Document_and_Entity_Informatio
| Document and Entity Information | 3 Months Ended | |
| Mar. 31, 2014 | Apr. 30, 2014 | |
| 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 | 31-Mar-14 | ' |
| Document Fiscal Year Focus | '2014 | ' |
| Document Fiscal Period Focus | 'Q1 | ' |
| Amendment Flag | 'false | ' |
| Entity Common Stock, Shares Outstanding | ' | 3,575,407 |
Consolidated_Balance_Sheets
| Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
| ASSETS | ' | ' |
| Cash | $352,418 | $178,030 |
| Loans receivable, net | 54,826,643 | 30,831,571 |
| Mortgage-backed securities, at fair value | 14,504,900 | 5,005,000 |
| Accrued interest receivable | 324,369 | 126,118 |
| Prepaid expenses and other assets | 1,423,043 | 229,117 |
| Total assets | 71,431,373 | 36,369,836 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
| Revolving line of credit with affiliate | 3,300,000 | 7,305,000 |
| Repurchase agreement | 4,000,000 | 0 |
| Accounts payable and accrued expenses | 1,831,638 | 1,737,882 |
| Distributions payable | 469,160 | 215,747 |
| Interest payable | 11,974 | 14,633 |
| Due to affiliate | 0 | 1,077,765 |
| Total liabilities | 9,612,772 | 10,351,027 |
| Preferred stock, $0.01 par value, 50,000,000 authorized, none issued and outstanding at March 31, 2014 and December 31, 2013 | 0 | 0 |
| Common stock, $0.01 par value, 300,000,000 shares authorized, 2,984,616 and 1,330,669 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively | 29,807 | 13,267 |
| Additional paid-in capital | 63,216,414 | 26,620,266 |
| Accumulated other comprehensive loss | -4,750 | -9,578 |
| Accumulated deficit | -1,422,870 | -605,146 |
| Total stockholders' equity | 61,818,601 | 26,018,809 |
| Total stockholders' equity | $71,431,373 | $36,369,836 |
Consolidated_Balance_Sheets_Pa
| Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
| 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 | 2,984,616 | 1,330,669 |
| Common stock, shares outstanding | 2,984,616 | 1,330,669 |
Consolidated_Statements_of_Ope
| Consolidated Statements of Operations (USD $) | 3 Months Ended | |
| Mar. 31, 2014 | Mar. 31, 2013 | |
| Net Interest Income: | ' | ' |
| Interest income | $976,834 | $1 |
| Interest expense | 21,036 | 0 |
| Net interest income | 955,798 | 1 |
| Expenses: | ' | ' |
| Board expenses | 46,687 | 0 |
| Insurance expense | 55,000 | 0 |
| Professional fees | 113,160 | 5,020 |
| Acquisition fees | 259,000 | 0 |
| Other expenses | 169,703 | 0 |
| Loan loss provision | 86,462 | 0 |
| Total expenses | 730,012 | 5,020 |
| Net Income (Loss) | $225,786 | ($5,019) |
| Basic net income (loss) per share (in dollars per share) | $0.11 | ' |
| Diluted net income (loss) per share (in dollars per share) | $0.11 | ' |
| Basic weighted average shares outstanding (in shares) | 2,025,934 | 8,888 |
| Diluted weighted average shares outstanding (in shares) | 2,030,023 | 8,888 |
Consolidated_Statements_of_Sto
| Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-Capital | Additional Other Comprehensive Income (Loss) | Accumulated Deficit |
| Balance at Dec. 31, 2013 | $26,018,809 | $13,267 | $26,620,266 | ($9,578) | ($605,146) |
| Balance, shares at Dec. 31, 2013 | ' | 1,330,669 | ' | ' | ' |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
| Issuance of common stock, shares | ' | 1,642,767 | ' | ' | ' |
| Issuance of common stock | 40,843,620 | 16,428 | 40,827,192 | ' | ' |
| Net income (loss) | 225,786 | ' | ' | ' | ' |
| Distributions declared | -1,043,510 | ' | ' | ' | -1,043,510 |
| Common stock issued through distribution reinvestment plan, shares | 19,136 | 11,180 | ' | ' | ' |
| Common stock issued through distribution reinvestment plan | 265,521 | 112 | 265,409 | ' | ' |
| Share-based compensation | 4,437 | ' | 4,437 | ' | ' |
| Common stock offering costs, commissions and dealer manager fees | -4,500,890 | ' | -4,500,890 | ' | ' |
| Other Comprehensive Income (Loss), Net of Tax | 4,828 | ' | ' | 4,828 | ' |
| Balance at Mar. 31, 2014 | $61,818,601 | $29,807 | $63,216,414 | ($4,750) | ($1,422,870) |
| Other comprehensive income at Mar. 31, 2014 | ' | 2,984,616 | ' | ' | ' |
Consolidated_Statement_of_Cash
| Consolidated Statement of Cash Flows (USD $) | 3 Months Ended | |
| Mar. 31, 2014 | Mar. 31, 2013 | |
| Cash flows from operating activities: | ' | ' |
| Net income (loss) | $225,786 | ($5,019) |
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | ' | ' |
| Discount accretion, net | -51,814 | 0 |
| Share-based compensation | 4,437 | 0 |
| Loan loss provision | 86,462 | 0 |
| Changes in assets and liabilities: | ' | ' |
| Accrued interest receivable | -198,251 | 0 |
| Prepaid expenses and other assets | -1,193,926 | 0 |
| Accounts payable and accrued expenses | 92,015 | 0 |
| Interest payable | -2,659 | 5,019 |
| Net cash used in operating activities: | -1,037,950 | 0 |
| Cash flows from investing activities: | ' | ' |
| Loan investments | -24,065,595 | 0 |
| Mortgage-backed securities investments | -9,497,001 | 0 |
| Principal repayments received on loan investments | 37,804 | 0 |
| Net cash used in investing activities | -33,524,792 | 0 |
| Cash flows from financing activities: | ' | ' |
| Proceeds from issuances of common stock | 40,843,620 | 0 |
| Payments of offering costs and fees related to common stock issuances | -4,500,890 | -413,061 |
| Common stock repurchase | 0 | 0 |
| Borrowings on revolving line of credit with affiliate | 3,300,000 | 0 |
| Repayments of revolving line of credit with affiliate | -7,305,000 | 0 |
| Borrowings on repurchase agreement | 4,010,000 | ' |
| Repayments on repurchase agreement | -10,000 | ' |
| Advances from (repayments to) affiliate | -1,077,765 | 418,488 |
| Dividends paid | -522,835 | ' |
| Net cash provided by financing activities: | 34,737,130 | 5,427 |
| Net change in cash | 174,388 | 5,427 |
| Cash, beginning of period | 178,030 | 573 |
| Cash, end of period | 352,418 | 6,000 |
| Cash Flow, Noncash Investing and Financing Activities Disclosure | ' | ' |
| Interest paid | 23,695 | 0 |
| Distributions payable | 469,160 | 0 |
| Common stock issued through distribution reinvestment plan | $265,521 | $0 |
Consolidated_Statements_of_Com
| Consolidated Statements of Comprehensive Income Statement (USD $) | 3 Months Ended | |
| Mar. 31, 2014 | Mar. 31, 2013 | |
| Net income (loss) | $225,786 | ($5,019) |
| Other comprehensive income (net change by component): | ' | ' |
| Unrealized gain on available-for-sale securities | 4,828 | 0 |
| Total other comprehensive income | 4,828 | 0 |
| Comprehensive income (loss) attributable to ARC Realty Finance Trust, Inc. | $230,614 | ($5,019) |
Organization_and_Business_Oper
| Organization and Business Operations | 3 Months Ended |
| Mar. 31, 2014 | |
| 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 conducts its operations 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 March 31, 2014, the aggregate value of all the common stock outstanding was $74.6 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 controlled 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 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 contributed $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 | 3 Months Ended | |
| Mar. 31, 2014 | ||
| 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. | ||
| 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 acquisition 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, and acquisition 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 "Loan loss provision" on the Company's consolidated statements of operations 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 statement of operations. 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, accrued interest receivable, and accounts payable and accrued expenses approximate their carrying value on the accompanying consolidated balance sheets due to the monthly terms. | ||
| As of March 31, 2014, the Company had 9 loan investments. All of the Company's loan investments were performing as of March 31, 2014. Therefore, the carrying value approximates the fair value as of March 31, 2014. The Company recorded a general allowance for loan losses as of March 31, 2014 in the amount of $86,462. For the purpose of this calculation, loans underwritten within 45 days of the balance sheet date are excluded as they were recently underwritten. The remaining loans were then applied a percentage based a rolling average of commercial loan default data and the risk rating of each investment. There are no specifically reserved loans in the portfolio as of March 31, 2014. | ||
| As of March 31, 2014, the Company had 3 CMBS investments. These investments are available for sale debt securities which are recorded at fair value at March 31, 2014. | ||
