NorthStar Healthcare Income (NHHS) 10-Q14 Nov 132013 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2013	Nov. 11, 2013
Document and Entity Information	'	'
Entity Registrant Name	'NorthStar Healthcare Income, Inc.	'
Entity Central Index Key	'0001503707	'
Entity Current Reporting Status	'Yes	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Non-accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	6,549,868
Amendment Flag	'false	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012
Assets	'	'
Cash	$5,595,255	$202,007
Restricted cash	114,987	'
Real estate debt investments, net	11,250,000	'
Receivables, net	549,184	'
Total assets	17,509,426	202,007
Liabilities	'	'
Due to related party	93,213	'
Escrow deposits payable	114,987	'
Distribution payable	81,551	'
Total liabilities	289,751	'
NorthStar Healthcare Income, Inc. Stockholders' Equity	'	'
Preferred stock, $0.01 par value; 50,000,000 shares authorized, no shares issued and outstanding as of September 30, 2013 and December 31, 2012	0	'
Common stock, $0.01 par value; 400,000,000 shares authorized, 1,969,302 and 22,223 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively	19,693	222
Additional paid-in capital	17,319,726	199,785
Retained earnings (accumulated deficit)	-121,794	'
Total NorthStar Healthcare Income, Inc. stockholders' equity	17,217,625	200,007
Non-controlling interests	2,050	2,000
Total equity	17,219,675	202,007
Total liabilities and equity	$17,509,426	$202,007

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]	'	'
Preferred stock, par value (in dollars per share)	$0.01	$0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, shares authorized	400,000,000	400,000,000
Balance (in shares)	1,969,302	22,223
Common Stock, Shares, Outstanding	1,969,302	22,223

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended	9 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	Sep. 30, 2013	Sep. 30, 2013
Revenues	'	'
Interest income	$105,556	$144,556
Total revenue	105,556	144,556
Expenses	'	'
General and administrative expenses	40,025	61,248
Advisory fees-related party	13,006	17,825
Total expenses	53,031	79,073
Net income (loss)	52,525	65,483
Less: net (income) loss attributable to non-controlling interests	-38	-50
Net income (loss) attributable to NorthStar Healthcare Income, Inc. common stockholders	$52,487	$65,433
Net income (loss) per share of common stock, basic/diluted (in dollars per share)	$0.06	$0.15
Weighted average number of shares of common stock outstanding, basic/diluted (in shares)	851,868	433,443
Distributions declared per share of common stock (in dollars per share)	$0.17	$0.33

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Statement of Comprehensive Income [Abstract]	'	'
Net income (loss)	$52,525	$65,483
Comprehensive income (loss)	52,525	65,483
Less: Comprehensive (income) loss attributable to non-controlling interests	-38	-50
Comprehensive income (loss) attributable to NorthStar Healthcare Income, Inc.	$52,487	$65,433

CONSOLIDATED_STATEMENTS_OF_EQU

CONSOLIDATED STATEMENTS OF EQUITY (USD $)	Total	Common Stock	Additional Paid-in Capital	Retained Earnings(Accumulated Deficit)	Total Company's Stockholders' Equity	Non-controlling Interests
Balance at Dec. 31, 2012	$202,007	$222	$199,785	'	$200,007	$2,000
Balance (in shares) at Dec. 31, 2012	22,223	22,223	'	'	'	'
Increase (Decrease) in Stockholder's Equity	'	'	'	'	'	'
Net proceeds from issuance of common stock (refer to Note 4)	17,102,786	19,305	17,083,481	'	17,102,786	'
Issuance and amortization of equity-based compensation	21,426	150	21,276	'	'	'
Issuance and amortization of equity-based compensation (in shares)	'	15,000	'	'	'	'
Distributions declared	-187,227	'	'	-187,227	-187,227	'
Proceeds from distribution reinvestment plan	15,200	16	15,184	'	15,200	'
Proceeds from distribution reinvestment plan (in shares)	'	1,600	'	'	'	'
Net income (loss)	65,483	'	'	65,433	65,433	50
Balance at Sep. 30, 2013	$17,219,675	$19,693	$17,319,726	($121,794)	$17,217,625	$2,050
Balance (in shares) at Sep. 30, 2013	1,969,302	1,969,302	'	'	'	'

CONSOLIDATED_STATEMENT_OF_CASH

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended	9 Months Ended
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (USD $)	Sep. 30, 2013	Sep. 30, 2013
Cash flows from operating activities:	'	'
Net income (loss)	$52,525	$65,483
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:	'	'
Amortization of equity-based compensation	'	21,426
Changes in assets and liabilities:	'	'
Receivables, net	'	-54,777
Due to related party	'	11,668
Net cash provided by (used in) operating activities	'	43,800
Cash flows from investing activities:	'	'
Acquisition of real estate debt investments (refer to Note 4)	'	-11,250,000
Net cash provided by (used in) investing activities	'	-11,250,000
Cash flows from financing activities:	'	'
Net proceeds from issuance of common stock, related party	'	1,998,731
Net proceeds from issuance of common stock	'	14,691,193
Distributions paid on common stock	'	-105,676
Proceeds from distribution reinvestment plan	'	15,200
Net cash provided by (used in) financing activities	'	16,599,448
Net increase (decrease) in cash	'	5,393,248
Cash - beginning of period	'	202,007
Cash - end of period	5,595,255	5,595,255
Supplemental disclosure of non-cash investing and financing activities:	'	'
Accrued cost of capital (refer to Note 4)	136,480	136,480
Subscriptions receivable, gross	549,342	549,342
Escrow deposits related to real estate debt investments	'	114,987
Distribution payable	$81,551	$81,551

Business_and_Organization

Business and Organization	9 Months Ended
Business and Organization	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Business and Organization	'
	Business and Organization
	NorthStar Healthcare Income, Inc. (the "Company") was formed on October 5, 2010 as a Maryland corporation and intends to qualify as a real estate investment trust ("REIT") beginning with the taxable year ending December 31, 2013. The Company was formed primarily to originate, acquire and asset manage a diversified portfolio of commercial real estate debt, securities and equity investments in healthcare real estate, with a focus on the mid-acuity senior housing sector, which the Company defines as assisted living, memory care, skilled nursing and independent living facilities that have an emphasis on private pay patients. The Company is externally managed by NorthStar Healthcare Income Advisor, LLC (the "Advisor") and has no employees. The Advisor uses the investment professionals of NorthStar Realty Finance Corp. (the "Sponsor") to manage the business. The Sponsor is a diversified commercial real estate investment and asset management company publicly traded on the New York Stock Exchange and was formed in October 2003.

	Substantially all business is conducted through NorthStar Healthcare Income Operating Partnership, LP (the "Operating Partnership"). The Company is the sole general partner of the Operating Partnership. The initial limited partners of the Operating Partnership are the Advisor and NorthStar Healthcare Income OP Holdings, LLC (the "Special Unit Holder"). The Advisor invested $1,000 in the Operating Partnership in exchange for common units and the Special Unit Holder invested $1,000 in the Operating Partnership and has been issued a separate class of limited partnership units (the "Special Units"), which are collectively recorded as non-controlling interests on the consolidated balance sheets as of September 30, 2013 and December 31, 2012. As the Company accepts subscriptions for shares, it contributes substantially all of the net proceeds from its continuous, public offering to the Operating Partnership as a capital contribution. As of September 30, 2013, the Company's limited partnership interest in the Operating Partnership was 98.87%.

