Franklin BSP Realty Trust (FBRT) 10-Q 14 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information Statement	9 Months Ended
	Sep. 30, 2013	Oct. 31, 2013
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'ARC Realty Finance Trust, Inc.	'
Entity Central Index Key	'0001562528	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'
Amendment Flag	'false	'
Entity Common Stock, Shares Outstanding	'	826,213

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
ASSETS	'	'
Cash	$160,534	$573
Loan receivable, net	18,139,541	0
Accrued interest receivable	62,057	0
Prepaid expenses and other assets	287,244	0
Deferred costs	0	940,618
Total assets	18,649,376	941,191
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'
Revolving line of credit with affiliate	5,840,000	0
Accounts payable and accrued expenses	1,400,191	635,216
Due to affiliate	1,068,709	121,500
Distributions payable	83,430	0
Interest payable	7,388	0
Total liabilities	8,399,718	756,716
Preferred stock, $0.01 par value, 50,000,000 authorized, none issued and outstanding at September 30, 2013 and December 31, 2012	0	0
Common stock, $0.01 par value, 300,000,000 shares authorized, 595,377 and 8,888 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively	5,914	89
Additional paid-in capital	10,561,996	199,911
Accumulated deficit	-318,252	-15,525
Total stockholders' equity	10,249,658	184,475
Total liabilities and stockholders' equity	$18,649,376	$941,191

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]	'	'
Preferred stock, par value per share	$0.01	$0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share	$0.01	$0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	595,377	8,888
Common stock, shares outstanding	595,377	8,888

Consolidated_Statements_of_Ope

Consolidated Statements of Operations and Comprehensive Loss (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Net Interest Income:	'	'
Interest income	$175,380	$241,457
Interest expense	8,156	16,912
Net interest income	167,224	224,545
Expenses:	'	'
Board expenses	54,286	135,715
Insurance expense	55,000	110,000
Professional fees	28,024	46,113
Other expenses	2,599	50,552
Total expenses	139,909	342,380
Net income (loss)	27,315	-117,835
Comprehensive income (loss)	$27,315	($117,835)
Basic net income (loss) per share (in dollars per share)	$0.09	($0.50)
Diluted net income (loss) per share (in dollars per share)	$0.09	($0.50)
Basic weighted average shares outstanding (in shares)	308,116	237,444
Diluted weighted average shares outstanding (in shares)	312,115	237,444

Consolidated_Statements_of_Sto

Consolidated Statements of Stockholders' Equity (USD $)	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Balance at Dec. 31, 2012	$184,475	$89	$199,911	($15,525)
Balance, shares at Dec. 31, 2012	'	8,888	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'
Issuance of common stock, shares	'	580,632	'	'
Issuances of common stock	14,016,686	5,806	14,010,880	'
Net loss	-117,835	'	'	-117,835
Distributions declared	-184,892	'	'	-184,892
Common stock issued through distribution reinvestment plan (in shares)	1,858	1,858	'	'
Common stock issued through distribution reinvestment plan	44,129	19	44,110	'
Share-based compensation, shares	'	3,999	'	'
Share-based compensation	11,340	'	11,340	'
Common stock offering costs, commissions and dealer manager fees	-3,704,245	'	-3,704,245	'
Balance at Sep. 30, 2013	$10,249,658	$5,914	$10,561,996	($318,252)
Balance, shares at Sep. 30, 2013	595,377	595,377	'	'

Consolidated_Statement_of_Cash

Consolidated Statement of Cash Flows (USD $)	9 Months Ended
	Sep. 30, 2013
Cash flows from operating activities:	'
Net loss	($117,835)
Adjustments to reconcile net loss to net cash used in operating activities:	'
Discount accretion	-58,093
Share-based compensation	11,340
Changes in assets and liabilities:	'
Accrued interest receivable	-62,057
Prepaid expenses and other assets	-287,244
Interest payable	726,176
Accounts payable and accrued expenses	7,388
Net cash provided by operating activities	219,675
Cash flows from investing activities	'
Loan investments	-18,107,335
Principal repayments received on loan investments	25,887
Net cash used in investing activities	-18,081,448
Cash flows from financing activities:	'
Proceeds from issuances of common stock	14,016,686
Payments of offering costs and fees related to common stock issuances	-2,724,829
Borrowings on revolving line of credit with affiliate	9,190,000
Repayments of revolving line of credit with affiliate	-3,350,000
Advances from affiliate	947,209
Distributions paid	-57,332
Net cash provided by financing activities	18,021,734
Net change in cash	159,961
Cash, beginning of period	573
Cash, end of period	160,534
Supplemental disclosure of non-cash operating and financing activities:	'
Escrow deposits payable related to loan investments	50,000
Distributions payable	83,430
Common stock issued through distribution reinvestment plan	44,129
Reclassification of deferred offering costs to additional paid-in capital	$940,618

