||
Offering | ||||||||||||||||
In connection with the Offering, CCC, the Company’s dealer manager, received selling commissions of up to 7.0% of gross offering proceeds before reallowance of commissions earned by participating broker-dealers. CCC reallowed 100% of selling commissions earned to participating broker-dealers. In addition, CCC received up to 2.0% of gross offering proceeds before reallowance to participating broker-dealers as a dealer manager fee in connection with the primary portion of the Offering. CCC, in its sole discretion, could have reallowed a portion of its dealer manager fee to such participating broker-dealers. No selling commissions or dealer manager fees are or were paid to CCC or other broker-dealers with respect to shares sold pursuant to the DRIP portion of the Offering or the DRIP Offering. | ||||||||||||||||
All other organization and offering expenses associated with the sale of the Company’s common stock in the Offering (excluding selling commissions and dealer manager fees) were paid by CR IV Advisors or its affiliates and were reimbursed by the Company up to 2.0% of aggregate gross offering proceeds. A portion of the other organization and offering expenses were considered to be underwriting compensation. | ||||||||||||||||
The Company recorded commissions, fees and expense reimbursements as shown in the table below for services provided by CR IV Advisors or its affiliates related to the services described above during the periods indicated (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Offering: | ||||||||||||||||
Selling commissions (1) | $ | (12 | ) | $ | 15,203 | $ | 55,902 | $ | 25,264 | |||||||
Selling commissions reallowed by CCC | $ | (12 | ) | $ | 15,203 | $ | 55,902 | $ | 25,264 | |||||||
Dealer manager fees (1) | $ | (3 | ) | $ | 4,430 | $ | 16,780 | $ | 7,376 | |||||||
Dealer manager fees reallowed by CCC | $ | (3 | ) | $ | 2,428 | $ | 9,326 | $ | 4,050 | |||||||
Other offering costs | $ | 10 | $ | 3,799 | $ | 7,271 | $ | 6,796 | ||||||||
-1 | Selling commissions and dealer manager fees include amounts recouped in connection with cancellations of common stock during the three and six months ended June 30, 2014. These amounts are included in redemptions and net cancellations of common stock in the condensed consolidated unaudited statement of stockholders’ equity. | |||||||||||||||
During the six months ended June 30, 2014, of the amounts shown above, $80.0 million had been paid to CR IV Advisors and its affiliates and no amounts had been incurred, but not yet paid, for services provided by CR IV Advisors or its affiliates in connection with the offering stage of the Offering. During the six months ended June 30, 2013, $36.2 million had been paid to CR IV Advisors and its affiliates, and $3.2 million had been incurred, but not yet paid, for services provided by CR IV Advisors or its affiliates in connection with the offering stage of the Offering. | ||||||||||||||||
Acquisitions and Operations | ||||||||||||||||
CR IV Advisors or its affiliates also receive acquisition fees of up to 2.0% of: (1) the contract purchase price of each property or asset the Company acquires; (2) the amount paid in respect of the development, construction or improvement of each asset the Company acquires; (3) the purchase price of any loan the Company acquires; and (4) the principal amount of any loan the Company originates. Additionally, CR IV Advisors or its affiliates are reimbursed for acquisition related expenses incurred in the process of acquiring properties, so long as the total acquisition fees and expenses relating to the transaction do not exceed 6.0% of the contract purchase price. | ||||||||||||||||
The Company pays CR IV Advisors a monthly advisory fee based upon the Company’s monthly average invested assets, which is equal to the following amounts: (1) an annualized rate of 0.75% paid on the Company’s average invested assets that are between $0 to $2.0 billion; (2) an annualized rate of 0.70% paid on the Company’s average invested assets that are between $2.0 billion to $4.0 billion; and (3) an annualized rate of 0.65% paid on the Company’s average invested assets that are over $4.0 billion. | ||||||||||||||||
The Company reimburses CR IV Advisors for the 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) 2.0% of average invested assets, or (2) 25.0% 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. The Company will not reimburse for personnel costs in connection with services for which CR IV Advisors receives acquisition fees. | ||||||||||||||||
The Company recorded fees and expense reimbursements as shown in the table below for services provided by CR IV Advisors or its affiliates related to the services described above during the periods indicated (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Acquisition and Operations: | ||||||||||||||||
Acquisition fees and expenses | $ | 7,164 | $ | 10,982 | $ | 13,151 | $ | 14,967 | ||||||||
Advisory fees and expenses | $ | 5,267 | $ | 2,101 | $ | 10,067 | $ | 3,290 | ||||||||
Operating expenses | $ | 642 | $ | 345 | $ | 1,782 | $ | 851 | ||||||||
Of the amounts shown above, $24.5 million and $18.8 million had been paid to CR IV Advisors and its affiliates and $520,000 and $322,000 had been incurred, but not yet paid, for services provided by CR IV Advisors or its affiliates in connection with the acquisition and operations stage during the six months ended June 30, 2014 and 2013, respectively, and the $520,000 incurred but not yet paid as of June 30, 2014 was a liability to the Company as of such date. | ||||||||||||||||
Liquidation/Listing | ||||||||||||||||
If CR IV Advisors or its affiliates provide a substantial amount of services (as determined by a majority of the Company’s independent directors) in connection with the sale of properties, the Company will pay CR IV Advisors or its affiliate a disposition fee in an amount equal to up to one-half of the brokerage commission paid on the sale of the property, not to exceed 1.0% of the contract price of the property sold; provided, however, in no event may the disposition fee paid to CR IV Advisors or its affiliates, when added to the real estate commissions paid to unaffiliated third parties, exceed the lesser of the customary competitive real estate commission or an amount equal to 6.0% of the contract sales price. | ||||||||||||||||
If the Company is sold or its assets are liquidated, CR IV Advisors will be entitled to receive a subordinated performance fee equal to 15.0% of the net sale proceeds remaining after investors have received a return of their net capital invested and an 8.0% annual cumulative, non-compounded return. Alternatively, if the Company’s shares are listed on a national securities exchange, CR IV Advisors will be entitled to a subordinated performance fee equal to 15.0% of the amount by which the market value of the Company’s outstanding stock plus all distributions paid by the Company prior to listing exceeds the sum of the total amount of capital raised from investors and the amount of distributions necessary to generate an 8.0% annual cumulative, non-compounded return to investors. As an additional alternative, upon termination of the advisory agreement, CR IV Advisors may be entitled to a subordinated performance fee similar to the fee to which CR IV Advisors would have been entitled had the portfolio been liquidated (based on an independent appraised value of the portfolio) on the date of termination. | ||||||||||||||||