| As of March 31, 2014, the Company had $3.3 million outstanding under its revolving line of credit with an affiliate, which bears interest at a fixed rate of 3.25% (See Note 5 — Revolving Line of Credit with Affiliate). As of March 31, 2014, the Company believes the carrying value of its revolving line of credit with its affiliate approximates fair value. | ||
| As of March 31, 2014, the Company had $4.0 million outstanding under its Master Repurchase Agreement (the "MRA") with JP Morgan Securities, LLC ("JPM"), which bears interest at a floating rate of London Interbank Offered Rate ("LIBOR") + 1.20% (1.356% at March 31, 2014) (See Note 6 — Repurchase Agreement). As of March 31, 2014, the Company believes the carrying value of the JPM MRA approximates fair value due to the month-to-month term of the repurchase agreements. | ||
| 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. | ||
| 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 of their holdings, subject to certain 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. 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 SRP. | ||
| 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 March 31, 2014, 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 19,136 shares issued under the DRIP as of March 31, 2014. | ||
| 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 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 10 — 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 12 — Share-Based Compensation). | ||
| Income Taxes | ||
| The Company conducts its operations to qualify as a real estate investment trust for U.S. federal income tax purposes beginning 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. However, 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 calculates basic earnings per share by dividing net income attributable to the Company for the period by the weighted-average of shares of common stock outstanding for that period. Diluted earnings per share reflects the potential dilution that that could occur from shares issuable in connection with the restricted stock plan and OP units, except when doing so would be anti-dilutive. | ||
| Reportable Segments | ||
| The Company conducts its business through the following segments: | ||
| • | The real estate debt business which is 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 which is 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. | |
| See Note 15 - Segment Reporting for further information regarding the Company's segments. | ||
Loans_Receivable
| Loans Receivable | 3 Months Ended | ||||||||||||||||||||||||
| Mar. 31, 2014 | |||||||||||||||||||||||||
| Receivables [Abstract] | ' | ||||||||||||||||||||||||
| Loans Receivable | ' | ||||||||||||||||||||||||
| Loans Receivable | |||||||||||||||||||||||||
| The following is a summary of the Company's loans receivable by class (in thousands): | |||||||||||||||||||||||||
| 31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| Mezzanine loans | $ | 44,918 | $ | 30,832 | |||||||||||||||||||||
| Subordinated loans | 9,995 | — | |||||||||||||||||||||||
| Total gross carrying value of loans | 54,913 | 30,832 | |||||||||||||||||||||||
| Provision for loan losses | 86 | — | |||||||||||||||||||||||
| Total loans receivable, net | $ | 54,827 | $ | 30,832 | |||||||||||||||||||||
| As of March 31, 2014, the Company has invested $54.9 million in nine loan investments. For the three months ended March 31, 2014 the Company received scheduled principal repayments of $37,804 on the loans. | |||||||||||||||||||||||||
| The Company recorded a general allowance for loan losses as of March 31, 2014 in the amount of $86,462. For the purpose of this calculation, loans originated or acquired within 45 days of the balance sheet date are excluded as they were recently underwritten. For loans held longer than 45 days, a reserve was derived from estimated principal default probabilities and loss severities applied to groups of loans based upon assigned risk ratings. There are no impaired or specifically reserved loans in the portfolio as of March 31, 2014. | |||||||||||||||||||||||||
| The following table presents the activity in our provision for loan losses (in thousands): | |||||||||||||||||||||||||
| Provision for loan losses at January 1, 2014 | $ | — | |||||||||||||||||||||||
| Provision for loan losses | 86 | ||||||||||||||||||||||||
| Charge-offs | — | ||||||||||||||||||||||||
| Recoveries | — | ||||||||||||||||||||||||
| Provision for loan losses at March 31, 2014 | $ | 86 | |||||||||||||||||||||||
| The Company's loan receivable portfolio was comprised of the following at March 31, 2014 (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 | $ | 6,431 | $ | (2,395 | ) | $ | 4,036 | ||||||||||||
| Regency Park Apartments | Austin, TX | Sep-13 | Sep-18 | Fixed | 5,000 | 5,000 | 50 | 5,050 | |||||||||||||||||
| 121 West Trade Office | Charlotte, NC | Sep-13 | Sep-16 | Floating | 9,000 | 9,000 | 73 | 9,073 | |||||||||||||||||
| 545 Madison Avenue | New York, NY | Dec-13 | Jan-24 | Fixed | 5,000 | 5,000 | 74 | 5,074 | |||||||||||||||||
| Hampton Inn LaGuardia | East Elmhurst, NY | Dec-13 | Aug-23 | Fixed | 4,981 | 4,966 | (1,411 | ) | 3,555 | ||||||||||||||||
| Southern US Student Housing | Various | Dec-13 | Jan-24 | Fixed | 4,000 | 4,000 | 59 | 4,059 | |||||||||||||||||
| Burger King Portfolio | Various | Mar-14 | Mar-24 | Fixed | 10,000 | 10,000 | (5 | ) | 9,995 | ||||||||||||||||
| Four Seasons Las Colinas | Irving, TX | Mar-14 | Mar-16 | Floating | 11,000 | 11,000 | 48 | 11,048 | |||||||||||||||||
| Element Hotel | Irving, TX | Mar-14 | Aug-18 | Fixed | 3,000 | 3,000 | 23 | 3,023 | |||||||||||||||||
| Total | $ | 58,481 | $ | 58,397 | $ | (3,484 | ) | $ | 54,913 | ||||||||||||||||
| __________________________________________________________ | |||||||||||||||||||||||||
| (1) Includes acquisition fees and expenses where applicable. | |||||||||||||||||||||||||
| 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 March 31, 2014, the weighted average risk rating of loans was 2.0. As of March 31, 2014, the Company had no non-performing, non-accrual or impaired loans. | |||||||||||||||||||||||||
| For the three months ended March 31, 2014, the activity in our loan portfolio was as follows (in thousands): | |||||||||||||||||||||||||
| Balance at December 31, 2013 | $ | 30,832 | |||||||||||||||||||||||
| Acquisitions/Originations | 24,065 | ||||||||||||||||||||||||
| Principal Repayments | (38 | ) | |||||||||||||||||||||||
| Discount Accretion/Premium Amortization | 54 | ||||||||||||||||||||||||
| Provision for loan losses | (86 | ) | |||||||||||||||||||||||
| Balance at March 31, 2014 | $ | 54,827 | |||||||||||||||||||||||
| During the three months ended March 31, 2014, the Company invested $24,065,495 in three loans including $128,350 of capitalized acquisition expenses. | |||||||||||||||||||||||||
Investment_Securities
| Investment Securities | 3 Months Ended | |||||||||||||||||||
| Mar. 31, 2014 | ||||||||||||||||||||
| Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||
| Investment Securities | ' | |||||||||||||||||||
| Investment Securities | ||||||||||||||||||||
| The following is a summary of the Company's investment securities by class (in thousands): | ||||||||||||||||||||
| 31-Mar-14 | 31-Dec-13 | |||||||||||||||||||
| CMBS | $ | 14,505 | $ | 5,005 | ||||||||||||||||
| Total fair value of securities | $ | 14,505 | $ | 5,005 | ||||||||||||||||
| As of March 31, 2014, the Company had three CMBS investments with a par value of approximately $14.5 million. | ||||||||||||||||||||
| The Company classified its CMBS investments as available-for-sale as of March 31, 2014. These investments are reported at fair value in the balance sheet with changes in fair value recorded in accumulated other comprehensive income (loss). The table below represents the fair value adjustment as described above (in thousands): | ||||||||||||||||||||
| As of March 31, 2014 | ||||||||||||||||||||
| (in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Net Fair Value Adjustment | Fair Value | |||||||||||||||
| CMBS | $ | 14,510 | $ | — | $ | (5 | ) | $ | (5 | ) | $ | 14,505 | ||||||||
| Total | $ | 14,510 | $ | — | $ | (5 | ) | $ | (5 | ) | $ | 14,505 | ||||||||
Revolving_Line_of_Credit_with_
| Revolving Line of Credit with Affiliate | 3 Months Ended |
| Mar. 31, 2014 | |
| 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 1 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 March 31, 2014, $3.3 million was outstanding under the Revolver, and $6.7 million was available to be borrowed. The Company incurred $9,413 in interest expense on the Revolver for the three months ended March 31, 2014 on a weighted average outstanding balance of $1.2 million. |
Repurchase_Agreement
| Repurchase Agreement | 3 Months Ended |
| Mar. 31, 2014 | |
| Securities Sold under Agreements to Repurchase [Abstract] | ' |