Organization_and_Business_Oper

Organization and Business Operations	9 Months Ended
	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Organization and Business Operations	'
	Organization and Business Operations
	ARC Realty Finance Trust, Inc. (the “Company”) was incorporated in Maryland on November 15, 2012 and intends to qualify as a real estate investment trust ("REIT") for U.S. federal income tax purposes beginning with the taxable year ending December 31, 2013. The Company is offering for sale a maximum of $2.0 billion of common stock, $0.01 par value per share, on a “reasonable best efforts” basis, pursuant to a registration statement on Form S-11 (the “Offering”) filed with the U.S. Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the "Securities Act"). The Offering also covers the offer and sale of up to approximately $400.0 million in shares of common stock pursuant to a distribution reinvestment plan (the “DRIP”) under which common stockholders may elect to have their distributions reinvested in additional shares of the Company’s common stock. On May 14, 2013, the Company commenced business operations after raising in excess of $2.0 million of equity, the amount required for the Company to release equity proceeds from escrow.
	For at least until February 12, 2015, the per share purchase price in the Offering will be up to $25.00 per share (including the maximum allowed to be charged for commissions and fees) and shares issued under the DRIP will be based on the greater of $23.75 per share or 95% of the estimated value of a share of common stock. As of September 30, 2013, the aggregate value of all the common stock outstanding was $14.8 million based on a per share value of $25.00 (or $23.75 for shares issued under DRIP). Within six months after February 12, 2015, or the NAV pricing date, the Company will begin offering shares in the Offering at a per share purchase price that will vary quarterly and will be equal to the net asset value (“NAV”) divided by the number of shares outstanding as of the end of business on the first day of each fiscal quarter after giving effect to any share purchases or repurchases effected in the immediately preceding quarter (“per share NAV”) and applicable selling commissions and dealer manager fees will be added to the per share price for shares in the Company’s primary offering but not for the DRIP.
	The Company has sold 8,888 shares of the Company's common stock to ARC Realty Finance Special Limited Partnership, LLC (the “Special Limited Partner”), an entity wholly owned by American Realty Capital VIII, LLC (the “Sponsor”) for $22.50 per share or a total of $0.2 million. Substantially all of the Company's business is conducted through ARC Realty Finance Operating Partnership, L.P. (the “OP”), a Delaware limited partnership. ARC Realty Finance Advisors, LLC (the “Advisor”) is the Company’s affiliated advisor. The Company is the sole general partner and holds substantially all of the units of limited partner interests in the OP (“OP units”). Additionally, the Special Limited Partner expects to contribute $2,020 to the OP in exchange for 90 units of limited partner interests in the aggregate OP ownership, which represents a nominal percentage of the aggregate OP ownership. The limited partner interests have the right to convert OP units for the cash value of a corresponding number of shares of the Company's common stock or, at the option of the OP, a corresponding number of shares of the Company's common stock, as allowed by the limited partnership agreement of the OP. The remaining rights of the limited partner interests are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP’s assets.
	The Company was formed to acquire, originate and manage a diversified portfolio of commercial real estate debt secured by properties located both within and outside the United States. The Company may also invest in commercial real estate securities and commercial real estate properties. Commercial real estate debt investments may include first mortgage loans, subordinated mortgage loans, mezzanine loans and participations in such loans. Commercial real estate securities may include commercial mortgage-backed securities (“CMBS”), senior unsecured debt of publicly traded REITs, debt or equity securities of other publicly traded real estate companies and collateralized debt obligations (“CDOs”).
	The Company has no paid employees. The Company has retained the Advisor to manage its affairs on a day-to-day basis. Realty Capital Securities, LLC (the “Dealer Manager”), an affiliate of the Sponsor, serves as the dealer manager of the Offering. The Advisor and Dealer Manager are related parties and will receive compensation and fees for services related to the Offering and the investment and management of the Company's assets. The Advisor and Dealer Manager will receive fees during the offering, acquisition, operational and liquidation stages.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Summary of Significant Accounting Policies	'
	Summary of Significant Accounting Policies
	Basis of Accounting
	The accompanying consolidated financial statements and related footnotes are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (‘‘GAAP’’) for interim financial statements. The consolidated financial statements of the Company are prepared on an accrual basis of accounting. In the opinion of management, the interim data includes all adjustments, of a normal and recurring nature, necessary for a fair statement of the results for the periods presented. Interim period results may not be indicative of full year or future results. The unaudited consolidated financial statements do not include all information and notes required in annual audited financial statements in conformity with GAAP.
	Principles of Consolidation and Basis of Presentation
	The accompanying consolidated financial statements include the accounts of the Company, the OP and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary.
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management makes significant estimates regarding classification of investments, fair value measurements, credit losses and impairments of investments, and derivative financial instruments and hedging activities, as applicable.
	Development Stage Company
	On May 14, 2013, the Company received and accepted aggregate subscriptions in excess of the minimum $2.0
	million, broke escrow in connection with the Offering and issued shares of common stock to the Company's initial investors who were consequently admitted as stockholders. The Company commenced operations on May 14, 2013 and made its first investment on May 15, 2013. Therefore, as of May 14, 2013, the Company was no longer considered a development stage company.
	Real Estate Debt Investments
	Commercial real estate debt investments are intended to be held until maturity and, accordingly, are carried at cost, net of unamortized origination fees, acquisition fees and expenses, discounts or premiums and unfunded commitments. Real estate debt investments that are deemed to be impaired will be carried at amortized cost less a specific allowance for loan losses. Interest income is recorded on the accrual basis and related discounts, premiums, origination fees and acquisition fees and expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income in the Company’s consolidated statements of operations.
	Allowance for Loan Losses
	The allowance for loan losses reflects management's estimate of loan losses inherent in the loan portfolio as of the balance sheet date. The reserve is increased through the "Provision for loan losses" on the Company's consolidated statements of operations and comprehensive income (loss) and is decreased by charge-offs when losses are confirmed through the receipt of assets such as cash in a pre-foreclosure sale or via ownership control of the underlying collateral in full satisfaction of the loan upon foreclosure or when significant collection efforts have ceased. The Company uses a uniform process for determining its allowance for loan losses. The allowance for loan losses includes a general, formula-based component and an asset-specific component.
	The general reserve component covers performing loans. General reserves are recorded when (i) available information as of each balance sheet date indicates that it is probable a loss has occurred in the portfolio and (ii) the amount of the loss can be reasonably estimated. The formula-based general reserve is derived from estimated principal default probabilities and loss severities applied to groups of loans based upon assigned risk ratings for loans with similar risk characteristics during the Company's quarterly loan portfolio assessment. During this assessment, the Company performs a comprehensive analysis of its loan portfolio and assigns risk ratings to loans that incorporate management's current judgments about their credit quality based on all known and relevant internal and external factors that may affect collectability. The Company considers, among other things, payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographical location as well as national and regional economic factors. This methodology results in loans being segmented by risk classification into risk rating categories that are associated with estimated probabilities of default and principal loss. Ratings range from "1" to "5" with "1" representing the lowest risk of loss and "5" representing the highest risk of loss. The Company currently estimates loss rates based on historical realized losses experienced in the industry and takes into account current economic conditions affecting the commercial real estate market when establishing appropriate time frames to evaluate loss experience.
	The asset-specific reserve component relates to reserves for losses on individual impaired loans. The Advisor considers a loan to be impaired when, based upon current information and events, it believes that it is probable that the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. This assessment is made on a loan-by-loan basis each quarter based on such factors as payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographical location as well as national and regional economic factors. A reserve is established for an impaired loan when the present value of payments expected to be received, observable market prices, or the estimated fair value of the collateral (for loans that are dependent on the collateral for repayment) is lower than the carrying value of that loan.
	For collateral dependent impaired loans, impairment is measured using the estimated fair value of collateral less the estimated cost to sell. The Advisor generally will use the income approach through internally developed valuation models to estimate the fair value of the collateral for such loans. In more limited cases, the Advisor will obtain external "as is" appraisals for loan collateral, generally when third party participations exist. Valuations will be performed or obtained at the time a loan is determined to be impaired and designated non-performing, and they will be updated if circumstances indicate that a significant change in value has occurred
	A loan is also considered impaired if its terms are modified in a troubled debt restructuring ("TDR"). A TDR occurs when a concession is granted and the debtor is experiencing financial difficulties. Impairments on TDR loans are generally measured based on the present value of expected future cash flows discounted at the effective interest rate of the original loan.
	Income recognition will be suspended for loans at the earlier of the date at which payments become 90-days past due or when, in the opinion of the Advisor, a full recovery of income and principal becomes doubtful. Income recognition will be resumed when the suspended loan becomes contractually current and performance is demonstrated to be resumed. A loan will be written off when it is no longer realizable and legally discharged.
	Real Estate Securities
	On the acquisition date, all of the Company’s commercial real estate securities will be classified as available for sale, and will be carried at fair value, with any unrealized gains or losses reported as a component of accumulated other comprehensive income or loss. However, the Company may elect the fair value option for certain of its available for sale securities, and as a result, any unrealized gains or losses on such securities will be recorded as unrealized gains or losses on investments in the Company’s consolidated and comprehensive income (loss). Premiums or discounts on commercial real estate securities will be recognized using the effective interest method and recorded as an adjustment to interest income.
	Impairment Analysis of Securities
	Commercial real estate securities for which the fair value option has not been elected will be periodically evaluated for other-than-temporary impairment. If the fair value of a security is less than its amortized cost, the security will be considered impaired. Impairment of a security will be considered to be other-than-temporary when (i) the Advisor has the intent to sell the impaired security; (ii) it is more likely than not the Company will be required to sell the security; or (iii) the Advisor does not expect to recover the entire amortized cost of the security. If the Advisor determines that an other-than-temporary impairment exists and a sale is likely to occur, the impairment charge will be recognized as an “Impairment of assets” on the Company's consolidated statement of operations and comprehensive income (loss). If a sale is not expected to occur, the portion of the impairment charge related to credit factors will be recorded as an “Impairment of assets” on the Company's consolidated statement of operations and comprehensive income (loss) with the remainder recorded as an unrealized gain or loss on investments reported as a component of accumulated other comprehensive income or loss.
	Commercial real estate securities for which the fair value option has been elected will not be evaluated for other-than-temporary impairment as changes in fair value are recorded in the Company’s consolidated statement of operations and comprehensive income (loss).
	Fair Value of Financial Instruments
	The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, accrued interest receivable, due to affiliates and accounts payable and accrued expenses approximate their carrying value on the accompanying consolidated balance sheets due to their short-term nature.
	As of September 30, 2013, the Company had acquired three mezzanine loan investments. All three loans were recently underwritten and acquired, with the last two being acquired in September 2013. All three loans were performing as of September 30, 2013. Therefore, the carrying value approximates the fair value as of September 30, 2013.
	As of September 30, 2013, the Company had $5.8 million outstanding under its revolving line of credit with an affiliate, which bears interest at a fixed rate of 3.25% (See Note 4 — Revolving Line of Credit with Affiliate). As of September 30, 2013, the Company believes the carrying value of its revolving line of credit with its affiliate approximates fair value.
	Cash and Cash Equivalents
	Cash includes cash in bank accounts. The Company deposits cash with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company up to an insurance limit. Cash equivalents include short-term, liquid investments in a money market fund.
	Restricted Cash
	Restricted cash may primarily consist of escrow deposits for future debt service payments, taxes, insurance, property maintenance or other amounts collected with mortgage loan originations.
	Deferred Costs
	Deferred costs may consist primarily of deferred financing costs or deferred offering costs. Deferred financing costs represent commitment fees, legal fees, and other costs associated with obtaining commitments for financing. These costs will be amortized over the terms of the respective financing agreements using the straight-line method. Unamortized deferred financing costs will be expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financial transactions that do not close will be expensed in the period in which it is determined that the financing will not close.
	Deferred offering costs may represent professional fees, fees paid to various regulatory agencies, and other costs incurred in connection with the registration and sale of shares of the Company's common stock. As of December 31, 2012, such costs totaled $0.9 million. On February 12, 2013, the day the Company commenced its Offering, deferred offering costs were reclassified to stockholders' equity.
	Share Repurchase Program
	The Company has a Share Repurchase Program (“SRP”) that enables stockholders to sell their shares to the Company. Under the SRP, stockholders may request that the Company redeem all or any portion, subject to certain minimum conditions described below, if such repurchase does not impair the Company's capital or operations.
	Prior to the time that the Company’s shares are listed on a national securities exchange and until the Company begins to calculate its NAV, the repurchase price per share will depend on the length of time investors have held such shares as follows: after one year from the purchase date — the lower of $23.13 and 92.5% of the amount they actually paid for each share; after two years from the purchase date — the lower of $23.75 and 95.0% of the amount they actually paid for each share; after three years from the purchase date — the lower of $24.38 and 97.5% of the amount they actually paid for each share; and after four years from the purchase date — the lower of $25.00 and 100% of the amount they actually paid for each share (in each case, as adjusted for any stock distributions, combinations, splits and recapitalizations).
	Once the Company begins to calculate its NAV, the price per share that the Company will pay to repurchase shares of the Company’s common stock on any business day will be the Company's per share NAV for the quarter, calculated after the close of business on the first business day of each quarter, plus applicable selling commissions and dealer manager fees. Subject to limited exceptions, stockholders who redeem their shares of the Company's common stock within the first four months from the date of purchase will be subject to a short-term trading fee of 2% of the aggregate per share NAV of the shares of common stock received. Because the Company's per share NAV will be calculated quarterly, the redemption price may fluctuate between the redemption request day and the date on which the Company pays redemption proceeds.
	Until the Company begins to calculate its NAV, the Company is only authorized to repurchase shares pursuant to the SRP using the proceeds received from the DRIP and will limit the amount spent to repurchase shares in a given quarter to the amount of proceeds received from the DRIP in that same quarter. In addition, the board of directors may reject a request for redemption, at any time. Due to these limitations, the Company cannot guarantee that it will be able to accommodate all repurchase requests. Purchases under the SRP by the Company will be limited in any calendar year to 5% of the weighted average number of shares outstanding during the prior year.
	After the Company begins to calculate its NAV, purchases under the SRP will be limited in any calendar year to 1.25% of Company's NAV as of the last day of the previous calendar quarter, or approximately 5% of the Company's NAV in any 12 month period. If the Company reaches the 1.25% limit on redemptions during any quarter, the Company will not accept any additional redemption requests for the remainder of such quarter. The SRP will automatically resume on the first day of the next calendar quarter, unless our board of directors determines to suspend the share repurchase plan.
	When a stockholder requests redemption and the redemption is approved, the Company will reclassify such obligation from equity to a liability based on the settlement value of the obligation. Shares repurchased under the SRP will have the status of authorized but unissued shares. At September 30, 2013, no shares were eligible to be redeemed.
	Distribution Reinvestment Plan
	Pursuant to the DRIP, stockholders may elect to reinvest distributions by purchasing shares of common stock in lieu of receiving cash. No Dealer Manager fees or selling commissions are paid with respect to shares purchased pursuant to the DRIP. Participants purchasing shares pursuant to the DRIP have the same rights and are treated in the same manner as if such shares were issued pursuant to the Offering. The board of directors may designate that certain cash or other distributions be excluded from the DRIP. The Company has the right to amend any aspect of the DRIP or terminate the DRIP with ten days’ notice to participants. Shares issued under the DRIP are recorded to equity in the balance sheet in the period distributions are declared. There have been 1,858 shares issued under the DRIP as of September 30, 2013.
	Derivative Instruments
	The Company may use derivative financial instruments to hedge all or a portion of the interest rate risk associated with its borrowings. Certain of the techniques used to hedge exposure to interest rate fluctuations may also be used to protect against declines in the market value of assets that result from general trends in debt markets. The principal objective of such agreements is to minimize the risks and/or costs associated with the Company’s operating and financial structure as well as to hedge specific anticipated transactions.
	The Company will record all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.
	The accounting for subsequent changes in the fair value of these derivatives depends on whether each has been designated and qualifies for hedge accounting treatment. If the Company elects not to apply hedge accounting treatment, any changes in the fair value of these derivative instruments will be recognized immediately in gains (losses) on derivative instruments in the Company's consolidated statement of operations and comprehensive income (loss). If the derivative is designated and qualifies for hedge accounting treatment the change in the estimated fair value of the derivative is recorded in other comprehensive income (loss) to the extent that it is effective. Any ineffective portion of a derivative's change in fair value will be immediately recognized in earnings.
	Offering and Related Costs
	Offering and related costs include all expenses incurred in connection with the Company’s Offering. Offering costs (other than selling commissions and the Dealer Manager fee) of the Company may be paid by the Advisor, the Dealer Manager or their affiliates on behalf of the Company. Offering costs were reclassified from deferred costs to stockholders' equity (deficit) on the day the Company commenced its operations. Offering costs include all expenses incurred by the Company in connection with its Offering as of such date. These costs include but are not limited to (i) legal, accounting, printing, mailing and filing fees; (ii) escrow service related fees; (iii) reimbursement of the Dealer Manager for amounts it may pay to reimburse the bona fide diligence expenses of broker-dealers; and (iv) reimbursement to the Advisor for a portion of the costs of its employees and other costs in connection with preparing supplemental sales materials and related offering activities. The Company is obligated to reimburse the Advisor or its affiliates, as applicable, for organizational and offering costs paid by them on behalf of the Company, notwithstanding that the Advisor is obligated to reimburse the Company to the extent organizational and offering costs (excluding selling commissions and the Dealer Manager fee) incurred by the Company in the Offering exceed 2% of gross offering proceeds. As a result, these costs are only a liability of the Company to the extent aggregate selling commissions, the Dealer Manager fees and other offering costs do not exceed 12% of the gross proceeds determined at the end of the Offering (See Note 8 — Related Party Transactions and Arrangements).
	Share-Based Compensation
	The Company has a stock-based incentive award plan which is accounted for under the guidance for share based payments. The expense for such awards will be included in general and administrative expenses and will be recognized over the vesting period or when the requirements for exercise of the award have been met (See Note 10 — Share-Based Compensation).
	Income Taxes
	The Company intends to make an election to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code commencing with the taxable year ending December 31, 2013. If the Company qualifies for taxation as a REIT, it generally will not be subject to federal corporate income tax as long as it distributes at least 90% of its REIT taxable income to its stockholders. REITs are subject to a number of other organizational and operational requirements. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income.
	Per Share Data
	The Company will calculate basic income per share by dividing net income or loss for the period by weighted-average shares of its common stock outstanding for a respective period. Diluted income per share takes into account the effect of dilutive instruments, such as stock options, unvested restricted stock and other securities which are convertible to common stock, but uses the average share price for the period in determining the number of incremental shares that are to be added to the weighted-average number of shares outstanding.
	Reportable Segments
	The Company will conduct its business through the following segments:
	•	The real estate debt business will be focused on originating, acquiring and asset managing commercial real estate debt investments, including first mortgage loans, subordinate mortgages, mezzanine loans and participations in such loans.
	•	The real estate securities business will be focused on investing in and asset managing commercial real estate securities primarily consisting of CMBS and may include unsecured REIT debt, CDO notes and other securities.
	Through September 30, 2013, all of the Company’s revenues and expenses have been in the real estate debt segment. As the portfolio expands to include real estate securities, the Company will report the results of both reportable segments.