During each of the six months ended June 30, 2014 and 2013, no commissions or fees were incurred for any services provided by CR IV Advisors and its affiliates in connection with the liquidation/listing stage. | ||||||||||||||||
Due to Affiliates | ||||||||||||||||
As of June 30, 2014, $971,000 had been incurred primarily for advisory, operating and acquisition related expenses by CR IV Advisors or its affiliates, but had not yet been reimbursed by the Company and is included in due to affiliates in the condensed consolidated unaudited balance sheet. As of December 31, 2013, $7.5 million had been incurred primarily for offering, advisory, operating and acquisition related expenses by CR IV Advisors or its affiliates, but had not yet been reimbursed by the Company and is included in due to affiliates in the condensed consolidated unaudited balance sheet. |
Economic_Dependency
Economic Dependency | 6 Months Ended |
Jun. 30, 2014 | |
Economic Dependency [Abstract] | ' |
ECONOMIC DEPENDENCY | ' |
ECONOMIC DEPENDENCY | |
Under various agreements, the Company has engaged or will engage CR IV Advisors and 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 investor relations. As a result of these relationships, the Company is dependent upon CR IV Advisors and 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. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | |
Issuance of Shares of Common Stock in the DRIP Offering | |
The Company continues to issue shares of common stock in the DRIP Offering. As of August 11, 2014, the Company had issued approximately 4.9 million shares pursuant to the DRIP Offering, resulting in gross proceeds to the Company of $46.4 million. | |
Share Redemptions | |
Subsequent to June 30, 2014 through August 11, 2014, the Company redeemed approximately 294,000 shares for $2.9 million (at an average price per share of $9.78). | |
Credit Facility | |
As of August 11, 2014, the Company had $300.0 million outstanding under the Credit Facility and available borrowings of $582.9 million. | |
Investment in Real Estate Assets | |
Subsequent to June 30, 2014 through August 11, 2014, the Company acquired 34 commercial real estate properties for an aggregate purchase price of $135.7 million. The acquisitions were funded with net proceeds of the Offerings and available borrowings. Acquisition related expenses totaling $3.5 million were expensed as incurred. The Company has not completed its initial purchase price allocations with respect to these properties and therefore cannot provide the disclosures included for these properties in Note 4 to these condensed consolidated unaudited financial statements. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | |
Jun. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of presentation | ' | |
The condensed consolidated unaudited financial statements of the Company have been prepared in accordance with the rules and regulations of the SEC regarding interim financial reporting, including the instructions to Form 10-Q and Article 10 of Regulation S-X, and do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of management, the statements for the interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Results for these interim periods are not necessarily indicative of full year results. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended December 31, 2013, and related notes thereto set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The condensed consolidated unaudited financial statements should also be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this Quarterly Report on Form 10-Q. | ||
Principles of consolidation | ' | |
The condensed consolidated unaudited 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”). A VIE is broadly defined as an entity where either (1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity’s economic performance or (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company consolidates any VIEs when it is determined to be the primary beneficiary of the VIE’s operations. | ||
A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to 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, its form of ownership interest, its representation on the entity’s governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity. | ||
The Company continually evaluates the need to consolidate its joint venture arrangements based on standards set forth in GAAP. In determining whether the Company has a controlling interest in a joint venture arrangement and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, power to make decisions and contractual and substantive participating rights of the partners/members as well as whether the entity is a VIE for which the Company may be the primary beneficiary. As of June 30, 2014, the Company determined that it had a controlling interest in the Consolidated Joint Venture, and, therefore, met the GAAP requirements for consolidation. As of June 30, 2014, the Consolidated Joint Venture held real estate assets with an aggregate book value of $19.2 million. As of June 30, 2014 and December 31, 2013, the Company was not required to consolidate the Unconsolidated Joint Venture as the applicable joint venture entity did not qualify as a VIE and the Company did not meet the control requirement for consolidation. | ||
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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Investment in and valuation of real estate assets | ' | |
Investment in and Valuation of Real Estate Assets | ||
Real estate assets are stated at cost, less accumulated depreciation and amortization. Amounts capitalized to real estate assets consist of the cost of acquisition, excluding acquisition related expenses, construction and any tenant improvements, major improvements and betterments that extend the useful life of the real estate assets and leasing costs. All repairs and maintenance are expensed as incurred. | ||
The Company is required to make subjective assessments as to the useful lives of its depreciable assets. The Company considers the period of future benefit of each respective asset to determine the appropriate useful life of the assets. Real estate assets, other than land, are depreciated or amortized on a straight-line basis. The estimated useful lives of the Company’s real estate assets by class are generally as follows: | ||
Buildings | 40 years | |
Tenant improvements | Lesser of useful life or lease term | |
Intangible lease assets | Lease term | |
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 is determined using a discounted cash flow analysis and recent comparable sales transactions. No impairment indicators were identified and no impairment losses were recorded during the six months ended June 30, 2014 or 2013. | ||
When developing estimates of expected future cash flows, the Company makes certain assumptions regarding future market rental income amounts subsequent to the expiration of current lease agreements, property operating expenses, terminal capitalization and discount rates, the expected number of months it takes to re-lease the property, required tenant improvements and the number of years the property will be held for investment. The use of alternative assumptions in estimating expected future cash flows could result in a different determination of the property’s expected future cash flows and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the fair value of the real estate assets. | ||
