Franklin BSP Realty Trust (FBRT) 10-Q 12 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 31, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Realty Finance Trust, Inc.
Entity Central Index Key	1,562,528
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		30,416,283

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 13,504	$ 386
Restricted cash	1,407	68
Commercial mortgage loans, held for investment, net of allowance for loan losses of $872 and $570	938,832	456,884
Real estate securities, available for sale, at fair value	100,959	50,234
Accrued interest receivable	5,510	2,866
Prepaid expenses and other assets	4,200	3,782
Total assets	1,064,412	514,220
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest payable	536	232
Distributions payable	4,767	2,623
Accounts payable and accrued expenses	2,055	2,385
Due to affiliate	3,903	2,035
Total liabilities	$ 459,948	$ 183,713
Commitments and Contingencies
Preferred stock, $0.01 par value, 50,000,000 authorized, none issued and outstanding as of September 30, 2015 and December 31, 2014	$ 0	$ 0
Convertible stock; $0.01 par value, 1,000 shares authorized, issued and outstanding as of September 30, 2015 and December 31, 2014, respectively	1	1
Common stock, $0.01 par value, 949,999,000 shares authorized, 28,753,520 and 15,472,192 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively	288	155
Additional paid-in capital	633,350	340,874
Accumulated other comprehensive loss	(1,317)	(307)
Accumulated deficit	(27,858)	(10,216)
Total stockholders' equity	604,464	330,507
Total liabilities and stockholders' equity	1,064,412	514,220
Commercial mortgage loans
LIABILITIES AND STOCKHOLDERS' EQUITY
Repurchase agreements	376,090	150,169
Real estate securities
ASSETS
Real estate securities, available for sale, at fair value	100,959	50,234
LIABILITIES AND STOCKHOLDERS' EQUITY
Repurchase agreements	$ 72,597	$ 26,269

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowance for loan losses	$ 872	$ 570
Preferred stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Convertible stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Convertible stock, shares authorized	1,000	1,000
Convertible stock, shares issued	1,000	1,000
Convertible stock, shares outstanding	1,000	1,000
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	949,999,000	949,999,000
Common stock, shares issued	28,753,520	15,472,192
Common stock, shares outstanding	28,753,520	15,472,192

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest Income:
Interest income	$ 16,252	$ 4,558	$ 38,341	$ 7,514
Interest expense	3,469	711	7,925	803
Net interest income	12,783	3,847	30,416	6,711
Expenses:
Acquisition fees and expenses	2,405	414	3,741	414
Acquisition fees	1,777	1,772	5,958	2,894
Professional fees	659	371	3,136	562
Other expenses	439	132	919	704
Loan loss provision	78	174	302	302
Total expenses	5,358	2,863	14,056	4,876
Income before income taxes	7,425	984	16,360	1,835
Income tax provision	0	33	0	74
Net income	$ 7,425	$ 951	$ 16,360	$ 1,761
Basic net income (loss) per share (in dollars per share)	$ 0.28	$ 0.11	$ 0.74	$ 0.35
Diluted net income (loss) per share (in dollars per share)	$ 0.28	$ 0.11	$ 0.74	$ 0.35
Basic weighted average shares outstanding (in shares)	26,684,913	8,791,796	22,035,227	5,047,827
Diluted weighted average shares outstanding (in shares)	26,690,964	8,799,886	22,040,110	5,053,763

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 7,425	$ 951	$ 16,360	$ 1,761
Unrealized loss on available-for-sale securities	(1,008)	(24)	(1,010)	(4)
Comprehensive income	$ 6,417	$ 927	$ 15,350	$ 1,757

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands	Total	Convertible Stock	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Balance, shares at Dec. 31, 2014		1,000	15,472,192
Balance at Dec. 31, 2014	$ 330,507	$ 1	$ 155	$ 340,874	$ (307)	$ (10,216)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)			12,790,819
Issuance of common stock	318,489		$ 128	318,361
Common stock repurchases (in shares)			(86,437)
Common stock repurchases	(2,099)		$ (1)	(2,098)
Net income	16,360					16,360
Distributions declared	(34,002)					(34,002)
Shares issued under DRIP (in shares)			574,280
Common stock issued through distribution reinvestment plan	13,643		$ 6	13,637
Share-based compensation (shares)			2,666
Share-based compensation	24			24
Common stock offering costs, commissions and dealer manager fees	(37,448)			(37,448)
Other comprehensive income	(1,010)				(1,010)
Balance, shares at Sep. 30, 2015		1,000	28,753,520
Balance at Sep. 30, 2015	$ 604,464	$ 1	$ 288	$ 633,350	$ (1,317)	$ (27,858)

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income	$ 16,360	$ 1,761
Adjustments to reconcile net income to net cash provided by operating activities:
Discount accretion and premium amortization, net	(877)	(229)
Accretion of loan exit fees	(603)	(53)
Amortization of deferred financing costs	1,872	170
Share-based compensation	24	20
Loan loss provision	302	302
Changes in assets and liabilities:
Accrued interest receivable	(2,041)	(1,686)
Prepaid expenses and other assets	(416)	(97)
Accounts payable and accrued expenses	519	877
Due to affiliate	1,353	0
Interest payable	304	95
Net cash provided by operating activities	16,797	1,160
Cash flows from investing activities:
Origination and purchase of commercial mortgage loans	(526,919)	(282,563)
Purchase of real estate securities	(53,304)	(33,581)
Principal repayments received on commercial mortgage loans	45,542	103
Principal repayments received on real estate securities	1,573	0
Net cash used in investing activities	(533,108)	(316,041)
Cash flows from financing activities:
Proceeds from issuances of common stock	316,614	243,978
Common stock repurchases	(2,899)	0
Payments of offering costs and fees related to common stock issuances	(36,981)	(25,500)
Borrowings on revolving line of credit with affiliate	0	5,550
Repayments of revolving line of credit with affiliate	0	(12,855)
Borrowings on repurchase agreements - commercial mortgage loans	244,178	87,292
Repayments of repurchase agreements - commercial mortgage loans	(18,257)	0
Borrowings on repurchase agreements - real estate securities	50,274	23,572
Repayments of repurchase agreements - real estate securities	(3,946)	(10)
Increase in restricted cash related to financing activities	(1,339)	0
Repayments to affiliate	0	(1,078)
Payments of deferred financing costs	0	(2,189)
Distributions paid	(18,215)	(3,909)
Net cash provided by financing activities	529,429	314,851
Net change in cash	13,118	(30)
Cash, beginning of period	386	178
Cash, end of period	13,504	148
Supplemental disclosures of cash flow information:
Interest paid	5,749	537
Supplemental disclosures of non-cash flow information:
Distributions payable	4,767	1,078
Common stock issued through distribution reinvestment plan	13,643	2,385
Receivable for common stock issued	$ 3,065	$ 2,283

Organization and Business Opera

Organization and Business Operations	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business Operations	Organization and Business Operations Realty Finance Trust, Inc. (the "Company") was incorporated in Maryland on November 15, 2012 and has conducted its operations to qualify as a real estate investment trust ("REIT") for U.S. federal income tax purposes beginning with the filing of its tax return for the taxable year ended December 31, 2013 . The Company is offering for sale a maximum of 80.0 million shares 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 ("SEC") under the Securities Act of 1933, as amended (the "Securities Act"). The Offering also covers the offer and sale of up to 16.8 million 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 in the Offering, the amount required for the Company to release equity proceeds from escrow. Prior to the NAV pricing date (as described below), the Company has offered shares of its common stock in the primary offering through Realty Capital Securities, LLC (the "Dealer Manager") at a share price of up to $25.00 per share (including the maximum allowed to be charged for commissions and fees, subject to certain discounts as described in the Company's prospectus). Prior to the NAV pricing date, the Company has offered shares of its common stock through the DRIP, at a price equal to $23.75 per share, which is 95% of the primary offering price. As of close of business on November 10, 2015 (the "NAV pricing date"), pursuant to the net asset value ("NAV") calculation described in Note 13, the Company is offering shares of its common stock in the primary offering at a price of up to $28.08 per share, inclusive of applicable commissions and dealer manager fees and through the DRIP at a price equal to $25.27 , the NAV per share. As of September 30, 2015 , the aggregate gross proceeds from the sale of common stock in the offering, including DRIP, was $714.2 million . Beginning with the NAV pricing date, the per share price for shares in the primary offering and the DRIP will vary quarterly and will be equal to the Company's NAV as of the end of the prior quarter, divided by the number of shares of the Company's common stock outstanding as of such date, plus, in the case of the primary offering, applicable commissions and fees. The Company was formed to originate, acquire and manage a diversified portfolio of commercial real estate debt investments secured by properties located both within and outside of 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. 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 direct employees. The Company has retained Realty Finance Advisors, LLC (the "Advisor") to manage the Company's affairs on a day-to-day basis. The Dealer Manager serves as the dealer manager of the Offering. The Advisor and Dealer Manager are under common control with AR Capital, LLC ("AR Capital"), the parent of American Realty Capital VIII, LLC (the "Sponsor"), as a result of which they are related parties and each of them has received or will receive compensation and fees for services related to the Offering, the investment and management of the Company's assets, the operations of the Company and the liquidation of the Company.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Accounting The accompanying condensed consolidated financial statements and related footnotes are unaudited and have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements. The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, Realty Finance Operating Partnership, L.P. (the "OP") and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Interim financial statements are prepared in accordance with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X, as appropriate. Accordingly, the condensed consolidated financial statements may not include all of the information and notes required by GAAP for annual consolidated financial statements. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reported periods. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. 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. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending on December 31, 2015. 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 condensed consolidated statement 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 upon 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. 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 Company currently estimates loss rates based on historical realized losses experienced in the industry and takes into account current collateral and economic conditions affecting the probability and severity of losses when establishing the allowance for loan losses. 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 geographic 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 asset-specific reserve component relates to reserves for losses on individual impaired loans. The Company 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 an individual 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. Valuations are performed or obtained at the time a loan is determined to be impaired and designated non-performing, and they are updated if circumstances indicate that a significant change in value has occurred. 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. 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 loans. The Company designates non-performing loans at such time as (i) loan payments become 90-days past due; (ii) the loan has a maturity default; or (iii) in the opinion of the Company, it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan. Income recognition will be suspended when a loan is designated non-performing and resumed only when the suspended loan becomes contractually current and performance is demonstrated to have resumed. A loan will be written off when it is no longer realizable and legally discharged. 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 number 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 if convertible shares were exercised, 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 12 - Segment Reporting for further information regarding the Company's segments. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. The revised guidance allows entities to apply the full retrospective or modified retrospective transition method upon adoption. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The Company does not engage in the sale of goods or services and as such the adoption of this standard is not expected to have an impact on the Company's condensed consolidated financial statements. In June 2014, the FASB issued Accounting Standards Update ("ASU") 2014-11 "Repurchase-to-Maturity Transactions, Repurchase Financings and Disclosures." ASU 2014-11 makes limited changes to the accounting for repurchase agreements, clarifies when repurchase agreements and securities lending transactions should be accounted for as secured borrowings and requires additional disclosures regarding these types of transactions. The Company has historically recorded repurchase arrangements as secured borrowings and as such the adoption of ASU 2014-11 did not have a material impact on the Company's condensed consolidated financial statements. In April 2015, the FASB issued ASU 2015-03 "Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 simplifies the presentation of debt issuance costs by amending the accounting guidance to require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability. The amendments are consistent with the accounting guidance related to debt discounts. This guidance is effective for the first interim or annual period beginning after December 15, 2015. The Company is currently assessing the impact of this guidance on its condensed consolidated financial statements. The FASB’s proposed model represents a significant departure from existing GAAP, and may result in material changes to the Company’s accounting for financial instruments. The impact of the FASB’s final ASU on the Company’s financial statements will be assessed when it is issued. The exposure draft does not contain a proposed effective date, which would be included in the final ASU, when issued.

