Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Jun. 30, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | |
Class A | Class C | |||
Document Entity Information [Abstract] | ' | ' | ' | ' |
Document Type | '10-K | ' | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' | ' |
Amendment Flag | 'false | ' | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' | ' |
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 | ' | ' | 41,102,364 | 4,169,770 |
Entity Public Float | ' | $0 | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Investments in real estate: | ' | ' |
Real estate, at cost | $150,423,864 | $0 |
Accumulated depreciation | -823,827 | 0 |
Net investments in properties | 149,600,037 | 0 |
Net investment in direct financing leases | 22,064,458 | 0 |
Net investments in real estate | 171,664,495 | 0 |
Cash and cash equivalents | 109,060,853 | 209,000 |
In-place lease intangible assets, net | 53,337,241 | 0 |
Below-market ground lease intangible asset, net | 8,224,306 | 0 |
Other assets, net | 13,382,845 | 0 |
Total assets | 355,669,740 | 209,000 |
Liabilities: | ' | ' |
Non-recourse debt | 85,060,177 | 0 |
Due to affiliate | 5,149,363 | 0 |
Prepaid and deferred rental income | 3,316,927 | 0 |
Accounts payable, accrued expenses and other liabilities | 1,501,580 | 0 |
Deferred tax liability | 8,349,976 | 0 |
Distributions payable | 1,821,171 | 0 |
Total liabilities | 105,199,194 | 0 |
Commitments and contingencies (Note 9) | ' | ' |
CPAB.:18 b Global shareholdersb equity: | ' | ' |
Preferred stock, $0.001 par value; 50,000,000 and 0 shares authorized; none issued | 0 | 0 |
Additional paid-in capital | 215,370,660 | 208,977 |
Distributions and accumulated losses | -2,567,172 | 0 |
Accumulated other comprehensive loss | -94,490 | 0 |
Total CPAB.:18 b Global shareholdersb equity | 212,733,064 | 209,000 |
Noncontrolling interests | 37,737,482 | 0 |
Total equity | 250,470,546 | 209,000 |
Total liabilities and equity | 355,669,740 | 209,000 |
Class A common stock | ' | ' |
CPAB.:18 b Global shareholdersb equity: | ' | ' |
Common stock | 21,290 | 0 |
Class C common stock | ' | ' |
CPAB.:18 b Global shareholdersb equity: | ' | ' |
Common stock | 2,776 | 0 |
General Common Stock | ' | ' |
CPAB.:18 b Global shareholdersb equity: | ' | ' |
Common stock | $0 | $23 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CPAB.:18 b Global shareholdersb equity: | ' | ' |
Common stock, par value | $0.00 | ' |
Preferred stock, par value | $0.00 | ' |
Preferred stock, authorized | 50,000,000 | 0 |
Preferred Stock, Shares Issued | 0 | 0 |
Class A common stock | ' | ' |
CPAB.:18 b Global shareholdersb equity: | ' | ' |
Common stock, par value | $0.00 | ' |
Common stock, shares authorized | 320,000,000 | 0 |
Common stock, shares issued | 21,290,097 | 0 |
Common stock, shares outstanding | 21,290,097 | 0 |
Class C common stock | ' | ' |
CPAB.:18 b Global shareholdersb equity: | ' | ' |
Common stock, par value | $0.00 | ' |
Common stock, shares authorized | 80,000,000 | 0 |
Common stock, shares issued | 2,776,001 | 0 |
Common stock, shares outstanding | 2,776,001 | 0 |
General Common Stock | ' | ' |
CPAB.:18 b Global shareholdersb 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 (USD $) | 12 Months Ended | |
Dec. 31, 2013 | ||
Revenues | ' | |
Rental income | $3,291,675 | |
Operating Expenses | ' | |
Depreciation and amortization | 1,314,434 | |
General and administrative | 540,281 | [1] |
Transfer agent expenses | 329,002 | |
Property expenses | 120,712 | [1] |
Operating Expenses | 2,304,429 | |
Other Income and Expenses | ' | |
Interest expense | -1,249,691 | [1] |
Other income and (expenses) | 32,252 | |
Other Income and Expenses | -1,217,439 | |
Loss from continuing operations before income taxes | -230,193 | |
Provision for income taxes | -10,481 | |
Net Loss | -240,674 | |
Net income attributable to noncontrolling interests (inclusive of Available Cash Distribution to advisor of $91,600) | -390,149 | |
Net Loss Attributable to CPAB.:18 b Global | -630,823 | |
Class A | ' | |
Other Income and Expenses | ' | |
Net Loss Attributable to CPAB.:18 b Global | -495,935 | |
Weighted average shares outstanding | 2,792,648 | |
Net loss per share (in dollars per share) | ($0.18) | |
Class C | ' | |
Other Income and Expenses | ' | |
Net Loss Attributable to CPAB.:18 b Global | ($134,888) | |
Weighted average shares outstanding | 497,725 | |
Net loss per share (in dollars per share) | ($0.27) | |
[1] | Inclusive of amounts paid to the advisor, a related party (Note 3). |
Consolidated_Statement_of_Oper1
Consolidated Statement of Operations (Parentheticals) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Income Statement [Abstract] | ' |
Distributions of available cash | $91,600 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Loss Statement (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | ' |
Net Loss | ($240,674) |
Other Comprehensive Loss: | ' |
Foreign currency translation adjustments | 155,851 |
Unrealized loss on derivative instrument | -219,291 |
Other Comprehensive Loss | -63,440 |
Comprehensive Loss | -304,114 |
Amounts Attributable to Noncontrolling Interests: | ' |
Net income | -390,149 |
Foreign currency translation adjustments | -31,050 |
Comprehensive income attributable to noncontrolling interests | -421,199 |
Comprehensive Loss Attributable to CPAB.:18 b Global | ($725,313) |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Class A | Class C | General Common Stock | Common Stock | Common Stock | Common Stock | Additional Paid-In Capital | Distributions and Accumulated Losses | Accumulated Other Comprehensive Loss | Total CPA 18 - Global Stockholders | Noncontrolling Interests |
USD ($) | Class A | Class C | General Common Stock | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||
USD ($) | USD ($) | USD ($) | ||||||||||
Beginning equity balance, value at Sep. 07, 2012 | $0 | ' | ' | ' | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Beginning equity balance, shares at Sep. 07, 2012 | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' |
Statements of Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | 0 | 209,000 | 0 |
Ending equity balance, shares at Dec. 31, 2012 | ' | 0 | 0 | 23,222 | 0 | 0 | 23,222 | ' | ' | ' | ' | ' |
Statements of Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Renaming of General Shares to Class A common stock, value | 0 | ' | ' | ' | 23 | ' | -23 | ' | ' | ' | 0 | ' |
Renaming of General Shares to Class A common stock, shares | ' | ' | ' | ' | 23,222 | ' | -23,222 | ' | ' | ' | ' | ' |
Shares issued net of offering cost, value | 215,040,031 | ' | ' | ' | 21,252 | 2,776 | ' | 215,016,003 | ' | ' | 215,040,031 | ' |
Shares issued net of offering cost, shares | ' | ' | ' | ' | 21,251,565 | 2,776,001 | ' | ' | ' | ' | ' | ' |
Shares issued to affiliate, value | 79,029 | ' | ' | ' | 8 | ' | ' | 79,021 | ' | ' | 79,029 | ' |
Shares issued to affiliate, shares | ' | ' | ' | ' | 7,903 | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation, value | 66,666 | ' | ' | ' | 7 | ' | ' | 66,659 | ' | ' | 66,666 | ' |
Stock-based compensation, shares | ' | ' | ' | ' | 7,407 | ' | ' | ' | ' | ' | ' | ' |
Contributions from noncontrolling interests | 38,169,144 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 38,169,144 |
Distributions to noncontrolling interests | -852,861 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -852,861 |
Distributions declared ($0.2717 and $0.2311 per share to Class A and Class C, respectively) | -1,936,349 | ' | ' | ' | ' | ' | ' | ' | -1,936,349 | ' | -1,936,349 | ' |
Net Loss | -240,674 | ' | ' | ' | ' | ' | ' | ' | -630,823 | ' | -630,823 | 390,149 |
Other Comprehensive Loss: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | 155,851 | ' | ' | ' | ' | ' | ' | ' | ' | 124,801 | 124,801 | 31,050 |
Change in unrealized loss on derivative instrument | -219,291 | ' | ' | ' | ' | ' | ' | ' | ' | -219,291 | -219,291 | ' |
Ending equity balance, value at Dec. 31, 2013 | $250,470,546 | ' | ' | ' | $21,290 | $2,776 | $0 | $215,370,660 | ($2,567,172) | ($94,490) | $212,733,064 | $37,737,482 |
Ending equity balance, shares at Dec. 31, 2013 | ' | 21,290,097 | 2,776,001 | 0 | 21,290,097 | 2,776,001 | 0 | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity (Parentheticals) (USD $) | Dec. 31, 2012 |
Carey REIT II | |
Statements of Equity | ' |
Common stock, par value | $0.00 |
Per share price issued | $9 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Cash Flows b Investing Activities | ' |
Net Loss | ($240,674) |
Adjustments to net loss: | ' |
Depreciation and amortization, including intangible assets and deferred financing costs | 1,325,496 |
Stock-based compensation expense | 66,666 |
Realized gain on foreign currency transactions and others | -18,912 |
Straight-line rent adjustment and amortization of rent-related intangibles | -433,862 |
Organizational costs paid by affiliate | 65,240 |
Changes in operating assets and liabilities: | ' |
Net change in other operating assets and liabilities | 1,498,262 |
Net Cash Provided by Operating Activities | 2,262,216 |
Cash Flows b Investing Activities | ' |
Acquisitions of real estate and direct financing leases, net of cash acquired | -220,537,698 |
Value added taxes (bVATb) paid in connection with acquisition of real estate | -2,683,201 |
Deposits for future acquisitions | -207,286 |
Payment of deferred acquisition fees to an affiliate | -384,597 |
Net Cash Used in Investing Activities | -223,812,782 |
Cash Flows b Financing Activities | ' |
Distributions paid | -115,180 |
Contributions from noncontrolling interests | 38,169,144 |
Distributions to noncontrolling interest | -852,861 |
Proceeds from mortgage financing | 85,060,177 |
Payment of deferred financing costs | -289,493 |
Note payable proceeds from affiliate | 15,000,000 |
Repayment of note payable from affiliate | -15,000,000 |
Proceeds from issuance of shares, net of issuance costs | 208,336,074 |
Net Cash Provided by Financing Activities | 330,307,861 |
Change in Cash and Cash Equivalents During the Year | ' |
Effect of exchange rate changes on cash and cash equivalents | 94,558 |
Net increase in cash and cash equivalents | 108,851,853 |
Cash and cash equivalents, beginning of year | 209,000 |
Cash and cash equivalents, end of year | 109,060,853 |
Supplemental non-cash investing and financing activities: | ' |
Acquisition costs (Note 3, 4) | -4,719,622 |
Deferred tax liability (Note 2) | -8,349,976 |
Deferred acquisition costs | -200,000 |
Deferring offering costs (Note 3) | -3,822,455 |
Due to affiliates (Note 3) | 8,136,914 |
Unsettled sales of common stock (Note 10) | 4,511,981 |
Deferred offering costs equity charge (Note 2) | -1,228,024 |
Deposits paid for financing | -207,902 |
Asset management fees settled in Class A shares (Note 3) | 79,029 |
Noncontrolling interest contribution to deferred acquisition fee | 372,515 |
Fourth quarter distribution declared (Note 10) | -1,821,171 |
Supplemental cash flow information: | ' |
Cash payments for interest | 1,050,202 |
Agrokor d.d. | ' |
Supplemental non-cash investing and financing activities: | ' |
Deferred tax liability (Note 2) | ($8,339,113) |
Organization_and_Offering
Organization and Offering | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization and Offering | ' |
Organization and Offering | |
Organization | |
CPA®:18 – Global 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 U.S. We intend to qualify as a REIT under the Internal Revenue 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 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, CPA®:18 Holdings, a subsidiary of our sponsor, WPC, acquired a 0.015% special general partner interest in the Operating Partnership, representing its special general partnership interest, for $209,000. On August 20, 2013, we acquired our first property. At December 31, 2013, we owned nine properties, all of which were fully occupied and triple-net leased to three tenants totaling 1,691,537 square feet (unaudited). | |
We are managed by our advisor. Our advisor provides both strategic and day-to-day management services for us, including capital funding services, investment research and analysis, investment financing and other investment related services, asset management, disposition of assets, investor relations and administrative services. W. P. Carey & Co B.V., an affiliate of our advisor, provides asset management services with respect to our foreign investments. | |
On September 13, 2012, Carey REIT II, Inc. (“Carey REIT II”), a subsidiary of WPC 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, 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, and as a result, 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. 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 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 made 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 distributions on shares of Class A common stock because shares of Class C common stock are subject to ongoing distribution and shareholder servicing fees (Note 3). We currently intend to sell shares in our initial public offering until May 7, 2015, unless we sell all of the shares sooner; 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 December 31, 2013, we raised gross offering proceeds for our Class A common stock and Class C common stock of $211,630,152 and $25,677,271, respectively. The gross offering proceeds raised exclude reinvested distributions through the DRIP of $47,777 and $17,343 for our Class A common stock and Class C common stock, respectively. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
Basis of Presentation | |
We had no operating activity prior to April 8, 2013 and acquired our first investment on August 20, 2013. As such, consolidated results of operations and cash flows from the period of inception to December 31, 2012 have not been presented. | |
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 deemed to be a variable interest entity (“VIE”) and, if so, whether we are deemed to be the primary beneficiary and are therefore required to consolidate the entity. We review the contractual arrangements provided for in the partnership agreement or other related contracts to determine whether the entity is considered a VIE, and to establish whether we have any variable interests in the VIE. We then compare our variable interests, if any, to those of the other variable interest holders to determine which party is the primary beneficiary of a VIE based on whether the entity (i) has the power to direct the activities that most significantly impact the economic performance of the VIE, and (ii) has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. | |
For an entity that is not considered to be a VIE but rather a voting interest entity (“VOE”), the general partners in a limited partnership (or similar entity) are presumed to control the entity regardless of the level of their ownership and, accordingly, may be required to consolidate the entity. We evaluate the partnership agreements or other relevant contracts to determine whether there are provisions in the agreements that would overcome this presumption. If the agreements provide the limited partners with either (a) the substantive ability to dissolve or liquidate the limited partnership or otherwise remove the general partners without cause or (b) substantive participating rights, the limited partners’ rights overcome the presumption of control by a general partner of the limited partnership, and, therefore, the general partner must account for its investment in the limited partnership using the equity method of accounting. | |