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. There were no assets identified as held for sale as of June 30, 2014 or December 31, 2013. | ||
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 market and below market leases and the value of in-place leases, based in each case on their respective fair values. Acquisition related expenses are expensed as incurred. 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 Company obtains an independent appraisal for each real property acquisition. 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 market 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 any bargain renewal periods, with respect to a below market lease. The above market 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, 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 market 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 commissions and other direct costs 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 has acquired, and may continue to 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 (the “Contingent Payments”). 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 escrowed funds to the Company or the seller or a combination thereof. Contingent consideration arrangements are based on a predetermined formula and have set time periods regarding the obligation to make future payments, including funds released to the seller from escrow accounts, or the right to receive escrowed funds as set forth in the respective purchase and sale agreement. Contingent consideration arrangements, including amounts funded through an escrow account, are recorded upon acquisition of the respective property at their estimated fair values, and any changes to the estimated fair values, subsequent to acquisition, are reflected in the accompanying condensed consolidated unaudited statements of operations. The determination of the amount of contingent consideration arrangements is based on the probability of several possible outcomes as identified by management. | ||
The Company estimates 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 are initially 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 is amortized 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 impact the Company’s results of operations. | ||
Noncontrolling interest-redeemable interest in consolidated joint venture | ' | |
Noncontrolling Interest-Redeemable Interest in Consolidated Joint Venture | ||
On June 27, 2014, the Company completed the formation of the Consolidated Joint Venture. Pursuant to the joint venture agreement, the joint venture partner has a right to exercise an option after two years whereby the Company will be required to purchase the ownership interest of the joint venture partner at fair market value. The Company determined it had a controlling interest in the Consolidated Joint Venture and therefore met the GAAP requirements for consolidation. The Company initially recorded the noncontrolling interest at its acquisition-date fair value of $963,000 as temporary equity, in the mezzanine section of the balance sheet, due to the redemption option existing outside the control of the Company. | ||
Investment in unconsolidated joint venture | ' | |
Investment in Unconsolidated Joint Venture | ||
The Company accounts for its unconsolidated joint venture arrangement using the equity method of accounting as the Company has the ability to exercise significant influence, but not control, over operating and financial policies of this investment. The equity method of accounting requires the investment to be initially recorded at cost and subsequently adjusted for the Company’s share of equity in the Unconsolidated Joint Venture’s earnings and distributions. The Company is required to determine whether an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of its investment in the Unconsolidated Joint Venture. If an event or change in circumstance has occurred, the Company is required to evaluate the Unconsolidated Joint Venture for potential impairment and determine if the carrying amount of its investment exceeds its fair value. An impairment charge is recorded when an impairment is deemed to be other-than-temporary. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until the carrying amount is fully recovered. The evaluation of an investment in an Unconsolidated Joint Venture for potential impairment requires the Company’s management to exercise significant judgment and to make certain assumptions. The use of different judgments and assumptions could result in different conclusions. No impairment indicators were identified and no impairment losses were recorded related to the Unconsolidated Joint Venture for the six months ended June 30, 2014. The Company did not own any interests in any joint venture arrangements for the six months ended June 30, 2013. | ||
Restricted cash and escrows | ' | |
Restricted Cash and Escrows | ||
The Company had $2.3 million and $2.6 million held by lenders in lockbox accounts as of June 30, 2014 and December 31, 2013, respectively, that was included in restricted cash. As part of certain debt agreements, rents from certain encumbered properties are deposited directly into a lockbox account, from which the monthly debt service payment is disbursed to the lender and the excess is disbursed to the Company. Also included in restricted cash was $2.6 million and $513,000 held by lenders in escrow accounts for real estate taxes and other lender reserves for certain properties, in accordance with the respective lender’s loan agreement, as of June 30, 2014 and December 31, 2013, respectively. In addition, as of December 31, 2013, $5.1 million of escrowed investor proceeds for which shares of common stock had not been issued was included in restricted cash. | ||
Concentration of credit risk | ' | |
Concentration of Credit Risk | ||
As of June 30, 2014, the Company had cash on deposit, including restricted cash, at nine financial institutions, in all of which the Company had deposits in excess of federally insured levels totaling $483.5 million; however, the Company has not experienced any losses in such accounts. The Company limits significant cash deposits to accounts held by financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk on its cash deposits. | ||
As of June 30, 2014, no single tenant accounted for greater than 10% of the Company’s 2014 gross annualized rental revenues. The Company had certain geographic concentrations in its property holdings. In particular, as of June 30, 2014, 65 of the Company’s properties were located in Texas and 15 of the Company’s properties were located in California, which accounted for 11% and 10%, respectively, of the Company’s 2014 gross annualized rental revenues. In addition, the Company had tenants in the discount store and drugstore industries, which comprised 14% and 11%, respectively, of the Company’s 2014 gross annualized rental revenues. | ||
Derivatives 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 the 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. | ||
Redeemable common stock | ' | |
Redeemable Common Stock | ||