Commercial Mortgage Loans

Commercial Mortgage Loans	9 Months Ended
	Sep. 30, 2015
Receivables [Abstract]
Commercial Mortgage Loans	Commercial Mortgage Loans The following table is a summary of the Company's commercial mortgage loans by class (in thousands): September 30, 2015 December 31, 2014 Senior loans $ 657,785 $ 250,093 Mezzanine loans 271,919 191,863 Subordinated loans 10,000 15,498 Total gross carrying value of loans 939,704 457,454 Less: Allowance for loan losses 872 570 Total commercial mortgage loans, net $ 938,832 $ 456,884 The following table presents the activity in the Company's allowance for loan losses (in thousands): Nine Months Ended September 30, 2015 Year Ended December 31, 2014 Beginning of period $ 570 $ — Provision for loan losses 302 570 Charge-offs — — Recoveries — — End of period $ 872 $ 570 As of September 30, 2015 and December 31, 2014 , the Company's commercial mortgage loan portfolio comprised 69 and 38 loans, respectively. The following table summarizes the Company's loan portfolio by sectors on a par value basis (in thousands): September 30, 2015 December 31, 2014 Loan Type Par Value Percentage Par Value Percentage Office $ 238,787 25.2 % $ 217,480 47.1 % Hospitality 205,985 21.7 % 74,566 16.2 % Multifamily 185,833 19.6 % 22,957 5.0 % Retail 158,784 16.7 % 45,513 9.9 % Mixed Use 141,637 14.9 % 100,699 21.8 % Industrial 18,250 1.9 % — — % $ 949,276 100.0 % $ 461,215 100.0 % 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 of 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 with some loss of interest 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 commercial mortgage loans are assigned an initial risk rating of 2 . As of September 30, 2015 and December 31, 2014 , the weighted average risk rating of loans was 2.0 and 2.0 , respectively. As of September 30, 2015 and December 31, 2014 , the Company did not have any loans that were past due on their payments, in non-accrual status or impaired. For the nine months ended September 30, 2015 and year ended December 31, 2014 , the activity in the Company's loan portfolio was as follows (in thousands): Nine Months Ended September 30, 2015 Year Ended December 31, 2014 Beginning balance $ 456,884 $ 30,832 Acquisitions and originations 526,919 429,941 Dispositions — (3,580 ) Principal repayments (45,542 ) (136 ) Discount accretion and premium amortization* 873 397 Provision for loan losses (302 ) (570 ) Ending balance $ 938,832 $ 456,884 ________________________ * Includes amortization of capitalized acquisition fees and expenses.

Real Estate Securities

Real Estate Securities	9 Months Ended
	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Real Estate Securities	Real Estate Securities The following is a summary of the Company's CMBS (in thousands): Weighted Average Number of Investments Interest Rate Maturity Par Value Fair Value September 30, 2015 13 1M LIBOR + 3.836% November 2017 $ 102,335 $ 100,959 December 31, 2014 8 1M LIBOR + 3.124% November 2017 50,447 50,234 The Company classified its CMBS as available-for-sale as of September 30, 2015 and December 31, 2014 . These investments are reported at fair value in the balance sheet with changes in fair value recorded in accumulated other comprehensive income or loss. The following table shows the changes in fair value of the Company's CMBS (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value September 30, 2015 $ 102,276 $ — $ (1,317 ) $ 100,959 December 31, 2014 50,541 14 (321 ) 50,234

Debt

Debt	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Debt	Debt Repurchase Agreements - Commercial Mortgage Loans The Company entered into repurchase facilities with JPMorgan Chase Bank, National Association (the "JPM Repo Facility") and Barclays Bank PLC (the "Barclays Repo Facility"). The JPM Repo Facility provides up to $250.0 million in advances through October 30, 2015, and then $150.0 million through maturity. The Barclays Repo Facility provides up to $170.0 million in advances through October 19, 2015, and then $150.0 million through maturity. Both, the JPM Repo Facility and Barclays Repo Facility are subject to adjustment. The Company expects to use advances from the JPM Repo Facility and the Barclays Repo Facility to finance the acquisition or origination of eligible loans, including first mortgage loans, subordinated mortgage loans, mezzanine loans and participation interests therein. The initial maturity date of the JPM Repo Facility is June 18, 2016, with a one -year extension at the Company’s option, which may be exercised upon the satisfaction of certain conditions. The Company exercised its first extension on the Barclays Repo Facility, and extended the maturity date to March 3, 2016 , with three six -month extensions remaining at the Company’s option, which may be exercised upon the satisfaction of certain conditions. As of September 30, 2015 and December 31, 2014 , the Company had $209.4 million and $76.5 million outstanding under the JPM Repo Facility, respectively. Advances under the JPM Repo Facility accrue interest at per annum rates equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin between 2.25% to 4.50% , depending on the attributes of the purchased assets. As of September 30, 2015 and December 31, 2014 , the weighted average interest rate on advances was 2.90% and 3.84% , respectively. During the nine months ended September 30, 2015 , the Company incurred $3.2 million of interest expense on average borrowings outstanding of $128.3 million compared to $0.5 million of interest expense on average borrowings outstanding under the JPM Repo Facility of $17.6 million for the nine months ended September 30, 2014 . As of September 30, 2015 and December 31, 2014 , the Company had $166.7 million and $73.7 million outstanding under the Barclays Repo Facility, respectively. Advances under the Barclays Repo Facility accrue interest at per annum rates equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin between 2.00% to 2.50% , depending on the attributes of the purchased assets. As of September 30, 2015 and December 31, 2014 , the weighted average interest rate on advances was 2.21% and 2.16% , respectively. During the nine months ended September 30, 2015 , the Company incurred $2.3 million in interest expense on average borrowings outstanding under the Barclays Repo Facility of $137.5 million compared to less than $0.1 million of interest expense on average borrowings outstanding of less than $0.2 million for the nine months ended September 30, 2014 . Repurchase Agreements - Real Estate Securities The Company has entered into various Master Repurchase Agreements (the "MRAs") that allow the Company to sell real estate securities while providing a fixed repurchase price for the same real estate securities in the future. The repurchase contracts on each security under an MRA generally mature in 30 to 90 days and terms are adjusted for current market rates as necessary. As of September 30, 2015 and December 31, 2014 , the Company had entered into six MRAs, of which three were in use, see below (in thousands): Amount Accrued Interest Weighted Average Counterparty Outstanding Payable Collateral Pledged Interest Rate Days to Maturity As of September 30, 2015 J.P. Morgan Securities LLC $ 41,093 $ 30 $ 57,770 1.75 % 15 Citigroup Global Markets, Inc. 27,791 71 35,809 1.89 % 36 Wells Fargo Securities, LLC 3,713 3 4,925 1.56 % 14 Total/Weighted Average $ 72,597 $ 104 $ 98,504 1.80 % 23 As of December 31, 2014 J.P. Morgan Securities LLC $ 18,528 $ 8 $ 23,843 1.44 % 20 Citigroup Global Markets, Inc. 4,010 2 5,015 1.46 % 20 Wells Fargo Securities, LLC 3,731 2 4,975 1.52 % 20 Total/Weighted Average $ 26,269 $ 12 $ 33,833 1.46 % 20

Net Income Per Share

Net Income Per Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Net Income or Loss Per Share	Net Income Per Share The following table is a summary of the basic and diluted net income per share computation for the three and nine months ended September 30, 2015 and 2014 , respectively: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net income (in thousands) $ 7,425 $ 951 $ 16,360 $ 1,761 Basic weighted average shares outstanding 26,684,913 8,791,796 22,035,227 5,047,827 Unvested restricted shares 6,051 8,090 4,883 5,936 Diluted weighted average shares outstanding 26,690,964 8,799,886 22,040,110 5,053,763 Basic net income per share $ 0.28 $ 0.11 $ 0.74 $ 0.35 Diluted net income per share $ 0.28 $ 0.11 $ 0.74 $ 0.35