Loans_Receivable

Loans Receivable	9 Months Ended
	Sep. 30, 2013
Receivables [Abstract]	'
Loans Receivable	'
	Loans Receivable
	The following is a summary of the Company's loans receivable by class (in thousands):
		30-Sep-13			31-Dec-12
	Mezzanine loans	$	18,140		$	—
	Total gross carrying value of loans	18,140			—
	Allowance for loan losses	—			—
	Total loans receivable, net	$	18,140		$	—
	During the nine months ended September 30, 2013, the Company invested $18.1 million in three mezzanine loans and received scheduled principal repayments of $25,887 on the loans. The Company did not record a general or specific allowance for loan losses as of September 30, 2013 as the portfolio consisted of a three recently underwritten, performing loans.
	The Company's loan receivable portfolio was comprised of the following at September 30, 2013 (in thousands):
	Description		Location	Date of Investment		Maturity Date	Coupon	Original Face Amount		Face Amount		Premium (Discount)(1)			Carrying Value
	W Hotel		Minneapolis, MN	May-13		May-23	Fixed	$	6,500	$	6,474	$	(2,474	)	$	4,000
	Regency Park Apartments		Austin, TX	Sep-13		Sep-18	Fixed	5,000		5,000		54			5,054
	121 West Trade Office		Charlotte, NC	Sep-13		Sep-16	Floating	9,000		9,000		86			9,086
	Total							$	20,500	$	20,474	$	(2,334	)	$	18,140
	__________________________________________________________
	(1) Includes acquisition fees and expenses.
	Credit Characteristics—As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its performing loans. The loans are scored on a scale of 1 to 5 as follows:
	Investment Rating	Summary Description
	1	Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time investment are favorable.
	2	Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable.
	3	Performing investments requiring closer monitoring. Trends and risk factors show some deterioration.
	4	Underperforming investment - some loss of interest or dividend expected, but still expecting a positive return on investment. Trends and risk factors are negative.
	5	Underperforming investment with expected loss of interest and some principal.
	All investments are assigned an initial risk rating of 2.
	As of September 30, 2013, the weighted average risk rating of loans was 2.0. As of September 30, 2013, the Company had no non-performing, non-accrual or impaired loans.

Revolving_Line_of_Credit_with_

Revolving Line of Credit with Affiliate	9 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]	'
Revolving Line of Credit with Affiliate	'
	Revolving Line of Credit with Affiliate
	On May 15, 2013, the Company entered into a credit agreement for an unsecured $5.0 million revolving line of credit with AR Capital, LLC, the parent of the Sponsor (the “Revolver”). The Revolver bears interest at a per annum fixed rate of 3.25% and provides for quarterly interest payments. The Revolver matures in one year, subject to two successive extension terms of one year each. Principal may be drawn or repaid from time-to-time, in whole or in part, without premium or penalty and there are no unused facility fees. On July 17, 2013, the Company entered into an amendment to its Revolver. The amendment increased the aggregate financing available under the Revolver from $5.0 million to $10.0 million. The amendment did not change any of the other terms of the Revolver.
	As of September 30, 2013, $5.8 million was outstanding under the Revolver, and $4.2 million was available to be borrowed. The Company incurred $7,388 and $15,375 in interest expense on the Revolver for the three and nine months ended September 30, 2013.

Net_Income_Loss_Per_Share

Net Income (Loss) Per Share	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]	'
Net Income (Loss) Per Share	'
	Net Income (Loss) Per Share
	The following is a summary of the basic and diluted net income (loss) per share computation for the three and nine months ended September 30, 2013:
		Three Months Ended		Nine Months Ended
		September 30, 2013		September 30, 2013
	Basic and diluted net income (loss)	$	27,315	$	(117,835	)
	Basic weighted average shares outstanding	308,116		237,444
	Diluted weighted average shares outstanding	312,115		237,444
	Basic net income (loss) per share	$	0.09	$	(0.50	)
	Diluted net income (loss) per share	$	0.09	$	(0.50	)
	The basic and diluted weighted average shares outstanding assume no shares were outstanding prior to the release of equity proceeds from escrow on May 14, 2013. The Company had 3,999 common share equivalents as of September 30, 2013, which were comprised of 3,999 unvested restricted shares. Diluted net income (loss) per share assumes the conversion of all common share equivalents into an equivalent number of common shares, unless the effect is antidilutive. The common share equivalents were dilutive by $0.0011 per share for the three months ended September 30, 2013 and were antidilutive for the nine months ended September 30, 2013.

Common_Stock

Common Stock	9 Months Ended
	Sep. 30, 2013
Equity [Abstract]	'
Common Stock	'
	Common Stock
	As of September 30, 2013, the Company had 595,377 shares of common stock outstanding, including shares issued pursuant to the DRIP and unvested restricted shares, and had received total proceeds of $14.2 million excluding shares issued pursuant to the DRIP.
	Distributions—In order to maintain its election to qualify as a REIT, the Company must currently distribute, at a minimum, an amount equal to 90% of its taxable income, without regard to the deduction for dividends paid and excluding net capital gains. The Company must distribute 100% of its taxable income (including net capital gains) to avoid paying corporate federal income taxes.
	On May 13, 2013, the Company's board of directors authorized, and the Company declared a distribution, which is calculated based on stockholders of record each day during the applicable period at a rate of $0.00565068493 per day, based on a price of $25.00 per share of common stock. The Company's distributions are payable by the fifth day following each month end to stockholders of record at the close of business each day during the prior month. The first distribution payment was made on June 3, 2013, relating to the period from May 30, 2013 (15 days after the date of the first asset acquisition) through May 31, 2013. Distributions payments are dependent on the availability of funds. The board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distributions payments are not assured.
	The below table shows the distributions paid on shares outstanding during the nine months ended September 30, 2013.
	Payment Date	Weighted Average Shares Outstanding (1)	Amount Paid in Cash		Amount Issued under DRIP
	3-Jun-13	99,897	$	508	$	526
	1-Jul-13	103,483	7,952		8,196
	1-Aug-13	143,357	13,164		12,555
	3-Sep-13	302,524	32,567		22,852
	Total		$	54,191	$	44,129
	__________________________________________________________________________
	(1) This represents the weighted average shares outstanding for the period related to the respective payment date.
	For the nine months ended September 30, 2013, the Company paid total dividends of $54,191 and had a comprehensive loss of $117,835. As of September 30, 2013, the Company had a distribution payable of $83,430 for dividends accrued in the month of September 2013. Additionally, the Company paid a dividend for the time period of May 30, 2013 through September 30, 2013 on all unvested restricted shares.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	Commitments and Contingencies
	Litigation
	In the ordinary course of business, the Company may become subject to litigation or claims. There are no material legal proceedings pending or known to be contemplated against the Company.

