Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||
Sep. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | |
Class A | Class C | ||
Document Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Central Index Key | '0001558235 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Entity Registrant Name | 'Corporate Property Associates 18 Global Incorporated | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well Known Seasoned Issuer | 'No | ' | ' |
Entity Common Stock Shares Outstanding | ' | 5,473,424 | 1,647,826 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Investments in properties: | ' | ' |
Real estate, at cost | $97,208,900 | $0 |
Accumulated depreciation | -243,280 | 0 |
Net investments in properties | 96,965,620 | 0 |
Cash and cash equivalents | 14,248,441 | 209,000 |
In-place lease intangible assets, net | 17,311,711 | 0 |
Deferred offering costs | 3,851,393 | 0 |
Other assets | 1,147,365 | 0 |
Total assets | 133,524,530 | 209,000 |
Liabilities: | ' | ' |
Non-recourse debt | 72,800,000 | 0 |
Notes payable to affiliate | 15,000,000 | 0 |
Due to affiliate | 5,343,352 | 0 |
Prepaid and deferred rental income | 2,441,828 | 0 |
Accounts payable, accrued expenses and other liabilities | 239,997 | 0 |
Distributions payable | 115,180 | 0 |
Total liabilities | 95,940,357 | 0 |
Commitments and contingencies (Note 7) | ' | ' |
CPAB.:18 b Global stockholdersb equity: | ' | ' |
Preferred stock, $0.001 par value, 50,000,000 and 0 shares authorized; None issued | 0 | 0 |
Additional paid-in capital | 18,996,596 | 208,977 |
Distributions in excess of accumulated losses | -318,730 | 0 |
Total CPAB.:18 b Global stockholdersb equity | 18,679,985 | 209,000 |
Noncontrolling interest | 18,904,188 | 0 |
Total equity | 37,584,173 | 209,000 |
Total liabilities and equity | 133,524,530 | 209,000 |
Class A common stock | ' | ' |
CPAB.:18 b Global stockholdersb equity: | ' | ' |
Common stock | 1,771 | 0 |
Total equity | 1,771 | 0 |
Class C common stock | ' | ' |
CPAB.:18 b Global stockholdersb equity: | ' | ' |
Common stock | 348 | 0 |
Total equity | 348 | 0 |
General Common Stock | ' | ' |
CPAB.:18 b Global stockholdersb equity: | ' | ' |
Common stock | 0 | 23 |
Total equity | $0 | $23 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
CPAB.:18 b Global stockholdersb equity: | ' | ' |
Common stock, par value | $0.00 | ' |
Preferred stock, par value | $0.00 | ' |
Preferred stock, authorized | 50,000,000 | 0 |
Preferred Stock, Shares Outstanding | 0 | ' |
Class A common stock | ' | ' |
CPAB.:18 b Global stockholdersb equity: | ' | ' |
Common stock, par value | $0.00 | ' |
Common Stock, Shares Authorized | 320,000,000 | 0 |
Common Stock, Shares, Issued | 1,771,353 | 0 |
Common Stock, Shares, Outstanding | 1,771,353 | 0 |
Class C common stock | ' | ' |
CPAB.:18 b Global stockholdersb equity: | ' | ' |
Common stock, par value | $0.00 | ' |
Common Stock, Shares Authorized | 80,000,000 | 0 |
Common Stock, Shares, Issued | 348,441 | 0 |
Common Stock, Shares, Outstanding | 348,441 | 0 |
General Common Stock | ' | ' |
CPAB.:18 b Global stockholdersb equity: | ' | ' |
Common stock, par value | ' | 0.001 |
Common Stock, Shares Authorized | 0 | 25,000 |
Common Stock, Shares, Issued | 0 | 23,222 |
Common Stock, Shares, Outstanding | 0 | 23,222 |
Consolidated_Statement_of_Oper
Consolidated Statement of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2013 | |||
Revenues | ' | ' | ||
Rental Income | $947,440 | $947,440 | ||
Operating Expenses | ' | ' | ||
Depreciation and amortization | 377,722 | 377,722 | ||
General and adminstrative | 194,208 | 259,449 | ||
Property expenses | 31,916 | 31,916 | ||
Operating Expenses | 603,846 | 669,087 | ||
Other Income and Expenses | ' | ' | ||
Interest expense | -415,994 | -415,994 | ||
Other income and (expenses) | 508 | 508 | ||
Other Income and Expenses | -415,486 | -415,486 | ||
Net Loss | -71,892 | -137,133 | ||
Net income attributable to noncontrolling interest | 66,417 | 66,417 | ||
Net Loss Attributable to CPAB.:18 b Global Stockholders | -138,309 | [1] | -203,550 | [1] |
Class A | ' | ' | ||
Other Income and Expenses | ' | ' | ||
Net Loss Attributable to CPAB.:18 b Global Stockholders | -108,611 | [1] | -163,329 | [1] |
Weighted average shares outstanding | 616,292 | 223,085 | ||
Net loss per share (in dollars per share) | ($0.18) | ($0.73) | ||
Distributions declared per share (in dollars per share) | $0.11 | $0.11 | ||
Class C | ' | ' | ||
Other Income and Expenses | ' | ' | ||
Net Loss Attributable to CPAB.:18 b Global Stockholders | ($29,698) | [1] | ($40,221) | [1] |
Weighted average shares outstanding | 149,294 | 50,311 | ||
Net loss per share (in dollars per share) | ($0.20) | ($0.80) | ||
Distributions declared per share (in dollars per share) | $0.10 | $0.10 | ||
[1] | The allocation of Net loss attributable to CPAB.:18 b Global stockholders is calculated based on the weighted-average shares outstanding for Class A common stock and Class C common stock for the three and nine months ended SeptemberB 30, 2013. The allocation for the Class A common stock excludes the shareholder servicing fee of $3,387 that is only applicable to holders of Class C common stock (Note 3). |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (Unaudited) (USD $) | Total | Class A | Class C | General Common Stock | Additional Paid-In Capital | Distributions in Excess of Accumulated Losses | Total CPA 18 - Global Stockholders | Noncontrolling Interests |
Beginning equity balance, value at Sep. 07, 2012 | $0 | ' | ' | ' | ' | ' | ' | ' |
Statements of Equity (Unaudited) | ' | ' | ' | ' | ' | ' | ' | ' |
Shares, $.001 par value, issued to Carey REIT II at $9.00 per share, value | 209,000 | ' | ' | 23 | 208,977 | ' | 209,000 | ' |
Shares, $.001 par value, issued to Carey REIT II at $9.00 per share, shares | ' | ' | ' | 23,222 | ' | ' | ' | ' |
Ending equity balance, value at Dec. 31, 2012 | 209,000 | 0 | 0 | 23 | 208,977 | 0 | 209,000 | 0 |
Ending equity balance, shares at Dec. 31, 2012 | ' | 0 | 0 | 23,222 | ' | ' | ' | ' |
Statements of Equity (Unaudited) | ' | ' | ' | ' | ' | ' | ' | ' |
Renaming of General Shares to Class A common stock, value | 0 | 23 | ' | -23 | ' | ' | ' | ' |
Renaming of General Shares to Class A common stock, shares | ' | 23,222 | ' | -23,222 | ' | ' | ' | ' |
Shares issued net of offering cost, value | 18,714,704 | 1,740 | 348 | ' | 18,712,616 | ' | 18,714,704 | ' |
Shares issued to affiliate, shares | ' | 835 | ' | ' | ' | ' | ' | ' |
Shares issued to affiliate, value | 8,345 | 1 | ' | ' | 8,344 | ' | 8,345 | ' |
Stock-based compensation, shares | ' | 7,407 | ' | ' | ' | ' | ' | ' |
Stock-based compensation, value | 66,666 | 7 | ' | ' | 66,659 | ' | 66,666 | ' |
Shares issued net of offering cost, shares | ' | 1,739,889 | 348,441 | ' | ' | ' | ' | ' |
Contributions from noncontrolling interests | 19,129,532 | ' | ' | ' | ' | ' | ' | 19,129,532 |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | -291,761 | ' | ' | ' | ' | ' | ' | -291,761 |
Distributions declared | -115,180 | ' | ' | ' | ' | -115,180 | -115,180 | ' |
Net loss | -137,133 | ' | ' | ' | ' | -203,550 | -203,550 | 66,417 |
Ending equity balance, value at Sep. 30, 2013 | $37,584,173 | $1,771 | $348 | $0 | $18,996,596 | ($318,730) | $18,679,985 | $18,904,188 |
Ending equity balance, shares at Sep. 30, 2013 | ' | 1,771,353 | 348,441 | 0 | ' | ' | ' | ' |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity (Unaudited) (Parentheticals) (USD $) | Dec. 31, 2012 |
Carey REIT II | |
Statements of Equity (Unaudited) | ' |
Common stock, par value | $0.00 |
Per share price issued | $9 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (Unaudited) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Cash Flows - Operating Activities | ' |
Net loss | ($137,133) |
Adjustments to net loss: | ' |
Depreciation and amortization, including intangible assets and deferred financing costs, and other non-cash charges | 380,246 |
Stock-based compensation expense | 66,666 |
Straight-line rent adjustment, amortization of rent-related intangibles, and others | -137,132 |
Organization costs paid by affiliate | 65,240 |
Net changes in other operating assets and liabilities | 935,842 |
Net Cash Provided by Operating Activities | 1,173,729 |
Cash Flows b Investing Activities | ' |
Acquisition of real estate | -111,626,737 |
Net Cash Used in Investing Activities | -111,626,737 |
Cash Flows b Financing Activities | ' |
Proceeds from mortgage financing | 72,800,000 |
Contributions from noncontrolling interests | 19,129,532 |
Proceeds from issuance of shares, net of issuance costs | 18,074,861 |
Note payable proceeds from affiliate | 15,000,000 |
Distributions to noncontrolling interest | -291,761 |
Payment of deferred financing costs and mortgage deposits | -220,183 |
Net Cash Provided by Financing Activities | 124,492,449 |
Net increase in cash and cash equivalents | 14,039,441 |
Cash and cash equivalents, beginning of period | 209,000 |
Cash and cash equivalents, end of period | 14,248,441 |
Supplemental non-cash investing and financing activities: | ' |
Non-cash capitalized costs (Note 3, 4) | -1,381,488 |
Non-cash capitalized costs (Note 3, 4) | -3,851,393 |
Third quarter distribution declared (Note 8) | -115,180 |
Class A common stock | ' |
Supplemental non-cash investing and financing activities: | ' |
Asset management fees settled in shares (Note 3) | $8,345 |
Business
Business | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Business | ' |
Note 1. Business | |
Organization | |