Common Stock

Common Stock	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Common Stock	Common Stock As of September 30, 2015 and December 31, 2014 , the Company had 28,753,520 and 15,472,192 shares of common stock outstanding, respectively, including shares issued pursuant to the DRIP and unvested restricted shares. As of September 30, 2015 and December 31, 2014 , the Company had received total proceeds of $714.2 million and $384.2 million , respectively, including shares issued pursuant to the DRIP and share-based compensation. On December 30, 2014, the Company filed with the Maryland State Department of Assessments and Taxation articles supplementary to its charter that reclassified 1,000 authorized but unissued shares of the Company’s common stock as shares of convertible stock and set the terms of such convertible shares. The Company then issued 1,000 convertible shares to the Advisor for $ 1.00 per share. The convertible shares will automatically convert to shares of common stock upon the first occurrence of any of following triggering events (the "Triggering Events"): (i) the Company has paid total distributions on the then-outstanding shares of common stock in an amount equal to or in excess of the sum of the invested capital (as defined in the Company’s charter) plus an aggregate 6.0% cumulative, pre-tax, non-compounded, annual return on such invested capital, (ii) a listing of the Company’s shares of common stock on a national securities exchange and (iii) the termination of the Company’s advisory agreement under certain circumstances. In general, but with certain exceptions as outlined in the articles supplementary, each convertible share will convert into a number of common shares equal to 1/1000 of the quotient of (a) the conversion product (the product of 0.15 times the amount, if any, by which (i) the sum of the enterprise value as of the date of the Triggering Event plus total distributions paid to the Company’s stockholders through the date of the Triggering Event exceeds (ii) the sum of the Company's stockholders’ invested capital plus a 6.0% return as of the date of the Triggering Event) divided by (b) the quotient of the enterprise value divided by the number of shares of the Company’s common stock outstanding (on an as-converted basis) on the date of the Triggering Event. The conversion product will be reduced by the amounts payable pursuant to the annual subordinated performance fee as realized appreciation in the Company’s assets during the time that the Advisor or one of its affiliates acts as the Company’s advisor. 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 distributions 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 (the "Board") authorized, and the Company declared a distribution, which is calculated based on stockholders of record each day during the applicable period in an amount equal to $ 0.00565068493 per day. 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. Distribution payments are dependent on the availability of funds. The Board may reduce the amount of distributions paid or suspend distribution payments at any time, and therefore, distributions payments are not assured. The Company distributed $31.8 million during the nine months ended September 30, 2015 , comprised of $18.2 million in cash and $13.6 million in shares of common stock issued under the DRIP. The Company distributed $12.6 million during the year ended December 31, 2014 , comprised of $7.6 million in cash and $5.0 million in shares of common stock issued under the DRIP.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Unfunded Commitments Under Commercial Mortgage Loans As of September 30, 2015 and December 31, 2014 , the Company had the below unfunded commitments which will generally be funded to finance capital expenditures by the Company's borrowers. Funding Expiration September 30, 2015 December 31, 2014 2015 $ — $ 3,450 2016 890 26,701 2017 23,523 20,810 2018 80,307 7,169 2019 13,775 1,240 2020 — 4,175 $ 118,495 $ 63,545 Litigation and Regulatory Matters In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. The Company has no knowledge of material legal or regulatory proceedings pending or known to be contemplated against the Company at this time.

Related Party Transactions and

Related Party Transactions and Arrangements	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions and Arrangements	Related Party Transactions and Arrangements As of September 30, 2015 and December 31, 2014 , an entity wholly-owned by the Sponsor owned 8,888 shares of the Company’s outstanding common stock and the Advisor owned 1,000 shares of the Company's convertible stock. 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 soliciting dealers. In addition, the Dealer Manager receives up to 3.0% of the gross proceeds from the sale of shares, before reallowance to soliciting dealers, as a dealer manager fee. The Dealer Manager may reallow its dealer manager fee to such soliciting dealers. A soliciting 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 soliciting 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 and nine months ended September 30, 2015 and 2014 , respectively, and the associated payable as of September 30, 2015 and December 31, 2014 , respectively (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Payable as of 2015 2014 2015 2014 September 30, 2015 December 31, 2014 Total commissions and fees incurred from the Dealer Manager $ 9,932 $ 12,568 $ 30,700 $ 23,395 $ 240 $ 119 The Advisor, its affiliates, entities under common control with the Advisor and the Dealer Manager receive compensation and reimbursement for services relating to the Offering. An affiliate of the Company, RCS Advisory Services, LLC ("RCS"), is an entity under common control with the Sponsor. RCS performs legal, compliance and marketing services for the Company. An affiliate of the Company, American National Stock Transfer, LLC (the "Transfer Agent"), is an entity under common control with the Sponsor. The Transfer Agent provides the Company with transfer agent, registrar and supervisory services. An affiliate of the Company, SK Research, LLC ("SK Research"), is an entity under common control with the Sponsor. SK Research provides broker-dealers and financial advisors with the research, critical thinking and analytical resources necessary to evaluate the viability, utility and performance of investment programs. The table below shows the compensation and reimbursement to the Advisor, its affiliates and entities under common control with the Advisor and the Dealer Manager incurred for services relating to the Offering during the three and nine months ended September 30, 2015 and 2014 , respectively, and the associated payable as of September 30, 2015 and December 31, 2014 , respectively (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Payable as of 2015 2014 2015 2014 September 30, 2015 December 31, 2014 Total compensation and reimbursement for services provided by the Advisor, its affiliates, entities under common control with the Advisor and the Dealer Manager $ 1,957 $ 466 $ 5,805 $ 1,277 $ 263 $ 1,725 The payables as of September 30, 2015 and December 31, 2014 in the table above are included in "due to affiliate" on the Company's condensed 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 from its ongoing Offering of common stock, measured at the end of the Offering. Organizational and offering costs in excess of the 2.0% cap as of the end of the Offering are the Advisor's responsibility. As of September 30, 2015 , organizational and offering costs exceeded the 2.0% cap of gross proceeds received from the Offering by $0.1 million . 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 originate or acquire commercial mortgage loans and 1.0% of the anticipated net equity funded by the Company to acquire real estate securities. The Company reimburses the Advisor for expenses incurred by the Advisor on behalf of the Company related to selecting, evaluating, originating and acquiring investments in an amount up to 0.5% of the principal amount funded by the Company to originate or acquire commercial mortgage loans and up to 0.5% of the anticipated net equity funded by the Company to acquire real estate securities investments. In no event will the total of all acquisition fees and acquisition expenses exceed 4.5% of the principal amount funded with respect to the Company's total portfolio including subsequent fundings to investments in the Company's portfolio. During the nine months ended September 30, 2015 and 2014 , acquisition fees of $6.0 million and $2.9 million , respectively, have been recognized in the condensed consolidated statement of operations. In addition, over the same periods, the Company capitalized $2.2 million and $0.9 million , respectively, of acquisition expenses to the Company's condensed consolidated balance sheets, which will be amortized over the life of each investment using the effective interest method. The Company pays the Advisor, or its affiliates, a monthly asset management fee equal to one-twelfth of 0.75% of the cost of the Company's assets. Commencing on the NAV pricing date, the asset management fee will be based on the lower of the cost of the Company's assets and the fair value of the Company's assets (fair value will consist of the market value of each portfolio investment as determined by the Advisor in accordance with the Company's valuation guidelines). During the nine months ended September 30, 2015 and 2014 , the Company incurred $2.4 million and $0.0 million in asset management fees, respectively. Prior to June 17, 2015, the amount of the asset management fee was reduced to the extent that funds from operations as defined by the National Association of Real Estate Investment Trusts ("FFO"), as adjusted, during the six month period ending on the last day of the calendar quarter immediately preceding the date such asset management fee was payable, was less than distributions declared during the same period. For purposes of this determination, FFO, as adjusted, is FFO adjusted to (i) include acquisition fees and acquisition expenses; (ii) include non-cash restricted stock grant amortization, if any; and (iii) impairments and loan loss reserves on investments, if any (including commercial mortgage loans and other debt investments). FFO, as adjusted, is not the same as FFO. The Company will pay the Advisor, an annual subordinated performance fee calculated on the basis of total return to stockholders, payable monthly in arrears, such that for any year in which total return on stockholders’ capital exceeds 6.0% per annum, the Advisor will be entitled to 15.0% of the excess total return; provided that in no event will the annual subordinated performance fee payable to the Advisor 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 Company's return on stockholders’ capital exceeding 6.0% per annum. During the nine months ended September 30, 2015 and 2014 , the Company incurred an annual subordinated performance fee of $1.4 million and $0.4 million , respectively. 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 prepaid the cost of $0.9 million associated with this agreement and amortizes the cost over the estimated life of the Offering into "Other expenses" on the Company's condensed consolidated statement of operations. The unamortized cost associated with this agreement is included in "Prepaid expenses and other assets" on the Company's condensed consolidated balance sheet. The table below depicts related party fees and reimbursements in connection with the operations of the Company for the three and nine months ended September 30, 2015 and 2014 and the associated payable as of September 30, 2015 and December 31, 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Payable as of 2015 2014 2015 2014 September 30, 2015 December 31, 2014 Acquisition fees and expenses (*) $ 572 $ 2,657 $ 8,441 $ 4,349 $ 19 $ — Advisory and investment banking fee 14 135 42 405 — — Asset management and subordinated performance fee 2,405 414 3,741 414 3,381 191 Total related party fees and reimbursements $ 2,991 $ 3,206 $ 12,224 $ 5,168 $ 3,400 $ 191 ________________________ * Includes amortization of capitalized acquisition fees and expenses. The payables as of September 30, 2015 and December 31, 2014 in the table above are included in "due to affiliate" on the Company's condensed 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 flows 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. The Advisor permanently waived a portion of the acquisition fees and expenses earned on the acquisition of the Company's CMBS in the amount of $0.1 million and $0.5 million for the nine months ended September 30, 2015 and 2014 , respectively. Subject to the limitations outlined below, the Company will reimburse the Advisor's cost of providing administrative services and 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 nine months ended September 30, 2015 and 2014 , no administrative costs of the Advisor were reimbursed for any period in connection with the operations of the Company. The Advisor must pay any expenses in which the Company's total operating expenses as defined by North American Securities Administrators Association 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, unless a majority of the Company's independent directors determine the excess expenses were justified based on unusual and nonrecurring factors. 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 nine months ended September 30, 2015 or 2014 . Fees Paid in Connection with the Liquidation of Assets, 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 mortgage loan or other investment sold, including CMBS or CDOs 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. On December 30, 2014, the Company issued 1,000 convertible shares to the Advisor for $ 1.00 per share. The convertible shares issued to the Advisor will automatically convert to shares of the Company’s common stock upon the first to occur of any of the Triggering Events described in Note 7. During the nine months ended September 30, 2015 and 2014 , no fees were paid in connection with the liquidation of assets, listing of the Company's common stock or termination of the advisory agreement. The Company has also established a restricted share plan for the benefit of employees, directors, employees of the Advisor and its affiliates.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2015
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 used 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 determination of where an asset or liability falls in the above hierarchy requires significant judgment and factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. 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. CMBS 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 real estate securities and the spreads used in the prior valuation. The Company obtains current market spread information where available and uses this information in evaluating and validating the market price of all real CMBS. Depending upon the significance of the fair value inputs used in determining these fair values, these real estate securities are classified in either Level II or Level III of the fair value hierarchy. As of September 30, 2015 and December 31, 2014 , the Company received broker quotes on each CMBS investment used in determining the fair value. As of September 30, 2015 and December 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 on a recurring basis in the condensed consolidated balance sheet by its level in the fair value hierarchy as of September 30, 2015 and December 31, 2014 (in thousands): Total Level I Level II Level III September 30, 2015 Real estate securities $ 100,959 $ — $ 100,959 $ — Repurchase agreements - commercial mortgage loans 376,090 — 376,090 — Repurchase agreements - real estate securities 72,597 — 72,597 — December 31, 2014 Real estate securities 50,234 — 50,234 — Repurchase agreements - commercial mortgage loans 150,169 — 150,169 — Repurchase agreements - real estate securities 26,269 — 26,269 — A review of the fair value hierarchy classification is conducted on a quarterly basis. Changes in the type of inputs may result in a reclassification for certain assets. There were no transfers between levels within fair value hierarchy during the nine months ended September 30, 2015 and 2014 . The fair value of cash and cash equivalents and restricted cash measured using observable quoted market prices, or Level I inputs. The fair value of short-term financial instruments, such as accrued interest receivable, prepaid expenses and other assets, accounts payable and accrued expenses, distributions payable, interest payable, borrowings under repurchase agreements and due to affiliate are approximated by their carrying value on the condensed consolidated balance sheets due to their short-term nature, and are measured using Level II inputs. The fair values of the Company's commercial mortgage loans, which are not reported at fair value on the condensed consolidated balance sheets are reported below as of September 30, 2015 and December 31, 2014 (in thousands): Level Carrying Value Fair Value September 30, 2015 III $ 939,704 $ 1,063,976 December 31, 2014 III 457,454 474,932 The fair value of the commercial mortgage loans is estimated using a discounted cash flow analysis, based on the Advisor's experience with similar types of investments.