	The Company's charter authorizes the issuance of up to 400,000,000 shares of common stock with a par value of $0.01 per share and up to 50,000,000 shares of preferred stock with a par value of $0.01 per share. The board of directors of the Company is authorized to amend its charter, without the approval of the stockholders, to increase the aggregate number of authorized shares of capital stock or the number of shares of any class or series that the Company has authority to issue.

	On October 12, 2010, as part of formation, the Company issued 22,223 shares of common stock to the Sponsor for $0.2 million (the "Initial Shares"). On August 7, 2012, the Company's registration statement on Form S-11 with the Securities and Exchange Commission (the "SEC") to offer a maximum of 110,526,315 shares of common stock, excluding the Initial Shares, in a continuous, public offering, of which up to 100,000,000 shares are being offered pursuant to the primary offering (the "Primary Offering") and up to 10,526,315 shares are being offered pursuant to the distribution reinvestment plan (the "DRP") and are herein collectively referred to as the Offering, was declared effective. At that time, the Company retained NorthStar Realty Securities, LLC (the "Dealer Manager"), a subsidiary of the Sponsor, to serve as the dealer manager for the Primary Offering. The Dealer Manager is responsible for marketing the shares being offered pursuant to the Primary Offering. The board of directors of the Company has the right to reallocate shares between the Primary Offering and the DRP.

	On February 11, 2013, the Company commenced operations by satisfying the minimum offering requirement in its Primary Offering as a result of the Sponsor purchasing an additional 222,223 shares of common stock for $2.0 million. From inception through November 11, 2013, the Company raised total gross proceeds of $64.9 million.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2013
Accounting Policies [Abstract]	'
Summary of Significant Accounting Policies	'
	Summary of Significant Accounting Policies
	Basis of Quarterly Presentation

	The accompanying unaudited consolidated financial statements and related notes of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and note disclosures normally included in the consolidated financial statements prepared under U.S. GAAP have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company's financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, which was filed with the SEC.

	Principles of Consolidation

	The consolidated financial statements include the accounts of the Company, the Operating Partnership and their consolidated subsidiaries which are generally majority owned or otherwise controlled by the Company. There were no intercompany balances as of September 30, 2013 and December 31, 2012.

	Estimates

	The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that could affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates and assumptions.

	Real Estate Debt Investments

	Debt investments are generally intended to be held to maturity and, accordingly, are carried at cost, net of unamortized loan fees, premium, discount and unfunded commitments. Debt investments that are deemed to be impaired are carried at amortized cost less a loan loss reserve, if deemed appropriate, which approximates fair value.

	Operating Real Estate

	Operating real estate is accounted for at historical cost less accumulated depreciation. Costs directly related to an acquisition deemed to be a business combination are expensed. Ordinary repairs and maintenance are expensed as incurred. Major replacements and betterments which improve or extend the life of the asset are capitalized and depreciated over their useful life. Real estate is depreciated using the straight-line method over the estimated useful lives of the assets. The Company follows the purchase method for an acquisition of operating real estate, where the purchase price is allocated to tangible assets such as land, building, tenant improvements and other identified intangibles.

	Real Estate Securities

	The Company classifies its securities investments as available for sale on the acquisition date, which are carried at fair value. Unrealized gains (losses) are recorded as a component of accumulated other comprehensive income (loss) ("OCI") in the consolidated statements of equity. However, the Company may elect the fair value option for certain of its available for sale securities, and as a result, any unrealized gains (losses) on such securities are recorded in unrealized gain (loss) on investments and other in the consolidated statements of operations.

	Revenue Recognition

	Real Estate Debt Investments

	Interest income is recognized on an accrual basis and any related premium, discount, origination costs and fees are amortized over the life of the investment using the effective interest method. The amortization is reflected as an adjustment to interest income in the consolidated statements of operations. The amortization of a premium or accretion of a discount is discontinued if such loan is reclassified to held for sale.

	Operating Real Estate

	Rental and escalation income from operating real estate is derived from leasing of space to various healthcare operators. The leases are generally for fixed terms of varying length and provide for annual rentals to be paid in monthly installments. Rental income from leases is recognized on a straight-line basis over the term of the respective leases. The excess of rents recognized over amounts contractually due pursuant to the underlying leases is included in unbilled rent receivable on the consolidated balance sheets. Escalation income represents revenue from operator leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes paid by the Company on behalf of the respective property, as applicable. This revenue is accrued in the same period as the expenses are incurred.

	Resident fee revenue from healthcare properties utilizing a taxable REIT subsidiary structure is recorded when services are rendered and includes resident room and care charges and other resident charges.

	Real Estate Securities

	Interest income is recognized using the effective interest method with any premium or discount amortized or accreted through earnings based on expected cash flow through the expected maturity date of the security. Changes to expected cash flow may result in a change to the yield which is then applied retrospectively for high-credit quality securities that cannot be prepaid or otherwise settled in such a way that the holder would not recover substantially all of the investment or prospectively for all other securities to recognize interest income.

	Credit Losses and Impairment on Investments

	Real Estate Debt Investments

	Loans are considered impaired when, based on current information and events, it is probable that the Company will not be able to collect principal and interest amounts due according to the contractual terms. The Company assesses the credit quality of the portfolio and adequacy of loan loss reserves on a quarterly basis, or more frequently as necessary. Significant judgment of the Company is required in this analysis. The Company considers the estimated net recoverable value of the loan as well as other factors, including but not limited to the fair value of any collateral, the amount and the status of any senior debt, the quality and financial condition of the borrower and the competitive situation of the area where the underlying collateral is located. Because this determination is based on projections of future economic events, which are inherently subjective, the amount ultimately realized may differ materially from the carrying value as of the balance sheet date. If upon completion of the assessment, the estimated fair value of the underlying collateral is less than the net carrying value of the loan, a loan loss reserve is recorded with a corresponding charge to provision for loan losses. The loan loss reserve for each loan is maintained at a level that is determined to be adequate by management to absorb probable losses. As of September 30, 2013, the Company did not have any impaired real estate debt investments.

	Income recognition is suspended for a loan at the earlier of the date at which payments become 90-days past due or when, in the opinion of the Company, a full recovery of income and principal becomes doubtful. When the ultimate collectability of the principal of an impaired loan is in doubt, all payments are applied to principal under the cost recovery method. When the ultimate collectability of the principal of an impaired loan is not in doubt, contractual interest is recorded as interest income when received, under the cash basis method until an accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. A loan is written off when it is no longer realizable and/or legally discharged.

	Operating Real Estate

	The Company's real estate investments are reviewed on a quarterly basis, or more frequently as necessary, to assess whether there are any indicators that the value of the real estate may be impaired or that its carrying value may not be recoverable. A property's value is considered impaired if the Company's estimate of the aggregate expected future undiscounted cash flows generated by the property is less than the carrying value. In conducting this review, the Company considers U.S. macroeconomic factors, real estate and healthcare sector conditions, asset and operator specific and other factors. To the extent an impairment has occurred, the loss is measured as the excess of the carrying value of the property over the estimated fair value.