Related_Party_Transactions_and

Related Party Transactions and Arrangements	9 Months Ended
	Sep. 30, 2013
Related Party Transactions [Abstract]	'
Related Party Transactions and Arrangements	'
	Related Party Transactions and Arrangements
	As of September 30, 2013, an entity wholly owned by the Sponsor owned 8,888 shares of the Company’s outstanding common stock.
	The Advisor and its affiliates may incur and pay costs and fees on behalf of the Company. As of September 30, 2013, the Company had a payable of $1.1 million to affiliated entities for advances received to fund costs incurred by the Company.
	The Company entered into the Revolver with an affiliate on May 15, 2013 (See Note 4 — Revolving Line of Credit with Affiliate).
	Fees Paid in Connection with the Offering
	The Dealer Manager receives fees and compensation in connection with the sale of the Company’s common stock in the Offering. The Dealer Manager receives a selling commission of up to 7.0% of the per share purchase price of the Company's offering proceeds before reallowance of commissions earned by participating broker-dealers. In addition, the Dealer Manager receives up to 3.0% of the gross proceeds from the sale of shares, before reallowance to participating broker-dealers, as a dealer manager fee. The Dealer Manager may reallow its dealer manager fee to such participating broker-dealers. A participating broker-dealer may elect to receive a fee equal to 7.5% of the gross proceeds from the sale of shares (not including selling commissions and dealer manager fees) by such participating broker-dealer, with 2.5% thereof paid at the time of such sale and 1.0% thereof paid on each anniversary of the closing of such sale up to and including the fifth anniversary of the closing of such sale. If this option is elected, it is expected that the dealer manager fee will be reduced to 2.5% of gross proceeds (not including selling commissions and dealer manager fees).
	The table below shows the fees incurred from the Dealer Manager associated with the Offering during the three and nine months ended September 30, 2013 and the associated payable as of September 30, 2013.
	(in thousands)	Three Months Ended September 30, 2013		Nine Months Ended September 30, 2013		Payable as of September 30, 2013
	Total commissions and fees incurred from the Dealer Manager	$	940	$	960	$	14
	The Advisor, its affiliates and entities under common ownership with the Advisor receive compensation and reimbursement for services relating to the Offering, including transfer agency services provided by an affiliate of the Dealer Manager. The table below shows compensation and reimbursement the Advisor and its affiliates incurred for services relating to the Offering.
	(in thousands)	Three Months Ended September 30, 2013		Nine Months Ended September 30, 2013		Payable as of September 30, 2013
	Total compensation and reimbursement for services provided by the Advisor and affiliates	$	227	$	862	$	825
	The payable as of September 30, 2013 in the table above is included in accounts payable and accrued expenses on the Company's consolidated balance sheets.
	The Company is responsible for organizational and offering costs from the ongoing Offering, excluding commissions and dealer manager fees, up to a maximum of 2.0% of gross proceeds received from its ongoing Offering of common stock, measured at the end of the Offering. Organizational and offering costs in excess of the 2.0% cap as of the end of the Offering are the Advisor's responsibility. As of September 30, 2013, organizational and offering costs exceeded 2.0% of gross proceeds received from the Offering by $3.4 million, due to the ongoing nature of the Offering and that many expenses were paid before the Offering commenced.
	Fees Paid in Connection with the Operations of the Company
	The Advisor receives an acquisition fee of 1.0% of the principal amount funded by the Company to acquire or originate commercial real estate debt or the amount invested in the case of other commercial real estate investments. The Advisor may be also be reimbursed for acquisition expenses incurred related to selecting, evaluating, originating and acquiring investments on the Company's behalf and the Company may incur third party acquisition expenses. In no event will the total of all acquisition fees and acquisition expenses payable with respect to a particular investment exceed 4.5% of the principal amount funded by the Company to acquire or originate commercial real estate debt or the amount invested in the case of other commercial real estate investments. Once the proceeds from the Offering have been fully invested, the aggregate amount of acquisition fees shall not exceed 1.5% of the principal amount funded by the Company to acquire or originate commercial real estate debt or the amount invested in the case of other commercial real estate investments, as applicable, for all of the assets acquired. During the three and nine months ended September 30, 2013, the Company has incurred $139,550 and $178,623 of acquisition fees, respectively, and $69,775 and $89,312 of acquisition expenses, respectively, payable to the Advisor. These acquisition fees and expenses are capitalized as part of the cost of each respective investment.
	The Company will pay the Advisor an annual asset management fee equal to 0.75% of the cost of the Company's assets. Once the Company begins to calculate NAV, the asset management fee will be based on the lower of 0.75% of the costs of the Company's assets and 0.75% of the quarterly NAV. The amount of the asset management fee will be reduced to the extent that the amount of dividends declared during the six month period ending on the last day of the calendar quarter immediately preceding the date such asset management fee is payable, exceeds the funds from operations (“FFO”), as adjusted, for the same period. For purposes of this determination, FFO, as adjusted, is FFO before deducting (i) acquisition fees and related expenses; (ii) non-cash restricted stock grant amortization, if any; and (iii) impairments of real estate related investments, if any (including properties, loans receivable and equity and debt investments). FFO, as adjusted, is not the same as FFO. As of September 30, 2013, no asset management fees were incurred or waived for any period in connection with the operations of the Company.
	Effective June 1, 2013, the Company entered into an agreement with the Dealer Manager to provide strategic advisory services and investment banking services required in the ordinary course of the Company's business, such as performing financial analysis, evaluating publicly traded comparable companies and assisting in developing a portfolio composition strategy, a capitalization structure to optimize future liquidity options and structuring operations. The Company amortizes the cost associated with this agreement into other expense on the consolidated statements of operations and comprehensive income (loss) over the life of the agreement.
	The table below depicts related party fees and reimbursements in connection with the operations of the Company for the three and nine months ended September 30, 2013 and the associated payable as of September 30, 2013.
	(in thousands)	Three Months Ended September 30, 2013		Nine Months Ended September 30, 2013		Payable as of September 30, 2013
	Acquisition fees and expenses	$	209	$	268	$	268
	Advisory and investment banking fee	152		181		181
	Total related party fees and reimbursements	$	361	$	449	$	449
	The payables as of September 30, 2013 in the table above are included in accounts payable and accrued expenses on the Company's consolidated balance sheets.
	In order to improve operating cash flows and the ability to pay distributions from operating cash flows, the Advisor may elect to waive certain fees. Because the Advisor may waive certain fees, cash flow from operations that would have been paid to the Advisor may be available to pay distributions to stockholders. The fees that may be forgiven are not deferrals and accordingly, will not be paid to the Advisor in cash. In certain instances, to improve the Company’s working capital, the Advisor may elect to absorb a portion of the Company’s costs. The Advisor did not waive any fees for the three and nine months ended September 30, 2013. The Advisor absorbed $10,000 in professional fees and $170,538 in other expense during the three and nine months ended September 30, 2013. These expenses are presented net in the consolidated statements of operations and comprehensive income (loss). As of September 30, 2013, the Company has a receivable from affiliate of $180,538 related to the absorbed costs. This receivable from affiliate is shown net of the payable to affiliate on the consolidated balance sheets.
	The Company will reimburse the Advisor’s costs of providing administrative services, subject to the limitation that the Company will not reimburse the Advisor for any amount by which the Company's operating expenses (including the asset management fee) at the end of the four preceding fiscal quarters exceeds the greater of (i) 2.0% of average invested assets or (ii) 25.0% of net income other than any additions to reserves for depreciation, bad debt or other similar non-cash reserves and excluding any gain from the sale of assets for that period. Additionally, the Company will reimburse the Advisor for personnel costs in connection with other services during the operational stage, in addition to paying an asset management fee; however, the Company will not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives acquisition fees or disposition fees. As of September 30, 2013, no administrative costs of the Advisor were reimbursed for any period in connection with the operations of the Company.
	The Advisor at its election may also contribute capital to enhance the Company’s cash position for working capital and distribution purposes. Any contributed capital amounts are not reimbursable to the Advisor. Further, any capital contributions are made without any corresponding issuance of common or preferred shares. The Advisor did not contribute capital to enhance the Company's cash position for working capital or distribution purposes as of September 30, 2013.
	Fees Paid in Connection with the Liquidation of Assets or Listing of the Company's Common Stock or Termination of the Advisory Agreement
	The Company will pay a disposition fee of 1.0% of the contract sales price of each commercial real estate loan or other investment sold, including mortgage-backed securities or collateralized debt obligations issued by a subsidiary of the Company as part of a securitization transaction. The Company will not be obligated to pay a disposition fee upon the maturity, prepayment, workout, modification or extension of commercial real estate debt unless there is a corresponding fee paid by the borrower, in which case the disposition fee will be the lesser of (i) 1.0% of the principal amount of the debt prior to such transaction; or (ii) the amount of the fee paid by the borrower in connection with such transaction. If the Company takes ownership of a property as a result of a workout or foreclosure of a loan, it will pay a disposition fee upon the sale of such property.
	The Company may pay the Advisor an annual subordinated performance fee of 15.0% of the excess of the Company's total return to stockholders in any year, which such total return exceeds 6.0% per annum, provided that in no event will the annual subordinated performance fee exceed 10.0% of the aggregate total return for such year. This fee will be payable only upon the sale of assets, distributions or other event which results in the return on stockholders’ capital exceeding 6.0% per annum.
	If the Company is not listed on an exchange, the Company will pay a subordinated participation in the net sale proceeds of the sale of real estate assets of 15.0% of remaining net sale proceeds after return of capital contributions to investors plus payment to investors of a 6.0% cumulative, pre-tax non-compounded return on the capital contributed by investors.
	If the Company is listed on an exchange, the Company will pay a subordinated incentive listing distribution of 15.0% of the amount by which the adjusted market value of real estate assets plus distributions exceeds the aggregate capital contributed by investors plus an amount equal to a 6.0% cumulative, pre-tax, non-compounded annual return to investors. Neither the Advisor nor any of its affiliates can earn both the subordinated participation in the net sale proceeds and the subordinated listing distribution.
	Upon termination or non-renewal of the advisory agreement, the Advisor shall be entitled to receive distributions from the OP, pursuant to a special limited partnership interest, equal to 15.0% of the amount by which the sum of the Company's adjusted market value plus distributions exceeds the sum of the aggregate capital contributed by investors plus an amount equal to an annual 6.0% cumulative, pre-tax non-compounded return to investors. In addition, the Advisor may elect to defer its right to receive a subordinated distribution upon termination until either a listing on a national securities exchange or other liquidity event occurs.
	As of September 30, 2013, no fees were paid for any period in connection with the liquidation of assets, listing of the Company's common stock or termination of the advisory agreement.
	The Company cannot assure that it will provide the 6.0% return specified in the above agreements but the Advisor will not be entitled to the subordinated performance fee, subordinated participation in net sale proceeds, subordinated incentive listing distribution or subordinated distribution upon termination of the advisory agreement unless investors have received a 6.0% cumulative, pre-tax non-compounded return on their capital contributions
	The Company will also establish a restricted share plan for the benefit of employees (if the Company ever has employees), directors, employees of the Advisor and its affiliates (See Note 10 — Share-Based Compensation).

Economic_Dependency

Economic Dependency	9 Months Ended
	Sep. 30, 2013
Risks and Uncertainties [Abstract]	'
Economic Dependency	'
	Economic Dependency
	Under various agreements, the Company has engaged the Advisor, its affiliates and entities under common ownership with the Advisor to provide certain services that are essential to the Company, including asset management services, asset acquisition and disposition decisions, transfer agency services, the sale of shares of the Company’s common stock available for issue, as well as other administrative responsibilities for the Company including accounting services, transaction management and investor relations.
	As a result of these relationships, the Company is dependent upon the Advisor and its affiliates. In the event that these entities are unable to provide the Company with the respective services, the Company will be required to find alternative providers of these services.