Offsetting Assets and Liabiliti

Offsetting Assets and Liabilities	9 Months Ended
	Sep. 30, 2015
Offsetting [Abstract]
Offsetting Assets and Liabilities	Offsetting Assets and Liabilities The Company's condensed consolidated balance sheets used a gross presentation of repurchase agreements. The table below provides 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 September 30, 2015 and December 31, 2014 , respectively (in thousands): Gross Amounts Not Offset on the Balance Sheet Repurchase Agreements Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Amount of Liabilities Presented on the Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount September 30, 2015 Commercial mortgage loans $ 376,090 $ — $ 376,090 $ 527,071 $ — $ — Real estate securities 72,597 — 72,597 98,504 1,407 — December 31, 2014 Commercial mortgage loans 150,169 — 150,169 301,704 — — Real estate securities 26,269 — 26,269 38,833 68 —

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting The Company conducts its business through the following segments: • The real estate debt business focuses 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 focuses 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 nine months ended September 30, 2015 and 2014 (in thousands): Nine Months Ended September 30, 2015 Total Real Estate Debt Real Estate Securities Interest income $ 38,341 $ 36,303 $ 2,038 Interest expense 7,925 7,323 602 Net income 16,360 15,853 507 Total assets 1,064,412 961,455 102,957 Weighted average income earning assets 763,656 687,454 76,202 Weighted average asset yield 6.7 % 7.0 % 3.6 % Average interest bearing liabilities 306,396 257,868 48,528 Average yield on liabilities 3.4 % 3.8 % 1.7 % Net Interest Margin 3.3 % 3.2 % 1.9 % Nine Months Ended September 30, 2014 Interest income 7,514 7,162 352 Interest expense 803 696 107 Net income (loss) 1,761 2,041 (280 ) Total assets 358,442 319,871 38,571 Weighted average income earning assets 153,312 135,163 18,149 Weighted average asset yield 6.5 % 7.1 % 2.6 % Average interest bearing liabilities 38,690 29,899 8,791 Average yield on liabilities 2.8 % 3.1 % 1.6 % Net Interest Margin 3.7 % 4.0 % 1.0 % For the purposes of the table above, any expenses unallocable to specific segments have been allocated to the business segments using a percentage derived by using the sum of commercial mortgage loans, net and real estate securities, at fair value as the denominator and commercial mortgage loans, net and real estate securities, at fair value as the numerators.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2015
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 condensed consolidated financial statements except for the following transactions: Sales of Common Stock As of October 31, 2015 , the Company had 30,416,283 shares of common stock outstanding, including shares issued under the DRIP and unvested restricted shares and has raised total proceeds from the Offering as follows (in thousands): Source of Capital Inception to September 30, 2015 October 1, 2015 to October 31, 2015 Total Common stock $ 714,236 $ 42,227 $ 756,463 Distributions Paid On October 1, 2015 , the Company paid a distribution of $4.8 million to stockholders of record during the month of September 2015 . The Company paid $2.7 million of the distribution in cash, while $2.0 million was used to purchase 85,971 shares through the DRIP. Commercial Mortgage Loans For the period from October 1, 2015 to October 31, 2015 the Company has originated and acquired commercial mortgage loans with a total par value of $162.7 million . Financing On October 19, 2015, two of the Company's consolidated subsidiaries, RFT 2015-FL1 Issuer, Ltd. (the “Issuer”) and RFT 2015-FL1 Co-Issuer, LLC (the “Co-Issuer” and together with the Issuer, the “Issuers”), issued notes with an aggregate principal amount of $350.2 million (the “Notes”), evidencing a commercial real estate mortgage securitization, and sold such Notes in a private placement. A separate consolidated subsidiary of the Company purchased $56.0 million of the Notes. Simultaneously with the issuance of the Notes, the Issuer issued and sold preferred shares (the “Preferred Shares”) with an aggregate liquidation preference and notional amount equal to $78.1 million to a consolidated subsidiary of the Company. The Notes were issued pursuant to an indenture (the “Indenture”), dated as of October 19, 2015 (the “Closing Date”), by and among the Issuers, Realty Finance Operating Partnership, L.P. (the “Advancing Agent”) and U.S. Bank, National Association (the “Trustee” and the “Note Administrator”). Determination of Net Asset Value per Share On November 4, 2015, the Company’s board of directors unanimously determined an estimated NAV per share of the Company’s common stock of $25.27 as of September 30, 2015. The estimated NAV per share is based upon the estimated value of the Company’s assets less the Company’s liabilities as of September 30, 2015. Duff & Phelps, LLC, an independent third-party real estate advisory firm, performed appraisals of the Company’s assets in accordance with the Company’s valuation guidelines. The Advisor calculated the estimated NAV per share, and the conflicts committee of the Company’s board of directors, which is comprised solely of the Company’s independent directors, approved and recommended to the board of directors the estimated NAV per share calculated by the Advisor. The valuation was performed in accordance with the provisions of Practice Guideline 2013-01, Valuations of Publicly Registered Non-Listed REITs, issued by the Investment Program Association in April 2013. On November 4, 2015, the Company’s board of directors unanimously determined, effective as of the NAV pricing date, (i) to change the purchase price for shares issued in the Company’s primary offering to equal the estimated NAV per share plus applicable selling commissions and fees; (ii) to change the purchase price for shares issued pursuant to the DRIP to equal the estimated NAV per share; and (iii) to change the repurchase price of shares under the SRP to equal, or be at a discount from, the estimated NAV per share. Accordingly, the Company (i) will offer shares in the primary offering at a purchase price of $28.08 ; (ii) will offer shares pursuant to the DRIP at a purchase price of $25.27 ; and (iii) will repurchase shares pursuant to the SRP at a repurchase price of $ 25.27 , subject to discounts in certain circumstances and subject to the terms and conditions of the SRP. Sponsor Transactions On November 9, 2015, the Sponsor advised the Company that AR Capital and Apollo Global Management, LLC (NYSE: APO) (together with its consolidated subsidiaries, “Apollo”) have mutually agreed to terminate an agreement, dated as of August 6, 2015, pursuant to which Apollo would have purchased a controlling interest in a newly formed company that would have owned a majority of the ongoing asset management business of AR Capital. The termination has no effect on the Company’s current management team. Also on November 9, 2015, RCS Capital Corporation (“RCS Capital”), the parent of the Dealer Manager and a company under common control with AR Capital, and Apollo announced that they have mutually agreed to amend an agreement (the “RCS Agreement”), dated as of August 6, 2015, pursuant to which RCS Capital will sell its wholesale distribution business, including the Dealer Manager, to an affiliate of Apollo. This transaction is subject to customary closing conditions and regulatory approvals and is expected to close early in the first quarter of 2016. The Transfer Agent and RCS will remain as subsidiaries of RCS Capital and will continue to provide services to the Company.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Basis of Accounting	Basis of Accounting The accompanying condensed consolidated financial statements and related footnotes are unaudited and have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements. The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, Realty Finance Operating Partnership, L.P. (the "OP") and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Interim financial statements are prepared in accordance with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X, as appropriate. Accordingly, the condensed consolidated financial statements may not include all of the information and notes required by GAAP for annual consolidated financial statements. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reported periods. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. 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. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending on December 31, 2015.
Allowance for Loan Losses	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 condensed consolidated statement 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 upon 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. 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 Company currently estimates loss rates based on historical realized losses experienced in the industry and takes into account current collateral and economic conditions affecting the probability and severity of losses when establishing the allowance for loan losses. 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 geographic 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 asset-specific reserve component relates to reserves for losses on individual impaired loans. The Company 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 an individual 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. Valuations are performed or obtained at the time a loan is determined to be impaired and designated non-performing, and they are updated if circumstances indicate that a significant change in value has occurred. 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. 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 loans. The Company designates non-performing loans at such time as (i) loan payments become 90-days past due; (ii) the loan has a maturity default; or (iii) in the opinion of the Company, it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan. Income recognition will be suspended when a loan is designated non-performing and resumed only when the suspended loan becomes contractually current and performance is demonstrated to have resumed. A loan will be written off when it is no longer realizable and legally discharged.
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 number 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 if convertible shares were exercised, 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 12 - Segment Reporting for further information regarding the Company's segments.
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. The revised guidance allows entities to apply the full retrospective or modified retrospective transition method upon adoption. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The Company does not engage in the sale of goods or services and as such the adoption of this standard is not expected to have an impact on the Company's condensed consolidated financial statements. In June 2014, the FASB issued Accounting Standards Update ("ASU") 2014-11 "Repurchase-to-Maturity Transactions, Repurchase Financings and Disclosures." ASU 2014-11 makes limited changes to the accounting for repurchase agreements, clarifies when repurchase agreements and securities lending transactions should be accounted for as secured borrowings and requires additional disclosures regarding these types of transactions. The Company has historically recorded repurchase arrangements as secured borrowings and as such the adoption of ASU 2014-11 did not have a material impact on the Company's condensed consolidated financial statements. In April 2015, the FASB issued ASU 2015-03 "Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 simplifies the presentation of debt issuance costs by amending the accounting guidance to require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability. The amendments are consistent with the accounting guidance related to debt discounts. This guidance is effective for the first interim or annual period beginning after December 15, 2015. The Company is currently assessing the impact of this guidance on its condensed consolidated financial statements. The FASB’s proposed model represents a significant departure from existing GAAP, and may result in material changes to the Company’s accounting for financial instruments. The impact of the FASB’s final ASU on the Company’s financial statements will be assessed when it is issued. The exposure draft does not contain a proposed effective date, which would be included in the final ASU, when issued.