Corporate Property Associates 18 – Global Incorporated (“CPA®:18 – Global” and, together with its consolidated subsidiaries, “we”, “us” or “our”) is a Maryland corporation formed in September 2012 for the purpose of investing primarily in a diversified portfolio of income-producing commercial real estate properties and other real estate related assets, both domestically and outside the United States (“U.S.”). We intend to qualify as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986 (the “Code”) for the taxable year ending December 31, 2013, and intend to conduct substantially all of our investment activities and own all of our assets through CPA:18 Limited Partnership, a Delaware limited partnership, which is our “Operating Partnership.” We are a general partner and a limited partner and own a 99.985% interest in the Operating Partnership. The Operating Partnership was formed on April 8, 2013. On July 3, 2013, WPC–CPA®:18 Holdings, LLC (“CPA®:18 Holdings”), a subsidiary of our sponsor, W. P. Carey Inc. (“W. P. Carey”), acquired a 0.015% special general partner interest in the Operating Partnership, representing its special general partnership interest, for $209,000. | |
Carey Asset Management Corp., a subsidiary of W. P. Carey, together with its affiliates, is our “advisor” and manages our business. The advisor also currently manages three other affiliated REITs, namely, Corporate Property Associates 16 – Global Incorporated, Corporate Property Associates 17 – Global Incorporated (“CPA®:17 – Global”) and Carey Watermark Investors Incorporated. W. P. Carey & Co B.V., an affiliate of our advisor, will provide asset management services with respect to any foreign investments that we may make in the future. | |
On September 13, 2012, Carey REIT II, Inc. (“Carey REIT II”), a subsidiary of W. P. Carey and an affiliate of our advisor, purchased 1,000 shares of our common stock, par value $0.001 per share, for an aggregate purchase price of $9,000 and was admitted as our initial stockholder. On December 14, 2012, we received an additional capital contribution from Carey REIT II for $200,000 in exchange for 22,222 shares of our common stock, par value $0.001 per share. Carey REIT II purchased its shares at $9.00 per share, net of selling commissions and fees that would have otherwise been payable to Carey Financial, LLC (“Carey Financial”), our dealer manager and an affiliate of the advisor. On April 8, 2013, the shares held by Carey REIT II were renamed as Class A common stock. All of the shares issued to Carey REIT II have a par value of $0.001 per share. On April 8, 2013, with the approval of our Board of Directors, we amended our articles of incorporation. Pursuant to the amended and restated articles of incorporation, we are authorized to issue 320,000,000 shares of Class A common stock, 80,000,000 shares of Class C common stock, and 50,000,000 shares of preferred stock. All of the authorized shares have a par value of $0.001 per share. | |
Public Offering | |
On May 7, 2013, our Registration Statement was declared effective by the SEC under the Securities Act of 1933, as amended (the “Securities Act”). This Registration Statement covers our initial public offering of up to $1.0 billion of common stock, in any combination of Class A common stock and Class C common stock at a price of $10.00 per share of Class A common stock and $9.35 per share of Class C common stock. The Registration Statement also covers the offering of up to $400,000,000 in common stock, in any combination of Class A common stock and Class C common stock, pursuant to our distribution reinvestment and stock purchase plan (“DRIP”) at a price of $9.60 per share of Class A common stock and $8.98 per share of Class C common stock. Our initial public offering is being offered on a “best efforts” basis by Carey Financial and selected other dealers. The per share amount of distributions on shares of Class A and C common stock will likely differ because of different allocations of class-specific expenses. Specifically, distributions on shares of Class C common stock will likely be lower than shares of Class A common stock because shares of Class C common stock are subject to ongoing distribution and shareholder servicing fees (the “shareholder servicing fee”) (Note 3). We currently intend to sell shares in our initial public offering until May 7, 2015; however, our Board of Directors may decide to extend the offering for up to an additional 18 months, and if so we would announce such extension in a prospectus supplement. In some states, we will need to renew our registration annually in order to continue offering our shares beyond the initial registration period. On July 25, 2013, aggregate subscription proceeds for our Class A and Class C common stock exceeded the minimum offering amount of $2,000,000 and we began to admit stockholders. Through October 31, 2013, we raised gross offering proceeds for our Class A common stock and Class C common stock of $50,247,946 and $15,389,115, respectively. |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Note 2. Basis of Presentation | |
Basis of Presentation | |
Our interim consolidated financial statements have been prepared, without audit, in accordance with the instructions to Form 10-Q and therefore do not necessarily include all information and footnotes necessary for a fair statement of our consolidated financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the U.S. (“GAAP”). | |
In the opinion of management, the unaudited consolidated financial information for the interim periods presented in this Report reflects all normal and recurring adjustments necessary for a fair statement of results of operations, financial position and cash flows. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year. | |
We had no operating activity prior to April 8, 2013 and acquired our first investment on August 20, 2013. | |
Basis of Consolidation | |
Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries. The portion of equity in a consolidated subsidiary that is not attributable, directly or indirectly, to us is presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated. | |
When we obtain an economic interest in an entity, we evaluate the entity to determine if it is a variable interest entity (“VIE”) or voting interest entity (“VOE”) and, if so, whether we are the primary beneficiary and are therefore required to consolidate the entity. We performed an analysis of all of our subsidiary entities to determine whether they qualify as VIEs and whether they should be consolidated or accounted for as equity investments in an unconsolidated venture. | |
Based on our evaluation, we determined that our Operating Partnership was not a VIE but should be consolidated as we control all decisions regarding our Operating Partnership. We account for the 0.015% interest held by CPA®:18 Holdings in the Operating Partnership as a noncontrolling interest. On August 20, 2013, we entered into a jointly-owned investment with our affiliate, CPA®:17 – Global (Note 4). We have concluded that this subsidiary is a VOE and will be consolidated by us as we are the managing member and the non-managing member does not have substantive participating or “kick-out” rights. Kick-out rights are the rights underlying the limited partners’ ability to dissolve (liquidate) the limited partnership or otherwise remove the general partners. | |
Purchase Price Allocation | |
When we acquire properties with leases classified as operating leases, we allocate the purchase price to the tangible and intangible assets and liabilities acquired based on their estimated fair values. We determine the value of the tangible assets, consisting of land and buildings, as if vacant, and record intangible assets, including the above-market and below-market value of leases (where applicable), and the value of in-place leases, at their estimated fair values. Land is typically valued utilizing the sales comparison (or market approach). Buildings, as if vacant, are valued using the cost and/or income approach. Site improvements are valued using the cost approach. The fair value of real estate is determined by reference to portfolio appraisals which determines their values, on a property level, by applying a discounted cash flow analysis to the estimated net operating income for each property in the portfolio during the remaining anticipated lease term, and the estimated residual value of each property from a hypothetical sale of the property upon expiration after considering the re-tenanting of such property at estimated then current market rental rate, at a selected capitalization rate and deducting estimated costs of sale. The proceeds from a hypothetical sale are derived by capitalizing the estimated net operating income of each property for the year following lease expiration at an estimated residual capitalization rate. The discount rates and residual capitalization rates used to value the properties are selected based on several factors, including the credit worthiness of the lessees, industry surveys, property type, location and age, current lease rates relative to market lease rates and anticipated lease duration. In the case where a tenant has a purchase option deemed to be materially favorable to the tenant, or the tenant has long-term renewal options at rental rates below estimated market rental rates, the appraisal assumes the exercise of such purchase option or long-term renewal options in its determination of residual value. Where a property is deemed to have excess land, the discounted cash flow analysis includes the estimated excess land value at the assumed expiration of the lease, based upon an analysis of comparable land sales or listings in the general market area of the property growing at estimated market growth rates through the year of lease expiration. For those properties that are under contract for sale, the appraised value of the portfolio reflects the current contractual sale price of such properties. See Revenue Recognition and Depreciation below for a discussion of our significant accounting policies related to tangible assets. We include the value of below-market leases in Prepaid and deferred rental income in the consolidated balance sheets. | |