Under the Company’s share redemption program, the Company’s requirement to redeem shares of its outstanding common stock is limited, among other things, to the net proceeds received by the Company from the sale of shares under the DRIP, net of shares redeemed to date. The Company records amounts that are redeemable under the share redemption program as redeemable common stock outside of permanent equity in the accompanying condensed consolidated unaudited balance sheets. Changes in the amount of redeemable common stock from period to period are recorded as an adjustment to capital in excess of par value. | ||
Recent accounting pronouncements | ' | |
Recent Accounting Pronouncements | ||
In April 2014, the U.S. Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which amends the reporting requirements for discontinued operations by updating the definition of a discontinued operation to be a component of an entity that represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results, resulting in fewer disposals that qualify for discontinued operations reporting; yet, the pronouncement also requires expanded disclosures for discontinued operations. The adoption of ASU 2014-08 did not have a material impact on the Company’s condensed consolidated unaudited financial statements because the Company did not have any discontinued operations. | ||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes the revenue recognition requirements in Revenue Recognition (Topic 605), and requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers, including real estate sales, in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. The Company does not believe ASU 2014-09, when effective, will have a material impact on the Company’s condensed consolidated unaudited financial statements because the Company currently accounts for real estate sales in a manner that is consistent with ASU 2014-09. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | |
Jun. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Investment in and valuation of real estate and related assets | ' | |
Real estate assets, other than land, are depreciated or amortized on a straight-line basis. The estimated useful lives of the Company’s real estate assets by class are generally as follows: | ||
Buildings | 40 years | |
Tenant improvements | Lesser of useful life or lease term | |
Intangible lease assets | Lease term |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule of fair value, assets and liabilities measured on recurring basis | ' | |||||||||||||||
In accordance with the fair value hierarchy described above, the following tables show the fair value of the Company’s financial liabilities that are required to be measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||
Balance as of | Quoted Prices in | Significant Other | Significant | |||||||||||||
30-Jun-14 | Active Markets for | Observable Inputs | Unobservable | |||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | $ | (5,219 | ) | $ | — | $ | (5,219 | ) | $ | — | ||||||
Contingent consideration | (5,778 | ) | — | — | (5,778 | ) | ||||||||||
Total liabilities | $ | (10,997 | ) | $ | — | $ | (5,219 | ) | $ | (5,778 | ) | |||||
Balance as of | Quoted Prices in | Significant Other | Significant | |||||||||||||
December 31, 2013 | Active Markets for | Observable Inputs | Unobservable | |||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | $ | (2,252 | ) | $ | — | $ | (2,252 | ) | $ | — | ||||||
Contingent consideration | (784 | ) | — | — | (784 | ) | ||||||||||
Total liabilities | $ | (3,036 | ) | $ | — | $ | (2,252 | ) | $ | (784 | ) | |||||
Real_Estate_Acquisitions_Table
Real Estate Acquisitions (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Business Combinations [Abstract] | ' | |||||||||||||||
Schedule of recognized identified assets acquired and liabilities assumed | ' | |||||||||||||||
The following table summarizes the purchase price allocation (in thousands): | ||||||||||||||||
June 30, 2013 | ||||||||||||||||
Land | $ | 172,326 | ||||||||||||||
Building and improvements | 465,897 | |||||||||||||||
Acquired in-place leases | 81,243 | |||||||||||||||
Acquired above market leases | 14,594 | |||||||||||||||
Acquired below market leases | (16,324 | ) | ||||||||||||||
Total purchase price | $ | 717,736 | ||||||||||||||
The following table summarizes the purchase price allocation (in thousands): | ||||||||||||||||
June 30, 2014 | ||||||||||||||||
Land | $ | 141,754 | ||||||||||||||
Building and improvements | 447,413 | |||||||||||||||
Acquired in-place leases | 38,266 | |||||||||||||||
Acquired above market leases | 6,011 | |||||||||||||||
Acquired below market leases | (8,709 | ) | ||||||||||||||
Fair value adjustment of assumed notes payable | (765 | ) | ||||||||||||||
Total purchase price | $ | 623,970 | ||||||||||||||
Business acquisition, pro forma information | ' | |||||||||||||||
The table below presents the Company’s estimated revenue and net income (loss), on a pro forma basis, for the three and six months ended June 30, 2014 and 2013 (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Pro forma basis: | ||||||||||||||||
Revenue | $ | 61,643 | $ | 34,860 | $ | 122,991 | $ | 59,030 | ||||||||
Net income (loss) | $ | 17,286 | $ | (12,097 | ) | $ | 35,158 | $ | (35,356 | ) | ||||||
The table below presents the Company’s estimated revenue and net income (loss), on a pro forma basis, for the three and six months ended June 30, 2013 and 2012 (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Pro forma basis: | ||||||||||||||||
Revenue | $ | 26,406 | $ | 16,540 | $ | 52,706 | $ | 32,392 | ||||||||
Net income (loss) | $ | 6,605 | $ | (293 | ) | $ | 15,234 | $ | (16,849 | ) | ||||||
Derivative_Instrument_Tables
Derivative Instrument (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of derivative instruments | ' | |||||||||||||||||||
The following table summarizes the terms of the Company’s executed swap agreements designated as hedging instruments as of June 30, 2014 and December 31, 2013 (dollars in thousands): | ||||||||||||||||||||
Outstanding Notional | Fair Value of Liabilities | |||||||||||||||||||
Balance Sheet | Amount as of | Interest | Effective | Maturity | June 30, | December 31, | ||||||||||||||
Location | June 30, 2014 | Rates (1) | Dates | Dates | 2014 | 2013 | ||||||||||||||
Interest Rate Swaps | Deferred rental income and other liabilities | $ | 338,737 | 3.36% to 4.75% | 6/24/2013 to 8/23/2013 | 6/24/2018 to 8/24/2020 | $ | (5,219 | ) | $ | (2,252 | ) | ||||||||
-1 | The interest rates consist of the underlying index swapped to a fixed rate and the applicable interest rate spread. | |||||||||||||||||||
Schedule of derivative instruments, gain (loss) in statement of financial performance | ' | |||||||||||||||||||
The following table summarizes the unrealized losses on the Company’s derivative instruments and hedging activities for the three and six months ended June 30, 2014 (in thousands): | ||||||||||||||||||||
Amount of Loss Recognized in Other Comprehensive Loss | ||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Interest Rate Swaps (1) | $ | (2,296 | ) | $ | (337 | ) | $ | (2,967 | ) | $ | (337 | ) | ||||||||
-1 | There were no portions of the change in the fair value of the interest rate swap agreements that were considered ineffective during the six months ended June 30, 2014. No previously effective portions of the losses that were recorded in accumulated other comprehensive loss during the term of the hedging relationships were reclassified into earnings during the six months ended June 30, 2014. |