Commercial Mortgage Loans (Tabl

Commercial Mortgage Loans (Tables)	9 Months Ended
	Sep. 30, 2015
Receivables [Abstract]
Summary of the company's loans receivable by class	The following table is a summary of the Company's commercial mortgage loans by class (in thousands): September 30, 2015 December 31, 2014 Senior loans $ 657,785 $ 250,093 Mezzanine loans 271,919 191,863 Subordinated loans 10,000 15,498 Total gross carrying value of loans 939,704 457,454 Less: Allowance for loan losses 872 570 Total commercial mortgage loans, net $ 938,832 $ 456,884 The following table presents the activity in the Company's allowance for loan losses (in thousands): Nine Months Ended September 30, 2015 Year Ended December 31, 2014 Beginning of period $ 570 $ — Provision for loan losses 302 570 Charge-offs — — Recoveries — — End of period $ 872 $ 570 As of September 30, 2015 and December 31, 2014 , the Company's commercial mortgage loan portfolio comprised 69 and 38 loans, respectively. The following table summarizes the Company's loan portfolio by sectors on a par value basis (in thousands): September 30, 2015 December 31, 2014 Loan Type Par Value Percentage Par Value Percentage Office $ 238,787 25.2 % $ 217,480 47.1 % Hospitality 205,985 21.7 % 74,566 16.2 % Multifamily 185,833 19.6 % 22,957 5.0 % Retail 158,784 16.7 % 45,513 9.9 % Mixed Use 141,637 14.9 % 100,699 21.8 % Industrial 18,250 1.9 % — — % $ 949,276 100.0 % $ 461,215 100.0 %
Loans and Leases Receivable, Allowance for Loan Losses Policy	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 of 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 with some loss of interest 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.
Real Estate Notes Receivable Rollforward	For the nine months ended September 30, 2015 and year ended December 31, 2014 , the activity in the Company's loan portfolio was as follows (in thousands): Nine Months Ended September 30, 2015 Year Ended December 31, 2014 Beginning balance $ 456,884 $ 30,832 Acquisitions and originations 526,919 429,941 Dispositions — (3,580 ) Principal repayments (45,542 ) (136 ) Discount accretion and premium amortization* 873 397 Provision for loan losses (302 ) (570 ) Ending balance $ 938,832 $ 456,884 ________________________ * Includes amortization of capitalized acquisition fees and expenses.

Real Estate Securities (Tables)

Real Estate Securities (Tables)	9 Months Ended
	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Fair Value Measurements, Recurring and Nonrecurring	The following is a summary of the Company's CMBS (in thousands): Weighted Average Number of Investments Interest Rate Maturity Par Value Fair Value September 30, 2015 13 1M LIBOR + 3.836% November 2017 $ 102,335 $ 100,959 December 31, 2014 8 1M LIBOR + 3.124% November 2017 50,447 50,234 The following table presents the Company's financial instrument carried at fair value on a recurring basis in the condensed consolidated balance sheet by its level in the fair value hierarchy as of September 30, 2015 and December 31, 2014 (in thousands): Total Level I Level II Level III September 30, 2015 Real estate securities $ 100,959 $ — $ 100,959 $ — Repurchase agreements - commercial mortgage loans 376,090 — 376,090 — Repurchase agreements - real estate securities 72,597 — 72,597 — December 31, 2014 Real estate securities 50,234 — 50,234 — Repurchase agreements - commercial mortgage loans 150,169 — 150,169 — Repurchase agreements - real estate securities 26,269 — 26,269 —
Available-for-Sale Securities	The following table shows the changes in fair value of the Company's CMBS (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value September 30, 2015 $ 102,276 $ — $ (1,317 ) $ 100,959 December 31, 2014 50,541 14 (321 ) 50,234

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Schedule of Master Repurchase Agreements	As of September 30, 2015 and December 31, 2014 , the Company had entered into six MRAs, of which three were in use, see below (in thousands): Amount Accrued Interest Weighted Average Counterparty Outstanding Payable Collateral Pledged Interest Rate Days to Maturity As of September 30, 2015 J.P. Morgan Securities LLC $ 41,093 $ 30 $ 57,770 1.75 % 15 Citigroup Global Markets, Inc. 27,791 71 35,809 1.89 % 36 Wells Fargo Securities, LLC 3,713 3 4,925 1.56 % 14 Total/Weighted Average $ 72,597 $ 104 $ 98,504 1.80 % 23 As of December 31, 2014 J.P. Morgan Securities LLC $ 18,528 $ 8 $ 23,843 1.44 % 20 Citigroup Global Markets, Inc. 4,010 2 5,015 1.46 % 20 Wells Fargo Securities, LLC 3,731 2 4,975 1.52 % 20 Total/Weighted Average $ 26,269 $ 12 $ 33,833 1.46 % 20

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Summary of the Basic and Diluted Earnings Per Share	The following table is a summary of the basic and diluted net income per share computation for the three and nine months ended September 30, 2015 and 2014 , respectively: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net income (in thousands) $ 7,425 $ 951 $ 16,360 $ 1,761 Basic weighted average shares outstanding 26,684,913 8,791,796 22,035,227 5,047,827 Unvested restricted shares 6,051 8,090 4,883 5,936 Diluted weighted average shares outstanding 26,690,964 8,799,886 22,040,110 5,053,763 Basic net income per share $ 0.28 $ 0.11 $ 0.74 $ 0.35 Diluted net income per share $ 0.28 $ 0.11 $ 0.74 $ 0.35

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Unfunded Commitments Under Commercial Mortgage Loans	As of September 30, 2015 and December 31, 2014 , the Company had the below unfunded commitments which will generally be funded to finance capital expenditures by the Company's borrowers. Funding Expiration September 30, 2015 December 31, 2014 2015 $ — $ 3,450 2016 890 26,701 2017 23,523 20,810 2018 80,307 7,169 2019 13,775 1,240 2020 — 4,175 $ 118,495 $ 63,545