ShareBased_Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Share-Based Compensation	'
	Share-Based Compensation
	Restricted Share Plan
	The Company has an employee and director incentive restricted share plan (the “RSP”), which provides the Company with the ability to grant awards of restricted shares to the Company’s directors, officers and employees (if the Company ever has employees), employees of the Advisor and its affiliates, employees of entities that provide services to the Company, directors of the Advisor or of entities that provide services to the Company or certain consultants to the Company and the Advisor and its affiliates. The total number of common shares granted under the RSP shall not exceed 5.0% of the Company’s authorized common shares pursuant to the Offering and in any event will not exceed 4.0 million shares (as such number may be adjusted for stock splits, stock dividends, combinations and similar events).
	Restricted share awards entitle the recipient to receive common shares from the Company under terms that provide for vesting over a specified period of time or upon attainment of pre-established performance objectives. Such awards would typically be forfeited with respect to the unvested shares upon the termination of the recipient’s employment or other relationship with the Company. Restricted shares may not, in general, be sold or otherwise transferred until restrictions are removed and the shares have vested. Holders of restricted shares may receive cash distributions prior to the time that the restrictions on the restricted shares have lapsed. Any distributions payable in common shares shall be subject to the same restrictions as the underlying restricted shares. The fair value of the restricted shares will be expensed over the vesting period of five years.
	The RSP also provides for the automatic grant of 1,333 restricted shares of common stock to each of the independent directors, without any further action by the Company’s board of directors or the stockholders, on the date of initial election to the board of directors and on the date of each annual stockholder’s meeting. Restricted stock issued to independent directors will vest over a five-year period following the first anniversary of the date of grant in increments of 20.0% per annum.
	As of September 30, 2013, the Company had granted 3,999 restricted shares to its independent directors. None of the 3,999 restricted shares granted had vested as of September 30, 2013. Based on a share price of $22.50, the compensation expense associated with the restricted share grants were $4,536 and $11,340 for the three and nine months ended September 30, 2013. Additionally, the Company paid a dividend for the time period of May 30, 2013 through September 30, 2013 on all unvested restricted shares.

Subsequent_Events

Subsequent Events	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
Subsequent Events	'
	Subsequent Events
	The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q, and determined that there have not been any events that have occurred that would require adjustments to disclosures in the consolidated financial statements except for the following transactions:
	Sales of Common Stock
	As of October 31, 2013, the Company had 826,213 shares of common stock outstanding, including unvested restricted shares, and had raised total proceeds from the Offering of $20.0 million. As of October 31, 2013, the aggregate value of all share issuances in the Offering was $20.6 million based on a per share value of $25.00 (or $23.75 per share for shares issued under the DRIP).
	Total capital raised to date, including shares issued under the DRIP, is as follows:
	Source of Capital (in thousands)	Inception to September 30, 2013		October 1 to October 31, 2013		Total
	Common stock	$	14,261	$	5,760	$	20,020
	Dividends Paid
	On October 1, 2013, the Company paid a distribution of $83,430 to stockholders of record during the month of September 2013. Approximately $48,798 of the distribution was paid in cash, while $34,632 was used to purchase 1,458 shares for those stockholders that chose to reinvest dividends through the DRIP.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Basis of Accounting	'
	Basis of Accounting
	The accompanying consolidated financial statements and related footnotes are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (‘‘GAAP’’) for interim financial statements. The consolidated financial statements of the Company are prepared on an accrual basis of accounting. In the opinion of management, the interim data includes all adjustments, of a normal and recurring nature, necessary for a fair statement of the results for the periods presented. Interim period results may not be indicative of full year or future results. The unaudited consolidated financial statements do not include all information and notes required in annual audited financial statements in conformity with GAAP.
Principles of Consolidation and Basis of Presentation	'
	Principles of Consolidation and Basis of Presentation
	The accompanying consolidated financial statements include the accounts of the Company, the OP and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary.
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management makes significant estimates regarding classification of investments, fair value measurements, credit losses and impairments of investments, and derivative financial instruments and hedging activities, as applicable.
Development Stage Company	'
	Development Stage Company
	On May 14, 2013, the Company received and accepted aggregate subscriptions in excess of the minimum $2.0
	million, broke escrow in connection with the Offering and issued shares of common stock to the Company's initial investors who were consequently admitted as stockholders. The Company commenced operations on May 14, 2013 and made its first investment on May 15, 2013. Therefore, as of May 14, 2013, the Company was no longer considered a development stage company.
Real Estate Debt Investments	'
	Real Estate Debt Investments
	Commercial real estate debt investments are intended to be held until maturity and, accordingly, are carried at cost, net of unamortized origination fees, acquisition fees and expenses, discounts or premiums and unfunded commitments. Real estate debt investments that are deemed to be impaired will be carried at amortized cost less a specific allowance for loan losses. Interest income is recorded on the accrual basis and related discounts, premiums, origination fees and acquisition fees and expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income in the Company’s consolidated statements of operations.
	Allowance for Loan Losses
	The allowance for loan losses reflects management's estimate of loan losses inherent in the loan portfolio as of the balance sheet date. The reserve is increased through the "Provision for loan losses" on the Company's consolidated statements of operations and comprehensive income (loss) and is decreased by charge-offs when losses are confirmed through the receipt of assets such as cash in a pre-foreclosure sale or via ownership control of the underlying collateral in full satisfaction of the loan upon foreclosure or when significant collection efforts have ceased. The Company uses a uniform process for determining its allowance for loan losses. The allowance for loan losses includes a general, formula-based component and an asset-specific component.
	The general reserve component covers performing loans. General reserves are recorded when (i) available information as of each balance sheet date indicates that it is probable a loss has occurred in the portfolio and (ii) the amount of the loss can be reasonably estimated. The formula-based general reserve is derived from estimated principal default probabilities and loss severities applied to groups of loans based upon assigned risk ratings for loans with similar risk characteristics during the Company's quarterly loan portfolio assessment. During this assessment, the Company performs a comprehensive analysis of its loan portfolio and assigns risk ratings to loans that incorporate management's current judgments about their credit quality based on all known and relevant internal and external factors that may affect collectability. The Company considers, among other things, payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographical location as well as national and regional economic factors. This methodology results in loans being segmented by risk classification into risk rating categories that are associated with estimated probabilities of default and principal loss. Ratings range from "1" to "5" with "1" representing the lowest risk of loss and "5" representing the highest risk of loss. The Company currently estimates loss rates based on historical realized losses experienced in the industry and takes into account current economic conditions affecting the commercial real estate market when establishing appropriate time frames to evaluate loss experience.
	The asset-specific reserve component relates to reserves for losses on individual impaired loans. The Advisor considers a loan to be impaired when, based upon current information and events, it believes that it is probable that the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. This assessment is made on a loan-by-loan basis each quarter based on such factors as payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographical location as well as national and regional economic factors. A reserve is established for an impaired loan when the present value of payments expected to be received, observable market prices, or the estimated fair value of the collateral (for loans that are dependent on the collateral for repayment) is lower than the carrying value of that loan.
	For collateral dependent impaired loans, impairment is measured using the estimated fair value of collateral less the estimated cost to sell. The Advisor generally will use the income approach through internally developed valuation models to estimate the fair value of the collateral for such loans. In more limited cases, the Advisor will obtain external "as is" appraisals for loan collateral, generally when third party participations exist. Valuations will be performed or obtained at the time a loan is determined to be impaired and designated non-performing, and they will be updated if circumstances indicate that a significant change in value has occurred
	A loan is also considered impaired if its terms are modified in a troubled debt restructuring ("TDR"). A TDR occurs when a concession is granted and the debtor is experiencing financial difficulties. Impairments on TDR loans are generally measured based on the present value of expected future cash flows discounted at the effective interest rate of the original loan.
	Income recognition will be suspended for loans at the earlier of the date at which payments become 90-days past due or when, in the opinion of the Advisor, a full recovery of income and principal becomes doubtful. Income recognition will be resumed when the suspended loan becomes contractually current and performance is demonstrated to be resumed. A loan will be written off when it is no longer realizable and legally discharged.
Real Estate Securities	'
	Real Estate Securities
	On the acquisition date, all of the Company’s commercial real estate securities will be classified as available for sale, and will be carried at fair value, with any unrealized gains or losses reported as a component of accumulated other comprehensive income or loss. However, the Company may elect the fair value option for certain of its available for sale securities, and as a result, any unrealized gains or losses on such securities will be recorded as unrealized gains or losses on investments in the Company’s consolidated and comprehensive income (loss). Premiums or discounts on commercial real estate securities will be recognized using the effective interest method and recorded as an adjustment to interest income.
	Impairment Analysis of Securities
	Commercial real estate securities for which the fair value option has not been elected will be periodically evaluated for other-than-temporary impairment. If the fair value of a security is less than its amortized cost, the security will be considered impaired. Impairment of a security will be considered to be other-than-temporary when (i) the Advisor has the intent to sell the impaired security; (ii) it is more likely than not the Company will be required to sell the security; or (iii) the Advisor does not expect to recover the entire amortized cost of the security. If the Advisor determines that an other-than-temporary impairment exists and a sale is likely to occur, the impairment charge will be recognized as an “Impairment of assets” on the Company's consolidated statement of operations and comprehensive income (loss). If a sale is not expected to occur, the portion of the impairment charge related to credit factors will be recorded as an “Impairment of assets” on the Company's consolidated statement of operations and comprehensive income (loss) with the remainder recorded as an unrealized gain or loss on investments reported as a component of accumulated other comprehensive income or loss.
	Commercial real estate securities for which the fair value option has been elected will not be evaluated for other-than-temporary impairment as changes in fair value are recorded in the Company’s consolidated statement of operations and comprehensive income (loss).
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments
	The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, accrued interest receivable, due to affiliates and accounts payable and accrued expenses approximate their carrying value on the accompanying consolidated balance sheets due to their short-term nature.
	As of September 30, 2013, the Company had acquired three mezzanine loan investments. All three loans were recently underwritten and acquired, with the last two being acquired in September 2013. All three loans were performing as of September 30, 2013. Therefore, the carrying value approximates the fair value as of September 30, 2013.
	As of September 30, 2013, the Company had $5.8 million outstanding under its revolving line of credit with an affiliate, which bears interest at a fixed rate of 3.25% (See Note 4 — Revolving Line of Credit with Affiliate). As of September 30, 2013, the Company believes the carrying value of its revolving line of credit with its affiliate approximates fair value.
Cash and Cash Equivalents	'
	Cash and Cash Equivalents
	Cash includes cash in bank accounts. The Company deposits cash with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company up to an insurance limit. Cash equivalents include short-term, liquid investments in a money market fund.
Restricted Cash	'
	Restricted Cash
	Restricted cash may primarily consist of escrow deposits for future debt service payments, taxes, insurance, property maintenance or other amounts collected with mortgage loan originations.
Deferred Costs	'
	Deferred Costs
	Deferred costs may consist primarily of deferred financing costs or deferred offering costs. Deferred financing costs represent commitment fees, legal fees, and other costs associated with obtaining commitments for financing. These costs will be amortized over the terms of the respective financing agreements using the straight-line method. Unamortized deferred financing costs will be expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financial transactions that do not close will be expensed in the period in which it is determined that the financing will not close.
	Deferred offering costs may represent professional fees, fees paid to various regulatory agencies, and other costs incurred in connection with the registration and sale of shares of the Company's common stock. As of December 31, 2012, such costs totaled $0.9 million. On February 12, 2013, the day the Company commenced its Offering, deferred offering costs were reclassified to stockholders' equity.
Share Repurchase Program	'
	Share Repurchase Program
	The Company has a Share Repurchase Program (“SRP”) that enables stockholders to sell their shares to the Company. Under the SRP, stockholders may request that the Company redeem all or any portion, subject to certain minimum conditions described below, if such repurchase does not impair the Company's capital or operations.
	Prior to the time that the Company’s shares are listed on a national securities exchange and until the Company begins to calculate its NAV, the repurchase price per share will depend on the length of time investors have held such shares as follows: after one year from the purchase date — the lower of $23.13 and 92.5% of the amount they actually paid for each share; after two years from the purchase date — the lower of $23.75 and 95.0% of the amount they actually paid for each share; after three years from the purchase date — the lower of $24.38 and 97.5% of the amount they actually paid for each share; and after four years from the purchase date — the lower of $25.00 and 100% of the amount they actually paid for each share (in each case, as adjusted for any stock distributions, combinations, splits and recapitalizations).
	Once the Company begins to calculate its NAV, the price per share that the Company will pay to repurchase shares of the Company’s common stock on any business day will be the Company's per share NAV for the quarter, calculated after the close of business on the first business day of each quarter, plus applicable selling commissions and dealer manager fees. Subject to limited exceptions, stockholders who redeem their shares of the Company's common stock within the first four months from the date of purchase will be subject to a short-term trading fee of 2% of the aggregate per share NAV of the shares of common stock received. Because the Company's per share NAV will be calculated quarterly, the redemption price may fluctuate between the redemption request day and the date on which the Company pays redemption proceeds.
	Until the Company begins to calculate its NAV, the Company is only authorized to repurchase shares pursuant to the SRP using the proceeds received from the DRIP and will limit the amount spent to repurchase shares in a given quarter to the amount of proceeds received from the DRIP in that same quarter. In addition, the board of directors may reject a request for redemption, at any time. Due to these limitations, the Company cannot guarantee that it will be able to accommodate all repurchase requests. Purchases under the SRP by the Company will be limited in any calendar year to 5% of the weighted average number of shares outstanding during the prior year.
	After the Company begins to calculate its NAV, purchases under the SRP will be limited in any calendar year to 1.25% of Company's NAV as of the last day of the previous calendar quarter, or approximately 5% of the Company's NAV in any 12 month period. If the Company reaches the 1.25% limit on redemptions during any quarter, the Company will not accept any additional redemption requests for the remainder of such quarter. The SRP will automatically resume on the first day of the next calendar quarter, unless our board of directors determines to suspend the share repurchase plan.
	When a stockholder requests redemption and the redemption is approved, the Company will reclassify such obligation from equity to a liability based on the settlement value of the obligation. Shares repurchased under the SRP will have the status of authorized but unissued shares. At September 30, 2013, no shares were eligible to be redeemed.
Distribution Reinvestment Plan	'
	Distribution Reinvestment Plan
	Pursuant to the DRIP, stockholders may elect to reinvest distributions by purchasing shares of common stock in lieu of receiving cash. No Dealer Manager fees or selling commissions are paid with respect to shares purchased pursuant to the DRIP. Participants purchasing shares pursuant to the DRIP have the same rights and are treated in the same manner as if such shares were issued pursuant to the Offering. The board of directors may designate that certain cash or other distributions be excluded from the DRIP. The Company has the right to amend any aspect of the DRIP or terminate the DRIP with ten days’ notice to participants. Shares issued under the DRIP are recorded to equity in the balance sheet in the period distributions are declared. There have been 1,858 shares issued under the DRIP as of September 30, 2013.
Derivatives Instruments	'
	Derivative Instruments
	The Company may use derivative financial instruments to hedge all or a portion of the interest rate risk associated with its borrowings. Certain of the techniques used to hedge exposure to interest rate fluctuations may also be used to protect against declines in the market value of assets that result from general trends in debt markets. The principal objective of such agreements is to minimize the risks and/or costs associated with the Company’s operating and financial structure as well as to hedge specific anticipated transactions.
	The Company will record all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.
	The accounting for subsequent changes in the fair value of these derivatives depends on whether each has been designated and qualifies for hedge accounting treatment. If the Company elects not to apply hedge accounting treatment, any changes in the fair value of these derivative instruments will be recognized immediately in gains (losses) on derivative instruments in the Company's consolidated statement of operations and comprehensive income (loss). If the derivative is designated and qualifies for hedge accounting treatment the change in the estimated fair value of the derivative is recorded in other comprehensive income (loss) to the extent that it is effective. Any ineffective portion of a derivative's change in fair value will be immediately recognized in earnings.
Offering and Related Costs	'
	Offering and Related Costs
	Offering and related costs include all expenses incurred in connection with the Company’s Offering. Offering costs (other than selling commissions and the Dealer Manager fee) of the Company may be paid by the Advisor, the Dealer Manager or their affiliates on behalf of the Company. Offering costs were reclassified from deferred costs to stockholders' equity (deficit) on the day the Company commenced its operations. Offering costs include all expenses incurred by the Company in connection with its Offering as of such date. These costs include but are not limited to (i) legal, accounting, printing, mailing and filing fees; (ii) escrow service related fees; (iii) reimbursement of the Dealer Manager for amounts it may pay to reimburse the bona fide diligence expenses of broker-dealers; and (iv) reimbursement to the Advisor for a portion of the costs of its employees and other costs in connection with preparing supplemental sales materials and related offering activities. The Company is obligated to reimburse the Advisor or its affiliates, as applicable, for organizational and offering costs paid by them on behalf of the Company, notwithstanding that the Advisor is obligated to reimburse the Company to the extent organizational and offering costs (excluding selling commissions and the Dealer Manager fee) incurred by the Company in the Offering exceed 2% of gross offering proceeds. As a result, these costs are only a liability of the Company to the extent aggregate selling commissions, the Dealer Manager fees and other offering costs do not exceed 12% of the gross proceeds determined at the end of the Offering (See Note 8 — Related Party Transactions and Arrangements).
Share-Based Compensation	'
	Share-Based Compensation
	The Company has a stock-based incentive award plan which is accounted for under the guidance for share based payments. The expense for such awards will be included in general and administrative expenses and will be recognized over the vesting period or when the requirements for exercise of the award have been met (See Note 10 — Share-Based Compensation).
Income Taxes	'
	Income Taxes
	The Company intends to make an election to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code commencing with the taxable year ending December 31, 2013. If the Company qualifies for taxation as a REIT, it generally will not be subject to federal corporate income tax as long as it distributes at least 90% of its REIT taxable income to its stockholders. REITs are subject to a number of other organizational and operational requirements. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income.
Per Share Data	'
	Per Share Data
	The Company will calculate basic income per share by dividing net income or loss for the period by weighted-average shares of its common stock outstanding for a respective period. Diluted income per share takes into account the effect of dilutive instruments, such as stock options, unvested restricted stock and other securities which are convertible to common stock, but uses the average share price for the period in determining the number of incremental shares that are to be added to the weighted-average number of shares outstanding.
Reportable Segments	'
	Reportable Segments
	The Company will conduct its business through the following segments:
	•	The real estate debt business will be focused on originating, acquiring and asset managing commercial real estate debt investments, including first mortgage loans, subordinate mortgages, mezzanine loans and participations in such loans.
	•	The real estate securities business will be focused on investing in and asset managing commercial real estate securities primarily consisting of CMBS and may include unsecured REIT debt, CDO notes and other securities.
	Through September 30, 2013, all of the Company’s revenues and expenses have been in the real estate debt segment. As the portfolio expands to include real estate securities, the Company will report the results of both reportable segments.