	Allowances for doubtful accounts for operator/resident receivables are established based on a periodic review of aged receivables resulting from estimated losses due to the inability of operators/residents to make required rent and other payments contractually due. Additionally, the Company establishes, on a current basis, an allowance for future operator/resident credit losses on unbilled rent receivable based on an evaluation of the collectability of such amounts.

	Real Estate Securities

	Securities for which the fair value option is elected are not evaluated for other-than-temporary impairment ("OTTI") as any change in fair value is recorded in the consolidated statements of operations. Realized losses on such securities are reclassified to realized gain (loss) on investments and other as losses occur.

	Securities for which the fair value option is not elected are evaluated for OTTI quarterly. Impairment of a security is considered to be other-than-temporary when: (i) the holder has the intent to sell the impaired security; (ii) it is more likely than not the holder will be required to sell the security; or (iii) the holder does not expect to recover the entire amortized cost of the security. When a security has been deemed to be other-than-temporarily impaired due to (i) or (ii), the security is written down to its fair value and an OTTI is recognized in the consolidated statements of operations. In the case of (iii), the security is written down to its fair value and the amount of OTTI is then bifurcated into: (i) the amount related to expected credit losses; and (ii) the amount related to fair value adjustments in excess of expected credit losses. The portion of OTTI related to expected credit losses is recognized in the consolidated statements of operations. The remaining OTTI related to the valuation adjustment is recognized as a component of accumulated OCI in the consolidated statements of equity. The portion of OTTI recognized through earnings is accreted back to the amortized cost basis of the security through interest income, while amounts recognized through OCI are amortized over the life of the security with no impact on earnings. CRE securities which are not high-credit quality are considered to have an OTTI if the security has an unrealized loss and there has been an adverse change in expected cash flow. The amount of OTTI is then bifurcated as discussed above.

	Other

Refer to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012 for complete disclosure of the Company's significant accounting policies.

Recent Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board issued an accounting update to present the reclassification adjustments to OCI by component on the face of the statement of operations or in the notes to the consolidated financial statements. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety into earnings, an entity is required to cross-reference to other disclosures required under U.S. GAAP to provide additional detail about those amounts. The Company adopted the provisions of the update and it did not have a material impact on the consolidated financial statements.

Real_Estate_Debt_Investments

Real Estate Debt Investments

9 Months Ended

Sep. 30, 2013

Mortgage Loans on Real Estate [Abstract]

Real Estate Debt Investments

The following table presents real estate debt investments, all of which have been originated by the Sponsor on behalf of the Company, as of September 30, 2013:

Asset Type:

Number of Investments

Maturity Date

Extended Maturity Date

Principal Amount

Carrying Amount

Spread over

Unleveraged Current Yield

LIBOR(1)

First mortgage loan

16-Mar

18-Mar

11,250,000

8.08

__________________________

-1

Subject to a fixed minimum LIBOR rate of 1.0%.

Related_Party_Arrangements

Related Party Arrangements

9 Months Ended

Sep. 30, 2013

Related Party Transactions [Abstract]

Related Party Arrangements

NorthStar Healthcare Income Advisor, LLC

Subject to certain restrictions and limitations, the Advisor is responsible for managing the Company's affairs on a day-to-day basis and for identifying, originating, acquiring and asset managing investments on behalf of the Company. For such services, to the extent permitted by law and regulations, the Advisor receives fees and reimbursements from the Company. Below is a description and table of the fees and reimbursements incurred to the Advisor.

Organization and Offering Costs

The Advisor, or its affiliates, is entitled to receive reimbursement for organization and offering costs paid on behalf of the Company in connection with the Offering. The Company is obligated to reimburse the Advisor, or its affiliates, as applicable, for organization and offering costs to the extent the aggregate of selling commissions, dealer manager fees and other organization and offering costs do not exceed 15.0% of gross proceeds from the Primary Offering. The Advisor does not expect reimbursable organization and offering costs, excluding selling commissions and dealer manager fees, to exceed $15.0 million, or 1.5% of the total proceeds available to be raised from the Primary Offering. The Company shall not reimburse the Advisor for any organization and offering costs that the Company's independent directors determine are not fair and commercially reasonable to the Company. The Company records organization and offering costs each period based on an allocation of expected total organization and offering costs to be reimbursed. Organization costs are recorded in general and administrative expenses in the consolidated statements of operations and offering costs are recorded as a reduction to equity.

Operating Costs

The Advisor, or its affiliates, is entitled to receive reimbursement for direct and indirect operating costs incurred by the Advisor in connection with administrative services provided to the Company. Indirect operating costs include the Company's allocable share of costs incurred by the Advisor for personnel and other overhead such as rent, technology and utilities. However, there is no reimbursement for personnel costs related to executive officers and other personnel involved in activities for which the Advisor receives an acquisition fee or a disposition fee. The Company reimburses the Advisor quarterly for operating costs (including the asset management fee) based on a calculation for the four preceding fiscal quarters not to exceed the greater of: (i) 2.0% of its average invested assets; or (ii) 25.0% of its net income determined without reduction for any additions to reserves for depreciation, loan losses or other similar non-cash reserves and excluding any gain from the sale of assets for that period. Notwithstanding the above, the Company may reimburse the Advisor for expenses in excess of this limitation if a majority of the Company's independent directors determines that such excess expenses are justified based on unusual and non-recurring factors. The Company calculates the expense reimbursement quarterly based upon the trailing twelve-month period.

Advisory Fees

Asset Management Fee

The Advisor, or its affiliates, receives a monthly asset management fee equal to one-twelfth of 1.0% of the sum of the amount funded or allocated for investments, including expenses and any financing attributable to such investments, less any principal received on debt and securities investments (or the proportionate share thereof in the case of an investment made through a joint venture).

Acquisition Fee

The Advisor, or its affiliates, also receives an acquisition fee equal to 1.0% of the amount funded or allocated by the Company to originate or acquire investments, including acquisition expenses and any financing attributable to such investments (or the proportionate share thereof in the case of an investment made through a joint venture) except with respect to real estate property and 2.25% of each real estate property acquired by the Company, including acquisition expenses and any financing attributable to an equity investment (or the proportionate share thereof in the case of an equity investment made through a joint venture). An acquisition fee paid to the Advisor related to the origination or acquisition of debt investments is included in debt investments, net on the consolidated balance sheets and is amortized to interest income over the life of the investment using the effective interest method. An acquisition fee incurred related to an equity investment will generally be expensed as incurred.

Disposition Fee

For substantial assistance in connection with the sale of investments and based on the services provided, the Advisor, or its affiliates, receives a disposition fee equal to 1.0% of the contract sales price of each debt investment sold and 2.0% of the contract sales price of each property sold. The Company does not pay a disposition fee upon the maturity, prepayment, workout, modification or extension of a debt investment unless there is a corresponding fee paid by the borrower, in which case the disposition fee is the lesser of: (i) 1.0% of the principal amount of the debt investment prior to such transaction; or (ii) the amount of the fee paid by the borrower in connection with such transaction. If the Company takes ownership of a property as a result of a workout or foreclosure of a debt investment, the Company will pay a disposition fee upon the sale of such property. A disposition fee incurred to the Advisor on debt investments is included in debt investments, net on the consolidated balance sheets and is amortized to interest income over the life of the investment using the effective interest method.