Related Party Transactions an27

Related Party Transactions and Arrangements (Tables)	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Schedule of Selling Commissions and Dealer Manager Fees Payable to Affiliate	The table below shows the fees incurred from the Dealer Manager associated with the Offering during the three and nine months ended September 30, 2015 and 2014 , respectively, and the associated payable as of September 30, 2015 and December 31, 2014 , respectively (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Payable as of 2015 2014 2015 2014 September 30, 2015 December 31, 2014 Total commissions and fees incurred from the Dealer Manager $ 9,932 $ 12,568 $ 30,700 $ 23,395 $ 240 $ 119
Schedule of Offering Cost Reimbursements to Related Party	The table below shows the compensation and reimbursement to the Advisor, its affiliates and entities under common control with the Advisor and the Dealer Manager incurred for services relating to the Offering during the three and nine months ended September 30, 2015 and 2014 , respectively, and the associated payable as of September 30, 2015 and December 31, 2014 , respectively (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Payable as of 2015 2014 2015 2014 September 30, 2015 December 31, 2014 Total compensation and reimbursement for services provided by the Advisor, its affiliates, entities under common control with the Advisor and the Dealer Manager $ 1,957 $ 466 $ 5,805 $ 1,277 $ 263 $ 1,725
Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services	The table below depicts related party fees and reimbursements in connection with the operations of the Company for the three and nine months ended September 30, 2015 and 2014 and the associated payable as of September 30, 2015 and December 31, 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Payable as of 2015 2014 2015 2014 September 30, 2015 December 31, 2014 Acquisition fees and expenses (*) $ 572 $ 2,657 $ 8,441 $ 4,349 $ 19 $ — Advisory and investment banking fee 14 135 42 405 — — Asset management and subordinated performance fee 2,405 414 3,741 414 3,381 191 Total related party fees and reimbursements $ 2,991 $ 3,206 $ 12,224 $ 5,168 $ 3,400 $ 191 ________________________ * Includes amortization of capitalized acquisition fees and expenses.

Fair Value of Financial Instr28

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements, Recurring and Nonrecurring	The following is a summary of the Company's CMBS (in thousands): Weighted Average Number of Investments Interest Rate Maturity Par Value Fair Value September 30, 2015 13 1M LIBOR + 3.836% November 2017 $ 102,335 $ 100,959 December 31, 2014 8 1M LIBOR + 3.124% November 2017 50,447 50,234 The following table presents the Company's financial instrument carried at fair value on a recurring basis in the condensed consolidated balance sheet by its level in the fair value hierarchy as of September 30, 2015 and December 31, 2014 (in thousands): Total Level I Level II Level III September 30, 2015 Real estate securities $ 100,959 $ — $ 100,959 $ — Repurchase agreements - commercial mortgage loans 376,090 — 376,090 — Repurchase agreements - real estate securities 72,597 — 72,597 — December 31, 2014 Real estate securities 50,234 — 50,234 — Repurchase agreements - commercial mortgage loans 150,169 — 150,169 — Repurchase agreements - real estate securities 26,269 — 26,269 —
Fair Value by Balance Sheet Grouping	The fair values of the Company's commercial mortgage loans, which are not reported at fair value on the condensed consolidated balance sheets are reported below as of September 30, 2015 and December 31, 2014 (in thousands): Level Carrying Value Fair Value September 30, 2015 III $ 939,704 $ 1,063,976 December 31, 2014 III 457,454 474,932

Offsetting Assets and Liabili29

Offsetting Assets and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2015
Offsetting [Abstract]
Offsetting Liabilities	The table below provides 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 September 30, 2015 and December 31, 2014 , respectively (in thousands): Gross Amounts Not Offset on the Balance Sheet Repurchase Agreements Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Amount of Liabilities Presented on the Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount September 30, 2015 Commercial mortgage loans $ 376,090 $ — $ 376,090 $ 527,071 $ — $ — Real estate securities 72,597 — 72,597 98,504 1,407 — December 31, 2014 Commercial mortgage loans 150,169 — 150,169 301,704 — — Real estate securities 26,269 — 26,269 38,833 68 —

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following table represents the Company's operations by segment for the nine months ended September 30, 2015 and 2014 (in thousands): Nine Months Ended September 30, 2015 Total Real Estate Debt Real Estate Securities Interest income $ 38,341 $ 36,303 $ 2,038 Interest expense 7,925 7,323 602 Net income 16,360 15,853 507 Total assets 1,064,412 961,455 102,957 Weighted average income earning assets 763,656 687,454 76,202 Weighted average asset yield 6.7 % 7.0 % 3.6 % Average interest bearing liabilities 306,396 257,868 48,528 Average yield on liabilities 3.4 % 3.8 % 1.7 % Net Interest Margin 3.3 % 3.2 % 1.9 % Nine Months Ended September 30, 2014 Interest income 7,514 7,162 352 Interest expense 803 696 107 Net income (loss) 1,761 2,041 (280 ) Total assets 358,442 319,871 38,571 Weighted average income earning assets 153,312 135,163 18,149 Weighted average asset yield 6.5 % 7.1 % 2.6 % Average interest bearing liabilities 38,690 29,899 8,791 Average yield on liabilities 2.8 % 3.1 % 1.6 % Net Interest Margin 3.7 % 4.0 % 1.0 %

Subsequent Events (Tables)

Subsequent Events (Tables)	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Schedule of Subsequent Events	As of October 31, 2015 , the Company had 30,416,283 shares of common stock outstanding, including shares issued under the DRIP and unvested restricted shares and has raised total proceeds from the Offering as follows (in thousands): Source of Capital Inception to September 30, 2015 October 1, 2015 to October 31, 2015 Total Common stock $ 714,236 $ 42,227 $ 756,463

Organization and Business Ope32

Organization and Business Operations - Narrative (Details) - USD ($)	May. 14, 2013	Oct. 31, 2015	Sep. 30, 2015	Sep. 30, 2014	Oct. 31, 2015	Nov. 10, 2015	Nov. 04, 2015	Dec. 31, 2014
Schedule of Equity Method Investments [Line Items]
Intentional maximum sale of stock			$ 80,000,000
Common stock, par value per share (in dollars per share)			$ 0.01					$ 0.01
Proceeds from issuances of common stock	$ 2,000,000		$ 316,614,000	$ 243,978,000
Common stock, price per share (usd per share)			$ 25
Common stock outstanding			$ 714,200,000
DRIP
Schedule of Equity Method Investments [Line Items]
Intentional maximum sale of stock			$ 16,800,000
Common stock, price per share (usd per share)			$ 23.75
Shares repurchased, percentage of original price per share			95.00%
Subsequent Event
Schedule of Equity Method Investments [Line Items]
Proceeds from issuances of common stock		$ 42,227,000			$ 756,463,000
Common stock, NAV par value per share, Dividend Reinvestment Plan						$ 25.27
Common stock, NAV par value per share						$ 28.0777777778	$ 25.27

Commercial Mortgage Loans - Loa

Commercial Mortgage Loans - Loans Receivable by Class (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Receivables [Abstract]
Senior loans	$ 657,785	$ 250,093
Mezzanine loans	271,919	191,863
Subordinated loans	10,000	15,498
Total gross carrying value of loans	939,704	457,454
Less: Allowance for loan losses	872	570	$ 0
Total commercial mortgage loans, net	$ 938,832	$ 456,884

Commercial Mortgage Loans - Pro

Commercial Mortgage Loans - Provision for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance			$ 570	$ 0	$ 0
Loan loss provision	$ 78	$ 174	302	$ 302	570
Charge-offs			0		0
Recoveries			0		0
Ending balance	$ 872		$ 872		$ 570

Commercial Mortgage Loans - L35

Commercial Mortgage Loans - Loans Receivable Portfolio (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 939,704	$ 457,454
First Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 949,276	$ 461,215
Loan type as a percent of total loans, percent	100.00%	100.00%
Office | First Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 238,787	$ 217,480
Loan type as a percent of total loans, percent	25.20%	47.10%
Hospitality | First Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 205,985	$ 74,566
Loan type as a percent of total loans, percent	21.70%	16.20%
Multifamily | First Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 185,833	$ 22,957
Loan type as a percent of total loans, percent	19.60%	5.00%
Retail | First Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 158,784	$ 45,513
Loan type as a percent of total loans, percent	16.70%	9.90%
Industrial | First Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 141,637	$ 100,699
Loan type as a percent of total loans, percent	14.90%	21.80%
Mixed Use | First Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 18,250	$ 0
Loan type as a percent of total loans, percent	1.90%	0.00%

Commercial Mortgage Loans - Rea

Commercial Mortgage Loans - Real Estate Notes Receivable (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Movement in Mortgage Loans on Real Estate [Roll Forward]
Beginning balance			$ 456,884	$ 30,832	$ 30,832
Acquisitions and originations			526,919		429,941
Dispositions			0		(3,580)
Principal repayments			(45,542)		(136)
Discount accretion and premium amortization			873		397
Provision for loan losses	$ (78)	$ (174)	(302)	$ (302)	(570)
Ending balance	$ 938,832		$ 938,832		$ 456,884

Commercial Mortgage Loans - Nar

Commercial Mortgage Loans - Narrative (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2015ratingloan	Dec. 31, 2014ratingloan
Receivables [Abstract]
Number of mezzanine loans funded | loan	69	38
Weighted average risk rating of loans	2	2

Real Estate Securities - Fair V

Real Estate Securities - Fair Value Measurements, Recurring and Nonrecurring (Details) - Real estate securities $ in Thousands	Sep. 30, 2015USD ($)investment	Dec. 31, 2014USD ($)investment
Schedule of Available-for-sale Securities [Line Items]
Number of Investments | investment	13	8
Par value of investments	$ 102,335	$ 50,447
Fair value of investments	$ 100,959	$ 50,234
1M LIBOR
Schedule of Available-for-sale Securities [Line Items]
Interest rate	3.836%	3.124%