| Repurchase Agreement | ' |
| Repurchase Agreement | |
| On January 2, 2014, the Company entered into the MRA with JPM. The MRA provides the company with the ability to sell securities to JPM for liquidity while providing a fixed repurchase price for the same securities in the future. | |
| As of March 31, 2014, the Company had $4.0 million outstanding under the MRA. The repurchase contracts on each security under the MRA mature each month and terms are adjusted for the following month as necessary. As of March 31, 2014, the repurchase contract outstanding under the MRA was priced at LIBOR + 1.20% (1.356% at March 31, 2014). |
Net_Income_Loss_Per_Share
| Net Income (Loss) Per Share | 3 Months Ended | |||
| Mar. 31, 2014 | ||||
| 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 months ended March 31, 2014: | ||||
| Three Months Ended | ||||
| March 31, 2014 | ||||
| Basic and diluted net income (loss) | $ | 225,786 | ||
| Basic weighted average shares outstanding | 2,025,934 | |||
| Diluted weighted average shares outstanding | 2,030,023 | |||
| Basic net income per share | $ | 0.11 | ||
| Diluted net income per share | $ | 0.11 | ||
| __________________________________________________________ | ||||
| NM - Not Meaningful | ||||
| The Company had 4,089 common share equivalents as of March 31, 2014, which were comprised of 3,999 unvested restricted shares and 90 OP units. Diluted net income 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 $0.000224 per share for the three months ended March 31, 2014. For the three months ended March 31, 2013, the calculation of net income per share is not presented because it is not a meaningful measure of the Company’s performance as the Company had not commenced operations. | ||||
Common_Stock
| Common Stock | 3 Months Ended | |||||||||||
| Mar. 31, 2014 | ||||||||||||
| Equity [Abstract] | ' | |||||||||||
| Common Stock | ' | |||||||||||
| Common Stock | ||||||||||||
| As of March 31, 2014, the Company had 2,984,616 shares of common stock outstanding, including shares issued pursuant to the DRIP and unvested restricted shares, and had received total proceeds of $73.2 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 during the three months ended March 31, 2014. | ||||||||||||
| Payment Date | Weighted Average Shares Outstanding (1) | Amount Paid in Cash | Amount Issued under DRIP | |||||||||
| 2-Jan-14 | 1,458,470 | $ | 140,164 | $ | 73,844 | |||||||
| 3-Feb-14 | 1,973,014 | 170,660 | 85,496 | |||||||||
| 3-Mar-14 | 2,693,391 | 212,011 | 106,181 | |||||||||
| Total | $ | 522,835 | $ | 265,521 | ||||||||
| __________________________________________________________________________ | ||||||||||||
| (1) This represents the weighted average shares outstanding for the period related to the respective payment date. | ||||||||||||
| For the three months ended March 31, 2014, the Company paid cash dividends of $522,835 and had net income of $225,786. As of March 31, 2014, the Company had a distribution payable of $467,128 for dividends accrued in the month of March 2014 and has a additional distribution payable of $2,032 accrued for the three months ended March 31, 2014 on all unvested restricted shares. | ||||||||||||
Commitments_and_Contingencies
| Commitments and Contingencies | 3 Months Ended |
| Mar. 31, 2014 | |
| Commitments and Contingencies Disclosure [Abstract] | ' |
| Commitments and Contingencies | ' |
| Commitments and Contingencies | |
| Litigation | |
| In the ordinary course of business, the Company may become subject to litigation or claims. There are no material legal proceedings pending or known to be contemplated against the Company. |
Related_Party_Transactions_and
| Related Party Transactions and Arrangements | 3 Months Ended | ||||||||||||||
| Mar. 31, 2014 | |||||||||||||||
| Related Party Transactions [Abstract] | ' | ||||||||||||||
| Related Party Transactions and Arrangements | ' | ||||||||||||||
| Related Party Transactions and Arrangements | |||||||||||||||
| As of March 31, 2014, an entity wholly owned by the Sponsor owned 8,888 shares of the Company’s outstanding common stock. | |||||||||||||||
| The Company entered into the Revolver with an affiliate on May 15, 2013 (See Note 5 — 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, 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 months ended March 31, 2014 and the associated payable as of March 31, 2014 and December 31, 2013. There were no fees incurred from the Dealer Manager associated with the Offering during the three months ended March 31, 2013 (in thousands): | |||||||||||||||
| Three Months Ended March 31, 2014 | Payable as of March 31, 2014 | Payable as of December 31, 2013 | |||||||||||||
| Total commissions and fees incurred from the Dealer Manager | $ | 3,851 | $ | 94 | $ | 12 | |||||||||
| 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 during the three months ended March 31, 2014 and the associated payable as of March 31, 2014 and December 31, 2013. There was no compensation or reimbursement to the Advisor and its affiliates for services relating to the Offering incurred during the three months ended March 31, 2013 (in thousands): | |||||||||||||||
| Three Months Ended March 31, 2014 | Payable as of March 31, 2014 | Payable as of December 31, 2013 | |||||||||||||
| Total compensation and reimbursement for services provided by the Advisor and affiliates | $ | 360 | $ | 1,333 | $ | 1,047 | |||||||||
| The payables as of March 31, 2014 and December 31, 2013 in the table above are 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 March 31, 2014, organizational and offering costs exceeded 2.0% of gross proceeds received from the Offering by $2.4 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 months ended March 31, 2014, the acquisition fee of 1.0% resulted in $259,000 of acquisition fees recognized in the consolidated statement of operations. In addition, the Company incurred $137,850 of acquisition expenses which are capitalized and amortized over the life of each investment using the effective interest method. Both the acquisition fees of $259,000 and expenses of $137,850 described above are paid to the Advisor. | |||||||||||||||
| 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 loans receivable and other debt investments). FFO, as adjusted, is not the same as FFO. During the three months ended March 31, 2014 and March 31, 2013, no asset management fees were incurred or waived. | |||||||||||||||
| 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 of $0.9 million associated with this agreement into other expense on the consolidated statements of operations over the estimated remaining life of the Offering. | |||||||||||||||
| The table below depicts related party fees and reimbursements in connection with the operations of the Company for the three months ended March 31, 2014 and the associated payable as of March 31, 2014 and December 31, 2013. There were no related party fees and reimbursements in connection with the operations of the Company incurred during the three months ended March 31, 2013 (in thousands): | |||||||||||||||
| Three Months Ended March 31, 2014 | Payable as of March 31, 2014 | Payable as of December 31, 2013 | |||||||||||||
| Acquisition fees and expenses | $ | 397 | $ | 239 | $ | 202 | |||||||||
| Advisory and investment banking fee | 135 | — | 316 | ||||||||||||
| Total related party fees and reimbursements | $ | 532 | $ | 239 | $ | 518 | |||||||||
| The payables as of March 31, 2014 and December 31, 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 absorb any expenses during the three months ended March 31, 2014 or March 31, 2013, respectively. The Advisor did not waive any fees during the three months ended March 31, 2014 or 2013, respectively. | |||||||||||||||
| 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. For the three months ended March 31, 2014 and 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 during the three months ended March 31, 2014 and 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. | |||||||||||||||
| During the three months ended March 31, 2014 and 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 above, 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 has also established 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 12 — Share-Based Compensation). | |||||||||||||||
Economic_Dependency
| Economic Dependency | 3 Months Ended |
| Mar. 31, 2014 | |
| 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 | 3 Months Ended |
| Mar. 31, 2014 | |
| 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 March 31, 2014, the Company had granted 3,999 restricted shares to its independent directors. None of the 3,999 restricted shares granted had vested as of March 31, 2014. Based on a share price of $22.50, the compensation expense associated with the restricted share grants was $4,437 and $0 for the three months ended March 31, 2014 and 2013. |