Loans_Receivable_Tables

Loans Receivable (Tables)	9 Months Ended
	Sep. 30, 2013
Receivables [Abstract]	'
Summary of the company's loans receivable by class	'
	The Company's loan receivable portfolio was comprised of the following at September 30, 2013 (in thousands):
	Description		Location	Date of Investment		Maturity Date	Coupon	Original Face Amount		Face Amount		Premium (Discount)(1)			Carrying Value
	W Hotel		Minneapolis, MN	May-13		May-23	Fixed	$	6,500	$	6,474	$	(2,474	)	$	4,000
	Regency Park Apartments		Austin, TX	Sep-13		Sep-18	Fixed	5,000		5,000		54			5,054
	121 West Trade Office		Charlotte, NC	Sep-13		Sep-16	Floating	9,000		9,000		86			9,086
	Total							$	20,500	$	20,474	$	(2,334	)	$	18,140
	__________________________________________________________
	(1) Includes acquisition fees and expenses.
	The following is a summary of the Company's loans receivable by class (in thousands):
		30-Sep-13			31-Dec-12
	Mezzanine loans	$	18,140		$	—
	Total gross carrying value of loans	18,140			—
	Allowance for loan losses	—			—
	Total loans receivable, net	$	18,140		$	—

Net_Income_Loss_Per_Share_Tabl

Net Income (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]	'
Summary of the basic and diluted earnings per share	'
	The following is a summary of the basic and diluted net income (loss) per share computation for the three and nine months ended September 30, 2013:
		Three Months Ended		Nine Months Ended
		September 30, 2013		September 30, 2013
	Basic and diluted net income (loss)	$	27,315	$	(117,835	)
	Basic weighted average shares outstanding	308,116		237,444
	Diluted weighted average shares outstanding	312,115		237,444
	Basic net income (loss) per share	$	0.09	$	(0.50	)
	Diluted net income (loss) per share	$	0.09	$	(0.50	)

Common_Stock_Tables

Common Stock (Tables)	9 Months Ended
	Sep. 30, 2013
Equity [Abstract]	'
Schedule of distributions	'
	The below table shows the distributions paid on shares outstanding during the nine months ended September 30, 2013.
	Payment Date	Weighted Average Shares Outstanding (1)	Amount Paid in Cash		Amount Issued under DRIP
	3-Jun-13	99,897	$	508	$	526
	1-Jul-13	103,483	7,952		8,196
	1-Aug-13	143,357	13,164		12,555
	3-Sep-13	302,524	32,567		22,852
	Total		$	54,191	$	44,129
	__________________________________________________________________________
	(1) This represents the weighted average shares outstanding for the period related to the respective payment date.