Notes_Payable_And_Credit_Facil1
Notes Payable And Credit Facilities (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of debt | ' | |||||||||||||||||||
The following table summarizes the debt balances as of June 30, 2014 and December 31, 2013 and the debt activity for the six months ended June 30, 2014 (in thousands): | ||||||||||||||||||||
During the Six Months Ended June 30, 2014 | ||||||||||||||||||||
Balance as of December 31, 2013 | Debt Issuance and Assumptions | Repayments | Other (1) | Balance as of June 30, 2014 | ||||||||||||||||
Fixed rate debt | $ | 396,946 | $ | 50,214 | $ | (194 | ) | $ | 721 | $ | 447,687 | |||||||||
Credit facility | 300,000 | — | — | — | 300,000 | |||||||||||||||
Total | $ | 696,946 | $ | 50,214 | $ | (194 | ) | $ | 721 | $ | 747,687 | |||||||||
-1 | Represents fair value adjustment of an assumed mortgage note payable, net of amortization. |
Supplemental_Cash_Flow_Disclos1
Supplemental Cash Flow Disclosures (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
Schedule of cash flow, supplemental disclosures | ' | |||||||
Supplemental cash flow disclosures for the six months ended June 30, 2014 and 2013 are as follows (in thousands): | ||||||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Supplemental disclosures of non-cash investing and financing activities: | ||||||||
Distributions declared and unpaid | $ | 15,403 | $ | 3,296 | ||||
Accrued other offering costs due to affiliates | $ | — | $ | 3,206 | ||||
Accrued capital expenditures | $ | 2,076 | $ | 832 | ||||
Common stock issued through distribution reinvestment plan | $ | 48,285 | $ | 6,660 | ||||
Net unrealized loss on interest rate swaps | $ | (2,967 | ) | $ | (337 | ) | ||
Contingent consideration recorded upon property acquisitions | $ | 5,342 | $ | 551 | ||||
Fair value of mortgage notes assumed in real estate acquisitions at date of assumption | $ | 25,979 | $ | — | ||||
Supplemental cash flow disclosures: | ||||||||
Interest paid | $ | 14,387 | $ | 5,754 | ||||
RelatedParty_Transactions_and_1
Related-Party Transactions and Arrangements - (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||
Schedule of related party transactions | ' | |||||||||||||||
The Company recorded fees and expense reimbursements as shown in the table below for services provided by CR IV Advisors or its affiliates related to the services described above during the periods indicated (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Acquisition and Operations: | ||||||||||||||||
Acquisition fees and expenses | $ | 7,164 | $ | 10,982 | $ | 13,151 | $ | 14,967 | ||||||||
Advisory fees and expenses | $ | 5,267 | $ | 2,101 | $ | 10,067 | $ | 3,290 | ||||||||
Operating expenses | $ | 642 | $ | 345 | $ | 1,782 | $ | 851 | ||||||||
The Company recorded commissions, fees and expense reimbursements as shown in the table below for services provided by CR IV Advisors or its affiliates related to the services described above during the periods indicated (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Offering: | ||||||||||||||||
Selling commissions (1) | $ | (12 | ) | $ | 15,203 | $ | 55,902 | $ | 25,264 | |||||||
Selling commissions reallowed by CCC | $ | (12 | ) | $ | 15,203 | $ | 55,902 | $ | 25,264 | |||||||
Dealer manager fees (1) | $ | (3 | ) | $ | 4,430 | $ | 16,780 | $ | 7,376 | |||||||
Dealer manager fees reallowed by CCC | $ | (3 | ) | $ | 2,428 | $ | 9,326 | $ | 4,050 | |||||||
Other offering costs | $ | 10 | $ | 3,799 | $ | 7,271 | $ | 6,796 | ||||||||
-1 | Selling commissions and dealer manager fees include amounts recouped in connection with cancellations of common stock during the three and six months ended June 30, 2014. These amounts are included in redemptions and net cancellations of common stock in the condensed consolidated unaudited statement of stockholders’ equity. |
Organization_and_Business_Deta
Organization and Business (Details) (USD $) | 6 Months Ended | 6 Months Ended | 24 Months Ended | 24 Months Ended | 27 Months Ended | 24 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | |||||||||
Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Apr. 04, 2014 | Feb. 18, 2014 | Jan. 26, 2012 | Apr. 04, 2014 | Jun. 30, 2014 | Dec. 19, 2013 | Apr. 04, 2014 | Feb. 18, 2014 | Jan. 26, 2012 | Jun. 30, 2014 | Feb. 18, 2014 | Feb. 18, 2014 | Nov. 25, 2013 | Jun. 30, 2014 | |
sqft | Unconsolidated joint venture | Common Stock | Initial public offering | Initial public offering | Initial public offering | Initial public offering | IPO and secondary offering | Distribution reinvestment plan | Distribution reinvestment plan | Distribution reinvestment plan | Distribution reinvestment plan | Distribution reinvestment plan | Maximum | Maximum | Maximum | CCPT IV OP | ||
Property | sqft | Common Stock | Initial public offering | Initial public offering | Initial public offering | IPO and secondary offering | Initial public offering | Distribution reinvestment plan | Distribution reinvestment plan | |||||||||
states | joint_venture | Initial public offering | Initial public offering | |||||||||||||||
Organization and business [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General partner partnership interest percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Common stock, shares authorized, value | ' | ' | ' | ' | ' | ' | $2,975,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized, value reallocated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,000,000 | 400,000,000 | ' |
Common stock, shares authorized (in shares) | 490,000,000 | 490,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,500,000 | ' | 292,300,000 | ' | ' | ' |
Share price (in dollars per share) | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' | $9.50 | ' | ' | ' | ' | ' | ' |
Issuance of common stock, shares (in shares) | ' | ' | ' | 89,144,146 | 297,400,000 | ' | ' | 292,300,000 | 300,300,000 | ' | 5,100,000 | ' | ' | ' | ' | ' | ' | ' |
Unsold shares deregistered | ' | ' | ' | ' | 404,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock shares registered dividend reinvestment plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period, shares, dividend reinvestment plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | ' | ' | ' |
Issuance of common stock | 885,953,000 | ' | ' | 892,000 | ' | ' | ' | ' | 3,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Offering costs, selling commissions, and dealer management fees | ' | ' | ' | ' | ' | ' | ' | ' | ($305,900,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of owned properties (in number of properties) | 509 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rentable square feet (in square feet) | 14,700,000 | ' | 176,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of states in which entity owns properties (in number of states) | 44 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of rentable space leased | 99.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Narrative (Details) (USD $) | Jun. 30, 2014 | Jun. 27, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