Fair_Value_of_Financial_Instru
| Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||||
| Mar. 31, 2014 | ||||||||||||||||
| Fair Value Disclosures [Abstract] | ' | |||||||||||||||
| Fair Value of Financial Instruments | ' | |||||||||||||||
| Fair Value of Financial Instruments | ||||||||||||||||
| GAAP establishes a hierarchy of valuation techniques based on the observability of inputs utilized in measuring financial instruments at fair values. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below: | ||||||||||||||||
| • | Level I - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. | |||||||||||||||
| • | Level II - Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. | |||||||||||||||
| • | Level III - Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. | |||||||||||||||
| The Company has implemented valuation control processes to validate the fair value of the Company's financial instruments measured at fair value including those derived from pricing models. These control processes are designed to assure that the values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and the assumptions are reasonable. Refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2013 for further discussion of the Company's valuation control process. | ||||||||||||||||
| CMBS | ||||||||||||||||
| CMBS investments are valued utilizing both observable and unobservable market inputs. These factors include projected future cash flows, ratings, subordination levels, vintage, remaining lives, credit issues, recent trades of similar securities and the spreads used in the prior valuation. The Company obtains current market spread information where available and use this information in evaluating and validating the market price of all CMBS. Depending upon the significance of the fair value inputs used in determining these fair values, these securities are classified in either Level II or Level III of the fair value hierarchy. As of March 31, 2014, the Company received broker quotes on each CMBS investment used in determining the fair value. As of March 31, 2014, the Company's CMBS investments have been classified as Level II due to the observable nature of many of the market inputs. | ||||||||||||||||
| The following table presents the Company's financial instrument carried at fair value in the consolidated balance sheet by its level in the fair value hierarchy as of March 31, 2014 (in thousands): | ||||||||||||||||
| Total | Level I | Level II | Level III | |||||||||||||
| CMBS | $ | 14,505 | $ | — | $ | 14,505 | $ | — | ||||||||
| Total | $ | 14,505 | $ | — | $ | 14,505 | $ | — | ||||||||
Offsetting_Assets_and_Liabilit
| Offsetting Assets and Liabilities | 3 Months Ended | ||||||||||||||||||||||||||||
| Mar. 31, 2014 | |||||||||||||||||||||||||||||
| Offsetting [Abstract] | ' | ||||||||||||||||||||||||||||
| Offsetting Assets and Liabilities | ' | ||||||||||||||||||||||||||||
| Offsetting Assets and Liabilities | |||||||||||||||||||||||||||||
| The table below presents a gross presentation, the effects of offsetting and a net presentation of the Company's repurchase agreements within the scope of ASC 210-20, Balance Sheet—Offsetting, as of March 31, 2014 (in thousands): | |||||||||||||||||||||||||||||
| Gross Amounts Not Offset on the Balance Sheet | |||||||||||||||||||||||||||||
| Repurchase Agreements | Gross Amounts of Recognized Assets | Gross Amounts of Recognized (Liabilities) | Gross Amounts Offset on the Balance Sheet | Net Amounts of Assets (Liabilities) presented on the Balance Sheet | Financial Instruments | Cash Collateral Received (Posted) | Net Amount | ||||||||||||||||||||||
| 31-Mar-14 | $ | 5,010 | $ | (4,000 | ) | $ | — | $ | 1,010 | $ | — | $ | — | $ | 1,010 | ||||||||||||||
Segment_Reporting
| Segment Reporting | 3 Months Ended | ||||||||||||
| Mar. 31, 2014 | |||||||||||||
| Segment Reporting [Abstract] | ' | ||||||||||||
| Segment Reporting | ' | ||||||||||||
| Segment Reporting | |||||||||||||
| The Company conducts 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. | ||||||||||||
| The following table represents the Company's operations by segment for the three months ended March 31, 2014: | |||||||||||||
| Real Estate | Real Estate | ||||||||||||
| Total | Debt | Securities | |||||||||||
| Interest Income | $ | 925,020 | $ | 886,241 | $ | 38,779 | |||||||
| Discount (Premium) Amortization | 51,814 | 53,743 | (1,929 | ) | |||||||||
| Interest Expense | 21,036 | 9,412 | 11,624 | ||||||||||
| Net Income | 225,786 | 348,931 | (123,145 | ) | |||||||||
| Total Assets | 71,431,373 | 56,913,244 | 14,518,129 | ||||||||||
| For the purposes of the table above, total expenses have been allocated to the business segments using a percentage derived by using total assets of each business segment as the numerator and total assets of the Company as the denominator. | |||||||||||||
Subsequent_Events
| Subsequent Events | 3 Months Ended | ||||||||||||
| Mar. 31, 2014 | |||||||||||||
| 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 April 30, 2014, the Company had 3,575,407 shares of common stock outstanding, including unvested restricted shares, and had raised total proceeds from the Offering of $89.3 million. As of April 30, 2014, the aggregate value of all share issuances in the Offering was $89.3 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 (in thousands): | |||||||||||||
| Source of Capital | 31-Mar-14 | April 1 to April 30, 2014 | Total | ||||||||||
| Common stock | $ | 74,591 | $ | 14,661 | $ | 89,253 | |||||||
| Dividends Paid | |||||||||||||
| On April 1, 2014, the Company paid a distribution of $467,128 to stockholders of record during the month of March 2014. Approximately $304,405 of the distribution was paid in cash, while $162,723 was used to purchase 6,852 shares for those stockholders that chose to reinvest dividends through the DRIP. | |||||||||||||
| Loans Receivable | |||||||||||||
| On April 10, 2014, the Company funded a $7.0 million mezzanine loan secured by an office building. The loan bears interest at 12.00% and has a five year term. | |||||||||||||
Summary_of_Significant_Account1
| Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |
| Mar. 31, 2014 | ||
| 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. | ||
| 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 acquisition 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, and acquisition 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 "Loan loss provision" on the Company's consolidated statements of operations 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 statement of operations. 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, accrued interest receivable, and accounts payable and accrued expenses approximate their carrying value on the accompanying consolidated balance sheets due to the monthly terms. | ||
| As of March 31, 2014, the Company had 9 loan investments. All of the Company's loan investments were performing as of March 31, 2014. Therefore, the carrying value approximates the fair value as of March 31, 2014. The Company recorded a general allowance for loan losses as of March 31, 2014 in the amount of $86,462. For the purpose of this calculation, loans underwritten within 45 days of the balance sheet date are excluded as they were recently underwritten. The remaining loans were then applied a percentage based a rolling average of commercial loan default data and the risk rating of each investment. There are no specifically reserved loans in the portfolio as of March 31, 2014. | ||
| As of March 31, 2014, the Company had 3 CMBS investments. These investments are available for sale debt securities which are recorded at fair value at March 31, 2014. | ||
| As of March 31, 2014, the Company had $3.3 million outstanding under its revolving line of credit with an affiliate, which bears interest at a fixed rate of 3.25% (See Note 5 — Revolving Line of Credit with Affiliate). As of March 31, 2014, the Company believes the carrying value of its revolving line of credit with its affiliate approximates fair value. | ||
| As of March 31, 2014, the Company had $4.0 million outstanding under its Master Repurchase Agreement (the "MRA") with JP Morgan Securities, LLC ("JPM"), which bears interest at a floating rate of London Interbank Offered Rate ("LIBOR") + 1.20% (1.356% at March 31, 2014) (See Note 6 — Repurchase Agreement). As of March 31, 2014, the Company believes the carrying value of the JPM MRA approximates fair value due to the month-to-month term of the repurchase agreements. | ||
| 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. | ||
| 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 of their holdings, subject to certain 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. 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 SRP. | ||