NorthStar Realty Securities, LLC

Selling Commissions and Dealer Manager Fees

Pursuant to a dealer manager agreement, the Company pays the Dealer Manager selling commissions of up to 7.0% of gross proceeds from the Primary Offering, all of which are reallowed to participating broker-dealers. In addition, the Company pays the Dealer Manager a dealer manager fee of up to 3.0% of gross proceeds from the Primary Offering, a portion of which is reallowed to participating broker-dealers. No selling commissions or dealer manager fees are paid for sales pursuant to the DRP.

Summary of Fees and Reimbursements

The following table presents the fees and reimbursements incurred to the Advisor for the three and nine months ended September 30, 2013 and the due to related party as of September 30, 2013:

September 30, 2013

Due to related party as of

Type of Fee or Reimbursement

Financial Statement Location

Three Months Ended

Nine Months Ended

30-Sep-13

Organization and offering costs

Organization (1)

General and administrative expenses

12,313

14,291

4,293

Offering (1)

Cost of capital (2)

233,940

271,518

81,545

Operating costs (3)

General and administrative expenses

18,661

24,675

—

Advisory fees

Asset management

Advisory fees-related party

13,006

17,825

7,375

Acquisition (4)

Real estate debt investments, net

87,500

112,500

—

Disposition (4)

Real estate debt investments, net

—

Selling commissions / Dealer manager fees

Cost of capital (2)

1,621,388

1,679,540

—

Total

93,213

___________________________

-1

As of September 30, 2013, the Advisor incurred unreimbursed organization and offering costs on behalf of the Company and $2.7 million is still allocable.

-2

Cost of capital is included in net proceeds from issuance of common stock in the consolidated statements of equity.

-3

As of September 30, 2013, the Advisor incurred unreimbursed operating costs on behalf of the Company and $2.9 million is still allocable.

-4

Acquisition/disposition fees incurred to the Advisor related to debt investments are generally offset by origination/exit fees paid to the Company by borrowers if such fees are required from the borrower. The Advisor may determine to defer fees or seek reimbursement.

Sponsor Purchase of Common Stock

Pursuant to the distribution support agreement (the "Distribution Support Agreement"), the Sponsor committed to purchase up to an aggregate of $10.0 million in shares of the Company's common stock at a price of $9.00 per share if cash distributions exceed modified funds from operations (as defined in accordance with the current practice guidelines issued by the Investment Program Association) to provide additional funds to support distributions to stockholders. In February 2013, the Sponsor purchased 222,223 shares of the Company's common stock for $2.0 million under the Distribution Support Agreement to satisfy the minimum offering requirement, which reduced the total commitment. Excluding the Sponsor's purchase of shares to satisfy the minimum offering requirement, the Sponsor purchased 3,069 shares of the Company's common stock for $27,618 for the three and nine months ended September 30, 2013.

Purchase of First Mortgage Loan

In April 2013, the Company entered into a participation agreement with the Sponsor to acquire an $11.3 million first mortgage loan at cost over time as the Company raised capital. As of September 30, 2013, the Company purchased the entire $11.3 million first mortgage loan from the Sponsor.

EquityBased_Compensation

Equity-Based Compensation	9 Months Ended
Equity-Based Compensation	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Equity-Based Compensation	'
	Equity-Based Compensation
	The Company adopted a long-term incentive plan, as amended (the "Plan"), which it may use to attract and retain qualified officers, directors, employees and consultants, as well as an independent directors compensation plan, which is a component of the Plan. Each of the Company's three independent directors received 5,000 shares of restricted stock in connection with the commencement of operations on February 11, 2013. The restricted stock generally vests over four years, provided, however, that the restricted stock will become fully vested on the earlier occurrence of: (i) the termination of the independent director's service as a director due to his or her death or disability; or (ii) a change in control of the Company.
	For the three and nine months ended September 30, 2013, the Company recognized $8,438 and $21,426 of equity-based compensation expense, respectively, related to the issuance of restricted stock to the independent directors, which was recorded in general and administrative expenses in the consolidated statements of operations.

Stockholders_Equity

Stockholders' Equity	9 Months Ended
Stockholders' Equity	Sep. 30, 2013
Stockholders' Equity Note [Abstract]	'
Stockholders' Equity	'
	Stockholders' Equity
	Common Stock

	For the nine months ended September 30, 2013, the Company issued 1.9 million shares of common stock generating gross proceeds of $19.1 million.

	Distribution Reinvestment Plan

	The Company adopted a DRP through which common stockholders may elect to reinvest an amount equal to the distributions declared on their shares in additional shares of the Company's common stock in lieu of receiving cash distributions. The initial purchase price per share pursuant to the DRP is $9.50. Once the Company establishes an estimated value per share, shares issued pursuant to the DRP will be priced at 95.0% of the estimated value per share of the Company's common stock, as determined by the Advisor or another firm chosen for that purpose. The Company expects to establish an estimated value per share within 18 months after the completion of its offering stage. The offering stage will be considered complete when the Company is no longer publicly offering equity securities, whether through the Offering or follow-on public offering. No selling commissions or dealer manager fees are paid on shares issued pursuant to the DRP. The board of directors of the Company may amend, suspend or terminate the DRP for any reason upon ten-days' notice to participants. For the nine months ended September 30, 2013, the Company issued 1,600 shares totaling $15,200 of gross offering proceeds pursuant to the DRP.

	Distributions

	Distributions to stockholders are declared quarterly by the board of directors of the Company and are paid monthly based on a daily amount of $0.00184932 per share, which is equivalent to an annual distribution rate of 6.75%. The Company declared distributions for July, August and September 2013 of $19,706, $39,272 and $81,551, respectively. Distributions are generally paid to stockholders on the first day of the month following the month for which the distribution has accrued.

	Share Repurchase Program

	The Company adopted a share repurchase program that may enable stockholders to sell their shares to the Company in limited circumstances (the "Share Repurchase Program"). The Company may not repurchase shares unless a stockholder has held shares for one year. However, the Company may repurchase shares held less than one year in connection with a stockholder's death or disability, if the disability is deemed qualifying by the board of directors of the Company in its sole discretion, and after receiving written notice from the stockholder or the stockholder's estate. The Company is not obligated to repurchase shares under the Share Repurchase Program. The Company may amend, suspend or terminate the Share Repurchase Program at its discretion at any time, subject to certain notice requirements. As of September 30, 2013, the Company had not repurchased any shares pursuant to the Share Repurchase Program.

Noncontrolling_Interests

Non-controlling Interests	9 Months Ended
Non-controlling Interests	Sep. 30, 2013
Noncontrolling Interest [Abstract]	'
Non-controlling Interests	'
	Non-controlling Interests
	Operating Partnership
	Non-controlling interests represent the aggregate limited partnership interests in the Operating Partnership held by limited partners, other than the Company. Income (loss) attributable to the non-controlling interests is based on the limited partners' ownership percentage of the Operating Partnership. Income (loss) allocated to the Operating Partnership non-controlling interests for the three and nine months ended September 30, 2013 was an immaterial amount.

Fair_Value

Fair Value

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value

Fair Value Measurement

The fair value of financial instruments is categorized based on the priority of the inputs to the valuation technique and categorized into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

Financial assets and liabilities recorded at fair value on the consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:

Level 1.