We record above-market and below-market lease values for owned properties, where applicable, based on the present value (using a discount rate reflecting the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the leases negotiated and in place at the time of acquisition of the properties and (ii) our estimate of fair market lease rates for the property or equivalent property, both of which are measured over a period equal to the estimated lease term, which includes renewal options with rental rates below estimated market rental rates. We amortize the capitalized above-market lease value, where applicable, as a reduction of rental income over the estimated market lease term. We amortize the capitalized below-market lease value as an increase to rental income over the estimated lease term and any fixed-rate renewal periods in the respective leases. | |
The value of any in-place lease is estimated to be equal to the property owner’s avoidance of costs necessary to lease the property for a term equal to the remaining primary in-place lease term and the value of investment grade tenancy. The cost avoidance to the property owners of vacancy and leasing costs necessary to lease the property for a lease term equal to the remaining in-place lease term is derived first by determining the in-place lease term on the subject lease. Then, based on our review of the market, the cost to be borne by a property owner to replicate a market lease to the remaining in-place term was estimated. These costs consist of: (i) rent lost during downtime (i.e. assumed periods of vacancy); (ii) estimated expenses that would be incurred by the property owner during periods of vacancy; (iii) rent concessions (i.e. free rent); (iv) leasing commissions; and (v) tenant improvement allowances. We determine these values using our estimates or by relying in part upon third-party appraisals. We amortize the capitalized value of in-place lease intangibles to expense over the remaining initial term of each lease. No amortization period for intangibles will exceed the remaining depreciable life of the building. | |
Cash and Cash Equivalents | |
We consider all short-term, highly-liquid investments that are both readily convertible to cash and have a maturity of generally three months or less at the time of purchase to be cash equivalents, where applicable. Items classified as cash equivalents include commercial paper and money-market funds, where applicable. Our cash and cash equivalents are held in the custody of one financial institution. These balances, at times, may exceed federally-insurable limits. We will seek to mitigate this risk by depositing funds only with major financial institutions. | |
Revenue Recognition | |
We lease real estate to others on a triple-net leased basis whereby the tenant is generally responsible for all operating expenses relating to the property, including property taxes, insurance, maintenance, repairs, renewals and improvements. We charge expenditures for maintenance and repairs, including routine betterments, to operations as incurred. We capitalize any significant renovations that increase the useful life of the properties. | |
Our lease provides for scheduled rent increases each year. For operating leases, we record real estate at cost less accumulated depreciation; we recognize future minimum rental revenue on a straight-line basis over the non-cancelable lease term of the related lease and charge expenses to operations as incurred. | |
Depreciation | |
We compute depreciation of the building and its related improvements using the straight-line method over the estimated remaining useful life of the property or improvements, which is 40 years and ten years, respectively. | |
Fair Value Measurements | |
The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including an interest rate cap and swaps; and Level 3, for securities and other derivative assets that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions. Our debt and deferred acquisition fees payable, which we have classified as Level 3, had carrying values that approximated their fair values at September 30, 2013. | |
Income Taxes | |
We intend to qualify as a REIT under Sections 856 through 860 of the Code beginning with our taxable year ending December 31, 2013. In order to maintain our qualification as a REIT, we will be required to, among other things, distribute at least 90.0% of our REIT taxable income to our stockholders and meet certain tests regarding the nature of our income and assets. Under the Code, REITs are subject to numerous organizational and operational requirements including limitations on certain types of gross income. As a REIT, we generally will not be subject to U.S. federal income tax on income that we distribute to stockholders. If we fail to qualify for taxation as a REIT for any taxable year, our income will be taxed at regular corporate rates, and we may not be able to qualify for treatment as a REIT for that year and the next four years. Even if we qualify as a REIT for U.S. federal income tax purposes, we may be subject to federal, state, local, and foreign taxes on our income and property and to income and excise taxes on our U.S. undistributed income. | |
In the future, we may elect to treat one or more of our corporate subsidiaries as a taxable REIT subsidiary (“TRS”). In general, a TRS may perform additional services for our tenants and generally may engage in any real estate or non-real estate related business (except for the operation or management of health care facilities or lodging facilities or providing to any person, under a franchise, license or otherwise, rights to any brand name under which any lodging facility or health care facility is operated). A TRS is subject to corporate federal income tax. | |
Organization and Offering Costs | |
The advisor has paid various organization and offering costs on our behalf, all of which we are liable for under the advisory agreement (see Note 3). During the offering period, costs incurred in connection with the raising of capital will be accrued as deferred offering costs. Upon receipt of offering proceeds, we will charge the deferred costs to stockholders’ equity and will reimburse the advisor for costs incurred. Such reimbursements will not exceed regulatory cost limitations. Organization costs were expensed as incurred and are included in general and administrative expenses in the consolidated financial statements. We have recorded a liability to the advisor for all of organization and offering costs incurred by the advisor based on our estimate of expected gross offering proceeds (Note 3). | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. |
Agreements_and_Transactions_wi
Agreements and Transactions with Related Parties | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Related Party Transactions [Abstract] | ' | |||||||
Agreements and Transactions with Related Parties | ' | |||||||
Note 3. Agreements and Transactions with Related Parties | ||||||||
On May 7, 2013, we entered into an advisory agreement with the advisor to perform certain services for us under a fee arrangement, including the identification, evaluation, negotiation, purchase, and disposition of real estate and related assets and mortgages loans, day-to-day management, and the performance of certain administrative duties. The term of the advisory agreement is through September 30, 2014 and is scheduled to renew annually thereafter. | ||||||||
The following tables present a summary of fees we paid and expenses we reimbursed to the advisor and other affiliates in accordance with the terms of the related agreements: | ||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||
Amounts Included in the Consolidated Statements of Operations: | ||||||||
Organization costs | $ | — | $ | 65,240 | ||||
Interest expense on Note payable to affiliate | 33,888 | 33,888 | ||||||
Asset management fees | 31,916 | 31,916 | ||||||
Shareholder servicing fee | 3,387 | 3,387 | ||||||
$ | 69,191 | $ | 134,431 | |||||
Transaction Fees Capitalized: | ||||||||
Current acquisition fees | $ | 1,442,238 | $ | 1,442,238 | ||||
Deferred acquisition fees | 1,153,790 | 1,153,790 | ||||||
$ | 2,596,028 | $ | 2,596,028 | |||||
30-Sep-13 | ||||||||
Amounts Due to Affiliate: | ||||||||
Organization and offering costs due to the advisor | $ | 3,998,725 | ||||||
Deferred acquisition fees due to the advisor | 1,153,790 | |||||||
Asset management fees due to the advisor | 23,571 | |||||||
Interest due to affiliate | 33,888 | |||||||
Other | 133,378 | |||||||
$ | 5,343,352 | |||||||
Note Payable to Affiliate: | 30-Sep-13 | |||||||
Loan from W. P. Carey | $ | 15,000,000 | ||||||
Organization and Offering Costs | ||||||||