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 and December 18, 2013, we entered into jointly-owned investments with our affiliate, CPA®:17 – Global (Note 4). We have concluded that these subsidiaries are VOEs 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. | |
Accounting for Acquisitions | |
In accordance with the guidance for business combinations, we determine whether a transaction or other event is a business combination, which requires that the assets acquired and liabilities assumed constitute a business. Each business combination is then accounted for by applying the acquisition method. If the assets acquired are not a business, we account for the transaction or other event as an asset acquisition. Under both methods, we recognize the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquired entity. In addition, for transactions that are business combinations, we evaluate the existence of goodwill or a gain from a bargain purchase. We immediately expense acquisition-related costs and fees associated with business combinations. | |
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. buildings and intangible assets, including the above- 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 are valued, as if vacant, 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. The estimated residual value of each property is based on a hypothetical sale of the property upon expiration of the lease after considering the re-tenanting of such property at estimated then current market rental rate, applying 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 record above- 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 below-market fixed-rate renewal periods in the respective leases. We include the value of below-market leases in Prepaid and deferred rental income in the consolidated balance sheets. We include the amortization of below-market ground lease intangibles in Property expenses in the consolidated statement of operations. | |
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 is 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. | |
If a lease is terminated, we charge the unamortized portion of above- and below-market lease values to lease revenue, and in-place lease (where applicable) values to amortization expense. | |
Real Estate | |
We carry land and buildings and personal property at cost less accumulated depreciation. We charge expenditures for maintenance and repairs, including routine betterments, to operations as incurred. We capitalize significant renovations that increase the useful life of the properties. | |
Depreciation | |
We compute depreciation of buildings and its related improvements using the straight-line method over the estimated remaining useful life of the property or improvements, which range from eight years to 40 years. | |
Impairments | |
We periodically assess whether there are any indicators that the value of our long-lived assets may be impaired or that their carrying value may not be recoverable. These impairment indicators include, but are not limited to the vacancy of a property that is not subject to a lease; a lease default by a tenant that is experiencing financial difficulty; the termination of a lease by a tenant; or the rejection of a lease in a bankruptcy proceeding. We may incur impairment charges on long-lived assets, including real estate and direct financing leases. Our policies for evaluating whether these assets are impaired are presented below. | |
Real Estate | |
For real estate assets, which include finite-lived intangibles, in which an impairment indicator is identified, we follow a two-step process to determine whether an asset is impaired and to determine the amount of the charge. First, we compare the carrying value of the property’s asset group to the future net undiscounted cash flow that we expect the property’s asset group will generate, including any estimated proceeds from the eventual sale of the property’s asset group. The undiscounted cash flow analysis requires us to make our best estimate of, among other things, market rents, residual values, and holding periods. Depending on the assumptions made and estimates used, the future cash flow projected in the evaluation of long-lived assets can vary within a range of outcomes. We consider the likelihood of possible outcomes in determining our estimate of future cash flows. If the future net undiscounted cash flow of the property’s asset group is less than the carrying value, the property’s asset group is considered to be impaired. We then measure the loss as the excess of the carrying value of the property’s asset group over its estimated fair value. | |
Direct Financing Leases | |
We review our direct financing leases at least annually to determine whether there has been an other-than-temporary decline in the current estimate of residual value of the property. The residual value is our estimate of what we could realize upon the sale of the property at the end of the lease term, based on market information. If this review indicates that a decline in residual value has occurred that is other-than-temporary, we recognize an impairment charge equal to the difference between the fair value and carrying amount of the residual value. | |
Allowance for Doubtful Accounts | |
We consider direct financing leases and notes receivable to be past-due or delinquent when a contractually required principal or interest payment is not remitted in accordance with the provisions of the underlying agreement. We evaluate each account individually and set up an allowance when, based upon current information and events, it is probable that we will be unable to collect all amounts due according to the existing contractual terms and the amount can be reasonably estimated. | |
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. | |
Other Assets and Other Liabilities | |
We include accounts receivable, derivatives, stock warrants, marketable securities, deferred charges, and deferred rental income in Other assets, net. We include derivatives and miscellaneous amounts held on behalf of tenants in Other liabilities. Deferred charges are costs incurred in connection with mortgage financings and refinancings that are amortized over the terms of the mortgages and included in Interest expense in the consolidated financial statements. Deferred rental income is the aggregate cumulative difference for operating leases between scheduled rents that vary during the lease term, and rent recognized on a straight-line basis. | |
Deferred Acquisition Fees Payable to Affiliate | |
Fees payable to the advisor for structuring and negotiating investments and related mortgage financing on our behalf are included in Due to affiliates (Note 3). This fee together with its accrued interest, is payable in three equal annual installments on the first business day of the fiscal quarter immediately following the fiscal quarter in which an investment is made, and the first business day of the corresponding fiscal quarter in each of the subsequent two fiscal years. Payment of such fees is subject to the preferred return criterion, a non-compounded cumulative distribution return of 5% per annum (based initially on our invested capital). | |
Noncontrolling Interests | |
We accounted for the Special General Partner Interest as a noncontrolling interest based on the fair value of the rights attributed to the interest at the time it was transferred to the Special General Partner (Note 3). The Special General Partner Interest entitles the Special General Partner to cash distributions and, in the event there is a termination or non-renewal of the advisory agreement, redemption rights. We also consolidate two net-lease properties, in which CPA®:17 – Global has noncontrolling interests (Note 4). | |
Revenue Recognition | |
Real Estate Leased to Others | |
We lease real estate to others primarily 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 and improvements. | |
All of our leases provide for either scheduled rent increases, periodic rent adjustments based on formulas indexed to changes in the CPI or similar indices or percentage rents. CPI-based adjustments are contingent on future events and are therefore not included in straight-line rent calculations. We recognize rents from percentage rents as reported by the lessees, which is after the level of sales requiring a rental payment to us is reached. Percentage rents were insignificant for the periods presented. | |
We account for leases as operating or direct financing leases as described below: | |
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 leases and charge expenses to operations as incurred (Note 4). | |
Direct financing method — We record leases accounted for under the direct financing method at their net investment (Note 5). We defer and amortize unearned income to income over the lease term so as to produce a constant periodic rate of return on our net investment in the lease. | |
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 December 31, 2013. | |
Foreign Currency | |
Translation | |
We have an interest in one real estate investment in Europe. The functional currency for this investment is the euro. We perform the translation from this local currency to the U.S. dollar for assets and liabilities using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using a weighted-average exchange rate during the period. We report the gains and losses resulting from this translation as a component of Other comprehensive loss in equity. These translation gains and losses are released to net income when we have substantially exited from all investments in the related currency. | |
Transaction Gains or Losses | |
A transaction gain or loss (measured from the transaction date or the most recent intervening balance sheet date, whichever is later), realized upon settlement of a foreign currency transaction generally will be included in net income for the period in which the transaction is settled. Foreign currency transactions that are (i) designated as, and are effective as, economic hedges of a net investment and (ii) intercompany foreign currency transactions that are of a long-term nature (that is, settlement is not planned or anticipated in the foreseeable future), when the entities to the transactions are consolidated or accounted for by the equity method in our financial statements, are not included in determining net income are accounted for in the same manner as foreign currency translation adjustments and reported as a component of Other comprehensive loss in equity. | |
Derivative Instruments | |
We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated and that qualified as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in Other comprehensive loss until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. For a derivative designated and that qualified as a net investment hedge, the effective portion of the change in the fair value and/or the net settlement of the derivative are reported in Other comprehensive loss as part of the cumulative foreign currency translation adjustment. The ineffective portion of the change in fair value of the derivative is recognized directly in earnings. Amounts are reclassified out of Other comprehensive loss into earnings when the hedged investment is either sold or substantially liquidated. | |
We made an accounting policy election effective upon the inception date, or the “effective date”, to use the portfolio exception in Accounting Standards Codification 820-10-35-18D, Application to Financial Assets and Financial Liabilities with Offsetting Positions in Market Risk or Counterparty Credit Risk, the “portfolio exception,” with respect to measuring counterparty credit risk for all of our derivative transactions subject to master netting arrangements. | |
Income Taxes | |
We intend to qualify as a REIT under Sections 856 through 860 of the Internal Revenue 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 Internal Revenue 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 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. | |
Deferred Income Taxes | |
We recognize deferred income taxes in one of our subsidiaries that is taxable in a foreign jurisdiction. Deferred income taxes are generally the result of temporary differences (items that are treated differently for tax purposes than for U.S. GAAP purposes). In addition, deferred tax assets may arise from unutilized tax net operating losses generated in prior years. We provide a valuation allowance against our deferred income tax assets when we believe that it is more likely than not that all or some portion of the deferred income tax asset may not be realized. Whenever a change in circumstances causes a change in the estimated realizability of the related deferred income tax asset, the resulting increase or decrease in the valuation allowance is included in deferred income tax expense. | |
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. During the offering period, costs incurred in connection with the raising of capital will be accrued as deferred offering costs and included in Other assets, net on the consolidated balance sheets. 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. During the year ended December 31, 2013, we charged $1,228,024 of deferred offering costs to stockholders’ equity. 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 the remaining unpaid offering costs based on our estimate of expected gross offering proceeds (Note 3). | |
Earnings Per Share | |
We have a simple equity capital structure with only common stock outstanding. As a result, earnings per share, as presented, represents both basic and dilutive per-share amounts for all periods presented in the consolidated financial statements. We calculate earnings per share using the two-class method to reflect the different classes of our outstanding common stock. Income (loss) per basic share of common stock is calculated by dividing Net loss attributable to CPA®:18 – Global by the weighted-average number of shares of common stock issued and outstanding during such period. The allocation of Net loss attributable to CPA®:18 – Global is calculated based on the weighted-average shares outstanding for Class A common stock and Class C common stock for the year ended December 31, 2013. The allocation for the Class A common stock excludes the shareholder servicing fee of $46,499 during 2013 that is only applicable to holders of Class C common stock (Note 3). | |
Income (loss) per basic share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. | |
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. | |
Recent Accounting Requirements | |
The following Accounting Standards Updates (“ASUs”) promulgated by FASB are applicable to us as indicated: | |
ASU 2013-02, Other Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income — In February 2013, the FASB issued ASU 2013-02 requiring entities to disclose additional information about items reclassified out of accumulated other comprehensive income. This ASU impacts the form of our disclosures only, is applicable to us for our interim and annual reports beginning in 2013, and has been applied retrospectively. The related additional disclosures are located in Note 10. | |
ASU 2013-10, Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes, a Consensus of the FASB Emerging Issues Task Force — In July 2013, the FASB issued ASU 2013-10, which permits the Fed Funds Effective Swap Rate, also referred to as the “Overnight Index Swap Rate,” to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to the U.S. government and London Interbank Offered Rate (“LIBOR”) swap rate. The update also removes the restriction on the use of different benchmark rates for similar hedges. This ASU is applicable to us for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. Through the date of this Report, we had not entered into any transactions to which this ASU applies. |