Quoted prices for identical assets or liabilities in an active market.

Level 2.

Financial assets and liabilities whose values are based on the following:

Quoted prices for similar assets or liabilities in active markets.

Quoted prices for identical or similar assets or liabilities in non-active markets.

Pricing models whose inputs are observable for substantially the full term of the asset or liability.

Pricing models whose inputs are derived principally from or corroborated by observable market data for substantially the full term of the asset or liability.

Level 3.

Prices or valuation techniques based on inputs that are both unobservable and significant to the overall fair value measurement.

Fair Value of Financial Instruments

U.S. GAAP requires disclosure of fair value about all financial instruments. The following disclosure of estimated fair value of financial instruments was determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on estimated fair value.

The following table presents the principal amount, carrying value and fair value of certain financial assets as of September 30, 2013:

Principal

Carrying

Fair

Amount

Value

Financial assets: (1)

Real estate debt investments, net

11,250,000

_____________________________

-1

The fair value of other financial instruments not included in this table is estimated to approximate their carrying value.

Disclosure about fair value of financial instruments is based on pertinent information available to management as of the reporting date. Although management is not aware of any factors that would significantly affect fair value, such amounts have not been comprehensively revalued for purposes of these consolidated financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein.

Real Estate Debt Investments

For debt investments, fair value was approximated by comparing the current yield to the estimated yield for newly originated loans with similar credit risk or the market yield at which a third party might expect to purchase such investment but not to exceed principal amount. Fair value was determined assuming fully-extended maturities regardless of structural or economic tests required to achieve such extended maturities. These fair value measurements of debt are generally based on unobservable inputs and, as such, are classified as Level 3 of the fair value hierarchy.

Subsequent_Events

Subsequent Events	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
Subsequent Events	'
	Subsequent Events
	Distributions
	On November 7, 2013, the board of directors of the Company approved a daily cash distribution of $0.00184932 per share of common stock for each of the three months ended March 31, 2014. Distributions are generally paid to stockholders on the first day of the month following the month for which the distribution has accrued.
	Offering Proceeds
	For the period from October 1, 2013 through November 11, 2013, the Company issued 4.6 million shares of common stock pursuant to its Offering generating gross proceeds of $45.7 million.
	Sponsor Purchase of Common Stock
	On November 7, 2013, the Company's board of directors approved the sale of 8,099 shares of the Company's common stock to the Sponsor pursuant to the Distribution Support Agreement. In connection with this approval and including the shares purchased to satisfy the minimum offering requirement, the Sponsor will have purchased 233,391 shares for $2.1 million.
	Credit Facility
	On November 13, 2013, the Company, through its Operating Partnership, entered into a corporate credit facility agreement with KeyBank National Association, which may provide up to $100.0 million to finance real estate investments and first mortgage loans secured by healthcare real estate (the “Facility”). The initial amount of the Facility is $25.0 million and is subject to increases in accordance with the governing documents. The Facility provides advances up to 65.0%, depending upon the type and characteristics of the individual asset. Facility advances accrue interest at per annum rates of 2.75% to 3.25% above the relevant benchmark, based on the aggregate portfolio leverage. The initial maturity date of the Facility is November 13, 2016, with a one-year extension at the Company's option, subject to satisfaction of certain conditions. During the initial and extended term, the Facility acts as a revolving credit facility that can be paid down as assets are repaid or sold and re-drawn for new investments.
	The Company is required to maintain: (i) a minimum of $2.5 million or $5.0 million in unrestricted cash, depending on its consolidated total assets; and (ii) a tangible net worth equal to the lesser of (a) $25.0 million, subject to increases equal to 80.0% of aggregate net proceeds from the Offering and (b) $250.0 million. The Company is also required to raise a minimum of $20.0 million in additional Offering proceeds per calendar quarter until $150.0 million of total net Offering proceeds have been raised and to maintain (i) a ratio of modified funds from operations, as adjusted, to fixed charges of not less than 1.4x during the first year after the initial borrowing on the Facility, subject to annual increases, and (ii) a ratio of total borrowings to total assets of not greater than 65.0% prior to December 2014 and 60.0% thereafter. In addition, the properties pledged to the Facility must maintain an aggregate minimum occupancy rate. In connection with the Facility, the Company entered into an unconditional guaranty of payment and performance, under which the Company agreed to guaranty the obligations under the Facility.
	As of November 13, 2013, the Company had no borrowings outstanding under the Facility. The summary of the Facility and related guaranty described above is qualified in its entirety by reference to the credit facility and guaranty, which are filed as Exhibits 10.4 and 10.5, respectively, to this Form 10-Q.
	New Investments
	In October 2013, the Company acquired the following equity investments (dollars in millions):


	Investment		State	Property Type	Purchase Price (2)

	Kansas City Portfolio		KS	Memory Care/Assisted Living	$	15.6

	Peregrine Portfolio (1)		CT/NY	Memory Care/Assisted Living	14.2

	Total				$	29.8

	___________________________

	-1	Upon acquisition of a memory care facility for $11.1 million, the Company assumed an existing mortgage note payable of $7.8 million at one-month LIBOR plus 2.75% and maturing on June 1, 2018.

	-2	Includes transaction and other costs.
	Independent Directors' Share Grants
	On November 7, 2013, pursuant to the Plan, the Company granted 2,500 shares of restricted stock at $9.00 per share to each of the Company's three independent directors. The stock will generally vest over four years.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2013
Accounting Policies [Abstract]	'
Basis of Quarterly Presentation	'
	Basis of Quarterly Presentation

	The accompanying unaudited consolidated financial statements and related notes of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and note disclosures normally included in the consolidated financial statements prepared under U.S. GAAP have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company's financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, which was filed with the SEC.
Principles of Consolidation	'
	Principles of Consolidation

	The consolidated financial statements include the accounts of the Company, the Operating Partnership and their consolidated subsidiaries which are generally majority owned or otherwise controlled by the Company. There were no intercompany balances as of September 30, 2013 and December 31, 2012.
Estimates	'
	Estimates

	The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that could affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates and assumptions.
Real Estate Debt Investments	'
	Real Estate Debt Investments

	Debt investments are generally intended to be held to maturity and, accordingly, are carried at cost, net of unamortized loan fees, premium, discount and unfunded commitments. Debt investments that are deemed to be impaired are carried at amortized cost less a loan loss reserve, if deemed appropriate, which approximates fair value.
Operating Real Estate	'
	Operating Real Estate

	Operating real estate is accounted for at historical cost less accumulated depreciation. Costs directly related to an acquisition deemed to be a business combination are expensed. Ordinary repairs and maintenance are expensed as incurred. Major replacements and betterments which improve or extend the life of the asset are capitalized and depreciated over their useful life. Real estate is depreciated using the straight-line method over the estimated useful lives of the assets. The Company follows the purchase method for an acquisition of operating real estate, where the purchase price is allocated to tangible assets such as land, building, tenant improvements and other identified intangibles.
Real Estate Securities	'
	Real Estate Securities

	The Company classifies its securities investments as available for sale on the acquisition date, which are carried at fair value. Unrealized gains (losses) are recorded as a component of accumulated other comprehensive income (loss) ("OCI") in the consolidated statements of equity. However, the Company may elect the fair value option for certain of its available for sale securities, and as a result, any unrealized gains (losses) on such securities are recorded in unrealized gain (loss) on investments and other in the consolidated statements of operations.
Revenue Recognition	'
	Revenue Recognition

	Real Estate Debt Investments

	Interest income is recognized on an accrual basis and any related premium, discount, origination costs and fees are amortized over the life of the investment using the effective interest method. The amortization is reflected as an adjustment to interest income in the consolidated statements of operations. The amortization of a premium or accretion of a discount is discontinued if such loan is reclassified to held for sale.