Pursuant to the advisory agreement with the advisor, we are liable for certain expenses related to our initial public offering, which include filing, legal, accounting, printing, advertising, transfer agent, and escrow fees, and are to be deducted from the gross proceeds of the offering (Note 2). We will reimburse Carey Financial or selected dealers for reasonable bona fide due diligence expenses incurred that are supported by a detailed and itemized invoice. The total underwriting compensation to Carey Financial and selected dealers in connection with the offering cannot exceed limitations prescribed by the Financial Industry Regulatory Authority, Inc. The advisor has agreed to be responsible for the repayment of organization and offering expenses (excluding selling commissions and dealer manager fees paid to Carey Financial and selected dealers and fees paid and expenses reimbursed to selected dealers) that exceed in the aggregate 4.0% of the gross proceeds from the initial public offering if the gross proceeds are less than $500,000,000, 2.0% of the gross proceeds from the initial public offering if the gross proceeds are $500,000,000 or more but less than $750,000,000, and 1.5% of the gross proceeds from the initial public offering if the gross proceeds are $750,000,000 or more. Reimbursement of such costs was contingent on the commencement of the offering, which occurred on May 7, 2013, and raising the minimum offering amount of $2,000,000, which occurred on July 25, 2013. During the nine months ended September 30, 2013, the advisor paid organization costs of $65,240 and offering costs of $3,933,485 on our behalf. We have recorded a liability to the advisor for all of these costs based on our estimate of expected gross offering proceeds. | ||||||||
Loan from W. P. Carey | ||||||||
Our Board of Directors and the board of directors of W. P. Carey have approved unsecured loans from W. P. Carey to us of up to $100,000,000, in the aggregate, at a rate of the London inter-bank offered rate (“LIBOR”) plus 1.75%, for the purpose of facilitating acquisitions approved by our investment committee, with any loans to be made solely at the discretion of the management of W. P. Carey. On August 20, 2013, our Operating Partnership borrowed $15,000,000 from W. P. Carey at a rate of 30-day LIBOR plus 1.75%, which is the same rate that W. P. Carey pays on its credit facility, and a maturity date of August 20, 2014. The interest expense on this note payable to our affiliate is included in Interest expense on the consolidated statements of operations. These funds were used to acquire a 50% controlling interest in the jointly-owned investment with an affiliate described in Note 4. On October 4, 2013, this note was repaid in full with accrued interest thereon (Note 9). | ||||||||
Asset Management Fees | ||||||||
Pursuant to the advisory agreement, the advisor will be entitled to an annual asset management fee ranging from 0.5% to 1.5%, depending on the type of investment and based on the average market value or average equity value, as applicable, of our investments. The asset management fees are payable in cash or shares of our Class A common stock at the option of the advisor. If the advisor elects to receive all or a portion of its fees in shares, the number of shares issued is determined by dividing the dollar amount of fees by our most recently published net asset value per share (“NAV”) or, if an NAV has not yet been published, as currently is the case, $10.00 per share, which is the price at which our Class A shares are being sold in our initial public offering. For 2013, the advisor elected to receive its asset management fees in shares of our Class A common stock. At September 30, 2013, the advisor owned 24,057 shares (1.1%) of our outstanding Class A common stock. Asset management fees are included in Property expenses in the consolidated statements of operations. | ||||||||
Dealer Manager Fees | ||||||||
On May 7, 2013, we entered into a dealer manager agreement with Carey Financial, whereby Carey Financial receives a selling commission, depending on the class of common stock sold, of $0.70 and $0.14 per share sold and a dealer manager fee of $0.30 and $0.21 per share sold for the Class A and Class C common stock, respectively. | ||||||||
Carey Financial will also receive an annual distribution and shareholder servicing fee in connection with sales of our Class C common stock. The amount of the shareholder servicing fee will be 1.0% of the selling price per share (or, once reported, the amount of our estimated NAV per share) for the Class C common stock in our initial public offering. The shareholder servicing fee accrues daily and is payable quarterly in arrears. We will no longer incur the shareholder servicing fee beginning on the date at which, in the aggregate, underwriting compensation from all sources, including the shareholder servicing fee, any organizational and offering fee paid for underwriting and underwriting compensation paid by W. P. Carey and its affiliates, equals 10.0% of the gross proceeds from our initial public offering. The shareholder servicing fee for both the three and nine months ended September 30, 2013 was $3,387 and is included in “Other” within due to affiliates in the table above and did not reach the threshold described above. The shareholder servicing fee for both the three and nine months ended September 30, 2013 is also included in General and administrative on the consolidated statements of operations. | ||||||||
Acquisition and Disposition Fees | ||||||||
The advisor will receive acquisition fees, a portion of which is payable upon acquisition and a portion that is subordinated to a preferred return. The initial acquisition fee and subordinated acquisition fee are 2.5% and 2.0%, respectively, of the aggregate total cost of our portion of each investment for all investments other than those in readily-marketable real estate securities purchased in the secondary market, for which the advisor will not receive any acquisition fees. The total acquisition fees to be paid (initial and subordinated, and including interest thereon) will not exceed 6.0% of the aggregate contract purchase price of all investments and loans. In addition, pursuant to the advisory agreement, the advisor may be entitled to receive a disposition fee in an amount equal to the lesser of (i) 50.0% of the competitive real estate commission (as defined in the advisory agreement) or (ii) 3.0% of the contract sales price of the investment being sold. During the three and nine months ended September 30, 2013, we recorded $1,153,790 of deferred acquisition fees for our portion of the fees due to the advisor upon the consummation of the State Farm acquisition (Note 4), which are scheduled to be paid in three equal annual installments commencing in the fourth quarter of 2013. The State Farm acquisition is a jointly-owned investment with CPA®:17 – Global. | ||||||||
Excess Operating Expenses | ||||||||
The advisory agreement provides that, for any four trailing quarters (with quoted variables as defined in the advisory agreement), “operating expenses” may not exceed the greater of 2.0% of our “average invested assets” or 25.0% of our “adjusted net income.” During the three months ended June 30, 2013, the advisor charged us $76,585 for operating expenses, which we charged back to the advisor for excess operating expenses pursuant to the limitation described above. We may, however, become liable for these costs in the future if our results improve or our invested assets increase substantially. For the three months ended September 30, 2013, our operating expenses were below the 2.0%/25.0% threshold. | ||||||||
Available Cash Distributions | ||||||||
CPA®:18 Holdings interest in the Operating Partnership entitles it to receive distributions of 10.0% of Available Cash, as defined in the partnership agreement, generated by the Operating Partnership, subject to certain limitations. To date, there have been no distributions of Available Cash by the Operating Partnership. |
Net_Investments_in_Properties
Net Investments in Properties | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Real Estate [Abstract] | ' | ||||
Net Investments in Properties | ' | ||||
Note 4. Net Investment in Properties | |||||
Acquisition | |||||
On August 20, 2013 we acquired a 50% controlling interest in a jointly-owned investment, which is co-owned by CPA®:17 – Global and on that date purchased an office facility from the State Farm Mutual Automobile Company (“State Farm”) located in Austin, Texas. The total cost was $115,604,253, including net lease intangible assets of $15,799,325 (Note 5) and transaction costs of $5,604,253 that were capitalized. CPA®:17 – Global’s investment was $18,920,532, which we account for as a noncontrolling interest. Our portion of the purchase price was funded, in part, by a $15,000,000 loan from W. P. Carey (Note 3). This transaction was deemed to be a real estate asset acquisition because we entered into a new lease with the seller/lessee. The acquired facility consists of a 479,411 square-foot building that is located on 83.5 acres of land. The new lease has been classified as an operating lease and has an initial term of 15 years with two five-year renewal options. The jointly-owned investment obtained a $72,800,000 mortgage loan upon acquisition of this property (Note 6). | |||||
Real estate, which consists of land and buildings leased to others under an operating lease and is carried at cost, is summarized as follows: | |||||
30-Sep-13 | |||||
Land | $ | 29,215,472 | |||
Building | 62,595,789 | ||||
Building improvements | 5,397,639 | ||||
Less: Accumulated depreciation | (243,280 | ) | |||
$ | 96,965,620 | ||||
Scheduled future minimum rents, exclusive of renewals and expenses paid by the tenant, under our non-cancelable operating lease are as follows: | |||||
Years Ending December 31, | Total | ||||
2013 (remainder) | $ | 1,751,327 | |||
2014 | 7,004,308 | ||||
2015 | 7,144,392 | ||||
2016 | 7,287,284 | ||||
2017 | 7,433,028 | ||||
Thereafter (through 2028) | 89,137,876 | ||||
Total | $ | 119,758,215 | |||
Intangible_Assets_and_Liabilit