Agreements_and_Transactions_wi
Agreements and Transactions with Related Parties | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Related Party Transactions [Abstract] | ' | |||||||
Agreements and Transactions with Related Parties | ' | |||||||
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 with our approval. | ||||||||
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: | ||||||||
Year Ended | ||||||||
31-Dec-13 | ||||||||
Amounts Included in the Consolidated Statement of Operations: | ||||||||
Costs incurred by the advisor | $ | 182,281 | ||||||
Excess operating expenses charged back to the advisor | (69,397 | ) | ||||||
Available Cash Distribution | 91,600 | |||||||
Interest expense on note payable to affiliate | 36,310 | |||||||
Asset management fees | 116,844 | |||||||
Shareholder servicing fee | 46,499 | |||||||
$ | 404,137 | |||||||
Other Transaction Fees Incurred: | ||||||||
Current acquisition fees | $ | 3,857,518 | ||||||
Deferred acquisition fees | 3,086,435 | |||||||
Offering costs | 5,050,479 | |||||||
$ | 11,994,432 | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Amounts Due to Affiliate: | ||||||||
Organization and offering costs due to the advisor | $ | 1,695,719 | $ | — | ||||
Deferred acquisition fees due to the advisor | 2,701,838 | — | ||||||
Asset management fees due to the advisor | 37,815 | — | ||||||
Other | 713,991 | — | ||||||
$ | 5,149,363 | $ | — | |||||
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 FINRA. 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 year ended December 31, 2013, the advisor paid organization costs of $65,240 and offering costs of $5,050,479 on our behalf of which we repaid $3,420,000. We recorded a liability to the advisor for the remaining unpaid offering costs based on our estimate of expected gross offering proceeds. | ||||||||
Loan from WPC | ||||||||
Our board of directors and the board of directors of WPC have approved unsecured loans from WPC to us of up to $100,000,000, in the aggregate, at a rate of 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 WPC. On August 20, 2013, our Operating Partnership borrowed $15,000,000 from WPC at a rate of 30-day LIBOR plus 1.75%, which is the same rate that WPC 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 statement 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. | ||||||||
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 NAV per share 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 December 31, 2013, the advisor owned 31,125 shares (0.1%) of our outstanding Class A common stock. Asset management fees are included in Property expenses in the consolidated statement 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 WPC and its affiliates, equals 10.0% of the gross proceeds from our initial public offering, which we have not yet reached. The shareholder servicing fee for the year ended December 31, 2013 was $46,499 and is included in General and administrative on the consolidated statement of operations. | ||||||||
Acquisition and Disposition Fees | ||||||||
The advisor receives acquisition fees, a portion of which is payable upon acquisition and the payment of the remaining portion 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. For the year ended December 31, 2013, we recorded $3,086,435 of deferred acquisition fees for our portion of the fees due to the advisor upon the consummation of the acquisitions that we completed during 2013 (Note 4), which are scheduled to be paid in three equal annual installments following the quarter on which a property was purchased. Through December 31, 2013, we paid $384,597 related to such deferred acquisition fees. | ||||||||
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.” For the year ended December 31, 2013, the advisor charged us $182,281 for operating expenses, of which we charged back $69,397 to the advisor as excess operating expenses pursuant to the limitation described above. Our board of directors may elect to repay the advisor for such excess operating expenses in its sole discretion. For the fourth quarter of 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. During the three months ended December 31, 2013, we have made $91,600 of such distributions. |
Net_Investments_in_Properties
Net Investments in Properties | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Real Estate [Abstract] | ' | ||||
Net Investments in Properties | ' | ||||
Net Investments in Properties | |||||
Real Estate | |||||
Real estate, which consists of land and buildings leased to others, at cost, and which are subject to operating leases, is summarized as follows: | |||||
31-Dec-13 | |||||
Land | $ | 36,635,769 | |||
Building | 113,788,095 | ||||
Less: Accumulated depreciation | (823,827 | ) | |||
$ | 149,600,037 | ||||
Acquisitions | |||||
State Farm 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 State Farm located in Austin, Texas. The total cost was $115,604,253, including net lease intangible assets of $15,799,325 (Note 6) and transaction costs of $5,604,253 that were capitalized. CPA®:17 – Global’s equity 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 WPC (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 is located on 83.5 acres of land (unaudited). 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 8). | |||||
Agrokor Acquisition | |||||
On December 18, 2013, we acquired an 80% controlling interest in a jointly-owned investment, which is co-owned by CPA®:17 – Global, and on that date purchased a retail portfolio from Agrokor consisting of five properties located in Croatia. The total cost was $96,956,971, including lease intangible assets of $44,596,355 (Note 6) and transaction costs of $6,314,616 that were capitalized. CPA®:17 – Global’s equity investment (including its share of the current acquisition fees) was $19,391,394, which we account for as a noncontrolling interest. Amounts are based on the exchange rate of the euro at the date of acquisition. This transaction was deemed to be a real estate asset acquisition because we entered into a new lease with the seller/lessee. The leases for each property are virtually identical and each has been classified as an operating lease with an initial term of 20 years plus two ten-year renewal options. | |||||
A portion of the transaction fees capitalized noted above include current and deferred acquisition fees payable and paid to our advisor (Note 3). | |||||
Scheduled Future Minimum Rents | |||||
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 | ||||
2014 | $ | 14,748,808 | |||
2015 | 14,888,892 | ||||
2016 | 15,031,784 | ||||
2017 | 15,177,528 | ||||
2018 | 15,326,184 | ||||
Thereafter | 197,723,692 | ||||
Total | $ | 272,896,888 | |||
Finance_Receivables
Finance Receivables | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Receivables [Abstract] | ' | ||||
Financing Receivables | ' | ||||
Finance Receivables | |||||
Assets representing rights to receive money on demand or at fixed or determinable dates are referred to as finance receivables. Our finance receivable portfolio consists of our Net investment in direct financing leases described below. Operating leases are not included in finance receivables as such amounts are not recognized as an asset in the consolidated balance sheets. | |||||
Crowne Group Investment | |||||
On December 30, 2013, we entered into a domestic net lease financing transaction with Crowne Group Incorporated from whom we acquired three industrial facilities located in Indiana and South Carolina. The total cost was $22,897,988, including land of $833,530 and transaction costs of $606,757 that were capitalized. The leases for each property have initial terms of 25 years and one five-year renewal option. We obtained a $12,260,177 mortgage upon acquisition of these properties (Note 7, 8). | |||||
Net investment in direct financing leases is summarized as follows: | |||||
December 31, 2013 | |||||
Minimum lease payments receivable | $ | 50,006,483 | |||
Unguaranteed residual value | 22,064,458 | ||||
72,070,941 | |||||
Less: unearned income | (50,006,483 | ) | |||
$ | 22,064,458 | ||||
Scheduled Future Minimum Rents | |||||
Scheduled future minimum rents, exclusive of renewals and expenses paid by the tenant and future CPI-based adjustments, under non-cancelable direct financing leases at December 31, 2013 are as follows: | |||||
Years Ending December 31, | Total | ||||
2014 | $ | 1,993,614 | |||
2015 | 1,993,614 | ||||
2016 | 1,993,614 | ||||
2017 | 1,993,614 | ||||
2018 | 1,993,614 | ||||
Thereafter | 40,038,413 | ||||
Total | $ | 50,006,483 | |||
Credit Quality of Finance Receivables | |||||
We generally seek investments in facilities that we believe are critical to each tenant’s business and that we believe have a low risk of tenant defaults. At December 31, 2013, the balance of our only finance receivable was not past due and we had not established any allowances for credit losses. Additionally, there have been no modifications of this finance receivable during the year ended December 31, 2013. We evaluate the credit quality of our finance receivables utilizing an internal five-point credit rating scale, with one representing the highest credit quality and five representing the lowest. At December 31, 2013, our sole finance receivable had an internal credit rating of three. |
Intangible_Assets_and_Liabilit
Intangible Assets and Liabilities | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Intangible Assets And Liabilities [Abstract] | ' | |||||||||||||
Intangible Assets and Liabilities | ' | |||||||||||||
Intangible Assets and Liabilities | ||||||||||||||
In connection with our acquisitions of properties (Note 4), we have recorded net lease intangibles that are being amortized over periods ranging from 15 to 99 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): | ||||||||||||||
31-Dec-13 | ||||||||||||||
Weighted-Average | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||
Life | ||||||||||||||
Amortizable Intangible Assets | ||||||||||||||
Lease intangibles: | ||||||||||||||
In-place lease | 18.3 | $ | 53,831,963 | $ | (494,722 | ) | $ | 53,337,241 | ||||||
Below-market ground lease | 99 | 8,227,434 | (3,128 | ) | 8,224,306 | |||||||||
Total intangible assets | $ | 62,059,397 | $ | (497,850 | ) | $ | 61,561,547 | |||||||
Amortizable Intangible Liabilities | ||||||||||||||
Below-market rent | 15 | $ | (1,646,828 | ) | $ | 40,263 | $ | (1,606,565 | ) | |||||
Net amortization of intangibles was $457,587 for the year ended December 31, 2013. Amortization of below-market rent is recorded as an adjustment to Rental income. We amortize in-place lease intangibles to Depreciation and amortization expense over the remaining initial term of each lease. Amortization of below-market ground lease intangibles is included in Property expenses. | ||||||||||||||
Based on the intangible assets and liabilities recorded at December 31, 2013, scheduled annual net amortization of intangibles for each of the next five years and thereafter is as follows: | ||||||||||||||
Years Ending December 31, | Net Decrease in Rental Revenue | Increase to Amortization/Property Expense | Net | |||||||||||
2014 | $ | (109,789 | ) | $ | 3,057,924 | $ | 2,948,135 | |||||||
2015 | (109,789 | ) | 3,057,924 | 2,948,135 | ||||||||||
2016 | (109,789 | ) | 3,057,924 | 2,948,135 | ||||||||||
2017 | (109,789 | ) | 3,057,924 | 2,948,135 | ||||||||||
2018 | (109,789 | ) | 3,057,924 | 2,948,135 | ||||||||||
Thereafter | (1,057,620 | ) | 46,271,927 | 45,214,307 | ||||||||||
$ | (1,606,565 | ) | $ | 61,561,547 | $ | 59,954,982 | ||||||||
Risk_Management_and_Use_of_Der
Risk Management and Use of Derivative Financial Instruments | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||
Risk Management and Use of Derivative Financial Instruments | ' | |||||||||||||
Risk Management and Use of Derivative Financial Instruments | ||||||||||||||
Risk Management | ||||||||||||||
In the normal course of our ongoing business operations, we encounter economic risk. There are three main components of economic risk that impact us: interest rate risk, credit risk and market risk. We are primarily subject to interest rate risk on our interest-bearing assets and liabilities. Credit risk is the risk of default on our operations and tenants’ inability or unwillingness to make contractually required payments. Market risk includes changes in the value of our properties and related loans as well as changes in the value of our other investments due to changes in interest rates or other market factors. In addition, we own one investment in Europe and are subject to the risks associated with changing foreign currency exchange rates. | ||||||||||||||
Derivative Financial Instrument | ||||||||||||||
When we use derivative instruments, it is generally to reduce our exposure to fluctuations in interest rates and foreign currency exchange rate movements. We have not entered, and do not plan to enter, into financial instruments for trading or speculative purposes. In addition to derivative instruments that we entered into on our own behalf, we may also be a party to derivative instruments that are embedded in other contracts, and we may own common stock warrants, granted to us by lessees when structuring lease transactions, which are considered to be derivative instruments. The primary risks related to our use of derivative instruments are that a counterparty to a hedging arrangement could default on its obligation or that in the credit quality of the counterparty may be downgraded to such an extent that it impairs our ability to sell or assign our side of the hedging transaction. While we seek to mitigate these risks by entering into hedging arrangements with counterparties that are large financial institutions that we deem to be creditworthy, it is possible that our hedging transactions, which are intended to limit losses, could adversely affect our earnings. Furthermore, if we terminate a hedging arrangement, we may be obligated to pay certain costs, such as transaction or breakage fees. We have established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. | ||||||||||||||
We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated and that qualified as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in Other comprehensive loss until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. For a derivative designated and that qualified as a net investment hedge, the effective portion of the change in the fair value and/or the net settlement of the derivative are reported in Other comprehensive loss as part of the cumulative foreign currency translation adjustment. The ineffective portion of the change in fair value of the derivative is recognized directly in earnings. Amounts are reclassified out of Other comprehensive loss into earnings when the hedged investment is either sold or substantially liquidated. | ||||||||||||||
The following table sets forth certain information regarding our derivative instrument for the year presented: | ||||||||||||||
Derivative Designated as Hedging Instrument | Balance Sheet Location | Liability Derivative Fair Value at | ||||||||||||
December 31, 2013 | ||||||||||||||
Interest rate swap (a) | Accounts payable, accrued expenses and other liabilities | $ | (219,291 | ) | ||||||||||
___________ | ||||||||||||||
(a) | In connection with the non-recourse debt financing related to our Crowne Group investment, we entered into a fixed for floating interest rate swap. | |||||||||||||