Restricted cash, investor proceeds for which shares of common stock had not been issued | Restricted cash, rents from certain encumbered properties | Restricted cash, rents from certain encumbered properties | Restricted cash, tenant and capital improvements, leasing commissions, repairs and maintenance and other lender reserves for certain properties | Restricted cash, tenant and capital improvements, leasing commissions, repairs and maintenance and other lender reserves for certain properties | Building | ||||
Valuation of real estate and related assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling interest | ' | $963,000 | ' | ' | ' | ' | ' | ' | ' |
Investment in unconsolidated joint venture | 19,247,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired real estate asset, useful life | ' | ' | ' | ' | ' | ' | ' | ' | '40 years |
Restricted cash | $4,864,000 | ' | $8,193,000 | $5,100,000 | $2,300,000 | $2,600,000 | $2,600,000 | $513,000 | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Concentration of credit risk (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Property | |
financial_institutions | |
Concentration Risk [Line Items] | ' |
Cash on deposit, number of financial institutions | 9 |
Cash on deposit, number of financial institutions which had deposits in excess of current federally insured limits | 9 |
Concentration risk, credit risk, financial instrument, maximum exposure | $483.50 |
Number of owned properties (in number of properties) | 509 |
Geographic concentration risk | California | ' |
Concentration Risk [Line Items] | ' |
Number of owned properties (in number of properties) | 15 |
Geographic concentration risk | Texas | ' |
Concentration Risk [Line Items] | ' |
Number of owned properties (in number of properties) | 65 |
Gross annualized rental revenue | Customer concentration risk | ' |
Concentration Risk [Line Items] | ' |
Concentration risk, percentage | 10.00% |
Gross annualized rental revenue | Customer concentration risk | Discount store industry | ' |
Concentration Risk [Line Items] | ' |
Concentration risk, percentage | 14.00% |
Gross annualized rental revenue | Customer concentration risk | Drugstore industry | ' |
Concentration Risk [Line Items] | ' |
Concentration risk, percentage | 11.00% |
Gross annualized rental revenue | Geographic concentration risk | California | ' |
Concentration Risk [Line Items] | ' |
Concentration risk, percentage | 10.00% |
Gross annualized rental revenue | Geographic concentration risk | Texas | ' |
Concentration Risk [Line Items] | ' |
Concentration risk, percentage | 11.00% |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 6 Months Ended | 6 Months Ended | ||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |
Fair value, measurements, recurring | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Estimate of fair value | Estimate of fair value | Estimate of fair value | Estimate of fair value | Carrying value | Carrying value | |||
Fair value, measurements, recurring | Fair value, measurements, recurring | Fair value, measurements, recurring | Fair value, measurements, recurring | Fair value, measurements, recurring | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lines of credit, fair value disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $743,800,000 | $682,100,000 | ' | ' | $747,700,000 | $696,900,000 |
Contingent consideration, liability, acquired during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,300,000 | ' | ' | ' |
Business combination, contingent consideration arrangements, change in amount of contingent consideration, liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -348,000 | ' | ' | ' |
Fair value assets and liabilities, transfers amount | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate swaps | ' | ' | -5,219,000 | -2,252,000 | 0 | 0 | -5,219,000 | -2,252,000 | 0 | 0 | ' | ' | ' | ' | ' | ' |
Contingent consideration | -5,342,000 | -551,000 | -5,778,000 | -784,000 | 0 | 0 | 0 | 0 | -5,778,000 | -784,000 | ' | ' | -5,800,000 | -784,000 | ' | ' |
Total liabilities | ' | ' | ($10,997,000) | ($3,036,000) | $0 | $0 | ($5,219,000) | ($2,252,000) | ($5,778,000) | ($784,000) | ' | ' | ' | ' | ' | ' |
Real_Estate_Acquisitions_Detai
Real Estate Acquisitions (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | |
2014 acquisitions | 2014 acquisitions | 2014 acquisitions | 2014 acquisitions | 2014 acquisitions | 2014 acquisitions | 2014 acquisitions | 2013 acquisitions | 2013 acquisitions | 2013 acquisitions | 2013 acquisitions | 2013 acquisitions | 2013 acquisitions | 2013 acquisitions | |||||
Property | Acquired-in-place leases | Acquired above-market leases | Acquired below-market leases | Property | Acquired-in-place leases | Acquired above-market leases | Acquired below-market leases | |||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of businesses acquired (in properties) | ' | ' | ' | ' | ' | ' | 172 | ' | ' | ' | ' | ' | ' | 89 | ' | ' | ' | ' |
Total purchase price | ' | ' | ' | ' | ' | ' | $624,000,000 | ' | ' | ' | ' | ' | ' | $717,700,000 | ' | ' | ' | ' |
Business Acquisition, Purchase Price Allocation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Land | ' | ' | ' | ' | 141,754,000 | ' | 141,754,000 | ' | ' | ' | ' | 172,326,000 | ' | 172,326,000 | ' | ' | ' | ' |
Building and improvements | ' | ' | ' | ' | 447,413,000 | ' | 447,413,000 | ' | ' | ' | ' | 465,897,000 | ' | 465,897,000 | ' | ' | ' | ' |
Acquired finite-lived intangible asset - leases, amount | ' | ' | ' | ' | ' | ' | ' | ' | 38,266,000 | 6,011,000 | ' | ' | ' | ' | ' | 81,243,000 | 14,594,000 | ' |
Acquired below market leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -8,709,000 | ' | ' | ' | ' | ' | ' | -16,324,000 |
Fair value adjustment of assumed notes payable | ' | ' | ' | ' | -765,000 | ' | -765,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase price | ' | ' | ' | ' | 623,970,000 | ' | 623,970,000 | ' | ' | ' | ' | 717,736,000 | ' | 717,736,000 | ' | ' | ' | ' |
Business combination, pro forma information, revenue of acquiree since acquisition date, actual | ' | ' | ' | ' | 8,300,000 | ' | 11,300,000 | ' | ' | ' | ' | 11,300,000 | ' | 12,200,000 | ' | ' | ' | ' |
Business combination, pro forma information, earnings or loss of acquiree since acquisition date, actual | ' | ' | ' | ' | -6,800,000 | ' | -13,400,000 | ' | ' | ' | ' | -10,900,000 | ' | -16,200,000 | ' | ' | ' | ' |
Pro forma basis (unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | 61,643,000 | 34,860,000 | 122,991,000 | 59,030,000 | ' | ' | ' | 26,406,000 | 16,540,000 | 52,706,000 | 32,392,000 | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | 17,286,000 | -12,097,000 | 35,158,000 | -35,356,000 | ' | ' | ' | 6,605,000 | -293,000 | 15,234,000 | -16,849,000 | ' | ' | ' |
Acquisition related expenses | $10,113,000 | $14,551,000 | $18,746,000 | $20,190,000 | $10,100,000 | ' | $18,700,000 | ' | ' | ' | ' | $14,600,000 | ' | $20,200,000 | ' | ' | ' | ' |
Derivative_Instrument_Details
Derivative Instrument (Details) (Cash flow hedging, Interest Rate Swaps, USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | ||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | ||||||
Deferred rental income and other liabilities | Deferred rental income and other liabilities | Deferred rental income and other liabilities | Deferred rental income and other liabilities | ||||||||||
Minimum | Maximum | ||||||||||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Outstanding Notional Amount | ' | ' | ' | ' | $338,737,000 | ' | ' | ' | |||||
Interest Rate | ' | ' | ' | ' | ' | ' | 3.36% | [1] | 4.75% | [1] | |||
