NorthStar Real Estate Income II 10-Q 14 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 11, 2013
Document and Entity Information	'	'
Entity Registrant Name	'NorthStar Real Estate Income II, Inc.	'
Entity Central Index Key	'0001564657	'
Entity Current Reporting Status	'Yes	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Non-accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	779,545
Amendment Flag	'false	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012
Assets	'	'
Cash	$218,739	$202,007
Real estate debt investments, net	2,000,000	'
Receivables, net	187,642	'
Total assets	2,406,381	202,007
Liabilities	'	'
Due to related party	56,333	'
Distribution payable	5,990	'
Other liabilities	33	'
Total liabilities	62,356	'
NorthStar Real Estate Income II, Inc. Stockholders' Equity	'	'
Preferred stock, $0.01 par value; 50,000,000 shares authorized, no shares issued and outstanding as of September 30, 2013 and December 31, 2012	'	'
Common stock, $0.01 par value; 400,000,000 and 200,000 shares authorized, 279,446 and 22,223 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively	2,794	222
Additional paid-in capital	2,347,072	199,785
Retained earnings (accumulated deficit)	-7,823	'
Total NorthStar Real Estate Income II, Inc. stockholders' equity	2,342,043	200,007
Non-controlling interests	1,982	2,000
Total equity	2,344,025	202,007
Total liabilities and equity	$2,406,381	$202,007

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]	'	'
Preferred stock, par value (in dollars per share)	$0.01	$0.01
Preferred stock, shares authorized	50,000,000	0
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, shares authorized	400,000,000	200,000
Common stock, shares issued	279,446	22,223
Common stock, shares outstanding	279,446	22,223

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Revenues	'	'
Interest income	$4,367	$4,367
Total revenue	4,367	4,367
Expenses	'	'
General and administrative expenses	5,315	5,315
Advisory fees-related party	903	903
Total expenses	6,218	6,218
Net income (loss)	-1,851	-1,851
Less: net (income) loss attributable to non-controlling interests	18	18
Net income (loss) attributable to NorthStar Real Estate Income II, Inc. common stockholders	($1,833)	($1,833)
Net income (loss) per share of common stock, basic/diluted	($0.03)	($0.05)
Weighted average number of shares of common stock outstanding, basic/diluted	57,307	34,046
Distributions declared per share of common stock	$0.18	$0.18

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Statement of Comprehensive Income [Abstract]	'	'
Net income (loss)	($1,851)	($1,851)
Comprehensive income (loss)	-1,851	-1,851
Less: Comprehensive (income) loss attributable to non-controlling interests	18	18
Comprehensive income (loss) attributable to NorthStar Real Estate Income II, Inc.	($1,833)	($1,833)

CONSOLIDATED_STATEMENTS_OF_EQU

CONSOLIDATED STATEMENTS OF EQUITY (USD $)	Total	Common Stock	Additional Paid-in Capital	Retained Earnings(Accumulated Deficit)	Total Company's Stockholders' Equity	Non-controlling Interests
Balance at Dec. 31, 2012	$202,007	$222	$199,785	'	$200,007	$2,000
Balance (in shares) at Dec. 31, 2012	22,223	22,223	'	'	'	'
Increase (Decrease) in Stockholder's Equity	'	'	'	'	'	'
Net proceeds from issuance of common stock (refer to Note 4) (in shares)	'	242,223	'	'	'	'
Net proceeds from issuance of common stock (refer to Note 4)	2,148,657	2,422	2,146,235	'	2,148,657	'
Issuance and amortization of equity-based compensation (in shares)	'	15,000	'	'	'	'
Issuance and amortization of equity-based compensation	1,202	150	1,052	'	1,202	'
Distributions declared	-5,990	'	'	-5,990	-5,990	'
Net income (loss)	-1,851	'	'	-1,833	-1,833	-18
Balance at Sep. 30, 2013	$2,344,025	$2,794	$2,347,072	($7,823)	$2,342,043	$1,982
Balance (in shares) at Sep. 30, 2013	279,446	279,446	'	'	'	'