| 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 March 31, 2014, 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 19,136 shares issued under the DRIP as of March 31, 2014. | ||
| 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 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 10 — 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 12 — Share-Based Compensation). | ||
| Income Taxes | ' | |
| Income Taxes | ||
| The Company conducts its operations to qualify as a real estate investment trust for U.S. federal income tax purposes beginning 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. However, 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 calculates basic earnings per share by dividing net income attributable to the Company for the period by the weighted-average of shares of common stock outstanding for that period. Diluted earnings per share reflects the potential dilution that that could occur from shares issuable in connection with the restricted stock plan and OP units, except when doing so would be anti-dilutive. | ||
| Reportable Segments | ' | |
| Reportable Segments | ||
| The Company conducts its business through the following segments: | ||
| • | The real estate debt business which is 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 which is 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. | |
| See Note 15 - Segment Reporting for further information regarding the Company's segments. | ||
Loans_Receivable_Tables
| Loans Receivable (Tables) | 3 Months Ended | ||||||||||||||||||||||||
| Mar. 31, 2014 | |||||||||||||||||||||||||
| Receivables [Abstract] | ' | ||||||||||||||||||||||||
| Summary of the company's loans receivable by class | ' | ||||||||||||||||||||||||
| The Company's loan receivable portfolio was comprised of the following at March 31, 2014 (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 | $ | 6,431 | $ | (2,395 | ) | $ | 4,036 | ||||||||||||
| Regency Park Apartments | Austin, TX | Sep-13 | Sep-18 | Fixed | 5,000 | 5,000 | 50 | 5,050 | |||||||||||||||||
| 121 West Trade Office | Charlotte, NC | Sep-13 | Sep-16 | Floating | 9,000 | 9,000 | 73 | 9,073 | |||||||||||||||||
| 545 Madison Avenue | New York, NY | Dec-13 | Jan-24 | Fixed | 5,000 | 5,000 | 74 | 5,074 | |||||||||||||||||
| Hampton Inn LaGuardia | East Elmhurst, NY | Dec-13 | Aug-23 | Fixed | 4,981 | 4,966 | (1,411 | ) | 3,555 | ||||||||||||||||
| Southern US Student Housing | Various | Dec-13 | Jan-24 | Fixed | 4,000 | 4,000 | 59 | 4,059 | |||||||||||||||||
| Burger King Portfolio | Various | Mar-14 | Mar-24 | Fixed | 10,000 | 10,000 | (5 | ) | 9,995 | ||||||||||||||||
| Four Seasons Las Colinas | Irving, TX | Mar-14 | Mar-16 | Floating | 11,000 | 11,000 | 48 | 11,048 | |||||||||||||||||
| Element Hotel | Irving, TX | Mar-14 | Aug-18 | Fixed | 3,000 | 3,000 | 23 | 3,023 | |||||||||||||||||
| Total | $ | 58,481 | $ | 58,397 | $ | (3,484 | ) | $ | 54,913 | ||||||||||||||||
| __________________________________________________________ | |||||||||||||||||||||||||
| (1) Includes acquisition fees and expenses where applicable. | |||||||||||||||||||||||||
| The following is a summary of the Company's loans receivable by class (in thousands): | |||||||||||||||||||||||||
| 31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| Mezzanine loans | $ | 44,918 | $ | 30,832 | |||||||||||||||||||||
| Subordinated loans | 9,995 | — | |||||||||||||||||||||||
| Total gross carrying value of loans | 54,913 | 30,832 | |||||||||||||||||||||||
| Provision for loan losses | 86 | — | |||||||||||||||||||||||
| Total loans receivable, net | $ | 54,827 | $ | 30,832 | |||||||||||||||||||||
| Loans and Leases Receivable, Allowance for Loan Losses Policy | ' | ||||||||||||||||||||||||
| There are no impaired or specifically reserved loans in the portfolio as of March 31, 2014. | |||||||||||||||||||||||||
| The following table presents the activity in our provision for loan losses (in thousands): | |||||||||||||||||||||||||
| Provision for loan losses at January 1, 2014 | $ | — | |||||||||||||||||||||||
| Provision for loan losses | 86 | ||||||||||||||||||||||||
| Charge-offs | — | ||||||||||||||||||||||||
| Recoveries | — | ||||||||||||||||||||||||
| Provision for loan losses at March 31, 2014 | $ | 86 | |||||||||||||||||||||||
| Real Estate Noes Receivable Rollforward | ' | ||||||||||||||||||||||||
| For the three months ended March 31, 2014, the activity in our loan portfolio was as follows (in thousands): | |||||||||||||||||||||||||
| Balance at December 31, 2013 | $ | 30,832 | |||||||||||||||||||||||
| Acquisitions/Originations | 24,065 | ||||||||||||||||||||||||
| Principal Repayments | (38 | ) | |||||||||||||||||||||||
| Discount Accretion/Premium Amortization | 54 | ||||||||||||||||||||||||
| Provision for loan losses | (86 | ) | |||||||||||||||||||||||
| Balance at March 31, 2014 | $ | 54,827 | |||||||||||||||||||||||
Investment_Securities_Tables
| Investment Securities (Tables) | 3 Months Ended | |||||||||||||||||||
| Mar. 31, 2014 | ||||||||||||||||||||
| Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||
| Fair Value Measurements, Recurring and Nonrecurring | ' | |||||||||||||||||||
| The following is a summary of the Company's investment securities by class (in thousands): | ||||||||||||||||||||
| 31-Mar-14 | 31-Dec-13 | |||||||||||||||||||
| CMBS | $ | 14,505 | $ | 5,005 | ||||||||||||||||
| Total fair value of securities | $ | 14,505 | $ | 5,005 | ||||||||||||||||
| The following table presents the Company's financial instrument carried at fair value in the consolidated balance sheet by its level in the fair value hierarchy as of March 31, 2014 (in thousands): | ||||||||||||||||||||
| Total | Level I | Level II | Level III | |||||||||||||||||
| CMBS | $ | 14,505 | $ | — | $ | 14,505 | $ | — | ||||||||||||
| Total | $ | 14,505 | $ | — | $ | 14,505 | $ | — | ||||||||||||
| Available-for-sale Securities | ' | |||||||||||||||||||
| The table below represents the fair value adjustment as described above (in thousands): | ||||||||||||||||||||
| As of March 31, 2014 | ||||||||||||||||||||
| (in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Net Fair Value Adjustment | Fair Value | |||||||||||||||
| CMBS | $ | 14,510 | $ | — | $ | (5 | ) | $ | (5 | ) | $ | 14,505 | ||||||||
| Total | $ | 14,510 | $ | — | $ | (5 | ) | $ | (5 | ) | $ | 14,505 | ||||||||
Net_Income_Loss_Per_Share_Tabl
| Net Income (Loss) Per Share (Tables) | 3 Months Ended | |||
| Mar. 31, 2014 | ||||
| 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 months ended March 31, 2014: | ||||
| Three Months Ended | ||||
| March 31, 2014 | ||||
| Basic and diluted net income (loss) | $ | 225,786 | ||
| Basic weighted average shares outstanding | 2,025,934 | |||
| Diluted weighted average shares outstanding | 2,030,023 | |||
| Basic net income per share | $ | 0.11 | ||
| Diluted net income per share | $ | 0.11 | ||
Common_Stock_Tables
| Common Stock (Tables) | 3 Months Ended | |||||||||||
| Mar. 31, 2014 | ||||||||||||
| Equity [Abstract] | ' | |||||||||||
| Schedule of distributions | ' | |||||||||||
| The below table shows the distributions paid during the three months ended March 31, 2014. | ||||||||||||
| Payment Date | Weighted Average Shares Outstanding (1) | Amount Paid in Cash | Amount Issued under DRIP | |||||||||
| 2-Jan-14 | 1,458,470 | $ | 140,164 | $ | 73,844 | |||||||
| 3-Feb-14 | 1,973,014 | 170,660 | 85,496 | |||||||||
| 3-Mar-14 | 2,693,391 | 212,011 | 106,181 | |||||||||
| Total | $ | 522,835 | $ | 265,521 | ||||||||
| __________________________________________________________________________ | ||||||||||||
| (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) | 3 Months Ended | ||||||||||||||
| Mar. 31, 2014 | |||||||||||||||
| 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 months ended March 31, 2014 and the associated payable as of March 31, 2014 and December 31, 2013. There were no fees incurred from the Dealer Manager associated with the Offering during the three months ended March 31, 2013 (in thousands): | |||||||||||||||
| Three Months Ended March 31, 2014 | Payable as of March 31, 2014 | Payable as of December 31, 2013 | |||||||||||||
| Total commissions and fees incurred from the Dealer Manager | $ | 3,851 | $ | 94 | $ | 12 | |||||||||
| 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 during the three months ended March 31, 2014 and the associated payable as of March 31, 2014 and December 31, 2013. There was no compensation or reimbursement to the Advisor and its affiliates for services relating to the Offering incurred during the three months ended March 31, 2013 (in thousands): | |||||||||||||||
| Three Months Ended March 31, 2014 | Payable as of March 31, 2014 | Payable as of December 31, 2013 | |||||||||||||