For the year ended December 31, 2013, we recognized an unrealized loss of $220,267 related to our interest rate swap, of which $976 was reclassified to interest expense. | ||||||||||||||
All derivative transactions with an individual counterparty are governed by a master International Swap and Derivatives Association agreement, which can be considered as a master netting arrangement; however, we report all our derivative instruments on a gross basis on our consolidated balance sheets. At December 31, 2013, no cash collateral had been posted or received for any of our derivative positions. | ||||||||||||||
Interest Rate Swap | ||||||||||||||
We are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we attempt to obtain mortgage financing on a long-term, fixed-rate basis. However, from time to time, we or our investment partners may obtain variable-rate mortgage loans and, as a result, may enter into interest rate swap agreements with counterparties. Interest rate swaps, which effectively convert the variable-rate debt service obligations of the loan to a fixed rate, are agreements in which one party exchanges a stream of interest payments for a counterparty’s stream of cash flow over a specific period. The notional, or face, amount on which the swaps are based is not exchanged. | ||||||||||||||
The interest rate swap that we had outstanding on our consolidated subsidiaries at December 31, 2013 is summarized as follows: | ||||||||||||||
Number of Instruments | Notional | Fair Value at | ||||||||||||
Amount | December 31, 2013 (a) | |||||||||||||
Interest rate swap | 1 | $ | 12,260,177 | $ | (219,291 | ) | ||||||||
____________ | ||||||||||||||
(a) | Amount is based upon the exchange rate of the euro at December 31, 2013. | |||||||||||||
Other | ||||||||||||||
Amounts reported in Other comprehensive loss related to our interest rate swap will be reclassified to Interest expense as interest payments are made on our variable-rate debt. At December 31, 2013, we estimate that an additional $339,327 will be reclassified as interest expense during the next 12 months. | ||||||||||||||
Portfolio Concentration Risk | ||||||||||||||
Concentrations of credit risk arise when a number of tenants are engaged in similar business activities or have similar economic features that would cause their ability to meet contractual obligations, including those to us, to be similarly affected by changes in economic conditions. We currently have concentrations of credit risk in our portfolio as we have a limited number of investments. | ||||||||||||||
We intend to regularly monitor our portfolio to assess potential concentrations of credit risk as we make additional investments. As we invest the proceeds of our initial public offering, we will seek to ensure that our portfolio is reasonably well diversified and does not contain any unusual concentration of credit risks. Our portfolio does contain concentrations in excess of 10%, based on the percentage of our annualized contractual minimum base rent for the fourth quarter of 2013, in certain areas, as shown in the table below. The percentages in the table below represent our directly-owned real estate properties and do not include our share of equity investments or noncontrolling interests. | ||||||||||||||
Lessee | Annualized Contractual Minimum Base Rent | % of Annualized Contractual Minimum Base Rent | Property Location | Property Type | Tenant Industry | |||||||||
State Farm | $ | 6,957,924 | 41.7 | % | Austin, TX | Office | Insurance | |||||||
Agrokor | 7,744,500 | 46.4 | % | Split, Zadar, Zagreb (3), Croatia | Retail | Grocery | ||||||||
Crowne Group | 1,993,614 | 11.9 | % | Logansport, IN, Madison, IN, Marion, SC | Industrial | Automobile | ||||||||
$ | 16,696,038 | 100 | % | |||||||||||
Nonrecourse_Debt
Non-recourse Debt | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Non-Recourse Debt | ' | ||||
Non-Recourse Debt | |||||
Non-recourse debt consists of mortgage notes payable, which are collateralized by the assignment of real property and direct financing leases with an aggregate carrying value of $119,335,849 at December 31, 2013. At December 31, 2013, we had one fixed rate mortgage note payable with a balance of $72,800,000 that bore a fixed annual interest rate of 4.5% and one mortgage that bore interest at a variable contractual annual rate of 5.6% with a balance of $12,260,177, both having maturity dates in 2023. | |||||
Financing Activity During 2013 | |||||
State Farm Mortgage | |||||
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. | |||||
Agrokor Loan Facility Agreement | |||||
We entered into a loan facility agreement with an unrelated third party in connection with the acquisition of the properties leased to Agrokor (Note 4). This facility, which is denominated in euros, has a seven-year term, matures on December 31, 2020 and is for €31,250,000 (or $42,929,000) at a rate of 430 basis points plus the 7 Years EUR Swap rate. On February 25, 2014, we drew down the full balance from this facility (Note 13). | |||||
Crowne Group Mortgage | |||||
We obtained a mortgage loan of $12,260,177 from an unrelated third party in connection with the acquisition of the property leased to Crowne Group (Note 5) which matures on December 30, 2023. The loan is non-recourse and has a variable annual interest rate of LIBOR plus 255 basis points, which was effectively swapped to a fixed rate of 5.6% at December 31, 2013 (Note 7). We capitalized $168,963 of deferred financing costs related to this loan. | |||||
Scheduled Debt Principal Payments | |||||
Scheduled debt principal payments during each of the next five calendar years following December 31, 2013 and thereafter are as follows: | |||||
Years Ending December 31, | Total | ||||
2014 | $ | 280,575 | |||
2015 | 306,082 | ||||
2016 | 306,082 | ||||
2017 | 306,082 | ||||
2018 | 306,082 | ||||
Thereafter through 2023 | 83,555,274 | ||||
Total | $ | 85,060,177 | |||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
At December 31, 2013, we were not involved in any material litigation. |
Loss_Per_Share_and_Equity
Loss Per Share and Equity | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Loss Per Share and Equity | ' | ||||||||||
Loss Per Share and Equity | |||||||||||
The following tables depict loss per share for the period presented: | |||||||||||
Year Ended December 31, 2013 | |||||||||||
Weighted-Average | Allocation of Net Loss (a) | Loss | |||||||||
Shares Outstanding | Per Share | ||||||||||
Class A common stock | 2,792,648 | $ | (495,935 | ) | $ | (0.18 | ) | ||||
Class C common stock | 497,725 | (134,888 | ) | (0.27 | ) | ||||||
Net loss attributable to CPA®:18 – Global | $ | (630,823 | ) | ||||||||
__________ | |||||||||||
(a) | The allocation of Net loss attributable to CPA®:18 – Global is calculated based on the weighted-average shares outstanding for Class A common stock and Class C common stock for the year ended December 31, 2013. The allocation for the Class A common stock excludes the shareholder servicing fee of $46,499 during 2013 that is only applicable to holders of Class C common stock (Note 3). | ||||||||||
Subsequent to December 31, 2013 and through February 28, 2014, we issued an additional 19,812,267 shares of Class A common stock and an additional 1,393,769 shares of Class C common stock in our initial public offering. | |||||||||||
Proceeds from certain of the shares that we sold are held in escrow and considered unsettled until such time as all contingencies have been removed and the buyer has voting rights, or approximately three days. At December 31, 2013, 504,115 of the Class A shares that were sold remain unsettled and we have recorded a receivable of $4,511,981 relating to such shares. | |||||||||||
Stock-Based Compensation | |||||||||||
We issued 1,851 shares Class A common stock to each of our four independent directors during the third quarter of 2013, valued at $9.00 per share, as part of their director compensation. For the year ended December 31, 2013, we recognized stock-based compensation expense of $66,666 associated with the issuance of these shares. | |||||||||||
Distributions | |||||||||||
Distributions paid to stockholders consist of ordinary income, capital gains, return of capital or a combination thereof for income tax purposes. The following table presents annualized distributions per share reported for tax purposes and serves as a designation of capital gain distributions, if applicable, pursuant to Internal Revenue Code Section 857(b)(3)(C) and Treasury Regulation § 1.857-6(e): | |||||||||||
Year Ended | |||||||||||
31-Dec-13 | |||||||||||
Class A | Class C | ||||||||||
Ordinary income | $ | — | $ | — | |||||||
Capital gain | — | — | |||||||||
Return of capital | 0.1155 | 0.0982 | |||||||||
Total distributions paid | $ | 0.1155 | $ | 0.0982 | |||||||
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 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, which were paid on or about January 15, 2014 to stockholders of record on each day of the quarter. At December 31, 2013, we had distributions payable of $1,821,171. | |||||||||||
On December 11, 2013, our board of directors declared distributions at a daily rate of $0.0017361 for the Class A common stock and $0.0014763 for the Class C common stock for the quarter ending March 31, 2014, payable on or about April 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 may be paid from offering proceeds, which reduces amounts available to invest in properties and could lower our overall return. | |||||||||||
Accumulated Other Comprehensive Loss | |||||||||||
The following table presents the components of Accumulated other comprehensive loss reflected in equity, net of tax. | |||||||||||
December 31, 2013 | |||||||||||
Foreign currency translation adjustments | $ | 124,801 | |||||||||
Unrealized loss on derivative instrument | (219,291 | ) | |||||||||
Accumulated other comprehensive loss | $ | (94,490 | ) | ||||||||
For the year ended December 31, 2013, we recognized an unrealized loss of $220,267 related to our interest rate swap, of which $976 was reclassified to interest expense. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Information | ' | ||||||||||||
Segment Information | |||||||||||||
We have determined that we operate in one reportable segment, real estate ownership, with domestic and foreign investments. Geographic information for this segment is as follows: | |||||||||||||
Year Ended December 31, 2013 | Domestic | International (a) | Total | ||||||||||
Revenues (b) | $ | 3,007,415 | $ | 284,260 | $ | 3,291,675 | |||||||
Loss from continuing operations before income taxes | (127,299 | ) | (102,894 | ) | (230,193 | ) | |||||||
Net income attributable to noncontrolling interests | (360,897 | ) | (29,252 | ) | (390,149 | ) | |||||||
Net loss attributable to CPA®:18 – Global | (488,195 | ) | (142,628 | ) | (630,823 | ) | |||||||
Long-lived assets (c) | 150,212,855 | 21,451,640 | 171,664,495 | ||||||||||
Non-recourse debt | 85,060,177 | — | 85,060,177 | ||||||||||
___________ | |||||||||||||
(a) | Includes operations in Croatia. | ||||||||||||
(b) | Domestic revenue is almost entirely attributable to our State Farm property and all of the international revenue is attributable to our Agrokor property. | ||||||||||||
(c) | Consists of Net investments in real estate. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
31-Mar-13 | June 30, 2013 | September 30, 2013 | December 31, 2013 | ||||||||||||||
Revenues | $ | — | $ | — | $ | 947,440 | $ | 2,344,235 | |||||||||
Operating expenses | — | 65,240 | 603,846 | 1,635,343 | |||||||||||||
Net loss | — | (65,240 | ) | (71,892 | ) | (103,542 | ) | ||||||||||
Net income attributable to noncontrolling interests | — | — | (66,417 | ) | (323,732 | ) | |||||||||||
Net loss attributable to CPA®:18 – Global | $ | — | $ | (65,240 | ) | $ | (138,309 | ) | $ | (427,274 | ) | ||||||
Class A common stock: | |||||||||||||||||
Loss per share (a) | $ | — | $ | (2.81 | ) | $ | (0.18 | ) | $ | (0.03 | ) | ||||||
Weighted average shares outstanding | — | 23,222 | 616,292 | 10,469,534 | |||||||||||||
Distributions declared per share | $ | — | $ | — | $ | 0.1155 | $ | 0.1562 | |||||||||
Class C common stock: | |||||||||||||||||
Loss per share (a) | $ | — | $ | — | $ | (0.20 | ) | $ | (0.05 | ) | |||||||
Weighted average shares outstanding | — | — | 149,294 | 1,825,374 | |||||||||||||
Distributions declared per share | $ | — | $ | — | $ | 0.0982 | $ | 0.1329 | |||||||||
___________ | |||||||||||||||||
(a) | The sum of the quarterly Loss per share does not agree to the annual Loss per share for 2013 due to the issuances of our common stock that occurred during 2013. |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
Subsequent Events | |
Acquisitions and Financing | |
On February 27, 2014, we purchased an office building with three underground parking floors in Oslo, Norway from Siemens AS for a total cost of approximately $89,951,000 with a lease term of 12 years. We obtained a non-recourse bond of approximately $52,066,000 of non-recourse bond that bears a fixed interest rate of 3.5% and matures on December 14, 2025. | |
On February 25, 2014, we withdrew €31,250,000 (or $42,929,000)from our loan facility agreement for the refinancing of the Agrokor investment (Note 8). | |
On February 7, 2014, we purchased a building in Norcross, Georgia from Automobile Protection Corporation for a total cost of approximately $5,848,000 with a lease term of 15 years. We obtained approximately $3,835,000 of non-recourse mortgage that bears a fixed interest rate of 5.1% and matures on February 5, 2024. | |
On February 3, 2014, we purchased a distribution center in University Park, Illinois, which is leased to Solo Cup Operating Company, for a total cost of approximately $84,666,000 and with a remaining lease term of 9.5 years. We obtained approximately $47,250,000 of non-recourse mortgage that bears a fixed interest rate of 5.1% and matures on February 6, 2024. | |
On January 23, 2014, we purchased a self-storage facility located in St. Petersburg, Florida for a total cost of approximately $12,127,000. On January 22, 2014, we purchased a self-storage facility located in Kissimmee, Florida for a total cost of approximately $12,318,000. On January 23, 2014, we obtained a mortgage loan for approximately $14,500,000 that is secured by both of these self-storage facilities. This loan bore interest at a fixed rate at 4.9% and matures on January 23, 2024. | |
On January 16, 2014, we purchased an office/warehouse facility in Streetsboro, Ohio, which is leased to Air Enterprises Acquisition, LLC, for a total cost of approximately $7,016,000, which includes a $1,050,000 cash hold back for future capital improvements, with a lease term of 15 years. | |
Under the advisory agreement, the advisor is entitled to acquisition fees related to the above acquisitions. The initial portion of such fees is payable upon acquisition and the payment of the remaining portion 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 (Note 3). | |
Given the short period of time between the acquisition dates and the issuance of this Report, we have not yet finalized the purchase price allocation for the transactions noted above. As such, it was not practicable to disclose the preliminary purchase price allocation or consolidated pro forma financial information for these transactions (if applicable). | |
Hedging Activity | |
On February 27, 2014, we executed a forward contract with a notional amount of 47,540,000 Norwegian Krone (“NOK”), specifically related to our Siemens investment, to hedge our quarterly cash flows against fluctuation in the NOK to the U.S. dollar. | |