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	0 Months Ended	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013
Cash flows from operating activities:	'	'	'
Net income (loss)	'	($1,851)	($1,851)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:	'	'	'
Amortization of equity-based compensation	'	'	1,202
Changes in assets and liabilities:	'	'	'
Accrued interest receivable	'	'	-7,642
Due to related party	'	'	4,983
Other liabilities	'	'	33
Net cash provided by (used in) operating activities	'	'	-3,275
Cash flows from investing activities:	'	'	'
Acquisition of real estate debt investments, net (refer to Note 3)	'	'	-1,980,000
Net cash provided by (used in) investing activities	'	'	-1,980,000
Cash flows from financing activities:	'	'	'
Net proceeds from issuance of common stock, related party	'	'	1,971,507
Net proceeds from issuance of common stock	'	'	28,500
Net cash provided by (used in) financing activities	'	'	2,000,007
Net increase (decrease) in cash	'	'	16,732
Cash - beginning of period	'	'	202,007
Cash - end of period	218,739	218,739	218,739
Supplemental disclosure of non-cash investing and financing activities:	'	'	'
Accrued cost of capital (refer to Note 4)	51,350	51,350	51,350
Subscriptions receivable, gross	200,000	200,000	200,000
Distribution payable	5,990	5,990	5,990
Accrued acquisition fee (refer to Note 4)	$20,000	'	'