	Operating Real Estate

	Rental and escalation income from operating real estate is derived from leasing of space to various healthcare operators. The leases are generally for fixed terms of varying length and provide for annual rentals to be paid in monthly installments. Rental income from leases is recognized on a straight-line basis over the term of the respective leases. The excess of rents recognized over amounts contractually due pursuant to the underlying leases is included in unbilled rent receivable on the consolidated balance sheets. Escalation income represents revenue from operator leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes paid by the Company on behalf of the respective property, as applicable. This revenue is accrued in the same period as the expenses are incurred.

	Resident fee revenue from healthcare properties utilizing a taxable REIT subsidiary structure is recorded when services are rendered and includes resident room and care charges and other resident charges.

	Real Estate Securities

	Interest income is recognized using the effective interest method with any premium or discount amortized or accreted through earnings based on expected cash flow through the expected maturity date of the security. Changes to expected cash flow may result in a change to the yield which is then applied retrospectively for high-credit quality securities that cannot be prepaid or otherwise settled in such a way that the holder would not recover substantially all of the investment or prospectively for all other securities to recognize interest income.
Credit Losses and Impairment on Investments	'
	Credit Losses and Impairment on Investments

	Real Estate Debt Investments

	Loans are considered impaired when, based on current information and events, it is probable that the Company will not be able to collect principal and interest amounts due according to the contractual terms. The Company assesses the credit quality of the portfolio and adequacy of loan loss reserves on a quarterly basis, or more frequently as necessary. Significant judgment of the Company is required in this analysis. The Company considers the estimated net recoverable value of the loan as well as other factors, including but not limited to the fair value of any collateral, the amount and the status of any senior debt, the quality and financial condition of the borrower and the competitive situation of the area where the underlying collateral is located. Because this determination is based on projections of future economic events, which are inherently subjective, the amount ultimately realized may differ materially from the carrying value as of the balance sheet date. If upon completion of the assessment, the estimated fair value of the underlying collateral is less than the net carrying value of the loan, a loan loss reserve is recorded with a corresponding charge to provision for loan losses. The loan loss reserve for each loan is maintained at a level that is determined to be adequate by management to absorb probable losses. As of September 30, 2013, the Company did not have any impaired real estate debt investments.

	Income recognition is suspended for a loan at the earlier of the date at which payments become 90-days past due or when, in the opinion of the Company, a full recovery of income and principal becomes doubtful. When the ultimate collectability of the principal of an impaired loan is in doubt, all payments are applied to principal under the cost recovery method. When the ultimate collectability of the principal of an impaired loan is not in doubt, contractual interest is recorded as interest income when received, under the cash basis method until an accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. A loan is written off when it is no longer realizable and/or legally discharged.

	Operating Real Estate

	The Company's real estate investments are reviewed on a quarterly basis, or more frequently as necessary, to assess whether there are any indicators that the value of the real estate may be impaired or that its carrying value may not be recoverable. A property's value is considered impaired if the Company's estimate of the aggregate expected future undiscounted cash flows generated by the property is less than the carrying value. In conducting this review, the Company considers U.S. macroeconomic factors, real estate and healthcare sector conditions, asset and operator specific and other factors. To the extent an impairment has occurred, the loss is measured as the excess of the carrying value of the property over the estimated fair value.

	Allowances for doubtful accounts for operator/resident receivables are established based on a periodic review of aged receivables resulting from estimated losses due to the inability of operators/residents to make required rent and other payments contractually due. Additionally, the Company establishes, on a current basis, an allowance for future operator/resident credit losses on unbilled rent receivable based on an evaluation of the collectability of such amounts.

	Real Estate Securities

	Securities for which the fair value option is elected are not evaluated for other-than-temporary impairment ("OTTI") as any change in fair value is recorded in the consolidated statements of operations. Realized losses on such securities are reclassified to realized gain (loss) on investments and other as losses occur.

	Securities for which the fair value option is not elected are evaluated for OTTI quarterly.
Other	'
	Other

	Refer to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012 for complete disclosure of the Company's significant accounting policies.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements

	In February 2013, the Financial Accounting Standards Board issued an accounting update to present the reclassification adjustments to OCI by component on the face of the statement of operations or in the notes to the consolidated financial statements. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety into earnings, an entity is required to cross-reference to other disclosures required under U.S. GAAP to provide additional detail about those amounts. The Company adopted the provisions of the update and it did not have a material impact on the consolidated financial statements.

Real_Estate_Debt_Investments_T

Real Estate Debt Investments (Tables)

9 Months Ended

Sep. 30, 2013

Mortgage Loans on Real Estate [Abstract]

Schedule of the company's real estate debt investment

The following table presents real estate debt investments, all of which have been originated by the Sponsor on behalf of the Company, as of September 30, 2013:

Asset Type:

Number of Investments

Maturity Date

Extended Maturity Date

Principal Amount

Carrying Amount

Spread over

Unleveraged Current Yield

LIBOR(1)

First mortgage loan

16-Mar

18-Mar

11,250,000

8.08

__________________________

-1

Subject to a fixed minimum LIBOR rate of 1.0%

Related_Party_Arrangements_Tab

Related Party Arrangements (Tables)	9 Months Ended
	Sep. 30, 2013
Related Party Transactions [Abstract]	'
Schedule of the fees and reimbursements incurred to the advisor and due to related party	'
	The following table presents the fees and reimbursements incurred to the Advisor for the three and nine months ended September 30, 2013 and the due to related party as of September 30, 2013:


				September 30, 2013				Due to related party as of
	Type of Fee or Reimbursement		Financial Statement Location	Three Months Ended		Nine Months Ended		30-Sep-13

	Organization and offering costs

	Organization (1)		General and administrative expenses	$	12,313	$	14,291	$	4,293

	Offering (1)		Cost of capital (2)	233,940		271,518		81,545

	Operating costs (3)		General and administrative expenses	18,661		24,675		—

	Advisory fees

	Asset management		Advisory fees-related party	13,006		17,825		7,375

	Acquisition (4)		Real estate debt investments, net	87,500		112,500		—

	Disposition (4)		Real estate debt investments, net	—		—		—

	Selling commissions / Dealer manager fees		Cost of capital (2)	1,621,388		1,679,540		—

	Total							$	93,213

	___________________________

	-1	As of September 30, 2013, the Advisor incurred unreimbursed organization and offering costs on behalf of the Company and $2.7 million is still allocable.

	-2	Cost of capital is included in net proceeds from issuance of common stock in the consolidated statements of equity.

	-3	As of September 30, 2013, the Advisor incurred unreimbursed operating costs on behalf of the Company and $2.9 million is still allocable.