On January 16, 2014, we executed a forward contract, specifically related to our Agrokor investment (Note 4), to hedge our quarterly cash flows against fluctuation in the euro to the U.S. dollar. |
Schedule_III_Real_Estate_and_A
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||||
Schedule III - Real Estate and Accumulated Depreciation | ' | |||||||||||||||||||||||||||||||||||||||||
CORPORATE PROPERTY ASSOCIATES 18 – GLOBAL INCORPORATED | ||||||||||||||||||||||||||||||||||||||||||
SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||
Initial Cost to | Cost | Increase | Gross Amount at which | Accumulated Depreciation(c) | Date of Construction | Date Acquired | Life on which | |||||||||||||||||||||||||||||||||||
Company | Capitalized | (Decrease) | Carried at Close of Period (c) | Depreciation in Latest | ||||||||||||||||||||||||||||||||||||||
Subsequent to Acquisition (a) | in Net Investments (b) | Statement of | ||||||||||||||||||||||||||||||||||||||||
Description | Encumbrances | Land | Buildings | Land | Buildings | Total | Income is Computed | |||||||||||||||||||||||||||||||||||
Real Estate Under Operating Leases: | ||||||||||||||||||||||||||||||||||||||||||
Office facility in Austin, TX | $ | 72,800,000 | $ | 29,215,472 | $ | 67,993,428 | $ | — | $ | — | $ | 29,215,472 | $ | 67,993,428 | $ | 97,208,900 | $ | 771,039 | 1993 | Aug. 2013 | 40 yrs. | |||||||||||||||||||||
Retail facility in Zagreb, Croatia | — | — | 10,828,306 | — | 4,456 | — | 10,832,762 | 10,832,762 | 12,090 | 2005 | Dec. 2013 | 34 yrs. | ||||||||||||||||||||||||||||||
Retail facility in Zagreb, Croatia | — | — | 10,575,790 | — | 4,311 | — | 10,580,101 | 10,580,101 | 11,061 | 2006 | Dec. 2013 | 36 yrs. | ||||||||||||||||||||||||||||||
Retail facility in Zagreb, Croatia | — | 2,264,430 | 10,675,693 | — | 5,102 | 2,265,175 | 10,680,050 | 12,945,225 | 12,200 | 2006 | Dec. 2013 | 34 yrs. | ||||||||||||||||||||||||||||||
Retail facility in Zadar, Croatia | — | 4,320,173 | 10,535,703 | — | 5,692 | 4,321,592 | 10,539,976 | 14,861,568 | 13,030 | 2007 | Dec. 2013 | 33 yrs. | ||||||||||||||||||||||||||||||
Retail facility in Split, Croatia | — | — | 3,160,522 | — | 1,256 | — | 3,161,778 | 3,161,778 | 4,407 | 2001 | Dec. 2013 | 27 yrs. | ||||||||||||||||||||||||||||||
Land in Madison, IN | 436,141 | 833,530 | — | — | — | 833,530 | — | 833,530 | — | N/A | Dec. 2013 | N/A | ||||||||||||||||||||||||||||||
$ | 73,236,141 | $ | 36,633,605 | $ | 113,769,442 | $ | — | $ | 20,817 | $ | 36,635,769 | $ | 113,788,095 | $ | 150,423,864 | $ | 823,827 | |||||||||||||||||||||||||
Initial Cost to Company | Cost Capitalized | Increase | Gross Amount at | Date of Construction | Date Acquired | |||||||||||||||||||||||||||||||||||||
Subsequent to | (Decrease) | which Carried at | ||||||||||||||||||||||||||||||||||||||||
Acquisition (a) | in Net | Close of Period | ||||||||||||||||||||||||||||||||||||||||
Description | Encumbrances | Land | Buildings | Investments (b) | Total | |||||||||||||||||||||||||||||||||||||
Direct Financing Method: | ||||||||||||||||||||||||||||||||||||||||||
Industrial facility in Logansport, IN | $ | 4,541,169 | $ | 454,582 | $ | 7,688,865 | $ | — | $ | — | $ | 8,143,447 | 1990 | Dec. 2013 | ||||||||||||||||||||||||||||
Industrial facility in Madison, IN | 1,955,820 | 355,774 | 3,382,091 | — | — | 3,737,865 | 2000 | Dec. 2013 | ||||||||||||||||||||||||||||||||||
Industrial facility in Marion, SC | 5,327,047 | 753,339 | 9,429,807 | — | — | 10,183,146 | 1968 | Dec. 2013 | ||||||||||||||||||||||||||||||||||
$ | 11,824,036 | $ | 1,563,695 | $ | 20,500,763 | $ | — | $ | — | $ | 22,064,458 | |||||||||||||||||||||||||||||||
___________ | ||||||||||||||||||||||||||||||||||||||||||
(a) | Consists of the costs of improvements subsequent to purchase and acquisition costs including legal fees, appraisal fees, title costs, and other related professional fees. | |||||||||||||||||||||||||||||||||||||||||
(b) | The increase (decrease) in net investment was primarily due to (i) the amortization of unearned income from net investment in direct financing leases, which produces a periodic rate of return that at times may be greater or less than lease payments received, (ii) sales of properties, (iii) impairment charges, and (iv) changes in foreign currency exchange rates. | |||||||||||||||||||||||||||||||||||||||||
(c) | Reconciliation of real estate and accumulated depreciation (see below): | |||||||||||||||||||||||||||||||||||||||||
Reconciliation of Real Estate | ||||||||||||||||||||||||||||||||||||||||||
Subject to | ||||||||||||||||||||||||||||||||||||||||||
Operating Leases | ||||||||||||||||||||||||||||||||||||||||||
Year Ended | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | — | ||||||||||||||||||||||||||||||||||||||||
Additions | 150,403,047 | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | 20,817 | |||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 150,423,864 | ||||||||||||||||||||||||||||||||||||||||
Reconciliation of Accumulated | ||||||||||||||||||||||||||||||||||||||||||
Depreciation for | ||||||||||||||||||||||||||||||||||||||||||
Real Estate Subject to | ||||||||||||||||||||||||||||||||||||||||||
Operating Leases | ||||||||||||||||||||||||||||||||||||||||||
Year Ended | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | — | ||||||||||||||||||||||||||||||||||||||||
Depreciation expense | 823,827 | |||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 823,827 | ||||||||||||||||||||||||||||||||||||||||
At December 31, 2013, the aggregate cost of real estate, net of accumulated depreciation and accounted for as operating leases, owned by us and our consolidated subsidiaries for federal income tax purposes was $162,363,742. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
We had no operating activity prior to April 8, 2013 and acquired our first investment on August 20, 2013. As such, consolidated results of operations and cash flows from the period of inception to December 31, 2012 have not been presented. | |
Basis of Consolidation | ' |
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 deemed to be a variable interest entity (“VIE”) and, if so, whether we are deemed to be the primary beneficiary and are therefore required to consolidate the entity. We review the contractual arrangements provided for in the partnership agreement or other related contracts to determine whether the entity is considered a VIE, and to establish whether we have any variable interests in the VIE. We then compare our variable interests, if any, to those of the other variable interest holders to determine which party is the primary beneficiary of a VIE based on whether the entity (i) has the power to direct the activities that most significantly impact the economic performance of the VIE, and (ii) has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. | |
For an entity that is not considered to be a VIE but rather a voting interest entity (“VOE”), the general partners in a limited partnership (or similar entity) are presumed to control the entity regardless of the level of their ownership and, accordingly, may be required to consolidate the entity. We evaluate the partnership agreements or other relevant contracts to determine whether there are provisions in the agreements that would overcome this presumption. If the agreements provide the limited partners with either (a) the substantive ability to dissolve or liquidate the limited partnership or otherwise remove the general partners without cause or (b) substantive participating rights, the limited partners’ rights overcome the presumption of control by a general partner of the limited partnership, and, therefore, the general partner must account for its investment in the limited partnership using the equity method of accounting. | |
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 and December 18, 2013, we entered into jointly-owned investments with our affiliate, CPA®:17 – Global (Note 4). We have concluded that these subsidiaries are VOEs 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. | |
Accounting for Acquisitions | ' |
Accounting for Acquisitions | |
In accordance with the guidance for business combinations, we determine whether a transaction or other event is a business combination, which requires that the assets acquired and liabilities assumed constitute a business. Each business combination is then accounted for by applying the acquisition method. If the assets acquired are not a business, we account for the transaction or other event as an asset acquisition. Under both methods, we recognize the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquired entity. In addition, for transactions that are business combinations, we evaluate the existence of goodwill or a gain from a bargain purchase. We immediately expense acquisition-related costs and fees associated with business combinations. | |
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. buildings and intangible assets, including the above- 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 are valued, as if vacant, 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. The estimated residual value of each property is based on a hypothetical sale of the property upon expiration of the lease after considering the re-tenanting of such property at estimated then current market rental rate, applying 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 record above- 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 below-market fixed-rate renewal periods in the respective leases. We include the value of below-market leases in Prepaid and deferred rental income in the consolidated balance sheets. We include the amortization of below-market ground lease intangibles in Property expenses in the consolidated statement of operations. | |
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 is 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. | |
If a lease is terminated, we charge the unamortized portion of above- and below-market lease values to lease revenue, and in-place lease (where applicable) values to amortization expense. | |
Real Estate | ' |
Real Estate | |
We carry land and buildings and personal property at cost less accumulated depreciation. We charge expenditures for maintenance and repairs, including routine betterments, to operations as incurred. We capitalize significant renovations that increase the useful life of the properties. | |
Depreciation | ' |
Depreciation | |
We compute depreciation of buildings and its related improvements using the straight-line method over the estimated remaining useful life of the property or improvements, which range from eight years to 40 years. | |
Impairments | ' |
Impairments | |
We periodically assess whether there are any indicators that the value of our long-lived assets may be impaired or that their carrying value may not be recoverable. These impairment indicators include, but are not limited to the vacancy of a property that is not subject to a lease; a lease default by a tenant that is experiencing financial difficulty; the termination of a lease by a tenant; or the rejection of a lease in a bankruptcy proceeding. We may incur impairment charges on long-lived assets, including real estate and direct financing leases. Our policies for evaluating whether these assets are impaired are presented below. | |
Real Estate | |
For real estate assets, which include finite-lived intangibles, in which an impairment indicator is identified, we follow a two-step process to determine whether an asset is impaired and to determine the amount of the charge. First, we compare the carrying value of the property’s asset group to the future net undiscounted cash flow that we expect the property’s asset group will generate, including any estimated proceeds from the eventual sale of the property’s asset group. The undiscounted cash flow analysis requires us to make our best estimate of, among other things, market rents, residual values, and holding periods. Depending on the assumptions made and estimates used, the future cash flow projected in the evaluation of long-lived assets can vary within a range of outcomes. We consider the likelihood of possible outcomes in determining our estimate of future cash flows. If the future net undiscounted cash flow of the property’s asset group is less than the carrying value, the property’s asset group is considered to be impaired. We then measure the loss as the excess of the carrying value of the property’s asset group over its estimated fair value. | |
Direct Financing Leases | |
We review our direct financing leases at least annually to determine whether there has been an other-than-temporary decline in the current estimate of residual value of the property. The residual value is our estimate of what we could realize upon the sale of the property at the end of the lease term, based on market information. If this review indicates that a decline in residual value has occurred that is other-than-temporary, we recognize an impairment charge equal to the difference between the fair value and carrying amount of the residual value. | |
Allowance for Doubtful Accounts | ' |
Allowance for Doubtful Accounts | |
We consider direct financing leases and notes receivable to be past-due or delinquent when a contractually required principal or interest payment is not remitted in accordance with the provisions of the underlying agreement. We evaluate each account individually and set up an allowance when, based upon current information and events, it is probable that we will be unable to collect all amounts due according to the existing contractual terms and the amount can be reasonably estimated. | |
Cash and Cash Equivalents | ' |
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. | |
Other Assets and Other Liabilities | ' |
Other Assets and Other Liabilities | |
We include accounts receivable, derivatives, stock warrants, marketable securities, deferred charges, and deferred rental income in Other assets, net. We include derivatives and miscellaneous amounts held on behalf of tenants in Other liabilities. Deferred charges are costs incurred in connection with mortgage financings and refinancings that are amortized over the terms of the mortgages and included in Interest expense in the consolidated financial statements. Deferred rental income is the aggregate cumulative difference for operating leases between scheduled rents that vary during the lease term, and rent recognized on a straight-line basis. | |
Deferred Charges | ' |
Deferred Acquisition Fees Payable to Affiliate | |
Fees payable to the advisor for structuring and negotiating investments and related mortgage financing on our behalf are included in Due to affiliates (Note 3). This fee together with its accrued interest, is payable in three equal annual installments on the first business day of the fiscal quarter immediately following the fiscal quarter in which an investment is made, and the first business day of the corresponding fiscal quarter in each of the subsequent two fiscal years. Payment of such fees is subject to the preferred return criterion, a non-compounded cumulative distribution return of 5% per annum (based initially on our invested capital). | |
Noncontrolling Interests | ' |
Noncontrolling Interests | |
We accounted for the Special General Partner Interest as a noncontrolling interest based on the fair value of the rights attributed to the interest at the time it was transferred to the Special General Partner (Note 3). The Special General Partner Interest entitles the Special General Partner to cash distributions and, in the event there is a termination or non-renewal of the advisory agreement, redemption rights. We also consolidate two net-lease properties, in which CPA®:17 – Global has noncontrolling interests (Note 4). | |