Business_and_Organization

Business and Organization	9 Months Ended
	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Business and Organization	'
	Business and Organization
	NorthStar Real Estate Income II, Inc. (the "Company") was formed on December 11, 2012 as a Maryland corporation and intends to qualify as a real estate investment trust ("REIT") beginning with the taxable year ending December 31, 2013. The Company was formed primarily to originate, acquire and asset manage a diversified portfolio of commercial real estate ("CRE") debt, securities and other select equity investments. CRE debt investments may include first mortgage loans, subordinate mortgage and mezzanine loans and participations in such loans and preferred equity interests. CRE securities primarily consist of commercial mortgage-backed securities ("CMBS") and may include unsecured REIT debt, collateralized debt obligation ("CDO") notes and other securities. The Company is externally managed by NS Real Estate Income Advisor II, LLC (the "Advisor") and has no employees. The Advisor uses the investment professionals of NorthStar Realty Finance Corp. (the "Sponsor") to manage the business. The Sponsor is a diversified CRE investment and asset management company publicly traded on the New York Stock Exchange and was formed in October 2003.
	Substantially all business is conducted through NorthStar Real Estate Income Operating Partnership II, LP (the "Operating Partnership"). The Company is the sole general partner of the Operating Partnership. The initial limited partners of the Operating Partnership are the Advisor and NorthStar Real Estate Income OP Holdings II, LLC (the "Special Unit Holder"). The Advisor invested $1,000 in the Operating Partnership in exchange for common units and the Special Unit Holder invested $1,000 in the Operating Partnership and has been issued a separate class of limited partnership units (the "Special Units"), which are collectively recorded as non-controlling interests on the consolidated balance sheets as of September 30, 2013 and December 31, 2012. As the Company accepts subscriptions for shares, it contributes substantially all of the net proceeds from its continuous, public offering to the Operating Partnership as a capital contribution. As of September 30, 2013, the Company's limited partnership interest in the Operating Partnership was 92.05%.
	The Company's charter authorizes the issuance of up to 400,000,000 shares of common stock with a par value of $0.01 per share and up to 50,000,000 shares of preferred stock with a par value of $0.01 per share. The board of directors of the Company is authorized to amend its charter, without the approval of the stockholders, to increase the aggregate number of authorized shares of capital stock or the number of shares of any class or series that the Company has authority to issue.
	On December 18, 2012, as part of formation, the Company issued 22,223 shares of common stock to the Sponsor for $0.2 million (the "Initial Shares"). On May 6, 2013, the Company's registration statement on Form S-11 with the Securities and Exchange Commission (the "SEC") to offer a maximum of 165,789,474 shares of common stock, excluding the Initial Shares, in a continuous, public offering, of which up to 150,000,000 shares are being offered pursuant to the primary offering (the "Primary Offering") and up to 15,789,474 shares are being offered pursuant to the distribution reinvestment plan (the "DRP") and are herein collectively referred to as the Offering, was declared effective. At that time, the Company retained NorthStar Realty Securities, LLC (the "Dealer Manager"), a subsidiary of the Sponsor, to serve as the dealer manager for the Primary Offering. The Dealer Manager is responsible for marketing the shares being offered pursuant to the Offering. The board of directors of the Company has the right to reallocate shares between the Offering and the DRP.
	On September 18, 2013, the Company commenced operations by satisfying the minimum offering requirement in its Primary Offering as a result of the Sponsor purchasing an additional 222,223 shares of common stock for $2.0 million. From inception through November 11, 2013, the Company raised total gross proceeds of $7.4 million.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Summary of Significant Accounting Policies	'
	Summary of Significant Accounting Policies
	Basis of Quarterly Presentation
	The accompanying unaudited consolidated financial statements and related notes of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and note disclosures normally included in the consolidated financial statements prepared under U.S. GAAP have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company's financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year.
	Principles of Consolidation
	The consolidated financial statements include the accounts of the Company, the Operating Partnership and their consolidated subsidiaries which are generally majority owned or otherwise controlled by the Company. There were no intercompany balances as of September 30, 2013 and December 31, 2012.
	Estimates
	The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that could affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates and assumptions.
	Real Estate Debt Investments
	CRE debt investments are generally intended to be held to maturity and, accordingly, are carried at cost, net of unamortized loan fees, premium, discount and unfunded commitments. CRE debt investments that are deemed to be impaired are carried at amortized cost less a loan loss reserve, if deemed appropriate, which approximates fair value.
	Real Estate Securities
	The Company classifies its CRE securities investments as available for sale on the acquisition date, which are carried at fair value. Unrealized gains (losses) are recorded as a component of accumulated other comprehensive income (loss) ("OCI") in the consolidated statements of equity. However, the Company may elect the fair value option for certain of its available for sale securities, and as a result, any unrealized gains (losses) on such securities are recorded in unrealized gain (loss) on investments and other in the consolidated statements of operations.