	-4	Acquisition/disposition fees incurred to the Advisor related to debt investments are generally offset by origination/exit fees paid to the Company by borrowers if such fees are required from the borrower. The Advisor may determine to defer fees or seek reimbursement.

Fair_Value_Tables

Fair Value (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Schedule of the principal amount, carrying value and fair value of certain financial assets

ue.

The following table presents the principal amount, carrying value and fair value of certain financial assets as of September 30, 2013:

Principal

Carrying

Fair

Amount

Value

Financial assets: (1)

Real estate debt investments, net

11,250,000

_____________________________

-1

The fair value of other financial instruments not included in this table is estimated to approximate their carrying value.

Subsequent_Events_Subsequent_E

Subsequent Events Subsequent Events (Tables)	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
Schedule of Cost Method Investments	'
	In October 2013, the Company acquired the following equity investments (dollars in millions):


	Investment		State	Property Type	Purchase Price (2)

	Kansas City Portfolio		KS	Memory Care/Assisted Living	$	15.6

	Peregrine Portfolio (1)		CT/NY	Memory Care/Assisted Living	14.2

	Total				$	29.8

	___________________________

	-1	Upon acquisition of a memory care facility for $11.1 million, the Company assumed an existing mortgage note payable of $7.8 million at one-month LIBOR plus 2.75% and maturing on June 1, 2018.

	-2	Includes transaction and other costs.

Business_and_Organization_Deta

Business and Organization (Details) (USD $)

9 Months Ended

12 Months Ended

9 Months Ended

0 Months Ended

9 Months Ended

1 Months Ended

57 Months Ended

0 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Oct. 12, 2010

Sep. 30, 2013

Aug. 07, 2012

Nov. 11, 2013

Feb. 11, 2013

Dec. 31, 2012

employee

Special Unit Holder

Advisor

Initial Capitalization by Sponsor

Offering Proceeds

Third Party Equity Proceeds

Dividend Reinvestment Plan

Maximum

Subsequent event

Advisor

Sponsor

Offering Proceeds

Sponsor

Formation and organization

Number of employees

Non-controlling interest investment in operating partnership

$1,000

Limited partnership interest in operating partnership

98.87%

Common stock, shares authorized

400,000,000

Preferred stock, shares authorized

50,000,000

Common stock, par value (in dollars per share)

$0.01

Preferred stock, par value (in dollars per share)

$0.01

Number of shares of common stock issued

22,223

1,930,479

4,573,066

222,223

Value of common stock issued

$17,102,786

$200,000

$19,100,000

$45,700,000

$64,900,000

$2,000,000

Common stock filed in a registration statement with SEC, for issuance pursuant to offering (in shares)

100,000,000

10,526,315

110,526,315

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Details) (USD $)	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Consolidation	'	'
Intercompany balances	$0	$0
Credit Losses and Impairment on Investments	'	'
Period past due for suspension of income recognition	'90 days	'
Impaired real estate debt investments	$0	'

Real_Estate_Debt_Investments_D

Real Estate Debt Investments (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013
			First mortgage loan
			loan
Mortgage Loans on Real Estate [Line Items]	'	'	'
Number of Investments	'	'	1
Maturity Date	'	'	'2016-03
Extended Maturity Date	'	'	'2018-03
Carrying Amount	$11,250,000	'	$11,250,000	[1]
Spread over LIBOR	'	'	7.00%	[2]
Unleveraged Current Yield	'	'	8.08%
Description of variable rate basis	'	'	'LIBOR
LIBOR floor	'	'	1.00%

[1]	The fair value of other financial instruments not included in this table is estimated to approximate their carrying value.
[2]	Subject to a fixed minimum LIBOR rate of 1.0%

Related_Party_Arrangements_Det

Related Party Arrangements (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
	Quarter
Advisor \| Operating Costs	'
Operating Costs	'
Reimbursement of personnel costs related to executive officers and other personnel involved in activities for which the Advisor receives an acquisition fee, asset management fee or disposition fee	$0
Number of preceding fiscal quarters	4
Reimbursement expense period	'12 months
Advisor \| Asset Management Fee	'
Operating Costs	'
Annual Asset Management Fee Rate	1.00%
Asset Management Fee	'
Monthly asset management fees as a percentage of principal amount of debt originated	0.08%
Advisor \| Asset Acquisition Fee	'
Asset Acquisition Fee	'
Asset acquisition fee as a percentage of principal amount funded to originate debt, including acquisition expenses and any financing attributable to the investment	1.00%
Asset acquisition fee as a percentage of each real estate property acquired by the company, including acquisition expenses and any financing attributable to the investment	2.25%
Advisor \| Asset Disposition Fee	'
Asset Disposition Fee	'
Asset disposition fee as a percentage of contract sales price of debt investment sold	1.00%
Asset disposition fee as a percentage of contract sales price of property sold	2.00%
Asset disposition fee as a percentage of the principal amount of the loan or debt-related investment prior to the specified transaction	1.00%
Advisor \| Maximum \| Organization and Offering Costs	'
Organization and Offering Costs	'
Percentage of gross offering proceeds from primary offering, reimbursable as organization and offering costs	15.00%
Expected reimbursable organization and offering costs, excluding selling commissions and dealer manager fee	15,000,000
Expected reimbursable organization and offering costs, excluding selling commissions and dealer manager fee, as a percentage of total proceeds available to be raised from the primary offering	1.50%
Advisor \| Maximum \| Operating Costs	'
Operating Costs	'
Percentage of average invested assets reimbursable as operating costs	2.00%
Percentage of net income, without reduction for any additions to reserves for depreciation, loan losses or other similar non-cash reserves and excluding any gain from the sale of the company's assets, considered for reimbursement of operating costs	25.00%
Dealer Manager \| Maximum \| Selling Commissions and Dealer Manager Fees	'
Selling Commissions and Dealer Manager Fees	'
Selling commissions as a percentage of gross offering proceeds from the primary offering	7.00%
Dealer manager fee as a percentage of gross offering proceeds from the primary offering	3.00%
Selling commissions or dealer manager fees paid for sales pursuant to DRP	$0

Related_Party_Arrangements_Det1

Related Party Arrangements (Details 1) (USD $)

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Advisor

Organization and offering costs - Organization

Organization and offering costs - Offering

Operating Costs

Advisory fees - Asset Management

Advisory fees - Acquisition

Advisory fees - Disposition

Selling commissions / Dealer manager fees

General and administrative expenses

Cost of capital

General and administrative expenses

Advisory fees-related party

Real estate debt investments, net

Cost of capital

Related Party Transactions [Line Items]

Fees and Reimbursements

$12,313

[1]

$14,291

[1]

$233,940

[1],[2]

$271,518

[1],[2]

$18,661

[3]

$24,675

[3]

$13,006

$17,825

$87,500

[4]

$112,500

[4]

$1,621,388

[2]

$1,679,540

[2]

Due to related party

93,213

4,293

[1]

4,293

[1]

81,545

[1],[2]

81,545

[1],[2]

[3]

7,375

[4]

[2]

Allocable unreimbursed organization and offering costs

2,700,000

Allocable unreimbursed operating costs

$2,900,000

[1]

As of SeptemberB 30, 2013, the Advisor incurred unreimbursed organization and offering costs on behalf of the Company and $2.7 million is still allocable.