Revenue Recognition | ' |
Revenue Recognition | |
Real Estate Leased to Others | |
We lease real estate to others primarily 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 and improvements. | |
All of our leases provide for either scheduled rent increases, periodic rent adjustments based on formulas indexed to changes in the CPI or similar indices or percentage rents. CPI-based adjustments are contingent on future events and are therefore not included in straight-line rent calculations. We recognize rents from percentage rents as reported by the lessees, which is after the level of sales requiring a rental payment to us is reached. Percentage rents were insignificant for the periods presented. | |
We account for leases as operating or direct financing leases as described below: | |
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 leases and charge expenses to operations as incurred (Note 4). | |
Direct financing method — We record leases accounted for under the direct financing method at their net investment (Note 5). We defer and amortize unearned income to income over the lease term so as to produce a constant periodic rate of return on our net investment in the lease. | |
Fair Value Measurements | ' |
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 December 31, 2013. | |
Foreign Currency | ' |
Foreign Currency | |
Translation | |
We have an interest in one real estate investment in Europe. The functional currency for this investment is the euro. We perform the translation from this local currency to the U.S. dollar for assets and liabilities using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using a weighted-average exchange rate during the period. We report the gains and losses resulting from this translation as a component of Other comprehensive loss in equity. These translation gains and losses are released to net income when we have substantially exited from all investments in the related currency. | |
Transaction Gains or Losses | |
A transaction gain or loss (measured from the transaction date or the most recent intervening balance sheet date, whichever is later), realized upon settlement of a foreign currency transaction generally will be included in net income for the period in which the transaction is settled. Foreign currency transactions that are (i) designated as, and are effective as, economic hedges of a net investment and (ii) intercompany foreign currency transactions that are of a long-term nature (that is, settlement is not planned or anticipated in the foreseeable future), when the entities to the transactions are consolidated or accounted for by the equity method in our financial statements, are not included in determining net income are accounted for in the same manner as foreign currency translation adjustments and reported as a component of Other comprehensive loss in equity. | |
Derivative Instruments | ' |
Derivative Instruments | |
We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated and that qualified as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in Other comprehensive loss until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. For a derivative designated and that qualified as a net investment hedge, the effective portion of the change in the fair value and/or the net settlement of the derivative are reported in Other comprehensive loss as part of the cumulative foreign currency translation adjustment. The ineffective portion of the change in fair value of the derivative is recognized directly in earnings. Amounts are reclassified out of Other comprehensive loss into earnings when the hedged investment is either sold or substantially liquidated. | |
We made an accounting policy election effective upon the inception date, or the “effective date”, to use the portfolio exception in Accounting Standards Codification 820-10-35-18D, Application to Financial Assets and Financial Liabilities with Offsetting Positions in Market Risk or Counterparty Credit Risk, the “portfolio exception,” with respect to measuring counterparty credit risk for all of our derivative transactions subject to master netting arrangements. | |
Income Taxes | ' |
Income Taxes | |
We intend to qualify as a REIT under Sections 856 through 860 of the Internal Revenue 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 Internal Revenue 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 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. | |
Deferred Income Taxes | |
We recognize deferred income taxes in one of our subsidiaries that is taxable in a foreign jurisdiction. Deferred income taxes are generally the result of temporary differences (items that are treated differently for tax purposes than for U.S. GAAP purposes). In addition, deferred tax assets may arise from unutilized tax net operating losses generated in prior years. We provide a valuation allowance against our deferred income tax assets when we believe that it is more likely than not that all or some portion of the deferred income tax asset may not be realized. Whenever a change in circumstances causes a change in the estimated realizability of the related deferred income tax asset, the resulting increase or decrease in the valuation allowance is included in deferred income tax expense. | |
Organization and Offering Cost | ' |
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. During the offering period, costs incurred in connection with the raising of capital will be accrued as deferred offering costs and included in Other assets, net on the consolidated balance sheets. 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. During the year ended December 31, 2013, we charged $1,228,024 of deferred offering costs to stockholders’ equity. 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 the remaining unpaid offering costs based on our estimate of expected gross offering proceeds (Note 3). | |
Earnings Per Share | ' |
Earnings Per Share | |
We have a simple equity capital structure with only common stock outstanding. As a result, earnings per share, as presented, represents both basic and dilutive per-share amounts for all periods presented in the consolidated financial statements. We calculate earnings per share using the two-class method to reflect the different classes of our outstanding common stock. Income (loss) per basic share of common stock is calculated by dividing Net loss attributable to CPA®:18 – Global by the weighted-average number of shares of common stock issued and outstanding during such period. The allocation of Net loss attributable to CPA®:18 – Global is calculated based on the weighted-average shares outstanding for Class A common stock and Class C common stock for the year ended December 31, 2013. The allocation for the Class A common stock excludes the shareholder servicing fee of $46,499 during 2013 that is only applicable to holders of Class C common stock (Note 3). | |
Income (loss) per basic share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. | |
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. | |
Recent Accounting Requirements | ' |
Recent Accounting Requirements | |
The following Accounting Standards Updates (“ASUs”) promulgated by FASB are applicable to us as indicated: | |
ASU 2013-02, Other Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income — In February 2013, the FASB issued ASU 2013-02 requiring entities to disclose additional information about items reclassified out of accumulated other comprehensive income. This ASU impacts the form of our disclosures only, is applicable to us for our interim and annual reports beginning in 2013, and has been applied retrospectively. The related additional disclosures are located in Note 10. | |
ASU 2013-10, Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes, a Consensus of the FASB Emerging Issues Task Force — In July 2013, the FASB issued ASU 2013-10, which permits the Fed Funds Effective Swap Rate, also referred to as the “Overnight Index Swap Rate,” to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to the U.S. government and London Interbank Offered Rate (“LIBOR”) swap rate. The update also removes the restriction on the use of different benchmark rates for similar hedges. This ASU is applicable to us for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. Through the date of this Report, we had not entered into any transactions to which this ASU applies. |
Agreements_and_Transactions_wi1
Agreements and Transactions with Related Parties (Tables) | 12 Months Ended | |||||||
Dec. 31, 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: | ||||||||
Year Ended | ||||||||
31-Dec-13 | ||||||||
Amounts Included in the Consolidated Statement of Operations: | ||||||||
Costs incurred by the advisor | $ | 182,281 | ||||||
Excess operating expenses charged back to the advisor | (69,397 | ) | ||||||
Available Cash Distribution | 91,600 | |||||||
Interest expense on note payable to affiliate | 36,310 | |||||||
Asset management fees | 116,844 | |||||||
Shareholder servicing fee | 46,499 | |||||||
$ | 404,137 | |||||||
Other Transaction Fees Incurred: | ||||||||
Current acquisition fees | $ | 3,857,518 | ||||||
Deferred acquisition fees | 3,086,435 | |||||||
Offering costs | 5,050,479 | |||||||
$ | 11,994,432 | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Amounts Due to Affiliate: | ||||||||
Organization and offering costs due to the advisor | $ | 1,695,719 | $ | — | ||||
Deferred acquisition fees due to the advisor | 2,701,838 | — | ||||||
Asset management fees due to the advisor | 37,815 | — | ||||||
Other | 713,991 | — | ||||||
$ | 5,149,363 | $ | — | |||||
Net_Investments_in_Properties_
Net Investments in Properties (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Real Estate [Abstract] | ' | ||||
Schedule of Real Estate Properties | ' | ||||
Real estate, which consists of land and buildings leased to others, at cost, and which are subject to operating leases, is summarized as follows: | |||||
31-Dec-13 | |||||
Land | $ | 36,635,769 | |||
Building | 113,788,095 | ||||
Less: Accumulated depreciation | (823,827 | ) | |||
$ | 149,600,037 | ||||
Schedule of Future Minimum Rental Payments | ' | ||||
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 | ||||
2014 | $ | 14,748,808 | |||
2015 | 14,888,892 | ||||
2016 | 15,031,784 | ||||
2017 | 15,177,528 | ||||
2018 | 15,326,184 | ||||
Thereafter | 197,723,692 | ||||
Total | $ | 272,896,888 | |||
Finance_Receivables_Tables
Finance Receivables (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Receivables [Abstract] | ' | ||||
Capital Leases Net Investment In Direct Financing Leases | ' | ||||
Net investment in direct financing leases is summarized as follows: | |||||
December 31, 2013 | |||||
Minimum lease payments receivable | $ | 50,006,483 | |||
Unguaranteed residual value | 22,064,458 | ||||
72,070,941 | |||||
Less: unearned income | (50,006,483 | ) | |||
$ | 22,064,458 | ||||
Scheduled Future Minimum Rents | ' | ||||
Scheduled future minimum rents, exclusive of renewals and expenses paid by the tenant and future CPI-based adjustments, under non-cancelable direct financing leases at December 31, 2013 are as follows: | |||||
Years Ending December 31, | Total | ||||
2014 | $ | 1,993,614 | |||
2015 | 1,993,614 | ||||
2016 | 1,993,614 | ||||
2017 | 1,993,614 | ||||
2018 | 1,993,614 | ||||
Thereafter | 40,038,413 | ||||
Total | $ | 50,006,483 | |||
Intangible_Assets_and_Liabilit1
Intangible Assets and Liabilities (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Intangible Assets And Liabilities [Abstract] | ' | |||||||||||||
Schedule Of Intangible Assets and Liabilities | ' | |||||||||||||
Intangible assets and liabilities are summarized as follows (life in years): | ||||||||||||||
31-Dec-13 | ||||||||||||||
Weighted-Average | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||
Life | ||||||||||||||
Amortizable Intangible Assets | ||||||||||||||
Lease intangibles: | ||||||||||||||
In-place lease | 18.3 | $ | 53,831,963 | $ | (494,722 | ) | $ | 53,337,241 | ||||||
Below-market ground lease | 99 | 8,227,434 | (3,128 | ) | 8,224,306 | |||||||||
Total intangible assets | $ | 62,059,397 | $ | (497,850 | ) | $ | 61,561,547 | |||||||
Amortizable Intangible Liabilities | ||||||||||||||
Below-market rent | 15 | $ | (1,646,828 | ) | $ | 40,263 | $ | (1,606,565 | ) | |||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | |||||||||||||
Based on the intangible assets and liabilities recorded at December 31, 2013, scheduled annual net amortization of intangibles for each of the next five years and thereafter is as follows: | ||||||||||||||
Years Ending December 31, | Net Decrease in Rental Revenue | Increase to Amortization/Property Expense | Net | |||||||||||
2014 | $ | (109,789 | ) | $ | 3,057,924 | $ | 2,948,135 | |||||||
2015 | (109,789 | ) | 3,057,924 | 2,948,135 | ||||||||||
2016 | (109,789 | ) | 3,057,924 | 2,948,135 | ||||||||||
2017 | (109,789 | ) | 3,057,924 | 2,948,135 | ||||||||||
2018 | (109,789 | ) | 3,057,924 | 2,948,135 | ||||||||||
Thereafter | (1,057,620 | ) | 46,271,927 | 45,214,307 | ||||||||||
$ | (1,606,565 | ) | $ | 61,561,547 | $ | 59,954,982 | ||||||||
Risk_Management_and_Use_of_Der1
Risk Management and Use of Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | |||||||||||||
The following table sets forth certain information regarding our derivative instrument for the year presented: | ||||||||||||||
Derivative Designated as Hedging Instrument | Balance Sheet Location | Liability Derivative Fair Value at | ||||||||||||
December 31, 2013 | ||||||||||||||
Interest rate swap (a) | Accounts payable, accrued expenses and other liabilities | $ | (219,291 | ) | ||||||||||
___________ | ||||||||||||||
(a) | In connection with the non-recourse debt financing related to our Crowne Group investment, we entered into a fixed for floating interest rate swap. | |||||||||||||
Schedule of Derivative Instruments | ' | |||||||||||||
The interest rate swap that we had outstanding on our consolidated subsidiaries at December 31, 2013 is summarized as follows: | ||||||||||||||
Number of Instruments | Notional | Fair Value at | ||||||||||||
Amount | December 31, 2013 (a) | |||||||||||||
Interest rate swap | 1 | $ | 12,260,177 | $ | (219,291 | ) | ||||||||
____________ | ||||||||||||||
(a) | Amount is based upon the exchange rate of the euro at December 31, 2013. | |||||||||||||
Schedule of Annualized Contractual Minimum Base Rent | ' | |||||||||||||
The percentages in the table below represent our directly-owned real estate properties and do not include our share of equity investments or noncontrolling interests. | ||||||||||||||
Lessee | Annualized Contractual Minimum Base Rent | % of Annualized Contractual Minimum Base Rent | Property Location | Property Type | Tenant Industry | |||||||||
State Farm | $ | 6,957,924 | 41.7 | % | Austin, TX | Office | Insurance | |||||||
Agrokor | 7,744,500 | 46.4 | % | Split, Zadar, Zagreb (3), Croatia | Retail | Grocery | ||||||||
Crowne Group | 1,993,614 | 11.9 | % | Logansport, IN, Madison, IN, Marion, SC | Industrial | Automobile | ||||||||
$ | 16,696,038 | 100 | % | |||||||||||
Nonrecourse_Debt_Tables
Non-recourse Debt (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Schedule of Debt Maturities | ' | ||||
Scheduled debt principal payments during each of the next five calendar years following December 31, 2013 and thereafter are as follows: | |||||
Years Ending December 31, | Total | ||||
2014 | $ | 280,575 | |||
2015 | 306,082 | ||||
2016 | 306,082 | ||||
2017 | 306,082 | ||||
2018 | 306,082 | ||||