	Revenue Recognition
	Real Estate Debt Investments
	Interest income is recognized on an accrual basis and any related premium, discount, origination costs and fees are amortized over the life of the investment using the effective interest method. The amortization is reflected as an adjustment to interest income in the consolidated statements of operations. The amortization of a premium or accretion of a discount is discontinued if such loan is reclassified to held for sale.
	Real Estate Securities
	Interest income is recognized using the effective interest method with any premium or discount amortized or accreted through earnings based on expected cash flow through the expected maturity date of the security. Changes to expected cash flow may result in a change to the yield which is then applied retrospectively for high-credit quality securities that cannot be prepaid or otherwise settled in such a way that the holder would not recover substantially all of the investment or prospectively for all other securities to recognize interest income.
	Credit Losses and Impairment on Investments
	Real Estate Debt Investments
	Loans are considered impaired when, based on current information and events, it is probable that the Company will not be able to collect principal and interest amounts due according to the contractual terms. The Company assesses the credit quality of the portfolio and adequacy of loan loss reserves on a quarterly basis, or more frequently as necessary. Significant judgment of the Company is required in this analysis. The Company considers the estimated net recoverable value of the loan as well as other factors, including but not limited to the fair value of any collateral, the amount and the status of any senior debt, the quality and financial condition of the borrower and the competitive situation of the area where the underlying collateral is located. Because this determination is based on projections of future economic events, which are inherently subjective, the amount ultimately realized may differ materially from the carrying value as of the balance sheet date. If upon completion of the assessment, the estimated fair value of the underlying collateral is less than the net carrying value of the loan, a loan loss reserve is recorded with a corresponding charge to provision for loan losses. The loan loss reserve for each loan is maintained at a level that is determined to be adequate by management to absorb probable losses. As of September 30, 2013, the Company did not have any impaired CRE debt investments.
	Income recognition is suspended for a loan at the earlier of the date at which payments become 90-days past due or when, in the opinion of the Company, a full recovery of income and principal becomes doubtful. When the ultimate collectability of the principal of an impaired loan is in doubt, all payments are applied to principal under the cost recovery method. When the ultimate collectability of the principal of an impaired loan is not in doubt, contractual interest is recorded as interest income when received, under the cash basis method until an accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. A loan is written off when it is no longer realizable and/or legally discharged.
	Real Estate Securities
	CRE securities for which the fair value option is elected are not evaluated for other-than-temporary impairment ("OTTI") as any change in fair value is recorded in the consolidated statements of operations. Realized losses on such securities are reclassified to realized gain (loss) on investments and other as losses occur.
	CRE securities for which the fair value option is not elected are evaluated for OTTI quarterly. Impairment of a CRE security is considered to be other-than-temporary when: (i) the holder has the intent to sell the impaired security; (ii) it is more likely than not the holder will be required to sell the security; or (iii) the holder does not expect to recover the entire amortized cost of the security. When a security has been deemed to be other-than-temporarily impaired due to (i) or (ii), the security is written down to its fair value and an OTTI is recognized in the consolidated statements of operations. In the case of (iii), the security is written down to its fair value and the amount of OTTI is then bifurcated into: (i) the amount related to expected credit losses; and (ii) the amount related to fair value adjustments in excess of expected credit losses. The portion of OTTI related to expected credit losses is recognized in the consolidated statements of operations. The remaining OTTI related to the valuation adjustment is recognized as a component of accumulated OCI in the consolidated statements of equity. The portion of OTTI recognized through earnings is accreted back to the amortized cost basis of the security through interest income, while amounts recognized through OCI are amortized over the life of the security with no impact on earnings. CRE securities which are not high-credit quality are considered to have an OTTI if the security has an unrealized loss and there has been an adverse change in expected cash flow. The amount of OTTI is then bifurcated as discussed above.
	Recent Accounting Pronouncements
	In February 2013, the Financial Accounting Standards Board issued an accounting update to present the reclassification adjustments to OCI by component on the face of the statement of operations or in the notes to the consolidated financial statements. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety into earnings, an entity is required to cross-reference to other disclosures required under U.S. GAAP to provide additional detail about those amounts. The Company adopted the provisions of the update and it did not have a material impact on the consolidated financial statements.