Real Estate Securities - Availa

Real Estate Securities - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Real estate securities, at fair value	$ 100,959	$ 50,234
Real estate securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	102,276	50,541
Unrealized Gains	0	14
Unrealized Losses	(1,317)	(321)
Real estate securities, at fair value	$ 100,959	$ 50,234

Debt - Narrative (Details)

Debt - Narrative (Details)	9 Months Ended
	Sep. 30, 2015USD ($)maturity_date_extensionagreement	Sep. 30, 2014USD ($)	Oct. 31, 2015USD ($)	Oct. 20, 2015USD ($)	Dec. 31, 2014USD ($)agreement
Line of Credit Facility [Line Items]
Number of Master Repurchase Agreements | agreement	6				6
Number of Master Repurchase Agreements in Use | agreement	3				3
Revolving Credit Facility
Line of Credit Facility [Line Items]
Revolving line of credit	$ 72,597,000				$ 26,269,000
Revolving Credit Facility | JPM Repo Facility
Line of Credit Facility [Line Items]
Unsecured line of credit	$ 250,000,000
Debt Instrument, Extension on Initial Maturity Date	1 year
Revolving line of credit	$ 209,400,000				$ 76,500,000
Interest expense	$ 3,200,000	$ 500,000
Weighted average interest rate	2.90%				3.84%
Average borrowings outstanding	$ 128,300,000	17,600,000
Revolving Credit Facility | Barclays Repo Facility
Line of Credit Facility [Line Items]
Unsecured line of credit	$ 170,000,000
Debt Instrument, Extension on Initial Maturity Date	6 months
Debt Instrument, Number of Extensions on Initial Maturity Date | maturity_date_extension	3
Revolving line of credit	$ 166,700,000				$ 73,700,000
Interest expense	$ 2,300,000	100,000
Weighted average interest rate	2.21%				2.16%
Average borrowings outstanding	$ 137,500,000	$ 200,000
Minimum
Line of Credit Facility [Line Items]
Master Repurchase Agreements, Maturity Term	30 days
Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | JPM Repo Facility
Line of Credit Facility [Line Items]
Variable interest rate	2.25%
Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Barclays Repo Facility
Line of Credit Facility [Line Items]
Variable interest rate	2.00%
Maximum
Line of Credit Facility [Line Items]
Master Repurchase Agreements, Maturity Term	90 days
Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | JPM Repo Facility
Line of Credit Facility [Line Items]
Variable interest rate	4.50%
Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Barclays Repo Facility
Line of Credit Facility [Line Items]
Variable interest rate	2.50%
Subsequent Event | Revolving Credit Facility | JPM Repo Facility
Line of Credit Facility [Line Items]
Unsecured line of credit			$ 150,000,000
Subsequent Event | Revolving Credit Facility | Barclays Repo Facility
Line of Credit Facility [Line Items]
Unsecured line of credit				$ 150,000,000

Debt - Schedule of Master Repur

Debt - Schedule of Master Repurchase Agreements (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Assets Sold under Agreements to Repurchase [Line Items]
Payable	$ 536	$ 232
Revolving Credit Facility
Assets Sold under Agreements to Repurchase [Line Items]
Revolving line of credit	72,597	26,269
Payable	104	12
Collateral Pledged	$ 98,504	$ 33,833
Interest Rate	1.80%	1.46%
Days to Maturity	23 days	20 days
Revolving Credit Facility | J.P. Morgan Securities LLC
Assets Sold under Agreements to Repurchase [Line Items]
Revolving line of credit	$ 41,093	$ 18,528
Payable	30	8
Collateral Pledged	$ 57,770	$ 23,843
Interest Rate	1.75%	1.44%
Days to Maturity	15 days	20 days
Revolving Credit Facility | Citigroup Global Markets, Inc.
Assets Sold under Agreements to Repurchase [Line Items]
Revolving line of credit	$ 27,791	$ 4,010
Payable	71	2
Collateral Pledged	$ 35,809	$ 5,015
Interest Rate	1.89%	1.46%
Days to Maturity	36 days	20 days
Revolving Credit Facility | Wells Fargo Securities, LLC
Assets Sold under Agreements to Repurchase [Line Items]
Revolving line of credit	$ 3,713	$ 3,731
Payable	3	2
Collateral Pledged	$ 4,925	$ 4,975
Interest Rate	1.56%	1.52%
Days to Maturity	14 days	20 days

Net Income Per Share - Summary

Net Income Per Share - Summary of the Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Net income	$ 7,425	$ 951	$ 16,360	$ 1,761
Basic weighted average shares outstanding	26,684,913	8,791,796	22,035,227	5,047,827
Unvested restricted shares	6,051	8,090	4,883	5,936
Diluted weighted average shares outstanding	26,690,964	8,799,886	22,040,110	5,053,763
Basic net income (loss) per share (in dollars per share)	$ 0.28	$ 0.11	$ 0.74	$ 0.35
Diluted net income (loss) per share (in dollars per share)	$ 0.28	$ 0.11	$ 0.74	$ 0.35

Common Stock - Narrative (Detai

Common Stock - Narrative (Details) $ / shares in Units, $ in Thousands	Dec. 30, 2014$ / sharesshares	May. 13, 2013$ / shares	Sep. 30, 2015USD ($)shares	Dec. 31, 2014USD ($)shares	Sep. 30, 2015USD ($)shares
Class of Stock [Line Items]
Proceeds from issuance of common stock, DRIP | $			$ 714,200	$ 384,200	$ 714,236
Cumulative capital investment return, percentage of benchmark	6.00%
Convertible common stock quotient	0.15
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) | $ / shares		$ 0.00565068493
Total distributions | $			$ 31,800	12,600
Cash distributions | $			18,200	7,600
Common stock distributions | $			$ 13,600	$ 5,000
Convertible Stock
Class of Stock [Line Items]
Shares outstanding (in shares)			1,000	1,000	1,000
Issuance of convertible stock (in shares)	1,000
Advisor | Convertible Stock
Class of Stock [Line Items]
Issuance of convertible stock (in shares)	1,000
Convertible stock, per share value | $ / shares	$ 1
Common Stock
Class of Stock [Line Items]
Shares outstanding (in shares)			28,753,520	15,472,192	28,753,520

Commitments and Contingencies44

Commitments and Contingencies (Details) - Loan Origination Commitments - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Unrecorded Unconditional Purchase Obligation [Line Items]
2,015	$ 0	$ 3,450
2,016	890	26,701
2,017	23,523	20,810
2,018	80,307	7,169
2,019	13,775	1,240
2,020	0	4,175
Total unfunded commitments	$ 118,495	$ 63,545

Related Party Transactions an45

Related Party Transactions and Arrangements - Narrative (Details) $ / shares in Units, $ in Thousands	Dec. 30, 2014$ / sharesshares	Sep. 30, 2015USD ($)shares	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)shares	Sep. 30, 2014USD ($)	Dec. 31, 2014shares	Jun. 01, 2013USD ($)
Related Party Transaction [Line Items]
Common stock, shares outstanding and owned by related party (in shares) | shares		28,753,520		28,753,520		15,472,192
Convertible stock, shares outstanding | shares		1,000		1,000		1,000
Selling commission, organizational and offering costs, maximum				2.00%
Organizational and offering costs, amount exceeding offering proceeds		$ 100		$ 100
Asset retirement costs							$ 900
Professional fees		659	$ 371	3,136	$ 562
Acquisition fees and expenses		2,405	414	3,741	414
Cumulative capital investment return, percentage of benchmark	6.00%
Convertible common stock quotient	0.15
Affiliate
Related Party Transaction [Line Items]
Total commissions and fees incurred from the Dealer Manager		$ 2,991	3,206	$ 12,224	5,168
Sponsor
Related Party Transaction [Line Items]
Common stock, shares outstanding and owned by related party (in shares) | shares		8,888		8,888		888
Dealer Manager
Related Party Transaction [Line Items]
Selling commission, percentage of offering proceeds		7.00%		7.00%
Selling commission, percentage of offering proceeds, reallowance fee		3.00%		3.00%
Selling commission, percentage of offering proceeds, reduction fee		2.50%		2.50%
Total commissions and fees incurred from the Dealer Manager		$ 9,932	$ 12,568	$ 30,700	23,395
Participating Broker Dealers
Related Party Transaction [Line Items]
Selling commission, percentage of offering proceeds		7.50%		7.50%
Selling commission, percentage of offering proceeds, first payment		2.50%		2.50%
Selling commission, percentage of offering proceeds, subsequent payments		1.00%		1.00%
Advisor
Related Party Transaction [Line Items]
Convertible stock, shares outstanding | shares		1,000		1,000		1,000
Real estate acquisition fee, percentage		1.00%		1.00%
Real estate acquisition fee, percentage reimbursement of acquisition costs, maximum exposure		4.50%		4.50%
Annual asset management fee, percentage based on the lower of total costs of assets or net asset value		0.75%		0.75%
Related Party Transaction Subordinated Performance Fee Total Return Threshold		6.00%		6.00%
Related Party Transaction Subordinated Participation In Asset Sale Fee		15.00%		15.00%
Related Party Transaction Subordinated Participation In Asset Sale Fee Maximum		10.00%		10.00%
Acquisition fees and expenses				$ 1,400	400
Administrative services reimbursement, limitation, percentage of average invested assets		2.00%		2.00%
Administrative services reimbursement, limitation, percentage of net income		25.00%		25.00%
Real estate disposition fee, percentage		1.00%		1.00%
Principal amount of debt, obligated to pay as disposition fee for each investment sold				1.00%
Advisor | Fee to Acquire and Originate Real Estate Debt
Related Party Transaction [Line Items]
Transaction rate				0.50%
Incurred | Acquisition fees and acquisition expenses | Advisor
Related Party Transaction [Line Items]
Total commissions and fees incurred from the Dealer Manager				$ 6,000	2,900
Payable | Acquisition fees and acquisition expenses | Advisor
Related Party Transaction [Line Items]
Total commissions and fees incurred from the Dealer Manager				2,200	900
Waived | Advisor
Related Party Transaction [Line Items]
Acquisition related expenses and fees				100	500
Convertible Stock
Related Party Transaction [Line Items]
Issuance of convertible stock (in shares) | shares	1,000
Convertible Stock | Advisor
Related Party Transaction [Line Items]
Issuance of convertible stock (in shares) | shares	1,000
Convertible stock, per share value | $ / shares	$ 1
Advisor | Affiliate | Asset Management Fee
Related Party Transaction [Line Items]
Total commissions and fees incurred from the Dealer Manager				$ 2,400	$ 0
Related Party Transaction, Expenses from Transactions with Related Party, Monthly Asset Management Fee as a Percent of 75% of Company's Asset Cost				8.33%