[2]

Cost of capital is included in net proceeds from issuance of common stock in the consolidated statements of equity.

[3]

As of SeptemberB 30, 2013, the Advisor incurred unreimbursed operating costs on behalf of the Company and $2.9 million is still allocable.

[4]

Related_Party_Arrangements_Det2

Related Party Arrangements (Details 2) (USD $)	9 Months Ended	1 Months Ended	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Feb. 28, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Apr. 30, 2013	Sep. 30, 2013
		Distribution Support Agreement	Distribution Support Agreement	Distribution Support Agreement	Distribution Support Agreement	Participation Agreement [Member]	Sponsor
		Sponsor	Sponsor	Sponsor	Sponsor	Sponsor	Real estate debt investments, net
					Maximum	First mortgage loan
Related Party Transactions [Line Items]	'	'	'	'	'	'	'
Number of shares committed to purchase	'	'	'	'	$10,000,000	'	'
Common stock purchase price per share (in dollars per shares)	'	'	'	$9	'	'	'
Number of shares of common stock issued	'	222,223	3,069	3,069	'	'	'
Value of common stock issued	17,102,786	2,000,000	27,618	27,618	'	'	'
Mortgage Loans on Real Estate, Face Amount of Mortgages	'	'	'	'	'	$11,300,000	$11,250,000

EquityBased_Compensation_Detai

Equity-Based Compensation (Details) (USD $)	0 Months Ended	3 Months Ended	9 Months Ended
	Feb. 11, 2013	Sep. 30, 2013	Sep. 30, 2013
	Feb. 11, 2013	director	director
Equity-based compensation	'	'	'
Issuance and amortization of equity-based compensation	'	'	$21,426
Restricted stock	'	'	'
Equity-based compensation	'	'	'
Number of independent directors	'	3	3
Number of shares granted to independent directors	5,000	'	'
Restricted stock grant vesting period	'	'	'4 years
Equity-based compensation expense	'	8,438	'
Issuance and amortization of equity-based compensation	'	'	$21,426

Stockholders_Equity_Details

Stockholder's Equity (Details) (USD $)	9 Months Ended			1 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Apr. 30, 2013	31-May-13	Jun. 30, 2013
	Sep. 30, 2013	Offering Proceeds	Distribution Support Agreement	Installment One April 2013	Installment Two May 2013	Installment Three June 2013
Common Stock	'	'	'	'	'	'
Number of shares of common stock issued	'	1,930,479	'	'	'	'
Gross proceeds from issuance of common stock	$17,102,786	$19,100,000	'	'	'	'
Distribution Reinvestment Plan	'	'	'	'	'	'
Share Price	'	'	$9.50	'	'	'
Percentage of estimated value per share of common stock	'	'	95.00%	'	'	'
Period within which the company expects to establish an estimated value per share	'	'	'18 months	'	'	'
Selling commissions or dealer manager fees paid for sales pursuant to DRP	'	'	0	'	'	'
Notice period served by board of directors to amend or terminate DRP	'	'	'10 days	'	'	'
Proceeds from distribution reinvestment plan (in shares)	'	'	1,600	'	'	'
Proceeds from distribution reinvestment plan	15,200	'	15,200	'	'	'
Distributions	'	'	'	'	'	'
Daily amount of distribution accrued per share (in dollars per share)	$0.00	'	'	'	'	'
Annual Distribution Rate	6.75%	'	'	'	'	'
Distribution to shareholder	$187,227	'	'	$19,706	$39,272	$81,551
Holding period of shares required for repurchase	'1 year	'	'	'	'	'

Fair_Value_Details

Fair Value (Details) (USD $)	Sep. 30, 2013		Dec. 31, 2012
Financial assets:	'		'
Carrying Value	$11,250,000		'
Real estate debt investments, net	'		'
Financial assets:	'		'
Principal Amount	11,250,000	[1]	'
Carrying Value	11,250,000	[1]	'
Fair Value	$11,250,000	[1]	'

[1]	The fair value of other financial instruments not included in this table is estimated to approximate their carrying value.

Subsequent_Events_New_Investme

Subsequent Events New Investments (Details) (Subsequent event, USD $)	1 Months Ended
In Millions, unless otherwise specified	Nov. 07, 2013	Oct. 31, 2013
Schedule of Cost-method Investments [Line Items]	'	'
Mortgage Loans on Real Estate, Commercial and Consumer, Net	'	$7.80
Debt Instrument, Description of Variable Rate Basis	'P1Y	'
Business Acquisition, Purchase Price Allocation, Equity Funded by Entity	'	29.8
Loans Receivable, Description of Variable Rate Basis	'LIBOR	'
Mortgage Loans on Real Estate, Variable Rate Basis Floor	'	2.75%
Kansas City Portfolio	'	'
Schedule of Cost-method Investments [Line Items]	'	'
Business Acquisition, Purchase Price Allocation, Equity Funded by Entity	'	15.6
Peregrine Portfolio [Member]	'	'
Schedule of Cost-method Investments [Line Items]	'	'
Business Acquisition, Purchase Price Allocation, Equity Funded by Entity	'	14.2
Memor Care Facility [Member]	'	'
Schedule of Cost-method Investments [Line Items]	'	'
Business Acquisition, Purchase Price Allocation, Equity Funded by Entity	'	$11.10

Subsequent_Events_Details

Subsequent Events (Details) (USD $)

9 Months Ended

0 Months Ended

1 Months Ended

57 Months Ended

0 Months Ended

13 Months Ended

0 Months Ended

9 Months Ended

0 Months Ended

Sep. 30, 2013

Nov. 13, 2013

Nov. 07, 2013

Nov. 11, 2013

Nov. 13, 2013

Feb. 11, 2013

Nov. 07, 2013

Feb. 11, 2013

Sep. 30, 2013

Nov. 07, 2013

Subsequent event

Restricted stock

Minimum

Maximum

Sponsor

Distribution Support Agreement

Subsequent event

Sponsor

Subsequent events

Loans Receivable, Description of Variable Rate Basis

'LIBOR

Number of shares granted to independent directors

5,000

2,500

Share Price

Daily amount of distribution accrued per share (in dollars per share)

$0.00

Number of shares of common stock issued

4,573,066

222,223

8,099

233,391

Value of common stock issued

$17,102,786

$45,700,000

$64,900,000

$2,000,000

$2,100,000

Line of Credit Facility, Maximum Borrowing Capacity

100,000,000

Line of Credit Facility, Current Borrowing Capacity

25,000,000

Debt Instrument, Basis Spread on Variable Rate

2.75%

3.25%

Advance Rate

65.00%

Period of time after which credit facility can be extended.

'1 year

Line of Credit Facility, Financial Covenant, Unrestricted Cash or Cash Equivalents Amount

2,500,000

5,000,000

Tangible Net Worth

25,000,000

250,000,000

Net Proceeds Minimum

20,000,000

Total Net Proceeds Required

$150,000,000

MFFO/Debt Service Ratio

140.00%

Increase in Offering Procceds

80.00%

Restricted stock grant vesting period

'4 years

Total Assets to Total Debt Pre 12/31/14

65.00%

Total Assets to Total Debt after 12/31/14

60.00%