| Total compensation and reimbursement for services provided by the Advisor and affiliates | $ | 360 | $ | 1,333 | $ | 1,047 | |||||||||
| 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 months ended March 31, 2014 and the associated payable as of March 31, 2014 and December 31, 2013. There were no related party fees and reimbursements in connection with the operations of the Company incurred during the three months ended March 31, 2013 (in thousands): | |||||||||||||||
| Three Months Ended March 31, 2014 | Payable as of March 31, 2014 | Payable as of December 31, 2013 | |||||||||||||
| Acquisition fees and expenses | $ | 397 | $ | 239 | $ | 202 | |||||||||
| Advisory and investment banking fee | 135 | — | 316 | ||||||||||||
| Total related party fees and reimbursements | $ | 532 | $ | 239 | $ | 518 | |||||||||
Fair_Value_of_Financial_Instru1
| Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||
| Mar. 31, 2014 | ||||||||||||||||
| Fair Value Disclosures [Abstract] | ' | |||||||||||||||
| Fair Value Measurements, Recurring and Nonrecurring | ' | |||||||||||||||
| The following is a summary of the Company's investment securities by class (in thousands): | ||||||||||||||||
| 31-Mar-14 | 31-Dec-13 | |||||||||||||||
| CMBS | $ | 14,505 | $ | 5,005 | ||||||||||||
| Total fair value of securities | $ | 14,505 | $ | 5,005 | ||||||||||||
| The following table presents the Company's financial instrument carried at fair value in the consolidated balance sheet by its level in the fair value hierarchy as of March 31, 2014 (in thousands): | ||||||||||||||||
| Total | Level I | Level II | Level III | |||||||||||||
| CMBS | $ | 14,505 | $ | — | $ | 14,505 | $ | — | ||||||||
| Total | $ | 14,505 | $ | — | $ | 14,505 | $ | — | ||||||||
Offsetting_Assets_and_Liabilit1
| Offsetting Assets and Liabilities (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
| Mar. 31, 2014 | |||||||||||||||||||||||||||||
| Offsetting [Abstract] | ' | ||||||||||||||||||||||||||||
| Offsetting Liabilities | ' | ||||||||||||||||||||||||||||
| The table below presents a gross presentation, the effects of offsetting and a net presentation of the Company's repurchase agreements within the scope of ASC 210-20, Balance Sheet—Offsetting, as of March 31, 2014 (in thousands): | |||||||||||||||||||||||||||||
| Gross Amounts Not Offset on the Balance Sheet | |||||||||||||||||||||||||||||
| Repurchase Agreements | Gross Amounts of Recognized Assets | Gross Amounts of Recognized (Liabilities) | Gross Amounts Offset on the Balance Sheet | Net Amounts of Assets (Liabilities) presented on the Balance Sheet | Financial Instruments | Cash Collateral Received (Posted) | Net Amount | ||||||||||||||||||||||
| 31-Mar-14 | $ | 5,010 | $ | (4,000 | ) | $ | — | $ | 1,010 | $ | — | $ | — | $ | 1,010 | ||||||||||||||
Segment_Reporting_Tables
| Segment Reporting (Tables) | 3 Months Ended | ||||||||||||
| Mar. 31, 2014 | |||||||||||||
| Segment Reporting [Abstract] | ' | ||||||||||||
| Schedule of Segment Reporting Information, by Segment | ' | ||||||||||||
| The following table represents the Company's operations by segment for the three months ended March 31, 2014: | |||||||||||||
| Real Estate | Real Estate | ||||||||||||
| Total | Debt | Securities | |||||||||||
| Interest Income | $ | 925,020 | $ | 886,241 | $ | 38,779 | |||||||
| Discount (Premium) Amortization | 51,814 | 53,743 | (1,929 | ) | |||||||||
| Interest Expense | 21,036 | 9,412 | 11,624 | ||||||||||
| Net Income | 225,786 | 348,931 | (123,145 | ) | |||||||||
| Total Assets | 71,431,373 | 56,913,244 | 14,518,129 | ||||||||||
Subsequent_Events_Tables
| Subsequent Events (Tables) | 3 Months Ended | ||||||||||||
| Mar. 31, 2014 | |||||||||||||
| Subsequent Events [Abstract] | ' | ||||||||||||
| Schedule of Subsequent Events | ' | ||||||||||||
| Total capital raised to date, including shares issued under the DRIP, is as follows (in thousands): | |||||||||||||
| Source of Capital | 31-Mar-14 | April 1 to April 30, 2014 | Total | ||||||||||
| Common stock | $ | 74,591 | $ | 14,661 | $ | 89,253 | |||||||
Organization_and_Business_Oper1
| Organization and Business Operations (Details) (USD $) | 0 Months Ended | 3 Months Ended | |||
| 15-May-13 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | 13-May-13 | |
| Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
| Intentional maximum sale of stock | ' | $2,000,000,000 | ' | ' | ' |
| Common stock, par value per share (in dollars per share) | ' | $0.01 | ' | $0.01 | ' |
| Proceeds from issuances of common stock | 2,000,000 | 40,843,620 | 0 | ' | ' |
| Common stock outstanding | ' | 74,600,000 | ' | ' | ' |
| 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 | ' | ' | ' |
Summary_of_Significant_Account2
| Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||
| Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | 15-May-13 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
| loan | 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] | CMBS [Member] | Securities Sold under Agreements to Repurchase [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
| Maximum [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | investment | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
| Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
| Number of Mezzanine Loans Funded | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
| Allowance for loan losses | $86,462 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
| Number of Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
| Amount borrowed | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,300,000 | ' | ' | ' | ' |
| Repurchase agreement | $4,000,000 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
| Line of credit fixed rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.25% | 3.25% | ' | 1.36% | ' |
| Variable interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.20% |
| 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% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
| Number of shares eligible to be repurchased (in shares) | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
| Shares issued under DRIP (in shares) | 19,136 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
| 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 | ||
| Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
| loan | |||
| rating | |||
| Receivables [Abstract] | ' | ' | ' |
| Loan investments | $54,913,000 | ' | $30,832,000 |
| Number of Mezzanine Loans Funded | 9 | ' | ' |
| Funded loans | 37,804 | 0 | ' |
| Allowance for loan losses | 86,462 | ' | 0 |
| Weighted average risk rating of loans | 2 | ' | ' |
| Number of non-performing, non-accrual or impaired loans | 0 | ' | ' |
| Acquisitions/Originations | 24,065,495 | ' | ' |
| Number of Loans Invested During Period | 3 | ' | ' |
| Capitalized acquisition expenses | $128,350 | ' | ' |
Loans_Receivable_Loans_Receiva
| Loans Receivable - Loans Receivable by Class (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
| Receivables [Abstract] | ' | ' |
| Mezzanine loans | $44,918,000 | $30,832,000 |
| Subordinated loans | 9,995,000 | 0 |
| Total gross carrying value of loans | 54,913,000 | 30,832,000 |
| Allowance for loan losses | 86,462 | 0 |
| Loans receivable, net | $54,826,643 | $30,831,571 |
Loans_Receivable_Allowance_Rol
| Loans Receivable - Allowance Rollforward (Details) (USD $) | 3 Months Ended | |
| Mar. 31, 2014 | Mar. 31, 2013 | |
| Allowance for Loan and Lease Losses [Roll Forward] | ' | ' |
| Beginning Balance | $0 | ' |
| Loan loss provision | 86,462 | 0 |
| Charge-offs | 0 | ' |
| Recoveries | 0 | ' |
| Ending Balance | $86,462 | ' |
Loans_Receivable_Loan_Receivab
| Loans Receivable - Loan Receivable Portfolio (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
| In Thousands, unless otherwise specified | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
| Original Face Amount | $58,481 | ' |
| Face Amount | 58,397 | ' |
| Premium (Discount) | -3,484 | ' |
| Loan investments | 54,913 | 30,832 |
| W Hotel [Member] | ' | ' |
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
| Original Face Amount | 6,500 | ' |
| Face Amount | 6,431 | ' |
| Premium (Discount) | -2,395 | ' |
| Loan investments | 4,036 | ' |
| Regency Park Apartments [Member] | ' | ' |
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
| Original Face Amount | 5,000 | ' |
| Face Amount | 5,000 | ' |
| Premium (Discount) | 50 | ' |
| Loan investments | 5,050 | ' |
| 121 West Trade Office [Member] | ' | ' |
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
| Original Face Amount | 9,000 | ' |
| Face Amount | 9,000 | ' |
| Premium (Discount) | 73 | ' |
| Loan investments | 9,073 | ' |
| 545 Madison Avenue [Member] | ' | ' |
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