Real_Estate_Debt_Investments

Real Estate Debt Investments

9 Months Ended

Sep. 30, 2013

Mortgage Loans on Real Estate [Abstract]

'

Real Estate Debt Investments

'

Real Estate Debt Investments

The following table presents CRE investments, all of which have been originated by the Sponsor on behalf of the Company, as of September 30, 2013:

Asset Type:

Number of Investments

Maturity Date

Extended Maturity Date

Principal Amount

Carrying Amount

Spread over

Unleveraged Current Yield

LIBOR(1,2)

First mortgage loan

1

16-Sep

18-Sep

$

2,000,000

$

2,000,000

6.3

%

6.62

%

__________________________

-1

Represents a pari passu participation interest in a $25.5 million first mortgage loan.

-2

Subject to a fixed minimum LIBOR rate of 0.25%.

Related_Party_Arrangements

Related Party Arrangements	9 Months Ended
	Sep. 30, 2013
Related Party Transactions [Abstract]	'
Related Party Arrangements	'
	Related Party Arrangements
	NS Real Estate Income Advisor II, LLC
	Subject to certain restrictions and limitations, the Advisor is responsible for managing the Company's affairs on a day-to-day basis and for identifying, originating, acquiring and asset managing investments on behalf of the Company. For such services, to the extent permitted by law and regulations, the Advisor receives fees and reimbursements from the Company. Below is a description and table of the fees and reimbursements incurred to the Advisor.
	Organization and Offering Costs
	The Advisor, or its affiliates, is entitled to receive reimbursement for organization and offering costs paid on behalf of the Company in connection with the Offering. The Company is obligated to reimburse the Advisor, or its affiliates, as applicable, for organization and offering costs to the extent the aggregate of selling commissions, dealer manager fees and other organization and offering costs do not exceed 15.0% of gross proceeds from the Offering. The Advisor does not expect reimbursable organization and offering costs, excluding selling commissions and dealer manager fees, to exceed $24.8 million, or 1.5% of the total proceeds available to be raised from the Offering. The Company records organization and offering costs each period based on an allocation of expected total organization and offering costs to be reimbursed. Organization costs are recorded in general and administrative expenses in the consolidated statements of operations and offering costs are recorded as a reduction to equity.
	Operating Costs
	The Advisor, or its affiliates, is entitled to receive reimbursement for direct and indirect operating costs incurred by the Advisor in connection with administrative services provided to the Company. Indirect operating costs include the Company's allocable share of costs incurred by the Advisor for personnel and other overhead such as rent, technology and utilities. However, there is no reimbursement for personnel costs related to executive officers and other personnel involved in activities for which the Advisor receives an acquisition fee or a disposition fee. The Company reimburses the Advisor quarterly for operating costs (including the asset management fee) based on a calculation for the four preceding fiscal quarters not to exceed the greater of: (i) 2.0% of its average invested assets; or (ii) 25.0% of its net income determined without reduction for any additions to reserves for depreciation, loan losses or other similar non-cash reserves and excluding any gain from the sale of assets for that period. Notwithstanding the above, the Company may reimburse the Advisor for expenses in excess of this limitation if a majority of the Company's independent directors determines that such excess expenses are justified based on unusual and non-recurring factors. The Company calculates the expense reimbursement quarterly based upon the trailing twelve-month period.
	Advisory Fees
	Asset Management Fee
	The Advisor, or its affiliates, receives a monthly asset management fee equal to one-twelfth of 1.25% of the sum of the amount funded or allocated for CRE investments, including expenses and any financing attributable to such investments, less any principal received on debt and securities investments (or the proportionate share thereof in the case of an investment made through a joint venture).
	Acquisition Fee
	The Advisor, or its affiliates, also receives an acquisition fee equal to 1.0% of the amount funded or allocated by the Company to originate or acquire investments, including acquisition expenses and any financing attributable to such investments. An acquisition fee paid to the Advisor related to the origination or acquisition of CRE debt investments is included in CRE debt investments, net on the consolidated balance sheets and is amortized to interest income over the life of the investment using the effective interest method. An acquisition fee incurred related to an equity investment will generally be expensed as incurred.
	Disposition Fee
	For substantial assistance in connection with the sale of investments and based on the services provided, the Advisor, or its affiliates, receives a disposition fee equal to 1.0% of the contract sales price of each CRE investment sold. The Company does not pay a disposition fee upon the maturity, prepayment, workout, modification or extension of a CRE debt investment unless there is a corresponding fee paid by the borrower, in which case the disposition fee is the lesser of: (i) 1.0% of the principal amount of the CRE debt investment 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 CRE debt investment, the Company will pay a disposition fee upon the sale of such property. A disposition fee incurred to the Advisor on CRE debt investments is included in CRE debt investments, net on the consolidated balance sheets and is amortized to interest income over the life of the investment using the effective interest method.
	NorthStar Realty Securities, LLC
	Selling Commissions and Dealer Manager Fees
	Pursuant to a dealer manager agreement, the Company pays the Dealer Manager selling commissions of up to 7.0% of gross proceeds from the Primary Offering, all of which are reallowed to participating broker-dealers. In addition, the Company pays the Dealer Manager a dealer manager fee of up to 3.0% of gross proceeds from the Primary Offering, a portion of which is reallowed to participating broker-dealers. No selling commissions or dealer manager fees are paid for sales pursuant to the DRP.
	Summary of Fees and Reimbursements
	The following table presents the fees and reimbursements incurred to the Advisor for the three and nine months ended September 30, 2013 and the due to related party as of September 30, 2013:
				30-Sep-13				Due to related party as of
	Type of Fee or Reimbursement		Financial Statement Location	Three Months Ended		Nine Months Ended		30-Sep-13
	Organization and offering costs
	Organization (1)		General and administrative expenses	$	1,650	$	1,650	$	1,650
	Offering (1)		Cost of capital (2)	31,350		31,350		31,350
	Operating costs (3)		General and administrative expenses	2,430		2,430		2,430
	Advisory fees
	Asset management		Advisory fees-related party	903		903		903
	Acquisition (4)		Real estate debt investments, net	20,000		20,000		20,000
	Disposition (4)		Real estate debt investments, net	—		—		—
	Selling commissions / Dealer manager fees		Cost of capital (2)	—		—		—
	Total							$	56,333
	___________________________
	-1	As of September 30, 2013, the Advisor incurred unreimbursed organization and offering costs on behalf of the Company and $2.0 million is still allocable.
	-2	Cost of capital is included in net proceeds from issuance of common stock in the consolidated statements of equity.
	-3	As of September 30, 2013, the Advisor incurred unreimbursed operating costs on behalf of the Company and $0.8 million is still allocable.
	-4	Acquisition/disposition fees incurred to the Advisor related to debt investments are generally offset by origination/exit fees paid to the Company by borrowers if such fees are required from the borrower. The Advisor may determine to defer fees or seek reimbursement.
	Sponsor Purchase of Common Stock
	Pursuant to the distribution support agreement, (the "Distribution Support Agreement"), the Sponsor committed to purchase up to an aggregate of $10.0 million in shares of the Company's common stock at a price of $9.00 per share if cash distributions exceed modified funds from operations (as defined in accordance with the current practice guidelines issued by the Investment Program Association) to provide additional funds to support distributions to stockholders. In September 2013, the Sponsor purchased 222,223 shares of the Company's common stock for $2.0 million under the Distribution Support Agreement to satisfy the minimum offering requirement, which reduced the total commitment.
	Purchase of First Mortgage Loan
	In September 2013, the Company entered into a participation agreement with the Sponsor to acquire a $2.0 million pari passu participation interest in a first mortgage loan.