Thereafter through 2023 | 83,555,274 | ||||
Total | $ | 85,060,177 | |||
Loss_Per_Share_and_Equity_Tabl
Loss Per Share and Equity (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Schedule of Earnings Per Share | ' | ||||||||||
The following tables depict loss per share for the period presented: | |||||||||||
Year Ended December 31, 2013 | |||||||||||
Weighted-Average | Allocation of Net Loss (a) | Loss | |||||||||
Shares Outstanding | Per Share | ||||||||||
Class A common stock | 2,792,648 | $ | (495,935 | ) | $ | (0.18 | ) | ||||
Class C common stock | 497,725 | (134,888 | ) | (0.27 | ) | ||||||
Net loss attributable to CPA®:18 – Global | $ | (630,823 | ) | ||||||||
__________ | |||||||||||
(a) | The allocation of Net loss attributable to CPA®:18 – Global is calculated based on the weighted-average shares outstanding for Class A common stock and Class C common stock for the year ended December 31, 2013. The allocation for the Class A common stock excludes the shareholder servicing fee of $46,499 during 2013 that is only applicable to holders of Class C common stock (Note 3). | ||||||||||
Schedule Of Distributions Paid Per Share For Tax | ' | ||||||||||
The following table presents annualized distributions per share reported for tax purposes and serves as a designation of capital gain distributions, if applicable, pursuant to Internal Revenue Code Section 857(b)(3)(C) and Treasury Regulation § 1.857-6(e): | |||||||||||
Year Ended | |||||||||||
31-Dec-13 | |||||||||||
Class A | Class C | ||||||||||
Ordinary income | $ | — | $ | — | |||||||
Capital gain | — | — | |||||||||
Return of capital | 0.1155 | 0.0982 | |||||||||
Total distributions paid | $ | 0.1155 | $ | 0.0982 | |||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||
The following table presents the components of Accumulated other comprehensive loss reflected in equity, net of tax. | |||||||||||
December 31, 2013 | |||||||||||
Foreign currency translation adjustments | $ | 124,801 | |||||||||
Unrealized loss on derivative instrument | (219,291 | ) | |||||||||
Accumulated other comprehensive loss | $ | (94,490 | ) |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Information | ' | ||||||||||||
We have determined that we operate in one reportable segment, real estate ownership, with domestic and foreign investments. Geographic information for this segment is as follows: | |||||||||||||
Year Ended December 31, 2013 | Domestic | International (a) | Total | ||||||||||
Revenues (b) | $ | 3,007,415 | $ | 284,260 | $ | 3,291,675 | |||||||
Loss from continuing operations before income taxes | (127,299 | ) | (102,894 | ) | (230,193 | ) | |||||||
Net income attributable to noncontrolling interests | (360,897 | ) | (29,252 | ) | (390,149 | ) | |||||||
Net loss attributable to CPA®:18 – Global | (488,195 | ) | (142,628 | ) | (630,823 | ) | |||||||
Long-lived assets (c) | 150,212,855 | 21,451,640 | 171,664,495 | ||||||||||
Non-recourse debt | 85,060,177 | — | 85,060,177 | ||||||||||
___________ | |||||||||||||
(a) | Includes operations in Croatia. | ||||||||||||
(b) | Domestic revenue is almost entirely attributable to our State Farm property and all of the international revenue is attributable to our Agrokor property. | ||||||||||||
(c) | Consists of Net investments in real estate. |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||
Three Months Ended | |||||||||||||||||
31-Mar-13 | June 30, 2013 | September 30, 2013 | December 31, 2013 | ||||||||||||||
Revenues | $ | — | $ | — | $ | 947,440 | $ | 2,344,235 | |||||||||
Operating expenses | — | 65,240 | 603,846 | 1,635,343 | |||||||||||||
Net loss | — | (65,240 | ) | (71,892 | ) | (103,542 | ) | ||||||||||
Net income attributable to noncontrolling interests | — | — | (66,417 | ) | (323,732 | ) | |||||||||||
Net loss attributable to CPA®:18 – Global | $ | — | $ | (65,240 | ) | $ | (138,309 | ) | $ | (427,274 | ) | ||||||
Class A common stock: | |||||||||||||||||
Loss per share (a) | $ | — | $ | (2.81 | ) | $ | (0.18 | ) | $ | (0.03 | ) | ||||||
Weighted average shares outstanding | — | 23,222 | 616,292 | 10,469,534 | |||||||||||||
Distributions declared per share | $ | — | $ | — | $ | 0.1155 | $ | 0.1562 | |||||||||
Class C common stock: | |||||||||||||||||
Loss per share (a) | $ | — | $ | — | $ | (0.20 | ) | $ | (0.05 | ) | |||||||
Weighted average shares outstanding | — | — | 149,294 | 1,825,374 | |||||||||||||
Distributions declared per share | $ | — | $ | — | $ | 0.0982 | $ | 0.1329 | |||||||||
___________ | |||||||||||||||||
(a) | The sum of the quarterly Loss per share does not agree to the annual Loss per share for 2013 due to the issuances of our common stock that occurred during 2013. |
Organization_and_Offering_Narr
Organization and Offering (Narratives) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||
Dec. 31, 2013 | Jul. 25, 2013 | 7-May-13 | Apr. 08, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | 7-May-13 | Apr. 08, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | 7-May-13 | Apr. 08, 2013 | Dec. 31, 2012 | Jul. 03, 2013 | Dec. 14, 2012 | Sep. 13, 2012 | Apr. 08, 2013 | |
sqft | 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 | CPA 18 Holdings | Carey REIT II | Carey REIT II | Carey REIT II | |||||
tenant | |||||||||||||||||
property | |||||||||||||||||
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 | ' | ' | ' | ' | ' | 21,290,097 | ' | ' | 0 | 2,776,001 | ' | ' | 0 | ' | 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 | 208,336,074 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 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 | ' | ' | ' | ' | ' | 211,630,152 | ' | ' | ' | 25,677,271 | ' | ' | ' | ' | ' | ' | ' |
Distributions reinvested through the DRIP | ' | ' | ' | ' | ' | $47,777 | ' | ' | ' | $17,343 | ' | ' | ' | ' | ' | ' | ' |
Additional Disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of tenants | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of real estate property | 1,691,537 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Narratives) (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 03, 2013 | |
Class C | Building and Building Improvements | Building and Building Improvements | CPA 18 Holdings | ||
Minimum | Maximum | ||||
Basis of Presentation | ' | ' | ' | ' | ' |
Special general partner interest | ' | ' | ' | ' | 0.02% |
Property plant and equipment useful life | ' | ' | '8 years | '40 years | ' |
Preferred return (per annum) | 5.00% | ' | ' | ' | ' |
Reclassification of deferred offering cost | $1,228,024 | ' | ' | ' | ' |
Shareholder servicing fee | $46,499 | $46,499 | ' | ' | ' |
Agreements_and_Transactions_wi2
Agreements and Transactions with Related Parties (Narratives) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | Jul. 25, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 20, 2013 | Dec. 31, 2013 | 7-May-13 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | 7-May-13 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Contract sales price of investment | Adjusted net income | Average invested asset | Real estate commission | Current | Deferred | W.P. Carey | W.P. Carey | 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 | LIBOR | LIBOR | Minimum | Maximum | Maximum | Maximum | Scenario One | Scenario One | Scenario Two | Scenario Two | Scenario Two | Scenario Three | Scenario Three | |||
Advisor | W.P. Carey | W.P. Carey | Average market value of investment | Average equity value of investment | Cpa 18 Holdings | Maximum | Minimum | Maximum | Minimum | |||||||||||||||||||||
Unsecured Loan | August 20th Loan | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contributions from non controlling interest | $19,391,394 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Organizational costs paid by affiliate | 65,240 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Costs incurred by the advisor | 182,281 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Offering costs | 5,050,479 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reimbursed offering costs | 3,420,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum line of credit approved by directors | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, variable rate spread | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Maturity Date | 31-Dec-23 | ' | ' | ' | ' | ' | ' | ' | 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,290,097 | ' | 0 | 31,125.11 | 2,776,001 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advisor owned percentage of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | 46,499 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,499 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of acquisition fees | ' | ' | ' | ' | ' | ' | 2.50% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of subordinated disposition fees | ' | ' | 3.00% | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred acquisition fees due to the advisor | 3,086,435 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred acquisition fees paid | 384,597 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of operating expense reimbursement | ' | ' | ' | 25.00% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess operating expense charge back | 69,397 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available Cash Distribution | $91,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreements_and_Transactions_wi3
Agreements and Transactions with Related Parties (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Amounts Included in the Consolidated Statement of Operations: | ' | ' |
Costs incurred by the advisor | $182,281 | ' |
Excess operating expenses charged back to the advisor | -69,397 | ' |
Available Cash Distribution | 91,600 | ' |
Interest expense on note payable to affiliate | 36,310 | ' |
Asset management fees | 116,844 | ' |
Shareholder servicing fee | 46,499 | ' |
Operating expenses | 404,137 | ' |
Other Transaction Fees Incurred: | ' | ' |
Current acquisition fees | 3,857,518 | ' |
Deferred acquisition fees | 3,086,435 | ' |
Offering costs | 5,050,479 | ' |
Transaction fees incurred | 11,994,432 | ' |
Amounts Due to Affiliate: | ' | ' |
Organization and offering costs due to the advisor | 1,695,719 | 0 |
Deferred acquisition fees due to the advisor | 2,701,838 | 0 |
Asset management fees due to the advisor | 37,815 | 0 |
Other | 713,991 | 0 |
Due to affiliates | $5,149,363 | $0 |
Net_Investments_in_Properties_1
Net Investments in Properties (Narratives) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 0 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Aug. 20, 2013 | Aug. 20, 2013 | Dec. 18, 2013 | Aug. 20, 2013 | |
State Farm Mutual Automobile Company | State Farm Mutual Automobile Company | Agrokor d.d. | Joint Venture | |||
acre | CPA 17 | property | State Farm Mutual Automobile Company | |||
Acqusition | ' | ' | ' | ' | ' | ' |
Ownership interest in jointly-owned investment | ' | ' | 50.00% | ' | 80.00% | ' |
Investment purchase price | ' | ' | $115,604,253 | ' | $96,956,971 | ' |
Properties acquired | ' | ' | ' | ' | 5 | ' |
Acquired finite lived intangible assets, amount | ' | ' | 15,799,325 | ' | 44,596,355 | ' |
Acquisition-related cost and fees, capitalized | 11,994,432 | ' | 5,604,253 | ' | 6,314,616 | ' |
Contributions from non controlling interest | 19,391,394 | ' | ' | ' | ' | ' |
Equity method investment | ' | ' | ' | 18,920,532 | ' | ' |
Area of land | ' | ' | 83.5 | ' | ' | ' |
Lease Term | ' | ' | '15 years | ' | '20 years | ' |
Lease renewal term | ' | ' | '5 years | ' | '10 years | ' |
Non-recourse debt | $85,060,177 | $0 | ' | ' | ' | $72,800,000 |
Net_Investments_in_Properties_2
Net Investments in Properties (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Investments in real estate: | ' | ' |
Land | $36,635,769 | ' |
Building | 113,788,095 | ' |
Accumulated depreciation | -823,827 | 0 |
Net investments in properties | $149,600,037 | $0 |
Net_Investments_in_Properties_3
Net Investments in Properties (Details 2) (USD $) | Dec. 31, 2013 |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ' |
2014 | $14,748,808 |
2015 | 14,888,892 |
2016 | 15,031,784 |
2017 | 15,177,528 |
2018 | 15,326,184 |
Thereafter | 197,723,692 |
Total | $272,896,888 |
Finance_Receivables_Narratives
Finance Receivables (Narratives) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 30, 2013 |
Crowne Group Investments | Crowne Group Investments | |||
Finance Receivables | ' | ' | ' | ' |
Net investment in direct financing leases | $22,064,458 | $0 | ' | $22,897,988 |
land acquired | ' | ' | ' | 833,530 |
Capitalized transaction cost | ' | ' | ' | 606,757 |
Lease Term | ' | ' | '25 years | ' |
Lease renewal term | ' | ' | '5 years | ' |
Non-recourse debt | $85,060,177 | $0 | ' | $12,260,177 |
Finance_Receivables_Details_1
Finance Receivables (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Receivables [Abstract] | ' | ' |
Minimum lease payments receivable | $50,006,483 | ' |
Unguaranteed residual value | 22,064,458 | ' |
Gross investments in direct financing lease | 72,070,941 | ' |
Less: unearned income | -50,006,483 | ' |
Net investment in direct financing leases | $22,064,458 | $0 |
Finance_Receivables_Details_2
Finance Receivables (Details 2) (USD $) | Dec. 31, 2013 |
Receivables [Abstract] | ' |
2014 | $1,993,614 |
2015 | 1,993,614 |
2016 | 1,993,614 |
2017 | 1,993,614 |
2018 | 1,993,614 |
Thereafter | 40,038,413 |
Total | $50,006,483 |
Intangible_Assets_and_Liabilit2
Intangible Assets and Liabilities (Narratives) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Acquired Finite-Lived Intangible Assets Liabilities | ' |
Net amortization of intangibles | $457,587 |
Minimum | ' |
Acquired Finite-Lived Intangible Assets Liabilities | ' |
Finite-lived intangible asset, useful life | '15 years |
Maximum | ' |
Acquired Finite-Lived Intangible Assets Liabilities | ' |
Finite-lived intangible asset, useful life | '99 years |
In-place lease | ' |
Acquired Finite-Lived Intangible Assets Liabilities | ' |
Finite-lived intangible asset, useful life | '18 years 3 months 18 days |
Intangible_Assets_and_Liabilit3
Intangible Assets and Liabilities (Details 1) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Amortizable Intangible Assets | ' |
Finite-lived intangible assets, gross | $62,059,397 |
Less: accumulated amortization | -497,850 |
Finite-lived intangible assets, net | 61,561,547 |
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 | 40,263 |
Finite Lived Intangible Liabilities Net | -1,606,565 |
In-place lease | ' |
Amortizable Intangible Assets | ' |
Finite-lived intangible asset, useful life | '18 years 3 months 18 days |
Finite-lived intangible assets, gross | 53,831,963 |
Less: accumulated amortization | -494,722 |
Finite-lived intangible assets, net | 53,337,241 |
Below-market ground lease | ' |
Amortizable Intangible Assets | ' |
Finite-lived intangible asset, useful life | '99 years |
Finite-lived intangible assets, gross | 8,227,434 |
Less: accumulated amortization | -3,128 |
Finite-lived intangible assets, net | $8,224,306 |
Intangible_Assets_and_Liabilit4
Intangible Assets and Liabilities (Details 2) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Net Decrease in Rental Revenue | ' |
2014 | ($109,789) |
2015 | -109,789 |
2016 | -109,789 |
2017 | -109,789 |
2018 | -109,789 |
Thereafter | -1,057,620 |
Total | -1,606,565 |
Increase to Amortization/Property Expense | ' |
2014 | 3,057,924 |
2015 | 3,057,924 |
2016 | 3,057,924 |
2017 | 3,057,924 |
2018 | 3,057,924 |
Thereafter | 46,271,927 |
Total | 61,561,547 |
Net | ' |
2014 | 2,948,135 |
2015 | 2,948,135 |
2016 | 2,948,135 |
2017 | 2,948,135 |
2018 | 2,948,135 |
Thereafter | 45,214,307 |
Total | $59,954,982 |
Risk_Management_and_Use_of_Der2