| Original Face Amount | 5,000 | ' |
| Face Amount | 5,000 | ' |
| Premium (Discount) | 74 | ' |
| Loan investments | 5,074 | ' |
| Hampton Inn LaGuardia [Member] | ' | ' |
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
| Original Face Amount | 4,981 | ' |
| Face Amount | 4,966 | ' |
| Premium (Discount) | -1,411 | ' |
| Loan investments | 3,555 | ' |
| Southern US Student Housing [Member] | ' | ' |
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
| Original Face Amount | 4,000 | ' |
| Face Amount | 4,000 | ' |
| Premium (Discount) | 59 | ' |
| Loan investments | 4,059 | ' |
| Burger King Portfolio [Member] | ' | ' |
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
| Original Face Amount | 10,000 | ' |
| Face Amount | 10,000 | ' |
| Premium (Discount) | -5 | ' |
| Loan investments | 9,995 | ' |
| Four Seasons Los Colinas [Member] | ' | ' |
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
| Original Face Amount | 11,000 | ' |
| Face Amount | 11,000 | ' |
| Premium (Discount) | 48 | ' |
| Loan investments | 11,048 | ' |
| Element Hotel [Member] | ' | ' |
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
| Original Face Amount | 3,000 | ' |
| Face Amount | 3,000 | ' |
| Premium (Discount) | 23 | ' |
| Loan investments | $3,023 | ' |
Loans_Receivable_Receivable_Ro
| Loans Receivable - Receivable Rollforward (Details) (USD $) | 3 Months Ended | |
| Mar. 31, 2014 | Mar. 31, 2013 | |
| Movement in Mortgage Loans on Real Estate [Roll Forward] | ' | ' |
| Balance at December 31, 2013 | $30,832,000 | ' |
| Acquisitions/Originations | 24,065,495 | ' |
| Principal Repayments | -38,000 | ' |
| Discount Accretion/Premium Amortization | 54,000 | ' |
| Provision for loan losses | -86,462 | 0 |
| Balance at March 31, 2014 | $54,827,000 | ' |
Investment_Securities_Details
| Investment Securities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
| Schedule of Available-for-sale Securities [Line Items] | ' | ' |
| Investments, Fair Value Disclosure | $14,505,000 | $5,005,000 |
| CMBS [Member] | ' | ' |
| Schedule of Available-for-sale Securities [Line Items] | ' | ' |
| Investments, Fair Value Disclosure | 14,505,000 | 5,005,000 |
| Number of Investments | 3 | ' |
| Par value of investment | $14,500,000 | ' |
Investment_Securities_Amortize
| Investment Securities - Amortized Cost and Fair Value (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
| Schedule of Available-for-sale Securities [Line Items] | ' | ' |
| Amortized Cost | $14,510,000 | ' |
| Unrealized Gains | 0 | ' |
| Unrealized Losses | -5,000 | ' |
| Net Fair Value Adjustment | -5,000 | ' |
| Mortgage-backed securities, at fair value | 14,504,900 | 5,005,000 |
| CMBS [Member] | ' | ' |
| Schedule of Available-for-sale Securities [Line Items] | ' | ' |
| Amortized Cost | 14,510,000 | ' |
| Unrealized Gains | 0 | ' |
| Unrealized Losses | -5,000 | ' |
| Net Fair Value Adjustment | -5,000 | ' |
| Mortgage-backed securities, at fair value | $14,505,000 | ' |
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 | ||
| Mar. 31, 2014 | Jul. 13, 2013 | 15-May-13 | |
| 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% | ' | 3.25% |
| Maturity period | '1 year | ' | ' |
| Number of one year extensions | 2 | ' | ' |
| Amount borrowed | 3,300,000 | ' | ' |
| Remaining borrowing capacity | 6,700,000 | ' | ' |
| Interest expense | 9,413 | ' | ' |
| Weighted average outstanding balance | $1,200,000 | ' | ' |
Repurchase_Agreement_Details
| Repurchase Agreement (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 |
| Securities Sold under Agreements to Repurchase [Member] | Securities Sold under Agreements to Repurchase [Member] | |||
| London Interbank Offered Rate (LIBOR) [Member] | ||||
| Assets Sold under Agreements to Repurchase [Line Items] | ' | ' | ' | ' |
| Repurchase agreement | $4,000,000 | $0 | ' | ' |
| Variable interest rate | ' | ' | ' | 1.20% |
| Line of credit fixed rate | ' | ' | 1.36% | ' |
Net_Income_Loss_Per_Share_Deta
| Net Income (Loss) Per Share (Details) (USD $) | 3 Months Ended | |
| Mar. 31, 2014 | Mar. 31, 2013 | |
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
| Basic and diluted net income (loss) | $225,786 | ($5,019) |
| Basic weighted average shares outstanding (in shares) | 2,025,934 | 8,888 |
| Diluted weighted average shares outstanding (in shares) | 2,030,023 | 8,888 |
| Basic net income (loss) per share (in dollars per share) | $0.11 | ' |
| Diluted net income (loss) per share (in dollars per share) | $0.11 | ' |
Net_Income_Loss_Per_Share_Narr
| Net Income (Loss) Per Share - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
| Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
| Restricted Units [Member] | Restricted Unvested Common Stock [Member] | OP Units [Member] | ||
| Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
| Antidilutive securities excluded from computation | 0.000224 | 4,089 | 3,999 | 90 |
Common_Stock_Details
| Common Stock (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||||||||
| Mar. 03, 2014 | Feb. 02, 2014 | Jan. 02, 2014 | 13-May-13 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Apr. 03, 2014 | Apr. 30, 2014 | |
| Restricted Unvested Common Stock [Member] | Common Stock | Common Stock | Subsequent Event [Member] | Subsequent Event [Member] | ||||||||
| Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
| Shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 2,984,616 | 1,330,669 | ' | ' |
| Proceeds from issuance | ' | ' | ' | ' | $73,200,000 | ' | ' | ' | ' | ' | ' | ' |
| 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 | ' | ' | ' | ' | ' | ' | ' | $25 |
| Net income (loss) | ' | ' | ' | ' | 225,786 | -5,019 | ' | ' | ' | ' | ' | ' |
| Amount paid in cash | 212,011 | 170,660 | 140,164 | ' | 522,835 | ' | ' | ' | ' | ' | ' | ' |
| Payments of dividends | ' | ' | ' | ' | 522,835 | ' | ' | ' | ' | ' | 467,128 | ' |
| Distributions payable | ' | ' | ' | ' | $469,160 | ' | $215,747 | $2,032 | ' | ' | ' | ' |
Common_Stock_Distributions_Det
| Common Stock - Distributions (Details) (USD $) | 0 Months Ended | 3 Months Ended | |||||
| Mar. 03, 2014 | Feb. 02, 2014 | Jan. 02, 2014 | Mar. 31, 2014 | ||||
| Equity [Abstract] | ' | ' | ' | ' | |||
| Weighted average shares outstanding, basic and diluted (in shares) | 2,693,391 | [1] | 1,973,014 | [1] | 1,458,470 | [1] | ' |
| Amount paid in cash | $212,011 | $170,660 | $140,164 | $522,835 | |||
| Amount issued under DRIP | $106,181 | $85,496 | $73,844 | $265,521 | |||
| [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 | ||
| Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
| Related Party Transaction [Line Items] | ' | ' | ' |
| Common stock, shares outstanding and owned by related party (in shares) | 2,984,616 | ' | 1,330,669 |
| Due to affiliate | $0 | ' | $1,077,765 |
| Fees Paid In Connection With Offering [Abstract] | ' | ' | ' |
| Selling commission, organizational and offering costs, maximum | 2.00% | ' | ' |
| Organizational offering costs in excess of threshold of 2% | 2,400,000 | ' | ' |
| Fees Paid In Connection With Operations [Abstract] | ' | ' | ' |
| Asset retirement costs | 900,000 | ' | ' |
| Professional fees | 113,160 | 5,020 | ' |
| Other expenses | 169,703 | 0 | ' |
| Sponsor [Member] | ' | ' | ' |
| Related Party Transaction [Line Items] | ' | ' | ' |
| Common stock, shares outstanding and owned by related party (in shares) | 8,888 | ' | ' |
| Dealer Manager [Member] | ' | ' | ' |
| Related Party Transaction [Line Items] | ' | ' | ' |
| Due to affiliate | 94,000 | ' | 12,000 |
| Fees Paid In Connection With Offering [Abstract] | ' | ' | ' |
| Selling commission, percentage of offering proceeds | 7.00% | ' | ' |
| Selling commission, percentage of offering proceeds, reallownce fee | 3.00% | ' | ' |
| Selling commission, percentage of offering proceeds, reduction fee | 2.50% | ' | ' |
| Participating Broker Dealers [Member] | ' | ' | ' |
| Fees Paid In Connection With Offering [Abstract] | ' | ' | ' |
| Selling commission, percentage of offering proceeds | 7.50% | ' | ' |
| Selling commission, percentage of offering proceeds, first payment | 2.50% | ' | ' |
| Selling commission, percentage of offering proceeds, subsequent payments | 1.00% | ' | ' |
| Advisor [Member] | ' | ' | ' |
| Fees Paid In Connection With Operations [Abstract] | ' | ' | ' |
| Real estate acquisition fee, percentage | 1.00% | ' | ' |
| Real estate acquisition fee, percentage reimbursement of acquisition costs, maximum exposure | 4.50% | ' | ' |
| Real estate acquistion fee, percentage reimbursement of acquisition costs, aggregate of all acquisitions, maximum exposure | 1.50% | ' | ' |
| Annual asset management fee, percentage based on the lower of total costs of assets or net asset value | 0.75% | ' | ' |
| Administrative services reimbursement, limitation, percentage of average invested assets | 2.00% | ' | ' |