Intangible Assets and Liabilities | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Intangible Assets and Liabilities [Abstract] | ' | |||||||||||||
Intangible Assets and Liabilities | ' | |||||||||||||
Note 5. Intangible Assets and Liabilities | ||||||||||||||
In connection with the acquisition of our property (Note 4), we have recorded net lease intangibles that are being amortized over 15 years. Below-market rent intangibles are included in Prepaid and deferred rental income on the consolidated balance sheets. | ||||||||||||||
Intangible assets and liabilities are summarized as follows (life in years): | ||||||||||||||
30-Sep-13 | ||||||||||||||
Weighted-Average | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||
Life | ||||||||||||||
Amortizable Intangible Assets | ||||||||||||||
Lease intangibles: | ||||||||||||||
In-place lease | 15 | $ | 17,446,153 | $ | (134,442 | ) | $ | 17,311,711 | ||||||
Amortizable Intangible Liabilities | ||||||||||||||
Below-market rent | 15 | $ | (1,646,828 | ) | $ | 12,691 | $ | (1,634,137 | ) | |||||
Net amortization of intangibles was $134,442 for both the three and nine months ended September 30, 2013. Amortization of below-market rent is recorded as an adjustment to Rental income. | ||||||||||||||
Based on the intangible assets and liabilities recorded at September 30, 2013, scheduled annual net amortization for the remainder of 2013, each of the next four calendar years following December 31, 2013, and thereafter is as follows: | ||||||||||||||
Years Ending December 31, | Total | |||||||||||||
2013 (remainder) | $ | 263,322 | ||||||||||||
2014 | 1,053,288 | |||||||||||||
2015 | 1,053,288 | |||||||||||||
2016 | 1,053,288 | |||||||||||||
2017 | 1,053,288 | |||||||||||||
Thereafter (through 2028) | 11,201,100 | |||||||||||||
Total | $ | 15,677,574 | ||||||||||||
Nonrecourse_Debt
Non-recourse Debt | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Non-Recourse Debt | ' |
Note 6. Non-Recourse Debt | |
We obtained a mortgage loan of $72,800,000 from an unrelated third party in connection with the acquisition of the property leased to State Farm (Note 4) with payments that are interest-only until its maturity date on September 10, 2023. The loan is non-recourse and has a fixed annual interest rate of 4.5%. We capitalized $220,183 of deferred financing costs related to this loan. During both the three and nine months ended September 30, 2013, we incurred $382,106 of interest expense related to this loan. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Note 7. Commitments and Contingencies | |
At September 30, 2013, we were not involved in any litigation. |
Loss_Per_Share_and_Equity
Loss Per Share and Equity | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Loss Per Share and Equity | ' | ||||||||||
Note 8. Loss Per Share and Equity | |||||||||||
The following tables depict loss per share for the periods presented: | |||||||||||
Three Months Ended September 30, 2013 | |||||||||||
Weighted-Average | Allocation of Net Loss (a) | Loss | |||||||||
Shares Outstanding | Per Share | ||||||||||
Class A common stock | 616,292 | $ | (108,611 | ) | $ | (0.18 | ) | ||||
Class C common stock | 149,294 | (29,698 | ) | $ | (0.20 | ) | |||||
Net loss attributable to CPA®:18 – Global stockholders | $ | (138,309 | ) | ||||||||
Nine Months Ended September 30, 2013 | |||||||||||
Weighted-Average | Allocation of Net Loss (a) | Loss | |||||||||
Shares Outstanding | Per Share | ||||||||||
Class A common stock | 223,085 | $ | (163,329 | ) | $ | (0.73 | ) | ||||
Class C common stock | 50,311 | (40,221 | ) | $ | (0.80 | ) | |||||
Net loss attributable to CPA®:18 – Global stockholders | $ | (203,550 | ) | ||||||||
__________ | |||||||||||
(a) | The allocation of Net loss attributable to CPA®:18 – Global stockholders is calculated based on the weighted-average shares outstanding for Class A common stock and Class C common stock for the three and nine months ended September 30, 2013. The allocation for the Class A common stock excludes the shareholder servicing fee of $3,387 that is only applicable to holders of Class C common stock (Note 3). | ||||||||||
Subsequent to September 30, 2013 and through October 31, 2013, we issued an additional 3,702,071 shares of Class A common stock and an additional 1,299,385 shares of Class C common stock in our initial public offering. | |||||||||||
Stock-Based Compensation | |||||||||||
We issued 1,851 shares of Class A common stock to each of our four independent directors during the three months ended September 30, 2013, value at $9.00 per share, as part of their director compensation. For both the three and nine months ended September 30, 2013, we recognized stock-based compensation expense of $66,666 associated with the issuance of these shares. | |||||||||||
Distributions Declared | |||||||||||
Daily distributions on our shares began to accrue once subscription proceeds for our common stock reached the minimum offering amount of $2,000,000 and we began admitting stockholders on July 25, 2013. On June 19, 2013, our Board of Directors declared distributions at a daily rate of $0.0016983 for the Class A common stock and $0.0014442 for the Class C common stock for the quarter ending September 30, 2013, which were paid on October 15, 2013 to stockholders of record on each day of the quarter. At September 30, 2013, we had distributions payable of $115,180. | |||||||||||
On September 18, 2013, our Board of Directors declared distributions at a daily rate of $0.0016983 for the Class A common stock and $0.0014442 for the Class C common stock for the quarter ending December 31, 2013, payable on or about January 15, 2014 to stockholders of record on each day of the quarter. | |||||||||||
Distributions are declared at the discretion of our Board of Directors and are not guaranteed. Until we substantially invest the net proceeds of our initial public offering, distributions will be paid from offering proceeds, which reduces amounts available to invest in properties and could lower our overall return. |
Subsequent_Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
Note 9. Subsequent Event | |
On October 4, 2013, we repaid in full the $15,000,000 loan from W. P. Carey and the related accrued interest (Note 3). This loan, which was scheduled to mature on August 20, 2014, had been outstanding since August 20, 2014 and was obtained in order to facilitate our first acquisition (Note 4). |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation, Policy | ' |
Basis of Presentation | |
Our interim consolidated financial statements have been prepared, without audit, in accordance with the instructions to Form 10-Q and therefore do not necessarily include all information and footnotes necessary for a fair statement of our consolidated financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the U.S. (“GAAP”). | |
In the opinion of management, the unaudited consolidated financial information for the interim periods presented in this Report reflects all normal and recurring adjustments necessary for a fair statement of results of operations, financial position and cash flows. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year. | |
We had no operating activity prior to April 8, 2013 and acquired our first investment on August 20, 2013. | |
Basis of Consolidation, Policy | ' |
Basis of Consolidation | |
Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries. The portion of equity in a consolidated subsidiary that is not attributable, directly or indirectly, to us is presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated. | |
When we obtain an economic interest in an entity, we evaluate the entity to determine if it is a variable interest entity (“VIE”) or voting interest entity (“VOE”) and, if so, whether we are the primary beneficiary and are therefore required to consolidate the entity. We performed an analysis of all of our subsidiary entities to determine whether they qualify as VIEs and whether they should be consolidated or accounted for as equity investments in an unconsolidated venture. | |
Based on our evaluation, we determined that our Operating Partnership was not a VIE but should be consolidated as we control all decisions regarding our Operating Partnership. We account for the 0.015% interest held by CPA®:18 Holdings in the Operating Partnership as a noncontrolling interest. On August 20, 2013, we entered into a jointly-owned investment with our affiliate, CPA®:17 – Global (Note 4). We have concluded that this subsidiary is a VOE and will be consolidated by us as we are the managing member and the non-managing member does not have substantive participating or “kick-out” rights. | |
Purchase Price Allocation, Policy | ' |
Purchase Price Allocation | |