Effective Date | ' | ' | ' | ' | ' | ' | 24-Jun-13 | 23-Aug-13 | |||||
Maturity Date | ' | ' | ' | ' | ' | ' | 24-Jun-18 | 24-Aug-20 | |||||
Fair Value of Liabilities | ' | ' | ' | ' | -5,219,000 | -2,252,000 | ' | ' | |||||
Amount of Loss Recognized in Other Comprehensive Loss | -2,296,000 | [2] | -337,000 | -2,967,000 | [2] | -337,000 | [2] | ' | ' | ' | ' | ||
Derivative liability, event of default, termination amount | $5,700,000 | ' | $5,700,000 | ' | ' | ' | ' | ' | |||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjQ3YmQ4M2IyYWI1YzQ1MWJhZWI0NzRmM2Q1ZjRlMmU3fFRleHRTZWxlY3Rpb246NTY2RkQzODg1RDMzOTJGRUQyNzUxNjc5Q0QzNDI5QjQM} | ||||||||||||
[2] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjQ3YmQ4M2IyYWI1YzQ1MWJhZWI0NzRmM2Q1ZjRlMmU3fFRleHRTZWxlY3Rpb246QjEyMzcxMEQ0ODlFMzI1RjVFMkYxNjc5Q0Q1MzBCODEM} |
Notes_Payable_And_Credit_Facil2
Notes Payable And Credit Facilities - (Details) (USD $) | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Aug. 11, 2014 | Aug. 11, 2014 | ||||
Notes payable | Unsecured debt | Line of credit | Line of credit | Line of credit | Fixed rate debt | Fixed rate debt | Fixed rate debt | Fixed rate debt | Fixed rate debt, variable rate debt fixed through the use of interest rate swaps | JPMorgan chase, revolving credit facility | JPMorgan chase, revolving credit facility | JPMorgan chase, revolving credit facility | JPMorgan chase, revolving credit facility | JPMorgan chase, revolving credit facility | JPMorgan chase, revolving credit facility | JPMorgan chase, revolving credit facility | JPMorgan chase, revolving credit facility | JPMorgan chase, revolving credit facility | JPMorgan chase, revolving credit facility | Eurodollar rate loan | Eurodollar rate loan | Base rate committed loans | Base rate committed loans | Subsequent event | Subsequent event | ||||||
Term loan | Revolving credit facility | Revolving credit facility | Revolving credit facility | Notes payable | Notes payable | Notes payable | Mortgage notes payable | Notes payable | Unsecured debt | Unsecured debt | Unsecured debt | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Unsecured debt | Unsecured debt | Unsecured debt | Unsecured debt | Line of credit | JPMorgan chase, revolving credit facility | |||||||
Interest Rate Swaps | Federal funds rate plus | LIBOR | Minimum | Maximum | Term loan | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | LIBOR | LIBOR | Base Rate [Member] | Base Rate [Member] | Revolving credit facility | Line of credit | ||||||||||||
Minimum | Maximum | Prior to August 15, 2014 | From and after August 15, 2014 | From and after August 15, 2014, but prior to August 15, 2016 | From and after August 15, 2016 | Minimum | Maximum | Minimum | Maximum | Revolving credit facility | |||||||||||||||||||||
Minimum | Minimum | Minimum | Minimum | ||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Debt instrument, weighted average years to maturity | '6 years 8 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Debt, weighted average interest rate | 3.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.36% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Short-Term and Long-Term Debt [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Notes payable and credit facility, beginning balance | $696,946,000 | ' | ' | ' | ' | ' | ' | $396,946,000 | ' | ' | $25,213,000 | $38,700,000 | ' | ' | ' | $300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $300,000,000 | |||
Debt issuance | 50,214,000 | ' | ' | ' | ' | ' | ' | 50,214,000 | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Debt instrument, decrease, repayments | -194,000 | ' | ' | ' | ' | ' | ' | -194,000 | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Debt instrument, increase (decrease), other, net | 721,000 | [1] | ' | ' | ' | ' | ' | ' | 721,000 | [1] | ' | ' | ' | ' | ' | ' | ' | 0 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes payable and credit facility, ending balance | 747,687,000 | ' | ' | ' | ' | ' | ' | 447,687,000 | ' | ' | 25,213,000 | 38,700,000 | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | |||
Fair value of mortgage notes assumed in real estate acquisitions at date of assumption | 25,979,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Debt security, amount, aggregate gross real estate assets net of gross intangible lease liabilities | ' | ' | 772,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Line of credit fixed interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 3.35% | 4.98% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Line of credit, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000,000 | 300,000,000 | 600,000,000 | 1,250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Line of credit facility, current borrowing capacity, percentage of collateral pool unencumbered assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Debt instrument, basis spread on variable rate | ' | ' | ' | ' | ' | 0.50% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.65% | 2.50% | 0.65% | 1.50% | ' | ' | |||
Derivative, interest rate swap, effective fixed rate | ' | ' | ' | 1.71% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Line of credit, current borrowing capacity | ' | ' | ' | ' | 582,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 582,900,000 | ' | |||
Debt instrument, collateral pledged | ' | ' | ' | ' | 1,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Line of credit facility, covenant, minimum consolidated net worth | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Line of credit facility, covenant, leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | |||
Debt instrument, covenant, fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Debt instrument, covenant, unsecured debt to unencumbered asset value ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | |||
Line of credit facility, covenant, unsecured debt service coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Line of credit facility, covenant, secured debt ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | 45.00% | 40.00% | ' | ' | ' | ' | ' | ' | |||
[1] | Represents fair value adjustment of an assumed mortgage note payable, net of amortization. |
Supplemental_Cash_Flow_Disclos2
Supplemental Cash Flow Disclosures (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Supplemental disclosures of non-cash investing and financing activities: | ' | ' | ' | ' | ' |
Distributions declared and unpaid | $15,403 | $3,296 | $15,403 | $3,296 | $10,569 |
Accrued other offering costs due to affiliates | ' | ' | 0 | 3,206 | ' |
Accrued capital expenditures | ' | ' | 2,076 | 832 | ' |
Common stock issued through distribution reinvestment plan | ' | ' | 48,285 | 6,660 | ' |
Net unrealized loss on interest rate swaps | -2,296 | -337 | -2,967 | -337 | ' |
Contingent consideration recorded upon property acquisitions | 5,342 | 551 | 5,342 | 551 | ' |
Fair value of mortgage notes assumed in real estate acquisitions at date of assumption | ' | ' | 25,979 | 0 | ' |
Supplemental cash flow disclosures: | ' | ' | ' | ' | ' |
Interest paid | ' | ' | $14,387 | $5,754 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Property | |
Capital addition purchase commitments | ' |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' |
Total purchase price | $129.70 |
Escrow deposit, property acquisition | 7.1 |
Number of businesses acquired (in properties) | 74 |
Ownership interest acquired | 100.00% |