Related_Party_Transactions_Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2013
Related Party Transactions [Abstract]	'
Schedule of Selling Commissions and Dealer Manager Fees Payable to Affiliate	'
	The table below shows the fees incurred from the Dealer Manager associated with the Offering during the three and nine months ended September 30, 2013 and the associated payable as of September 30, 2013.
	(in thousands)	Three Months Ended September 30, 2013		Nine Months Ended September 30, 2013		Payable as of September 30, 2013
	Total commissions and fees incurred from the Dealer Manager	$	940	$	960	$	14
Schedule Of Offering Costs Reimbursements to Related Party	'
	The table below shows compensation and reimbursement the Advisor and its affiliates incurred for services relating to the Offering.
	(in thousands)	Three Months Ended September 30, 2013		Nine Months Ended September 30, 2013		Payable as of September 30, 2013
	Total compensation and reimbursement for services provided by the Advisor and affiliates	$	227	$	862	$	825
Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services	'
	The table below depicts related party fees and reimbursements in connection with the operations of the Company for the three and nine months ended September 30, 2013 and the associated payable as of September 30, 2013.
	(in thousands)	Three Months Ended September 30, 2013		Nine Months Ended September 30, 2013		Payable as of September 30, 2013
	Acquisition fees and expenses	$	209	$	268	$	268
	Advisory and investment banking fee	152		181		181
	Total related party fees and reimbursements	$	361	$	449	$	449

Subsequent_Events_Tables

Subsequent Events (Tables)	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
Total capital including sales from common stock	'
	Total capital raised to date, including shares issued under the DRIP, is as follows:
	Source of Capital (in thousands)	Inception to September 30, 2013		October 1 to October 31, 2013		Total
	Common stock	$	14,261	$	5,760	$	20,020

Organization_and_Business_Oper1

Organization and Business Operations (Details) (USD $)	0 Months Ended	7 Months Ended	9 Months Ended
	15-May-13	Jun. 30, 2013	Sep. 30, 2013	14-May-13	13-May-13	Dec. 31, 2012
Schedule of Equity Method Investments [Line Items]	'	'	'	'	'	'
Intentional maximum sale of stock	'	'	$2,000,000,000	'	'	'
Proceeds from issuances of common stock	2,000,000	14,200,000	14,016,686	'	'	'
Common stock, par value per share (in dollars per share)	'	'	$0.01	'	'	$0.01
Sale of stock, minimum amount to release proceeds from escrow	'	'	'	2,000,000	'	'
Common stock outstanding	'	'	14,800,000	'	'	'
Common stock issued through distribution reinvestment plan	'	'	44,129	'	'	'
Shares repurchased, average cost per share (in dollars per share)	'	'	$25	'	'	'
Common stock, price per share (in dollars per share)	'	'	'	'	$25	'
Special Limited Partner [Member]	'	'	'	'	'	'
Schedule of Equity Method Investments [Line Items]	'	'	'	'	'	'
Common stock shares issued (in shares)	'	'	8,888	'	'	'
Total consideration for common stock	'	'	2,020	'	'	'
Limited partners units (in shares)	'	'	90	'	'	'
Sponsor [Member]	'	'	'	'	'	'
Schedule of Equity Method Investments [Line Items]	'	'	'	'	'	'
Common stock, price per share (in dollars per share)	'	'	$22.50	'	'	'
Total consideration for common stock	'	'	200,000	'	'	'
DRIP [Member]	'	'	'	'	'	'
Schedule of Equity Method Investments [Line Items]	'	'	'	'	'	'
Intentional maximum sale of stock	'	'	$400,000,000	'	'	'
Shares repurchased, percentage of original price per share	'	'	95.00%	'	'	'
Shares repurchased, average cost per share (in dollars per share)	'	'	$23.75	'	'	'
Common stock, price per share (in dollars per share)	'	'	$23.75	'	'	'

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Details) (USD $)

9 Months Ended

9 Months Ended

Sep. 30, 2013

14-May-13

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

15-May-13

NAV [Member]

After One Year [Member]

After Two Years [Member]

After Three Years [Member]

After Four Years [Member]

Advisor [Member]

Dealer Manager [Member]

AR Capital, LLC [Member]

AR Capital, LLC [Member]

Maximum [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Equity, Class of Treasury Stock [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

Sale of stock, minimum amount to release proceeds from escrow

'

$2,000,000

'

'

'

'

'

'

'

'

'

'

Period at which revenue recognition is suspended

'90 days

'

'

'

'

'

'

'

'

'

'

'

Amount borrowed

'

'

'

'

'

'

'

'

'

'

5,800,000

'

Line of credit fixed rate

'

'

'

'

'

'

'

'

'

'

'

3.25%

Deferred fiancing costs

$0

'

$940,618

'

'

'

'

'

'

'

'

'

Shares repurchased, average cost per share (in dollars per share)

$25

'

'

'

$23.13

$23.75

$24.38

$25

'

'

'

'

Shares repurchased, percentage of original price per share

'

'

'

'

92.50%

95.00%

97.50%

100.00%

'

'

'

'

Short term trading fee percentage

2.00%

'

'

'

'

'

'

'

'

'

'

'

Maximum percentage of shares authorized to repurchase during year

5.00%

'

'

'

'

'

'

'

'

'

'

'

Limited percentage of shares authorized to repurchase during the year

'

'

'

1.25%

'

'

'

'

'

'

'

'

Shares issued under DRIP (in shares)

1,858

'

'

'

'

'

'

'

'

'

'

'

Number of shares eligible to be repurchased

0

'

'

'

'

'

'

'

'

'

'

'

Offering costs reimbursable percentage

'

'

'

'

'

'

'

'

2.00%

'

'

'

Dealer fees and offering costs, percentage

'

'

'

'

'

'

'

'

'

12.00%

'

'

Minimum distribution percentage to qualify for REIT taxation status

90.00%

'

'

'

'

'

'

'

'

'

'

'

Loans_Receivable_Details

Loans Receivable (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
	loan	rating
		loan
Receivables [Abstract]	'	'	'
Loan investments	$18,139,541	$18,139,541	$0
Funded loans	$25,887	$25,887	'
Weighted average risk rating of loans	'	2	'
Number of non-performing, non-accrual or impaired loans	0	0	'

Loans_Receivable_Loans_Receiva

Loans Receivable - Loans Receivable by Class (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Receivables [Abstract]	'	'
Mezzanine loans	$18,139,541	$0
Total gross carrying value of loans	18,139,541	0
Allowance for loan losses	0	0
Total loans receivable, net	$18,139,541	$0

Loans_Receivable_Loan_Receivab

Loans Receivable - Loan Receivable Portfolio (Details) (USD $)	Sep. 30, 2013		Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]	'		'
Original Face Amount	$20,500,000		'
Face Amount	20,474,000		'
Discount	-2,334,000	[1]	'
Loan investments	18,139,541		0
W Hotel [Member]	'		'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'		'
Original Face Amount	6,500,000		'
Face Amount	6,474,000		'
Discount	-2,474,000	[1]	'
Loan investments	4,000,000		'
Regency Park Apartments [Member]	'		'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'		'
Original Face Amount	5,000,000		'
Face Amount	5,000,000		'
Discount	54,000	[1]	'
Loan investments	5,054,000		'
121 West Trade Office [Member]	'		'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'		'
Original Face Amount	9,000,000		'
Face Amount	9,000,000		'
Discount	86,000	[1]	'
Loan investments	$9,086,000		'
[1]	Includes acquisition fees and expenses

Revolving_Line_of_Credit_with_1

Revolving Line of Credit with Affiliate (Details) (AR Capital, LLC [Member], Revolving Credit Facility [Member], USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Jul. 13, 2013	15-May-13
	extension	extension
AR Capital, LLC [Member] | Revolving Credit Facility [Member]	'	'	'	'
Line of Credit Facility [Line Items]	'	'	'	'
Unsecured line of credit	'	'	$10,000,000	$5,000,000
Line of credit fixed rate	'	'	'	3.25%
Maturity period	'	'1 year	'	'
Number of one year extensions	2	2	'	'
Extension maturity period	'	'1 year	'	'
Amount borrowed	5,800,000	5,800,000	'	'
Remaining borrowing capacity	4,200,000	4,200,000	'	'
Interest expense	$7,388	$15,375	'	'

Net_Income_Loss_Per_Share_Deta

Net Income (Loss) Per Share (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Basic and diluted net income (loss)	$27,315	($117,835)
Basic weighted average shares outstanding (in shares)	308,116	237,444
Diluted weighted average shares outstanding (in shares)	312,115	237,444
Basic net income (loss) per share (in dollars per share)	$0.09	($0.50)
Diluted net income (loss) per share (in dollars per share)	$0.09	($0.50)
Antidilutive securities excluded from computation	0.0011	'
Restricted Units [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Antidilutive securities excluded from computation	'	3,999

Common_Stock_Details

Common Stock (Details) (USD $)	0 Months Ended						3 Months Ended	7 Months Ended	9 Months Ended
	Sep. 03, 2013	Aug. 02, 2013	Jul. 02, 2013	Jun. 03, 2013	13-May-13	15-May-13	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
Equity [Abstract]	'	'	'	'	'	'	'	'	'	'
Common stock, shares outstanding	'	'	'	'	'	'	595,377	'	595,377	'
Proceeds from issuances of common stock	'	'	'	'	'	$2,000,000	'	$14,200,000	$14,016,686	'
Minimum distribution percentage to qualify for REIT taxation status	'	'	'	'	'	'	'	'	90.00%	'
Distribution percentage required to avoid paying federal income taxes	'	'	'	'	'	'	'	'	100.00%	'
Common stock, dividends, per share per day, declared (in dollars per share)	'	'	'	'	$0.01	'	'	'	'	'
Common stock, price per share (in dollars per share)	'	'	'	'	$25	'	'	'	'	'
Amount paid in cash	32,567	13,164	7,952	508	'	'	'	'	54,191	'
Payments of Capital Distribution	22,852	12,555	8,196	526	'	'	'	'	44,129	'
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	'	'	'	'	'	'	27,315	'	-117,835	'
Distributions payable	'	'	'	'	'	'	$83,430	'	$83,430	$0

Common_Stock_Distributions_Det

Common Stock - Distributions (Details) (USD $)	0 Months Ended								9 Months Ended
	Sep. 03, 2013		Aug. 02, 2013		Jul. 02, 2013		Jun. 03, 2013		Sep. 30, 2013
Equity [Abstract]	'		'		'		'		'
Weighted average shares outstanding, basic and diluted (in shares)	302,524	[1]	143,357	[1]	103,483	[1]	99,897	[1]	'
Amount paid in cash	$32,567		$13,164		$7,952		$508		$54,191
Amount issued under DRIP	($22,852)		($12,555)		($8,196)		($526)		($44,129)
[1]	This represents the weighted average shares outstanding for the period related to the respective payment date.