When we acquire properties with leases classified as operating leases, we allocate the purchase price to the tangible and intangible assets and liabilities acquired based on their estimated fair values. We determine the value of the tangible assets, consisting of land and buildings, as if vacant, and record intangible assets, including the above-market and below-market value of leases (where applicable), and the value of in-place leases, at their estimated fair values. Land is typically valued utilizing the sales comparison (or market approach). Buildings, as if vacant, are valued using the cost and/or income approach. Site improvements are valued using the cost approach. The fair value of real estate is determined by reference to portfolio appraisals which determines their values, on a property level, by applying a discounted cash flow analysis to the estimated net operating income for each property in the portfolio during the remaining anticipated lease term, and the estimated residual value of each property from a hypothetical sale of the property upon expiration after considering the re-tenanting of such property at estimated then current market rental rate, at a selected capitalization rate and deducting estimated costs of sale. The proceeds from a hypothetical sale are derived by capitalizing the estimated net operating income of each property for the year following lease expiration at an estimated residual capitalization rate. The discount rates and residual capitalization rates used to value the properties are selected based on several factors, including the credit worthiness of the lessees, industry surveys, property type, location and age, current lease rates relative to market lease rates and anticipated lease duration. In the case where a tenant has a purchase option deemed to be materially favorable to the tenant, or the tenant has long-term renewal options at rental rates below estimated market rental rates, the appraisal assumes the exercise of such purchase option or long-term renewal options in its determination of residual value. Where a property is deemed to have excess land, the discounted cash flow analysis includes the estimated excess land value at the assumed expiration of the lease, based upon an analysis of comparable land sales or listings in the general market area of the property growing at estimated market growth rates through the year of lease expiration. For those properties that are under contract for sale, the appraised value of the portfolio reflects the current contractual sale price of such properties. See Revenue Recognition and Depreciation below for a discussion of our significant accounting policies related to tangible assets. We include the value of below-market leases in Prepaid and deferred rental income in the consolidated balance sheets. | |
We record above-market and below-market lease values for owned properties, where applicable, based on the present value (using a discount rate reflecting the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the leases negotiated and in place at the time of acquisition of the properties and (ii) our estimate of fair market lease rates for the property or equivalent property, both of which are measured over a period equal to the estimated lease term, which includes renewal options with rental rates below estimated market rental rates. We amortize the capitalized above-market lease value, where applicable, as a reduction of rental income over the estimated market lease term. We amortize the capitalized below-market lease value as an increase to rental income over the estimated lease term and any fixed-rate renewal periods in the respective leases. | |
The value of any in-place lease is estimated to be equal to the property owner’s avoidance of costs necessary to lease the property for a term equal to the remaining primary in-place lease term and the value of investment grade tenancy. The cost avoidance to the property owners of vacancy and leasing costs necessary to lease the property for a lease term equal to the remaining in-place lease term is derived first by determining the in-place lease term on the subject lease. Then, based on our review of the market, the cost to be borne by a property owner to replicate a market lease to the remaining in-place term was estimated. These costs consist of: (i) rent lost during downtime (i.e. assumed periods of vacancy); (ii) estimated expenses that would be incurred by the property owner during periods of vacancy; (iii) rent concessions (i.e. free rent); (iv) leasing commissions; and (v) tenant improvement allowances. We determine these values using our estimates or by relying in part upon third-party appraisals. We amortize the capitalized value of in-place lease intangibles to expense over the remaining initial term of each lease. No amortization period for intangibles will exceed the remaining depreciable life of the building. | |
Cash and Cash Equivalents, Policy | ' |
Cash and Cash Equivalents | |
We consider all short-term, highly-liquid investments that are both readily convertible to cash and have a maturity of generally three months or less at the time of purchase to be cash equivalents, where applicable. Items classified as cash equivalents include commercial paper and money-market funds, where applicable. Our cash and cash equivalents are held in the custody of one financial institution. These balances, at times, may exceed federally-insurable limits. We will seek to mitigate this risk by depositing funds only with major financial institutions. | |
Revenue Recognition, Policy | ' |
Revenue Recognition | |
We lease real estate to others on a triple-net leased basis whereby the tenant is generally responsible for all operating expenses relating to the property, including property taxes, insurance, maintenance, repairs, renewals and improvements. We charge expenditures for maintenance and repairs, including routine betterments, to operations as incurred. We capitalize any significant renovations that increase the useful life of the properties. | |
Our lease provides for scheduled rent increases each year. For operating leases, we record real estate at cost less accumulated depreciation; we recognize future minimum rental revenue on a straight-line basis over the non-cancelable lease term of the related lease and charge expenses to operations as incurred. | |
Depreciation, Policy | ' |
Depreciation | |
We compute depreciation of the building and its related improvements using the straight-line method over the estimated remaining useful life of the property or improvements, which is 40 years and ten years, respectively. | |
Fair Value of Financial Instruments, Policy | ' |
Fair Value Measurements | |
The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including an interest rate cap and swaps; and Level 3, for securities and other derivative assets that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions. Our debt and deferred acquisition fees payable, which we have classified as Level 3, had carrying values that approximated their fair values | |
Income Taxes, Policy | ' |
Income Taxes | |
We intend to qualify as a REIT under Sections 856 through 860 of the Code beginning with our taxable year ending December 31, 2013. In order to maintain our qualification as a REIT, we will be required to, among other things, distribute at least 90.0% of our REIT taxable income to our stockholders and meet certain tests regarding the nature of our income and assets. Under the Code, REITs are subject to numerous organizational and operational requirements including limitations on certain types of gross income. As a REIT, we generally will not be subject to U.S. federal income tax on income that we distribute to stockholders. If we fail to qualify for taxation as a REIT for any taxable year, our income will be taxed at regular corporate rates, and we may not be able to qualify for treatment as a REIT for that year and the next four years. Even if we qualify as a REIT for U.S. federal income tax purposes, we may be subject to federal, state, local, and foreign taxes on our income and property and to income and excise taxes on our U.S. undistributed income. | |
In the future, we may elect to treat one or more of our corporate subsidiaries as a taxable REIT subsidiary (“TRS”). In general, a TRS may perform additional services for our tenants and generally may engage in any real estate or non-real estate related business (except for the operation or management of health care facilities or lodging facilities or providing to any person, under a franchise, license or otherwise, rights to any brand name under which any lodging facility or health care facility is operated). A TRS is subject to corporate federal income tax. | |
Organization and Offering Cost, Policy | ' |
Organization and Offering Costs | |
The advisor has paid various organization and offering costs on our behalf, all of which we are liable for under the advisory agreement (see Note 3). During the offering period, costs incurred in connection with the raising of capital will be accrued as deferred offering costs. Upon receipt of offering proceeds, we will charge the deferred costs to stockholders’ equity and will reimburse the advisor for costs incurred. Such reimbursements will not exceed regulatory cost limitations. Organization costs were expensed as incurred and are included in general and administrative expenses in the consolidated financial statements. | |
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 and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. |
Agreements_and_Transactions_wi1
Agreements and Transactions with Related Parties (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Related Party Transactions [Abstract] | ' | |||||||
Schedule of Related Party Transactions | ' | |||||||
The following tables present a summary of fees we paid and expenses we reimbursed to the advisor and other affiliates in accordance with the terms of the related agreements: | ||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||
Amounts Included in the Consolidated Statements of Operations: | ||||||||
Organization costs | $ | — | $ | 65,240 | ||||
Interest expense on Note payable to affiliate | 33,888 | 33,888 | ||||||
Asset management fees | 31,916 | 31,916 | ||||||
Shareholder servicing fee | 3,387 | 3,387 | ||||||
$ | 69,191 | $ | 134,431 | |||||
Transaction Fees Capitalized: | ||||||||
Current acquisition fees | $ | 1,442,238 | $ | 1,442,238 | ||||
Deferred acquisition fees | 1,153,790 | 1,153,790 | ||||||
$ | 2,596,028 | $ | 2,596,028 | |||||