| Administrative services reimbursement, limitation, percentage of net income | 25.00% | ' | ' |
| Fees Paid In Connection With Liquidation Of Assets [Abstract] | ' | ' | ' |
| Real estate disposition fee, percentage | 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% | ' | ' |
| Subordinated performance fee, percentage of total return required before payment of performance fee | 6.00% | ' | ' |
| Subordinated performance fee, maximum percentage of total return payable as a fee | 10.00% | ' | ' |
| Subordinated participation in asset sale proceeds fee, percentage | 15.00% | ' | ' |
| Subordinated participation in asset sale proceeds fee, percentage threshold return before payment of fee | 6.00% | ' | ' |
| Subordinated incentive listing distribution fee, percentage | 15.00% | ' | ' |
| Subordinated incentive listing distribution fee, percentage threshold return before payment of fee | 6.00% | ' | ' |
| Termination or non-renewal of the advisory agreement fee, percentage | 15.00% | ' | ' |
| Termination or non-renewal of the advisory agreement fee, percentage threshold return before payment of fee | 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 | 259,000 | ' | ' |
| 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 | 137,850 | ' | ' |
| Nonrecurring Fees [Member] | Advisory Fee [Member] | ' | ' | ' |
| Related Party Transaction [Line Items] | ' | ' | ' |
| Due to affiliate | 0 | ' | 316,000 |
| Fees Paid In Connection With Operations [Abstract] | ' | ' | ' |
| Total commissions and fees incurred from the Dealer Manager | 135,000 | ' | ' |
| Professional fees | ' | 0 | ' |
| Other expenses | ' | 0 | ' |
| Nonrecurring Fees [Member] | Acquisition and Related Expenses [Member] | ' | ' | ' |
| Related Party Transaction [Line Items] | ' | ' | ' |
| Due to affiliate | 239,000 | ' | 202,000 |
| Fees Paid In Connection With Operations [Abstract] | ' | ' | ' |
| Total commissions and fees incurred from the Dealer Manager | $397,000 | ' | ' |
Related_Party_Transactions_and2
| Related Party Transactions and Arrangements - Dealer Manager Fees (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 |
| Dealer Manager [Member] | 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 | ' | ' | ' | ' | $3,851,000 |
| Payable to related party | $0 | $1,077,765 | $94,000 | $12,000 | ' |
Related_Party_Transactions_and3
| Related Party Transactions and Arrangements - Advisor and Affiliate Compensation (Details) (USD $) | 3 Months Ended | |
| Mar. 31, 2014 | Dec. 31, 2013 | |
| Related Party Transaction [Line Items] | ' | ' |
| Payable to related party | $0 | $1,077,765 |
| Fees and Expense Reimbursement, Stock Offering [Member] | Advisor and Dealer Manager [Member] | ' | ' |
| Related Party Transaction [Line Items] | ' | ' |
| Total compensation and reimbursement for services provided by the Advisor and affiliates | 360,000 | ' |
| Payable to related party | $1,333,000 | $1,047,000 |
Related_Party_Transactions_and4
| Related Party Transactions and Arrangements - Fees and Reimbursements (Details) (USD $) | 3 Months Ended | |
| Mar. 31, 2014 | Dec. 31, 2013 | |
| Related Party Transaction [Line Items] | ' | ' |
| Payable to related party | $0 | $1,077,765 |
| Related Party Fees and Reimbursements [Member] | ' | ' |
| Related Party Transaction [Line Items] | ' | ' |
| Total related party fees and reimbursements | 532,000 | ' |
| Payable to related party | 239,000 | 518,000 |
| Acquisition and Related Expenses [Member] | Nonrecurring Fees [Member] | ' | ' |
| Related Party Transaction [Line Items] | ' | ' |
| Total related party fees and reimbursements | 397,000 | ' |
| Payable to related party | 239,000 | 202,000 |
| Advisory Fee [Member] | Nonrecurring Fees [Member] | ' | ' |
| Related Party Transaction [Line Items] | ' | ' |
| Total related party fees and reimbursements | 135,000 | ' |
| Payable to related party | $0 | $316,000 |
ShareBased_Compensation_Detail
| Share-Based Compensation (Details) (USD $) | 13-May-13 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 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 | ' |
| Compensation expense | ' | ' | ' | ' | $4,437 | $0 |
Fair_Value_of_Financial_Instru2
| Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
| Mortgage-backed securities, at fair value | $14,504,900 | $5,005,000 |
| Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
| Mortgage-backed securities, at fair value | 0 | ' |
| Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
| Mortgage-backed securities, at fair value | 14,505,000 | ' |
| Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
| Mortgage-backed securities, at fair value | 0 | ' |
| CMBS [Member] | ' | ' |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
| Mortgage-backed securities, at fair value | 14,505,000 | ' |
| CMBS [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
| Mortgage-backed securities, at fair value | 0 | ' |
| CMBS [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
| Mortgage-backed securities, at fair value | 14,505,000 | ' |
| CMBS [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
| Mortgage-backed securities, at fair value | $0 | ' |
Offsetting_Assets_and_Liabilit2
| Offsetting Assets and Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
| Offsetting [Abstract] | ' | ' |
| Gross Amounts of Recognized Assets | $5,010,000 | ' |
| Gross Amounts of Recognized (Liabilities) | -4,000,000 | 0 |
| Gross Amounts Offset on the Balance Sheet | 0 | ' |
| Net Amounts of Assets (Liabilities) presented on the Balance Sheet | 1,010,000 | ' |
| Financial Instruments | 0 | ' |
| Cash Collateral Received (Posted) | 0 | ' |
| Net Amount | $1,010,000 | ' |
Segment_Reporting_Details
| Segment Reporting (Details) (USD $) | 3 Months Ended | ||
| Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
| Segment Reporting Information [Line Items] | ' | ' | ' |
| Interest Income | $925,020 | ' | ' |
| Discount (Premium) Amortization | 51,814 | 0 | ' |
| Interest expense | 21,036 | 0 | ' |
| Net income (loss) | 225,786 | -5,019 | ' |
| Total Assets | 71,431,373 | ' | 36,369,836 |
| Real Estate Debt [Member] | ' | ' | ' |
| Segment Reporting Information [Line Items] | ' | ' | ' |
| Interest Income | 886,241 | ' | ' |
| Discount (Premium) Amortization | 53,743 | ' | ' |
| Interest expense | 9,412 | ' | ' |
| Net income (loss) | 348,931 | ' | ' |
| Total Assets | 56,913,244 | ' | ' |
| Real Estate Securities [Member] | ' | ' | ' |
| Segment Reporting Information [Line Items] | ' | ' | ' |
| Interest Income | 38,779 | ' | ' |
| Discount (Premium) Amortization | -1,929 | ' | ' |
| Interest expense | 11,624 | ' | ' |
| Net income (loss) | -123,145 | ' | ' |
| Total Assets | $14,518,129 | ' | ' |
Subsequent_Events_Details
| Subsequent Events (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 4 Months Ended | 6 Months Ended | |||||
| 15-May-13 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | 13-May-13 | Apr. 10, 2014 | Apr. 03, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | |
| Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | DRIP [Member] | ||||||
| Subsequent Event [Member] | |||||||||||
| Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
| Common stock, shares outstanding | ' | 2,984,616 | ' | 1,330,669 | ' | ' | ' | 3,575,406.93 | 3,575,406.93 | 3,575,406.93 | ' |
| Proceeds from issuances of common stock | $2,000,000 | $40,843,620 | $0 | ' | ' | ' | ' | $14,661,000 | $89,253,000 | $74,591,000 | ' |
| Common stock outstanding | ' | 74,600,000 | ' | ' | ' | ' | ' | 89,300,000 | 89,300,000 | 89,300,000 | ' |
| Common stock, price per share (in dollars per share) | ' | ' | ' | ' | $25 | ' | ' | $25 | $25 | $25 | $23.75 |
| Payments of dividends | ' | 522,835 | ' | ' | ' | ' | 467,128 | ' | ' | ' | ' |
| Dividends in cash | ' | ' | ' | ' | ' | ' | 304,405 | ' | ' | ' | ' |
| Common stock issued through distribution reinvestment plan | ' | 265,521 | ' | ' | ' | ' | 162,723 | ' | ' | ' | ' |
| Shares issued under DRIP (in shares) | ' | 19,136 | ' | ' | ' | ' | 6,852 | ' | ' | ' | ' |
| Acquisitions/Originations | ' | $24,065,495 | ' | ' | ' | $7,000,000 | ' | ' | ' | ' | ' |
| Interest rate on loans | ' | ' | ' | ' | ' | 12.00% | ' | ' | ' | ' | ' |
| Mortgage loan term | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' |
Subsequent_Events_Issuance_of_
| Subsequent Events - Issuance of Common Stock (Details) (USD $) | 0 Months Ended | 3 Months Ended | 1 Months Ended | 4 Months Ended | 6 Months Ended | |
| 15-May-13 | Mar. 31, 2014 | Mar. 31, 2013 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | |
| Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||
| Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' |
| Proceeds from issuances of common stock | $2,000,000 | $40,843,620 | $0 | $14,661,000 | $89,253,000 | $74,591,000 |