Related_Party_Transactions_and1

Related Party Transactions and Arrangements (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
Related Party Transaction [Line Items]	'	'	'
Common stock, shares outstanding and owned by related party (in shares)	595,377	595,377	8,888
Due to affiliate	$1,068,709	$1,068,709	$121,500
Fees Paid In Connection With Offering [Abstract]	'	'	'
Selling commission, organizational and offering costs, maximum	'	2.00%	'
Organizational offering costs in exess of threshold of 2%	'	3,400,000	'
Fees Paid In Connection With Operations [Abstract]	'	'	'
Professional fees	28,024	46,113	'
Other expenses	2,599	50,552	'
Sponsor [Member]	'	'	'
Related Party Transaction [Line Items]	'	'	'
Common stock, shares outstanding and owned by related party (in shares)	8,888	8,888	'
Affiliated Entities [Member]	'	'	'
Related Party Transaction [Line Items]	'	'	'
Due to affiliate	1,100,000	1,100,000	'
Dealer Manager [Member]	'	'	'
Related Party Transaction [Line Items]	'	'	'
Due to affiliate	14,000	14,000	'
Fees Paid In Connection With Offering [Abstract]	'	'	'
Selling commission, percentage of offering proceeds	7.00%	7.00%	'
Selling commission, percentage of offering proceeds, reallownce fee	3.00%	3.00%	'
Selling commission, percentage of offering proceeds, reduction fee	2.50%	2.50%	'
Fees Paid In Connection With Operations [Abstract]	'	'	'
Total commissions and fees incurred from the Dealer Manager	'	960,000	'
Participating Broker Dealers [Member]	'	'	'
Fees Paid In Connection With Offering [Abstract]	'	'	'
Selling commission, percentage of offering proceeds	7.50%	7.50%	'
Selling commission, percentage of offering proceeds, first payment	2.50%	2.50%	'
Selling commission, percentage of offering proceeds, subsequent payments	1.00%	1.00%	'
Advisor [Member]	'	'	'
Fees Paid In Connection With Operations [Abstract]	'	'	'
Real estate acquistion fee, percentage	1.00%	1.00%	'
Real estate acquistion fee, percentage reimbursement of acquistion costs, maximum exposure	4.50%	4.50%	'
Real estate acquistion fee, percentage reimbursement of acquistion costs, aggregate of all acquisitions, maximum exposure	1.50%	1.50%	'
Annual asset managment fee, percentage based on the lower of total costs of assets or net asset value	0.75%	0.75%	'
Administrative services reimbursement, limitation, percentage of average invested assets	2.00%	2.00%	'
Administrative services reimbursement, limitation, percentage of net income	25.00%	25.00%	'
Fees Paid In Connection With Liquidation Of Assets [Abstract]	'	'	'
Real estate disposition fee, percentage	1.00%	1.00%	'
Principal amount of debt, obligated to pay as disposition fee for each investment sold	'	1.00%	'
Subordinated performance fee, percentage in excess of total return	15.00%	15.00%	'
Subordinated performance fee, percentage of total return required before payment of performance fee	6.00%	6.00%	'
Subordinated performance fee, maximum percentage of total return payable as a fee	10.00%	10.00%	'
Subordinated particpation in asset sale proceeds fee, percentage	15.00%	15.00%	'
Subordinated participation in asset sale proceeds fee, percentage threshold return before payment of fee	6.00%	6.00%	'
Subordinated incentive listing distribution fee, percentage	15.00%	15.00%	'
Subordinated incentive listing distribution fee, percentage threshold return before payment of fee	6.00%	6.00%	'
Termination or non-renewal of the advisory agreement fee, percentage	15.00%	15.00%	'
Termination or non-renewal of the advisory agreement fee, percentage threshold return before payment of fee	6.00%	6.00%	'
Incurred [Member] | Acquisition and Related Expenses [Member] | Advisor [Member]	'	'	'
Fees Paid In Connection With Operations [Abstract]	'	'	'
Total commissions and fees incurred from the Dealer Manager	139,550	178,623	'
Payable [Member] | Acquisition and Related Expenses [Member] | Advisor [Member]	'	'	'
Fees Paid In Connection With Operations [Abstract]	'	'	'
Total commissions and fees incurred from the Dealer Manager	69,775	89,312	'
Nonrecurring Fees [Member] | Advisory Fee [Member]	'	'	'
Related Party Transaction [Line Items]	'	'	'
Due to affiliate	181,000	181,000	'
Fees Paid In Connection With Operations [Abstract]	'	'	'
Total commissions and fees incurred from the Dealer Manager	152,000	180,538	'
Professional fees	10,000	10,000	'
Other expenses	170,538	170,538	'
Nonrecurring Fees [Member] | Acquisition and Related Expenses [Member]	'	'	'
Related Party Transaction [Line Items]	'	'	'
Due to affiliate	268,000	268,000	'
Fees Paid In Connection With Operations [Abstract]	'	'	'
Total commissions and fees incurred from the Dealer Manager	$209,000	$268,000	'

Related_Party_Transactions_and2

Related Party Transactions and Arrangements - Dealer Manager Fees (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2013
			Dealer Manager [Member]	Realty Capital Securities, LLC [Member]
				Selling Commission [Member]
				Dealer Manager [Member]
Related Party Transaction [Line Items]	'	'	'	'
Total commissions and fees incurred from the Dealer Manager	'	'	$960,000	$940,000
Payable to related party	$1,068,709	$121,500	$14,000	'

Related_Party_Transactions_and3

Related Party Transactions and Arrangements - Advisor and Affiliate Compensation (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2013
			Fees and Expense Reimbursement, Stock Offering [Member]	Fees and Expense Reimbursement, Stock Offering [Member]
			Advisor and Dealer Manager [Member]	Advisor and Dealer Manager [Member]
Related Party Transaction [Line Items]	'	'	'	'
Total compensation and reimbursement for services provided by the Advisor and affiliates	'	'	$227,000	$862,000
Payable to related party	$1,068,709	$121,500	$825,000	$825,000

Related_Party_Transactions_and4

Related Party Transactions and Arrangements - Fees and Reimbursements (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013
			Related Party Fees and Reimbursements [Member]	Related Party Fees and Reimbursements [Member]	Acquisition and Related Expenses [Member]	Acquisition and Related Expenses [Member]	Advisory Fee [Member]	Advisory Fee [Member]
					Nonrecurring Fees [Member]	Nonrecurring Fees [Member]	Nonrecurring Fees [Member]	Nonrecurring Fees [Member]
Related Party Transaction [Line Items]	'	'	'	'	'	'	'	'
Total related party fees and reimbursements	'	'	$361,000	$449,000	$209,000	$268,000	$152,000	$180,538
Payable to related party	$1,068,709	$121,500	$449,000	$449,000	$268,000	$268,000	$181,000	$181,000

ShareBased_Compensation_Detail

Share-Based Compensation (Details) (USD $)	13-May-13	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013
		Restricted Share Plan [Member]	Restricted Share Plan [Member]	Independent Director [Member]	Board of Directors [Member]	Board of Directors [Member]
			Restricted Common Stock [Member]	Restricted Share Plan [Member]	Restricted Share Plan [Member]	Restricted Share Plan [Member]
				Restricted Common Stock [Member]	Restricted Common Stock [Member]	Restricted Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'	'	'
Shares granted under restricted share plan, maximum percentage of total shares allowed	'	5.00%	'	'	'	'
Maximum shares allowed to be granted under restricted share plan (in shares)	'	4,000,000	'	'	'	'
Vesting period for plan	'	'5 years	'	'5 years	'	'
Stock option grants (in shares)	'	'	'	1,333	'	3,999
Grants in increments per annum	'	'	20.00%	'	'	'
Common stock, price per share (in dollars per share)	$25	'	'	'	$22.50	$22.50
Compensation expense	'	'	'	'	$4,536	$11,340

Subsequent_Events_Details

Subsequent Events (Details) (USD $)	0 Months Ended	7 Months Ended	9 Months Ended			0 Months Ended	1 Months Ended	10 Months Ended	12 Months Ended
	15-May-13	Jun. 30, 2013	Sep. 30, 2013	13-May-13	Dec. 31, 2012	Oct. 03, 2013	Oct. 31, 2013	Sep. 30, 2013	Oct. 31, 2013	Sep. 30, 2013	Oct. 31, 2013
						Subsequent Event [Member]	Subsequent Event [Member]	Subsequent Event [Member]	Subsequent Event [Member]	DRIP [Member]	DRIP [Member]
											Subsequent Event [Member]
Subsequent Event [Line Items]	'	'	'	'	'	'	'	'	'	'	'
Common stock, shares outstanding	'	'	595,377	'	8,888	'	826,213	'	826,213	'	'
Proceeds from issuances of common stock	$2,000,000	$14,200,000	$14,016,686	'	'	'	$5,760,000	$14,261,000	$20,020,000	'	'
Common stock outstanding	'	'	14,800,000	'	'	'	20,600,000	'	20,600,000	'	'
Common stock, price per share (in dollars per share)	'	'	'	$25	'	'	$25	'	$25	$23.75	$23.75
Payments of dividends	'	'	'	'	'	83,430	'	'	'	'	'
Dividends paid in cash	'	'	'	'	'	48,798	'	'	'	'	'
Common stock issued through distribution reinvestment plan	'	'	$44,129	'	'	$34,632	'	'	'	'	'
Shares issued under DRIP (in shares)	'	'	1,858	'	'	1,458	'	'	'	'	'

Subsequent_Events_Total_Capita

Subsequent Events - Total Capital (Details) (USD $)	0 Months Ended	7 Months Ended	9 Months Ended	1 Months Ended	10 Months Ended	12 Months Ended
	15-May-13	Jun. 30, 2013	Sep. 30, 2013	Oct. 31, 2013	Sep. 30, 2013	Oct. 31, 2013
				Subsequent Event [Member]	Subsequent Event [Member]	Subsequent Event [Member]
Subsequent Event [Line Items]	'	'	'	'	'	'
Common stock	$2,000,000	$14,200,000	$14,016,686	$5,760,000	$14,261,000	$20,020,000