30-Sep-13 | ||||||||
Amounts Due to Affiliate: | ||||||||
Organization and offering costs due to the advisor | $ | 3,998,725 | ||||||
Deferred acquisition fees due to the advisor | 1,153,790 | |||||||
Asset management fees due to the advisor | 23,571 | |||||||
Interest due to affiliate | 33,888 | |||||||
Other | 133,378 | |||||||
$ | 5,343,352 | |||||||
Note Payable to Affiliate: | 30-Sep-13 | |||||||
Loan from W. P. Carey | $ | 15,000,000 | ||||||
Net_Investments_in_Properties_
Net Investments in Properties (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Real Estate [Abstract] | ' | ||||
Schedule of Real Estate Properties | ' | ||||
Real estate, which consists of land and buildings leased to others under an operating lease and is carried at cost, is summarized as follows: | |||||
30-Sep-13 | |||||
Land | $ | 29,215,472 | |||
Building | 62,595,789 | ||||
Building improvements | 5,397,639 | ||||
Less: Accumulated depreciation | (243,280 | ) | |||
$ | 96,965,620 | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Scheduled future minimum rents, exclusive of renewals and expenses paid by the tenant, under our non-cancelable operating lease are as follows: | |||||
Years Ending December 31, | Total | ||||
2013 (remainder) | $ | 1,751,327 | |||
2014 | 7,004,308 | ||||
2015 | 7,144,392 | ||||
2016 | 7,287,284 | ||||
2017 | 7,433,028 | ||||
Thereafter (through 2028) | 89,137,876 | ||||
Total | $ | 119,758,215 | |||
Intangible_Assets_and_Liabilit1
Intangible Assets and Liabilities (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Intangible Assets and Liabilities [Abstract] | ' | |||||||||||||
Schedule Of Intangible Assets and Liabilities | ' | |||||||||||||
Intangible assets and liabilities are summarized as follows (life in years): | ||||||||||||||
30-Sep-13 | ||||||||||||||
Weighted-Average | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||
Life | ||||||||||||||
Amortizable Intangible Assets | ||||||||||||||
Lease intangibles: | ||||||||||||||
In-place lease | 15 | $ | 17,446,153 | $ | (134,442 | ) | $ | 17,311,711 | ||||||
Amortizable Intangible Liabilities | ||||||||||||||
Below-market rent | 15 | $ | (1,646,828 | ) | $ | 12,691 | $ | (1,634,137 | ) | |||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | |||||||||||||
Based on the intangible assets and liabilities recorded at September 30, 2013, scheduled annual net amortization for the remainder of 2013, each of the next four calendar years following December 31, 2013, and thereafter is as follows: | ||||||||||||||
Years Ending December 31, | Total | |||||||||||||
2013 (remainder) | $ | 263,322 | ||||||||||||
2014 | 1,053,288 | |||||||||||||
2015 | 1,053,288 | |||||||||||||
2016 | 1,053,288 | |||||||||||||
2017 | 1,053,288 | |||||||||||||
Thereafter (through 2028) | 11,201,100 | |||||||||||||
Total | $ | 15,677,574 | ||||||||||||
Loss_Per_Share_and_Equity_Tabl
Loss Per Share and Equity (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Schedule of Earnings Per Share | ' | ||||||||||
The following tables depict loss per share for the periods presented: | |||||||||||
Three Months Ended September 30, 2013 | |||||||||||
Weighted-Average | Allocation of Net Loss (a) | Loss | |||||||||
Shares Outstanding | Per Share | ||||||||||
Class A common stock | 616,292 | $ | (108,611 | ) | $ | (0.18 | ) | ||||
Class C common stock | 149,294 | (29,698 | ) | $ | (0.20 | ) | |||||
Net loss attributable to CPA®:18 – Global stockholders | $ | (138,309 | ) | ||||||||
Nine Months Ended September 30, 2013 | |||||||||||
Weighted-Average | Allocation of Net Loss (a) | Loss | |||||||||
Shares Outstanding | Per Share | ||||||||||
Class A common stock | 223,085 | $ | (163,329 | ) | $ | (0.73 | ) | ||||
Class C common stock | 50,311 | (40,221 | ) | $ | (0.80 | ) | |||||
Net loss attributable to CPA®:18 – Global stockholders | $ | (203,550 | ) | ||||||||
__________ | |||||||||||
(a) | The allocation of Net loss attributable to CPA®:18 – Global stockholders is calculated based on the weighted-average shares outstanding for Class A common stock and Class C common stock for the three and nine months ended September 30, 2013. The allocation for the Class A common stock excludes the shareholder servicing fee of $3,387 that is only applicable to holders of Class C common stock (Note 3). |
Business_Narratives_Details
Business (Narratives) (Details) (USD $) | 9 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | Jul. 28, 2013 | 7-May-13 | Apr. 08, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 29, 2013 | 7-May-13 | Apr. 08, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 29, 2013 | Sep. 30, 2013 | 7-May-13 | Apr. 08, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 29, 2013 | Jul. 03, 2013 | Sep. 29, 2013 | Dec. 14, 2012 | Sep. 13, 2012 | Apr. 08, 2013 | |
Class A common stock | Class A common stock | Class A common stock | Class A common stock | Class A common stock | Class A common stock | Class A common stock | Class C common stock | Class C common stock | Class C common stock | Class C common stock | Class C common stock | Class C common stock | CPA 18 Holdings | CPA 18 Holdings | Carey REIT II | Carey REIT II | Carey REIT II | ||||||
Subsequent event | Subsequent event | Subsequent event | Subsequent event | ||||||||||||||||||||
Public Offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital interest ownership in operating partnership | 99.99% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special general partner interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.02% | ' | ' | ' |
Cash receipts for special general partnership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $209,000 | ' | ' | ' | ' |
Common stock, shares issued | ' | ' | ' | ' | ' | 1,771,353 | ' | ' | ' | 0 | ' | 3,702,071 | 348,441 | ' | ' | 0 | ' | 1,299,385 | ' | ' | 22,222 | 1,000 | ' |
Common stock, par value | $0.00 | ' | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | $0.00 | $0.00 | $0.00 |
Proceeds from issuance of shares, net of issuance costs | 18,074,861 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 9,000 | ' |
Per share transaction price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9 | ' | ' |
Common stock, shares authorized | ' | ' | ' | ' | ' | 320,000,000 | ' | ' | 320,000,000 | 0 | ' | ' | 80,000,000 | ' | 80,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, authorized | 50,000,000 | ' | ' | 50,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock shares maximum offering | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value on public offering date | ' | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' | ' | $9.35 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock authorized during period share value dividend reinvestment plan | ' | ' | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par or stated value per share, pursuant to DRIP | ' | ' | ' | ' | ' | ' | ' | $9.60 | ' | ' | ' | ' | ' | $8.98 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial minimum offering amount | 2,000,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative funds from offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50,247,946 | ' | ' | ' | ' | ' | $15,389,115 | ' | ' | ' | ' | ' | ' |
Basis_of_Presentation_Narrativ
Basis of Presentation (Narratives) (Details) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 29, 2013 | |
Building | Building Improvements | CPA 18 Holdings | |
Basis of Presentation | ' | ' | ' |
Special general partner interest | ' | ' | 0.02% |
Property plant and equipment useful life | '40 years | '10 years | ' |
Agreements_and_Transactions_wi2
Agreements and Transactions with Related Parties (Narratives) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Aug. 20, 2013 | Jul. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 29, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | 7-May-13 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Current | Deferred | Class A common stock | Class A common stock | Class A common stock | Class A common stock | Class C common stock | Class C common stock | Class C common stock | Real estate commission | Average invested asset | Adjusted net income | Contract sales price of investment | LIBOR | LIBOR | Minimum | Maximum | Maximum | Maximum | Scenario One | Scenario One | Scenario Two | Scenario Two | Scenario Two | Scenario Three | Scenario Three | ||||||
Advisor | Unsecured Loan | August 20th Loan | Average market value of investment | Cpa 18 Holdings | Average equity value of investment | Maximum | Minimum | Maximum | Minimum | ||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contributions from non controlling interest | ' | ' | $18,920,532 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Gross Proceeds From Offering Threshold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | 2.00% | ' | ' | 1.50% | ' |
Potential Gross Proceeds from Issuance Initial Public Offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | 500,000,000 | 750,000,000 | ' | 750,000,000 |
Initial minimum offering amount | 2,000,000 | ' | 2,000,000 | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred offering costs | 3,933,485 | ' | 3,933,485 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum line of credit approved by directors | 100,000,000 | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, variable rate spread | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, outstanding | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Maturity Date | ' | ' | 20-Aug-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest in jointly-owned investment | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of asset management fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' |