EquityBased_Compensation

Equity-Based Compensation	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Equity-Based Compensation	'
	Equity-Based Compensation
	The Company adopted a long-term incentive plan (the "Plan"), which it may use to attract and retain qualified officers, directors, employees and consultants, as well as an independent directors compensation plan, which is a component of the Plan. Each of the Company's three independent directors received 5,000 shares of restricted stock in connection with the commencement of operations on September 18, 2013. For the three and nine months ended September 30, 2013, the Company recognized $1,202 of equity-based compensation expense, respectively, related to the issuance of restricted stock to the independent directors, which was recorded in general and administrative expenses in the consolidated statements of operations.

Stockholders_Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2013
Stockholders' Equity Note [Abstract]	'
Stockholder's Equity	'
	Stockholders' Equity
	Common Stock
	For the nine months ended September 30, 2013, the Company issued 242,223 shares of common stock generating gross proceeds of $2.2 million.
	Distribution Reinvestment Plan
	The Company adopted a DRP through which common stockholders may elect to reinvest an amount equal to the distributions declared on their shares in additional shares of the Company's common stock in lieu of receiving cash distributions. The initial purchase price per share pursuant to the DRP is $9.50. Once the Company establishes an estimated value per share, shares issued pursuant to the DRP will be priced at 95.0% of the estimated value per share of the Company's common stock, as determined by the Advisor or another firm chosen for that purpose. The Company expects to establish an estimated value per share within 18 months after the completion of its offering stage. The offering stage will be considered complete when the Company is no longer publicly offering equity securities, whether through the Offering or follow-on public offering. No selling commissions or dealer manager fees are paid on shares issued pursuant to the DRP. The board of directors of the Company may amend, suspend or terminate the DRP for any reason upon ten-days' notice to participants.
	Distributions
	Distributions to stockholders are declared quarterly by the board of directors of the Company and are paid monthly based on a daily amount of $0.001917808 per share. The Company declared distributions on September 18, 2013, the date of the Company's first investment, for the period from September 18, 2013 through September 30, 2013 and for each of the three consecutive months immediately following the current reporting period end. Distributions are generally paid to stockholders on the first day of the month following the month for which the distribution has accrued.
	Share Repurchase Program
	The Company adopted a share repurchase program that may enable stockholders to sell their shares to the Company in limited circumstances (the "Share Repurchase Program"). The Company may not repurchase shares unless a stockholder has held shares for one year. However, the Company may repurchase shares held less than one year in connection with a stockholder's death or disability (as disability is defined in the Internal Revenue Code) and after receiving written notice from the stockholder or the stockholder's estate. The Company is not obligated to repurchase shares under the Share Repurchase Program. The Company may amend, suspend or terminate the Share Repurchase Program at its discretion at any time, subject to certain notice requirements. As of September 30, 2013, the Company had not repurchased any shares pursuant to the Share Repurchase Program.