Risk Management and Use of Derivatives Financial Instruments (Narratives) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivative instrument gain loss recognized in OCI | ($220,267) |
Amount of unrecognized loss related to interest rate swap reclassified to interest expense | -976 |
Estimated amount of derivative income loss to be reclassified in the next 12 months | $339,327 |
Risk_Management_and_Use_of_Der3
Risk Management and Use of Derivative Financial Instruments (Details 1) (Interest rate swap, Designated as Hedging Instrument, Accounts payable, accrued expenses and other liabilities, USD $) | Dec. 31, 2013 |
Interest rate swap | Designated as Hedging Instrument | Accounts payable, accrued expenses and other liabilities | ' |
Derivatives, Fair Value | ' |
Derivative liability, fair value | ($219,291) |
Risk_Management_and_Use_of_Der4
Risk Management and Use of Derivative Financial Instruments (Details 2) (Interest rate swap, USD $) | Dec. 31, 2013 |
instrument | |
Interest rate swap | ' |
Derivative | ' |
Number of Instruments | 1 |
Notional Amount | $12,260,177 |
Fair value | ($219,291) |
Risk_Management_and_Use_of_Der5
Risk Management and Use of Derivative Financial Instruments 3 (Details) (USD $) | Dec. 31, 2013 |
Annualized Contractual Minimum Base Rent | ' |
Annualized Minimum Base Rent Receivable | $16,696,038 |
Annualized Contractual Minimum Base Rent Receivable Percentage | 100.00% |
State Farm | ' |
Annualized Contractual Minimum Base Rent | ' |
Annualized Minimum Base Rent Receivable | 6,957,924 |
Annualized Contractual Minimum Base Rent Receivable Percentage | 41.70% |
Agrokor d.d. | ' |
Annualized Contractual Minimum Base Rent | ' |
Annualized Minimum Base Rent Receivable | 7,744,500 |
Annualized Contractual Minimum Base Rent Receivable Percentage | 46.40% |
Crowne Group | ' |
Annualized Contractual Minimum Base Rent | ' |
Annualized Minimum Base Rent Receivable | $1,993,614 |
Annualized Contractual Minimum Base Rent Receivable Percentage | 11.90% |
Nonrecourse_Debt_Narratives_De
Non-recourse Debt (Narratives) (Details) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 20, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 20, 2013 | Dec. 31, 2013 | Dec. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | Fixed Rate | Variable Rate | State Farm Mutual Automobile Company | Agrokor d.d. | Agrokor d.d. | Joint Venture | Crowne Group | Crowne Group | Crowne Group | Crowne Group | |
USD ($) | USD ($) | EUR (€) | State Farm Mutual Automobile Company | USD ($) | Fixed Rate | Variable Rate | ||||||
USD ($) | USD ($) | |||||||||||
Debt Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-recourse debt | $85,060,177 | $0 | ' | ' | ' | ' | ' | $72,800,000 | ' | $12,260,177 | ' | ' |
Carrying value of collateral for mortgage loan | 119,335,849 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date | 31-Dec-23 | ' | ' | ' | 10-Sep-23 | 31-Dec-20 | 31-Dec-20 | ' | 30-Dec-23 | ' | ' | ' |
Line of credit, capacity | ' | ' | ' | ' | ' | 42,929,000 | 31,250,000 | ' | ' | ' | ' | ' |
Mortgage loan weighted average interest rate | ' | ' | 4.50% | 5.58% | ' | ' | ' | ' | ' | ' | 5.58% | 2.55% |
Debt, weighted average interest rate | ' | ' | ' | ' | ' | 4.30% | 4.30% | 4.50% | ' | ' | ' | ' |
Deferred financing cost, capitalized | ' | ' | ' | ' | $220,183 | ' | ' | ' | ' | ' | $168,963 | ' |
NonRecourse_Debt_Details
Non-Recourse Debt (Details) (USD $) | Dec. 31, 2013 |
Long-term Debt, Fiscal Year Maturity | ' |
2014 | $280,575 |
2015 | 306,082 |
2016 | 306,082 |
2017 | 306,082 |
2018 | 306,082 |
Thereafter through 2023 | 83,555,274 |
Total | $85,060,177 |
Loss_Per_Share_and_Equity_Narr
Loss Per Share and Equity (Narratives) (Details) (USD $) | 12 Months Ended | 3 Months Ended | 2 Months Ended | 12 Months Ended | 2 Months Ended | |||||||
Dec. 31, 2013 | Jul. 25, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 18, 2013 | Dec. 11, 2013 | Sep. 30, 2013 | Feb. 28, 2014 | Dec. 31, 2013 | Sep. 18, 2013 | Dec. 11, 2013 | Feb. 28, 2014 | |
Class A | Class A | Class A | Class A | Class A | Class C | Class C | Class C | Class C | ||||
Third Quarter | Fourth Quarter | Independent directors | Subsequent event | Third Quarter | Fourth Quarter | Subsequent event | ||||||
Stock-based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholder servicing fee incurred | $46,499 | ' | ' | ' | ' | ' | ' | ' | $46,499 | ' | ' | ' |
Common stock, shares issued | ' | ' | ' | ' | ' | ' | 1,851 | 19,812,267 | ' | ' | ' | 1,393,769 |
Unsettled shares, shares | ' | ' | ' | 504,115 | ' | ' | ' | ' | ' | ' | ' | ' |
Unsettled shares, value | 4,511,981 | ' | ' | 4,511,981 | ' | ' | ' | ' | ' | ' | ' | ' |
Market price, per unit | ' | ' | ' | ' | ' | ' | $9 | ' | ' | ' | ' | ' |
Stock-based compensation expense | 66,666 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative instrument gain loss recognized in OCI | -220,267 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of unrecognized loss related to interest rate swap reclassified to interest expense | -976 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions Declared | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial minimum offering amount | 2,000,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Daily distribution rate | ' | ' | ' | ' | $0.00 | $0.00 | ' | ' | ' | $0.00 | $0.00 | ' |
Distributions payable | $1,821,171 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss_Per_Share_and_Equity_Deta
Loss Per Share and Equity (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | |
Basic | ' | ' | ' | ' | ' |
Net Loss Attributable to CPAB.:18 b Global | ($427,274) | ($138,309) | ($65,240) | $0 | ($630,823) |
Class A common stock | ' | ' | ' | ' | ' |
Basic | ' | ' | ' | ' | ' |
Weighted-Average Shares Outstanding | 10,469,534 | 616,292 | 23,222 | 0 | 2,792,648 |
Net Loss Attributable to CPAB.:18 b Global | ' | ' | ' | ' | -495,935 |
Loss Per Share (in dollars per share) | ($0.03) | ($0.18) | ($2.81) | $0 | ($0.18) |
Class C common stock | ' | ' | ' | ' | ' |
Basic | ' | ' | ' | ' | ' |
Weighted-Average Shares Outstanding | 1,825,374 | 149,294 | 0 | 0 | 497,725 |
Net Loss Attributable to CPAB.:18 b Global | ' | ' | ' | ' | ($134,888) |
Loss Per Share (in dollars per share) | ($0.05) | ($0.20) | $0 | $0 | ($0.27) |
Loss_Per_Share_and_Equity_Deta1
Loss Per Share and Equity (Details 2) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Class A common stock | ' |
Distributions Per Share | ' |
Ordinary income | $0 |
Capital gain | $0 |
Return of capital | $0.12 |
Distributions Paid Per Share | $0.12 |
Class C common stock | ' |
Distributions Per Share | ' |
Ordinary income | $0 |
Capital gain | $0 |
Return of capital | $0.10 |
Distributions Paid Per Share | $0.10 |
Loss_Per_Share_and_Equity_Deta2
Loss Per Share and Equity (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ' | ' |
Foreign currency translation adjustments | $124,801 | ' |
Unrealized loss on derivative instrument | -219,291 | ' |
Accumulated other comprehensive loss | ($94,490) | $0 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information | ' | ' | ' | ' | ' | ' |
Revenues (b) | $2,344,235 | $947,440 | $0 | $0 | $3,291,675 | ' |
Loss from continuing operations before income taxes | ' | ' | ' | ' | -230,193 | ' |
Net income attributable to noncontrolling interests | -323,732 | -66,417 | 0 | 0 | -390,149 | ' |
Net Loss Attributable to CPAB.:18 b Global | -427,274 | -138,309 | -65,240 | 0 | -630,823 | ' |
Assets | ' | ' | ' | ' | ' | ' |
Long-lived assets (c) | 171,664,495 | ' | ' | ' | 171,664,495 | ' |
Non-recourse debt | 85,060,177 | ' | ' | ' | 85,060,177 | 0 |
Domestic | ' | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' | ' |
Revenues (b) | ' | ' | ' | ' | 3,007,415 | ' |
Loss from continuing operations before income taxes | ' | ' | ' | ' | -127,299 | ' |
Net income attributable to noncontrolling interests | ' | ' | ' | ' | -360,897 | ' |
Net Loss Attributable to CPAB.:18 b Global | ' | ' | ' | ' | -488,195 | ' |
Assets | ' | ' | ' | ' | ' | ' |
Long-lived assets (c) | 150,212,855 | ' | ' | ' | 150,212,855 | ' |
Non-recourse debt | 85,060,177 | ' | ' | ' | 85,060,177 | ' |
International | ' | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' | ' |
Revenues (b) | ' | ' | ' | ' | 284,260 | ' |
Loss from continuing operations before income taxes | ' | ' | ' | ' | -102,894 | ' |
Net income attributable to noncontrolling interests | ' | ' | ' | ' | -29,252 | ' |
Net Loss Attributable to CPAB.:18 b Global | ' | ' | ' | ' | -142,628 | ' |
Assets | ' | ' | ' | ' | ' | ' |
Long-lived assets (c) | 21,451,640 | ' | ' | ' | 21,451,640 | ' |
Non-recourse debt | $0 | ' | ' | ' | $0 | ' |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | |
Interim Period | ' | ' | ' | ' | ' |
Revenues (b) | $2,344,235 | $947,440 | $0 | $0 | $3,291,675 |
Operating expenses | 1,635,343 | 603,846 | 65,240 | 0 | 2,304,429 |
Net loss from continuing operations before income taxes | -103,542 | -71,892 | -65,240 | 0 | -240,674 |
Net income attributable to noncontrolling interests | -323,732 | -66,417 | 0 | 0 | -390,149 |
Net Loss Attributable to CPAB.:18 b Global | -427,274 | -138,309 | -65,240 | 0 | -630,823 |
Class A common stock | ' | ' | ' | ' | ' |
Interim Period | ' | ' | ' | ' | ' |
Net Loss Attributable to CPAB.:18 b Global | ' | ' | ' | ' | -495,935 |
Common Stock | ' | ' | ' | ' | ' |
Net loss per share (in dollars per share) | ($0.03) | ($0.18) | ($2.81) | $0 | ($0.18) |
Weighted average shares outstanding | 10,469,534 | 616,292 | 23,222 | 0 | 2,792,648 |
Distributions declared per share (in dollars per share) | $0.16 | $0.12 | $0 | $0 | $0.27 |
Class C common stock | ' | ' | ' | ' | ' |
Interim Period | ' | ' | ' | ' | ' |
Net Loss Attributable to CPAB.:18 b Global | ' | ' | ' | ' | ($134,888) |
Common Stock | ' | ' | ' | ' | ' |
Net loss per share (in dollars per share) | ($0.05) | ($0.20) | $0 | $0 | ($0.27) |
Weighted average shares outstanding | 1,825,374 | 149,294 | 0 | 0 | 497,725 |
Distributions declared per share (in dollars per share) | $0.13 | $0.10 | $0 | $0 | $0.23 |
Subsequent_Event_Narratives_De
Subsequent Event (Narratives) (Details) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 18, 2013 | Dec. 31, 2013 | Feb. 07, 2014 | Feb. 03, 2014 | Jan. 23, 2014 | Jan. 21, 2014 | Jan. 23, 2014 | Jan. 16, 2014 | Feb. 27, 2014 | Feb. 25, 2014 | Feb. 25, 2014 | Feb. 27, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | Agrokor d.d. | Agrokor d.d. | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Cash Flow Hedging | Current | Deferred | |
USD ($) | Automobile Protection Corporation | Solo Cup Corporation | Self-storage facility in St. Petersburg, Florida | Self Storage Facility in Kissimmee, Florida | Self Storage facilities purchased in January | Air Enterprises Acquisitions LLC | Siemens AS | Agrokor d.d. | Agrokor d.d. | Foreign Exchange Forward | ||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | Subsequent event | |||||||
NOK | ||||||||||||||||
Subsequent Event | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment purchase price | ' | ' | $96,956,971 | ' | $5,848,000 | $84,666,000 | $12,127,000 | $12,318,000 | ' | $7,016,000 | $89,951,000 | ' | ' | ' | ' | ' |
Lease Term | ' | ' | '20 years | ' | '15 years | '9 years 6 months | ' | ' | ' | '15 years | '12 years | ' | ' | ' | ' | ' |
Percentage of acquisition fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | 2.00% |
Non-recourse debt | 85,060,177 | 0 | ' | ' | 3,835,000 | 47,250,000 | ' | ' | 14,500,000 | ' | 52,066,000 | ' | ' | ' | ' | ' |
Mortgage loan weighted average interest rate | ' | ' | ' | ' | 5.10% | 5.10% | ' | ' | 4.90% | ' | 3.50% | ' | ' | ' | ' | ' |
Line of credit, outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,929,000 | 31,250,000 | ' | ' | ' |
Maturity date | 31-Dec-23 | ' | ' | 31-Dec-20 | 5-Feb-24 | 6-Feb-24 | ' | ' | 23-Jan-24 | ' | 14-Dec-25 | ' | ' | ' | ' | ' |
Cash held for future capital improvements | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,050,000 | ' | ' | ' | ' | ' | ' |
Notional Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,540,000 | ' | ' |
Schedule_III_Real_Estate_and_A1
Schedule III - Real Estate and Accumulated Depreciation (Narratives) (Details) (USD $) | Dec. 31, 2013 |
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | ' |
SEC Schedule III - federal income tax | $162,363,742 |
Schedule_III_Real_Estate_and_A2
Schedule III - Real Estate and Accumulated Depreciation (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Real Estate Subject To Operating Lease | Real Estate Subject To Operating Lease | Direct Financing Method | Office facility in Austin, TX | Retail facility in Zagreb, Croatia | Retail facility in Zagreb, Croatia | Retail facility in Zagreb, Croatia | Retail facility in Zadar, Croatia | Retail facility in Split, Croatia | Land in Madison, IN | Industrial facility in Logansport, IN | Industrial facility in Madison, IN | Industrial facility in Marion, SC | |
Real Estate Subject To Operating Lease | Real Estate Subject To Operating Lease | Real Estate Subject To Operating Lease | Real Estate Subject To Operating Lease | Real Estate Subject To Operating Lease | Real Estate Subject To Operating Lease | Real Estate Subject To Operating Lease | Direct Financing Method | Direct Financing Method | Direct Financing Method | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Encumbrances | $73,236,141 | ' | $11,824,036 | $72,800,000 | $0 | $0 | $0 | $0 | $0 | $436,141 | $4,541,169 | $1,955,820 | $5,327,047 |
Initial Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Land | 36,633,605 | ' | 1,563,695 | 29,215,472 | 0 | 0 | 2,264,430 | 4,320,173 | 0 | 833,530 | 454,582 | 355,774 | 753,339 |
Buildings | 113,769,442 | ' | 20,500,763 | 67,993,428 | 10,828,306 | 10,575,790 | 10,675,693 | 10,535,703 | 3,160,522 | 0 | 7,688,865 | 3,382,091 | 9,429,807 |
Cost Capitalized Subsequent to Acquisition (a) | 0 | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Increase (Decrease) in Net Investments (b) | 20,817 | ' | 0 | 0 | 4,456 | 4,311 | 5,102 | 5,692 | 1,256 | 0 | 0 | 0 | 0 |
Gross Amount at which Carried at Close of Period (c) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Land | 36,635,769 | ' | ' | 29,215,472 | 0 | 0 | 2,265,175 | 4,321,592 | 0 | 833,530 | ' | ' | ' |
Buildings | 113,788,095 | ' | ' | 67,993,428 | 10,832,762 | 10,580,101 | 10,680,050 | 10,539,976 | 3,161,778 | 0 | ' | ' | ' |
Total | 150,423,864 | 0 | 22,064,458 | 97,208,900 | 10,832,762 | 10,580,101 | 12,945,225 | 14,861,568 | 3,161,778 | 833,530 | 8,143,447 | 3,737,865 | 10,183,146 |
Accumulated Depreciation(c) | $823,827 | $0 | ' | $771,039 | $12,090 | $11,061 | $12,200 | $13,030 | $4,407 | $0 | ' | ' | ' |
Date of Construction | ' | ' | ' | 31-Dec-93 | 31-Dec-05 | 31-Dec-06 | 31-Dec-06 | 31-Dec-07 | 31-Dec-01 | ' | 31-Dec-90 | 31-Dec-00 | 31-Dec-68 |
Date Acquired | ' | ' | ' | 31-Aug-13 | 31-Dec-13 | 31-Dec-13 | 31-Dec-13 | 31-Dec-13 | 31-Dec-13 | 31-Dec-13 | 31-Dec-13 | 31-Dec-13 | 31-Dec-13 |
Life on which Depreciation in Latest Statement of Income is Computed | ' | ' | ' | '40 years | '34 years | '36 years | '34 years | '33 years | '27 years | ' | ' | ' | ' |
Schedule_III_Real_Estate_and_A3
Schedule III - Real Estate and Accumulated Depreciation (Details 2) (Real Estate Subject To Operating Lease, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Real Estate Subject To Operating Lease | ' |
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments | ' |
Beginning balance | $0 |
Additions | 150,403,047 |
Foreign currency translation adjustment | 20,817 |
Ending balance | 150,423,864 |
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation | ' |
Beginning balance | 0 |
Depreciation expense | 823,827 |
Ending balance | $823,827 |