Common Stock Initial Public Offering Par Or Stated Value Per Share | ' | ' | ' | ' | ' | ' | ' | ' | $10 | ' | ' | ' | $9.35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares held by advisor | ' | ' | ' | ' | ' | ' | ' | 1,771,353 | ' | 0 | 24,057 | 348,441 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advisor owned percentage of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due to Related Party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling commission per share sold | ' | ' | ' | ' | ' | ' | ' | $0.70 | ' | ' | ' | $0.14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dealer manager fee per share sold | ' | ' | ' | ' | ' | ' | ' | $0.30 | ' | ' | ' | $0.21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholder servicing fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholder Servicing Fee Payment Threshold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholder servicing fee | 3,387 | ' | 3,387 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of acquisition fees | ' | ' | ' | ' | ' | 2.50% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of subordinated disposition fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred acquisition fees due to the advisor | 1,153,790 | ' | 1,153,790 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of operating expense reimbursement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess operating expense charge back | ' | $76,585 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements_and_Transactions_wi3
Agreements and Transactions with Related Parties (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2013 | Aug. 20, 2013 | Dec. 31, 2012 | |
Amounts Included in the Consolidated Statements of Operations: | ' | ' | ' | ' |
Organization costs | $0 | $65,240 | ' | ' |
Interest expense on Note payable to affiliate | 33,888 | 33,888 | ' | ' |
Asset management fees | 31,916 | 31,916 | ' | ' |
Shareholder servicing fee | 3,387 | 3,387 | ' | ' |
Operating expenses | 69,191 | 134,431 | ' | ' |
Transaction Fees Capitalized: | ' | ' | ' | ' |
Current acquisition fees | 1,442,238 | 1,442,238 | ' | ' |
Deferred acquisition fees | 1,153,790 | 1,153,790 | ' | ' |
Transaction fees incurred | 2,596,028 | 2,596,028 | ' | ' |
Amounts Due to Affiliate: | ' | ' | ' | ' |
Organization and offering costs due to the advisor | 3,998,725 | 3,998,725 | ' | ' |
Deferred acquisition fees due to the advisor | 1,153,790 | 1,153,790 | ' | ' |
Asset management fees due to the advisor | 23,571 | 23,571 | ' | ' |
Interest due to affiliate | 33,888 | 33,888 | ' | ' |
Other | 133,378 | 133,378 | ' | ' |
Due to affiliates | 5,343,352 | 5,343,352 | ' | 0 |
Loan from W. P. Carey | ' | ' | $15,000,000 | ' |
Net_Investments_in_Properties_1
Net Investments in Properties (Narratives) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | |
Aug. 20, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Acqusition | ' | ' | ' | ' |
Ownership interest in jointly-owned investment | 50.00% | ' | ' | ' |
Acquisition-related cost and fees, capitalized | ' | $2,596,028 | $2,596,028 | ' |
Contributions from non controlling interest | ' | ' | 18,920,532 | ' |
Line of credit, outstanding | 15,000,000 | ' | ' | ' |
Lease Term | '15 years | ' | ' | ' |
Non-recourse debt | ' | 72,800,000 | 72,800,000 | 0 |
State Farm Mutual Automobile Company | ' | ' | ' | ' |
Acqusition | ' | ' | ' | ' |
Investment purchase price | 115,604,253 | ' | ' | ' |
Acquired finite lived intangible assets, amount | 15,799,325 | ' | ' | ' |
Acquisition-related cost and fees, capitalized | 5,604,253 | ' | ' | ' |
Area of real estate property | 479,411 | ' | ' | ' |
Area of land | 83.5 | ' | ' | ' |
Joint Venture | State Farm Mutual Automobile Company | ' | ' | ' | ' |
Acqusition | ' | ' | ' | ' |
Non-recourse debt | $72,800,000 | ' | ' | ' |
Net_Investments_in_Properties_2
Net Investments in Properties (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Investments in properties: | ' | ' |
Land | $29,215,472 | ' |
Building | 62,595,789 | ' |
Building improvements | 5,397,639 | ' |
Accumulated depreciation | -243,280 | 0 |
Net investments in properties | $96,965,620 | $0 |
Net_Investments_in_Properties_3
Net Investments in Properties (Details 2) (USD $) | Sep. 30, 2013 |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ' |
2013 (remainder) | $1,751,327 |
2014 | 7,004,308 |
2015 | 7,144,392 |
2016 | 7,287,284 |
2017 | 7,433,028 |
Thereafter (through 2028) | 89,137,876 |
Total | $119,758,215 |
Intangible_Assets_and_Liabilit2
Intangible Assets and Liabilities (Narratives) (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Acquired Finite-Lived Intangible Assets Liabilities | ' | ' |
Finite-lived intangible asset, useful life | ' | '15 years |
Net amortization of intangibles | $134,442 | $134,442 |
In-place lease | ' | ' |
Acquired Finite-Lived Intangible Assets Liabilities | ' | ' |
Finite-lived intangible asset, useful life | ' | '15 years |
Intangible_Assets_and_Liabilit3
Intangible Assets and Liabilities (Details 1) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Amortizable Intangible Assets | ' |
Finite-lived intangible asset, useful life | '15 years |
Below-market rent | ' |
Amortizable Intangible Liability | ' |
Finite lived intangible liability, useful life | '15 years |
Finite-Lived Intangible Liabilities, Gross | -1,646,828 |
Finite Lived Intangible Liabilities Accumulated Amortization | 12,691 |
Finite Lived Intangible Liabilities Net | -1,634,137 |
In-place lease | ' |
Amortizable Intangible Assets | ' |
Finite-lived intangible asset, useful life | '15 years |
Finite-lived intangible assets, gross | 17,446,153 |
Less: accumulated amortization | -134,442 |
Finite-lived intangible assets, net | 17,311,711 |
Intangible_Assets_and_Liabilit4
Intangible Assets and Liabilities (Details 2) (USD $) | Sep. 30, 2013 |
Finite-Lived Intangible Assets and Liabilities, Future Amortization Expense | ' |
2013 (remainder) | $263,322 |
2014 | 1,053,288 |
2015 | 1,053,288 |
2016 | 1,053,288 |
2017 | 1,053,288 |
Thereafter (through 2028) | 11,201,100 |
Total | $15,677,574 |
Nonrecourse_Debt_Narratives_De
Non-recourse Debt (Narratives) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 20, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
State Farm Mutual Automobile Company | State Farm Mutual Automobile Company | State Farm Mutual Automobile Company | ||||
Debt Instruments | ' | ' | ' | ' | ' | ' |
Non-recourse debt | $72,800,000 | $72,800,000 | $0 | ' | ' | ' |
Maturity date | ' | 20-Aug-14 | ' | 10-Sep-23 | ' | ' |
Debt, weighted average interest rate | ' | ' | ' | 4.50% | ' | ' |
Deferred financing cost, capitalized | ' | ' | ' | 220,183 | ' | ' |
Interest expense | $415,994 | $415,994 | ' | ' | $382,106 | $382,106 |
Loss_Per_Share_and_Equity_Narr
Loss Per Share and Equity (Narratives) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 29, 2013 | Jul. 28, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 19, 2013 | Sep. 18, 2013 | Sep. 30, 2013 | Sep. 29, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 19, 2013 | Sep. 18, 2013 | Sep. 29, 2013 | |
Class A | Class A | Class A | Class A | Class A | Class A | Class C | Class C | Class C | Class C | Class C | ||||||
Second Quarter | Third Quarter | Independent directors | Subsequent event | Second Quarter | Third Quarter | Subsequent event | ||||||||||
Stock-based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholder servicing fee incurred | $3,387 | $3,387 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | ' | ' | ' | ' | ' | 1,771,353 | 0 | ' | ' | 1,851 | 3,702,071 | 348,441 | 0 | ' | ' | 1,299,385 |
Market price, per unit | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9 | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | 66,666 | 66,666 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions Declared | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial minimum offering amount | 2,000,000 | 2,000,000 | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Daily distribution rate | ' | ' | ' | ' | ' | ' | ' | $0.00 | $0.00 | ' | ' | ' | ' | $0.00 | $0.00 | ' |
Distributions payable | $115,180 | $115,180 | ($115,180) | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss_Per_Share_and_Equity_Deta
Loss Per Share and Equity (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2013 | |||
Basic | ' | ' | ||
Allocation of Net Loss (a) | ($138,309) | [1] | ($203,550) | [1] |
Shareholder servicing fee | 3,387 | 3,387 | ||
Class A common stock | ' | ' | ||
Basic | ' | ' | ||
Weighted-Average Shares Outstanding | 616,292 | 223,085 | ||
Allocation of Net Loss (a) | -108,611 | [1] | -163,329 | [1] |
Loss Per Share (in dollars per share) | ($0.18) | ($0.73) | ||
Class C common stock | ' | ' | ||
Basic | ' | ' | ||
Weighted-Average Shares Outstanding | 149,294 | 50,311 | ||
Allocation of Net Loss (a) | ($29,698) | [1] | ($40,221) | [1] |
Loss Per Share (in dollars per share) | ($0.20) | ($0.80) | ||
[1] | The allocation of Net loss attributable to CPAB.:18 b Global stockholders is calculated based on the weighted-average shares outstanding for Class A common stock and Class C common stock for the three and nine months ended SeptemberB 30, 2013. The allocation for the Class A common stock excludes the shareholder servicing fee of $3,387 that is only applicable to holders of Class C common stock (Note 3). |
Subsequent_Event_Narratives_De
Subsequent Event (Narratives) (Details) (USD $) | 9 Months Ended | 0 Months Ended |
Sep. 30, 2013 | Oct. 03, 2013 | |
Subsequent event | ||
Principal | ||
Subsequent Event | ' | ' |
Repayment of line of credit | ' | $15,000,000 |
Debt Instrument, Maturity Date | 20-Aug-14 | ' |