Escrow deposit, potential forfeiture amount | 6.4 |
Purchase agreement for 25 properties | ' |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' |
Number of businesses acquired (in properties) | 16 |
Number of additional purchase agreements | 1 |
Number of properties committed to purchase | 25 |
Number of remaining properties committed to purchase | 9 |
Long-term purchase commitment contract non-purchase, amount | $10 |
RelatedParty_Transactions_and_2
Related-Party Transactions and Arrangements (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | ||||||||
Advisors | Advisors | Advisors | Advisors | Selling commissions | Selling commissions | Selling commissions | Selling commissions | Selling commissions | Selling commissions reallowed by cole capital | Selling commissions reallowed by cole capital | Selling commissions reallowed by cole capital | Selling commissions reallowed by cole capital | Selling commissions reallowed by cole capital | Dealer manager fee | Dealer manager fee | Dealer manager fee | Dealer manager fee | Dealer manager fee | Dealer manager fee reallowed by cole capital | Dealer manager fee reallowed by cole capital | Dealer manager fee reallowed by cole capital | Dealer manager fee reallowed by cole capital | Other organization and offering expenses | Other organization and offering expenses | Other organization and offering expenses | Other organization and offering expenses | Other organization and offering expenses | Offering costs | Offering costs | Acquisition fees and expenses | Acquisition fees and expenses | Acquisition fees and expenses | Acquisition fees and expenses | Acquisition fees and expenses | Acquisition fees and expenses | Advisory fees and expenses | Advisory fees and expenses | Advisory fees and expenses | Advisory fees and expenses | Operating expenses | Operating expenses | Operating expenses | Operating expenses | Acquisitions and operations costs | Acquisitions and operations costs | Property sales commission | Property portfolio | Brokerage commission fee | Performance fee | Average invested assets between $0 to $2 billion | Average invested assets between $0 to $2 billion | Average invested assets between $0 to $2 billion | Average invested assets between $2 billion to $4 billion | Average invested assets between $2 billion to $4 billion | Average invested assets between $2 billion to $4 billion | Average invested assets over $4 billion | Average invested assets over $4 billion | |||||||||||
Listing commission | Minimum | Dealer manager commission | Advisors | Advisors | Advisors | Advisors | Dealer manager commission reallowed | Advisors | Advisors | Advisors | Advisors | Dealer manager | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | Advisors | |||||||||||||
Maximum | Maximum | Maximum | Maximum | Contract sale price of each property | Maximum | Maximum | Maximum | Minimum | Maximum | Minimum | Minimum | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract purchase price of each asset | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Commissions percentage on stock sales and related dealer manager fees | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Organization and offering expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Related party transaction, expenses from transactions with related party | ' | ' | ' | ' | ' | ' | ' | ($12,000) | [1] | $15,203,000 | [1] | $55,902,000 | [1] | $25,264,000 | [1] | ' | ($12,000) | $15,203,000 | $55,902,000 | $25,264,000 | ' | ($3,000) | [1] | $4,430,000 | [1] | $16,780,000 | [1] | $7,376,000 | [1] | ($3,000) | $2,428,000 | $9,326,000 | $4,050,000 | $10,000 | $3,799,000 | $7,271,000 | $6,796,000 | ' | ' | ' | $7,164,000 | $10,982,000 | $13,151,000 | $14,967,000 | ' | ' | $5,267,000 | $2,101,000 | $10,067,000 | $3,290,000 | $642,000 | $345,000 | $1,782,000 | $851,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to Related Parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,000,000 | 36,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,500,000 | 18,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Due to affiliates | 971,000 | 7,512,000 | 971,000 | 7,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 520,000 | 322,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Acquisition and advisory fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Asset management or advisory fees percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | ' | ' | 0.70% | ' | ' | 0.65% | ' | ||||||||
Average invested assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,000,000,000 | $0 | ' | $4,000,000,000 | $2,000,000,000 | ' | $4,000,000,000 | ||||||||
Operating expense reimbursement percent of average invested assets | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Operating expense reimbursement percent of net income | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Commissions performance and other fees percent | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 6.00% | 50.00% | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Cumulative noncompounded annual return | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
[1] | Selling commissions and dealer manager fees include amounts recouped in connection with cancellations of common stock during the three and six months ended June 30, 2014. These amounts are included in redemptions and net cancellations of common stock in the condensed consolidated unaudited statement of stockholders’ equity. |
Subsequent_Events_Details
Subsequent Events - (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 8 Months Ended | |||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Aug. 11, 2014 | Aug. 11, 2014 | Aug. 11, 2014 | Aug. 11, 2014 | Aug. 11, 2014 | |
2014 acquisitions | 2014 acquisitions | Credit facility | Credit facility | Credit facility | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | ||||||
Property | Line of credit | Line of credit | Line of credit | 2014 acquisitions | Credit facility | Credit facility | Secondary offering | ||||||||
JPMorgan chase, revolving credit facility | JPMorgan chase, revolving credit facility | Property | Line of credit | Line of credit | |||||||||||
JPMorgan chase, revolving credit facility | |||||||||||||||
Subsequent Event | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock, shares (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,900,000 |
Issuance of common stock | ' | ' | $885,953,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $46,400,000 |
Redemptions of common stock, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 294,000 | ' | ' | ' | ' |
Redemptions of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | ' | ' | ' |
Share price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9.78 | ' | ' | ' | ' |
Debt, long-term and short-term, combined amount | 747,687,000 | ' | 747,687,000 | ' | 696,946,000 | ' | ' | ' | 300,000,000 | 300,000,000 | ' | ' | ' | 300,000,000 | ' |
Line of credit, current borrowing capacity | ' | ' | ' | ' | ' | ' | ' | 582,900,000 | ' | ' | ' | ' | 582,900,000 | ' | ' |
Number of businesses acquired (in properties) | ' | ' | ' | ' | ' | ' | 172 | ' | ' | ' | ' | 34 | ' | ' | ' |
Total purchase price | ' | ' | ' | ' | ' | ' | 624,000,000 | ' | ' | ' | ' | 135,700,000 | ' | ' | ' |
Acquisition costs | $10,113,000 | $14,551,000 | $18,746,000 | $20,190,000 | ' | $10,100,000 | $18,700,000 | ' | ' | ' | ' | $3,500,000 | ' | ' | ' |