Related Party Transactions an46

Related Party Transactions and Arrangements - Schedule of Selling Commissions and Dealer Manager Fees Payable to Affiliate (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Payable to related party	$ 3,903		$ 3,903		$ 2,035
Dealer Manager
Related Party Transaction [Line Items]
Total commissions and fees incurred from the Dealer Manager	9,932	$ 12,568	30,700	$ 23,395
Payable to related party	$ 240		$ 240		$ 119

Related Party Transactions an47

Related Party Transactions and Arrangements - Schedule of Offering Cost Reimbursements to Related Party (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Payable to related party	$ 3,903		$ 3,903		$ 2,035
Fees and Expense Reimbursement, Stock Offering | Advisor and Dealer Manager
Related Party Transaction [Line Items]
Total compensation and reimbursement for services provided by the Advisor, its affiliates, entities under common control with the Advisor and the Dealer Manager	1,957	$ 466	5,805	$ 1,277
Payable to related party	$ 263		$ 263		$ 1,725

Related Party Transactions an48

Related Party Transactions and Arrangements - Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Payable to related party	$ 3,903		$ 3,903		$ 2,035
Affiliate
Related Party Transaction [Line Items]
Total related party fees and reimbursements	2,991	$ 3,206	12,224	$ 5,168
Payable to related party	3,400		3,400		191
Affiliate | Acquisition fees and expenses () | Nonrecurring Fees
Related Party Transaction [Line Items]
Total related party fees and reimbursements	572	2,657	8,441	4,349
Payable to related party	19		19		0
Affiliate | Advisory and investment banking fee | Nonrecurring Fees
Related Party Transaction [Line Items]
Total related party fees and reimbursements	14	135	42	405
Payable to related party	0		0		0
Affiliate | Asset management and subordinated performance fee | Nonrecurring Fees
Related Party Transaction [Line Items]
Total related party fees and reimbursements	2,405	$ 414	3,741	$ 414
Payable to related party	$ 3,381		$ 3,381		$ 191

Fair Value of Financial Instr49

Fair Value of Financial Instruments - Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate securities, at fair value	$ 100,959	$ 50,234
Real estate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate securities, at fair value	100,959	50,234
Gross Amounts of Recognized Liabilities	72,597	26,269
Commercial mortgage loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gross Amounts of Recognized Liabilities	376,090	150,169
Fair Value, Measurements, Recurring | Real estate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate securities, at fair value	100,959	50,234
Gross Amounts of Recognized Liabilities	72,597	26,269
Fair Value, Measurements, Recurring | Commercial mortgage loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gross Amounts of Recognized Liabilities	376,090	150,169
Level I | Fair Value, Measurements, Recurring | Real estate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate securities, at fair value	0	0
Gross Amounts of Recognized Liabilities	0	0
Level I | Fair Value, Measurements, Recurring | Commercial mortgage loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gross Amounts of Recognized Liabilities	0	0
Level II | Fair Value, Measurements, Recurring | Real estate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate securities, at fair value	100,959	50,234
Gross Amounts of Recognized Liabilities	72,597	26,269
Level II | Fair Value, Measurements, Recurring | Commercial mortgage loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gross Amounts of Recognized Liabilities	376,090	150,169
Level III | Fair Value, Measurements, Recurring | Real estate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate securities, at fair value	0	0
Gross Amounts of Recognized Liabilities	0	0
Level III | Fair Value, Measurements, Recurring | Commercial mortgage loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gross Amounts of Recognized Liabilities	$ 0	$ 0

Fair Value of Financial Instr50

Fair Value of Financial Instruments - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial mortgage loans, held for investment, net of allowance for loan losses of $872 and $570	$ 938,832	$ 456,884
Carrying Value | Level III
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial mortgage loans, held for investment, net of allowance for loan losses of $872 and $570	939,704	457,454
Fair Value | Level III
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial mortgage loans, held for investment, net of allowance for loan losses of $872 and $570	$ 1,063,976	$ 474,932

Offsetting Assets and Liabili51

Offsetting Assets and Liabilities - Offsetting Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Commercial mortgage loans
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	$ 376,090	$ 150,169
Gross Amounts Offset on the Balance Sheet	0	0
Net Amount of Liabilities Presented on the Balance Sheet	376,090	150,169
Financial Instruments	527,071	301,704
Cash Collateral Pledged	0	0
Net Amount	0	0
Real estate securities
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	72,597	26,269
Gross Amounts Offset on the Balance Sheet	0	0
Net Amount of Liabilities Presented on the Balance Sheet	72,597	26,269
Financial Instruments	98,504	38,833
Cash Collateral Pledged	1,407	68
Net Amount	$ 0	$ 0

Segment Reporting - Schedule of

Segment Reporting - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Segment Reporting Information [Line Items]
Interest income			$ 38,341	$ 7,514
Interest expense	$ 3,469	$ 711	7,925	803
Net income (loss)	7,425	951	16,360	1,761
Total assets	1,064,412	358,442	1,064,412	358,442	$ 514,220
Weighted average income earning assets	763,656	153,312	$ 763,656	$ 153,312
Weighted average asset yield			6.70%	6.50%
Average interest bearing liabilities	306,396	38,690	$ 306,396	$ 38,690
Average yield on liabilities			3.40%	2.80%
Net Interest Margin			3.30%	3.70%
Operating Segments | Real Estate Debt
Segment Reporting Information [Line Items]
Interest income			$ 36,303	$ 7,162
Interest expense			7,323	696
Net income (loss)			15,853	2,041
Total assets	961,455	319,871	961,455	319,871
Weighted average income earning assets	687,454	135,163	$ 687,454	$ 135,163
Weighted average asset yield			7.00%	7.10%
Average interest bearing liabilities	257,868	29,899	$ 257,868	$ 29,899
Average yield on liabilities			3.80%	3.10%
Net Interest Margin			3.20%	4.00%
Operating Segments | Real Estate Securities
Segment Reporting Information [Line Items]
Interest income			$ 2,038	$ 352
Interest expense			602	107
Net income (loss)			507	(280)
Total assets	102,957	38,571	102,957	38,571
Weighted average income earning assets	76,202	18,149	$ 76,202	$ 18,149
Weighted average asset yield			3.60%	2.60%
Average interest bearing liabilities	$ 48,528	$ 8,791	$ 48,528	$ 8,791
Average yield on liabilities			1.70%	1.60%
Net Interest Margin			1.90%	1.00%

Subsequent Events - Narrative (

Subsequent Events - Narrative (Details) - USD ($)	Oct. 01, 2015	Oct. 31, 2015	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Nov. 10, 2015	Nov. 04, 2015	Oct. 19, 2015
Subsequent Event [Line Items]
Common stock, shares outstanding and owned by related party (in shares)			28,753,520		15,472,192
Distributions paid			$ 18,215,000	$ 3,909,000
Dividends in cash			18,200,000		$ 7,600,000
Common stock issued through distribution reinvestment plan			$ 13,643,000
Subsequent Event
Subsequent Event [Line Items]
Common stock, shares outstanding and owned by related party (in shares)		30,416,283
Distributions paid	$ 4,800,000
Dividends in cash	2,700,000
Common stock issued through distribution reinvestment plan	$ 2,000,000
Shares issued under DRIP (in shares)	85,971
Common stock, NAV par value per share						$ 28.0777777778	$ 25.27
Common stock, NAV par value per share, Dividend Reinvestment Plan						$ 25.27
October 19, 2015 Notes with Consolidated Subsidiaries | Subsequent Event
Subsequent Event [Line Items]
Notes issued by consolidated subsidiaries								$ 350,200,000
Subsidiaries | October 19, 2015 Notes with Consolidated Subsidiaries | Subsequent Event
Subsequent Event [Line Items]
Notes issued by consolidated subsidiaries								56,000,000
RFT 2015-FL1 Issuer, Ltd. | Subsequent Event
Subsequent Event [Line Items]
Preferred stock liquidation preference								$ 78,100,000
Commercial mortgage loans | Subsequent Event
Subsequent Event [Line Items]
Original face amount		$ 162,700,000
Maximum | Subsequent Event
Subsequent Event [Line Items]
Common stock, NAV par value per share							28.08
Common stock, NAV par value per share, Dividend Reinvestment Plan							25.27
Common stock repurchase price, NAV par value per share							$ 25.27

Subsequent Events - Issuance of

Subsequent Events - Issuance of Common Stock (Details) - USD ($) $ in Thousands	May. 14, 2013	Oct. 31, 2015	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Sep. 30, 2015	Oct. 31, 2015
Subsequent Event [Line Items]
Proceeds from issuance of common stock, DRIP			$ 714,200		$ 384,200	$ 714,236
Proceeds from issuances of common stock	$ 2,000		$ 316,614	$ 243,978
Subsequent Event
Subsequent Event [Line Items]
Proceeds from issuances of common stock		$ 42,227					$ 756,463