Noncontrolling_Interests

Non-controlling Interests	9 Months Ended
	Sep. 30, 2013
Noncontrolling Interest [Abstract]	'
Non-controlling interests	'
	Non-controlling Interests
	Operating Partnership
	Non-controlling interests represent the aggregate limited partnership interests in the Operating Partnership held by limited partners, other than the Company. Income (loss) attributable to the non-controlling interests is based on the limited partners' ownership percentage of the Operating Partnership. Income (loss) allocated to the Operating Partnership non-controlling interests for the three and nine months ended September 30, 2013 was an immaterial amount.

Fair_Value

Fair Value	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Fair Value	'
	Fair Value
	Fair Value Measurement
	The fair value of financial instruments is categorized based on the priority of the inputs to the valuation technique and categorized into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.
	Financial assets and liabilities recorded at fair value on the consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:
	Level 1.	Quoted prices for identical assets or liabilities in an active market.
	Level 2.	Financial assets and liabilities whose values are based on the following:
	a.	Quoted prices for similar assets or liabilities in active markets.
	b.	Quoted prices for identical or similar assets or liabilities in non-active markets.
	c.	Pricing models whose inputs are observable for substantially the full term of the asset or liability.
	d.	Pricing models whose inputs are derived principally from or corroborated by observable market data for substantially the full term of the asset or liability.
	Level 3.	Prices or valuation techniques based on inputs that are both unobservable and significant to the overall fair value measurement.
	Fair Value of Financial Instruments
	U.S. GAAP requires disclosure of fair value about all financial instruments. The following disclosure of estimated fair value of financial instruments was determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on estimated fair value.
	The following table presents the principal amount, carrying value and fair value of certain financial assets as of September 30, 2013:
		Principal	Carrying	Fair
		Amount	Value	Value
	Financial assets: (1)
	Real estate debt investments, net	2,000,000	2,000,000	2,000,000
	__________________________________________
	-1	The fair value of other financial instruments not included in this table is estimated to approximate their carrying value.
	Disclosure about fair value of financial instruments is based on pertinent information available to management as of the reporting date. Although management is not aware of any factors that would significantly affect fair value, such amounts have not been comprehensively revalued for purposes of these consolidated financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein.
	Real Estate Debt Investments
	For CRE debt investments, fair value was approximated by comparing the current yield to the estimated yield for newly originated loans with similar credit risk or the market yield at which a third party might expect to purchase such investment but not to exceed principal amount. Fair value was determined assuming fully-extended maturities regardless of structural or economic tests required to achieve such extended maturities. These fair value measurements of CRE debt are generally based on unobservable inputs and, as such, are classified as Level 3 of the fair value hierarchy.

Subsequent_Events

Subsequent Events	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
Subsequent Events	'
	Subsequent Events
	Distributions
	On November 12, 2013, the board of directors of the Company approved a daily cash distribution of $0.001917808 per share of common stock for each of the three months ended March 31, 2014. Distributions are generally paid to stockholders on the first day of the month following the month for which the distribution has accrued.
	Offering Proceeds
	For the period from October 1, 2013 through November 11, 2013, the Company issued 500,099 shares of common stock pursuant to its Offering generating gross proceeds of $5.0 million.
	Sponsor Purchase of Common Stock
	On November 12, 2013, the Company's board of directors approved the sale of 663 shares of the Company's common stock to the Sponsor pursuant to the Distribution Support Agreement. In connection with this approval and including the shares purchased to satisfy the minimum offering requirement, the Sponsor will have purchased 222,886 shares for $2.0 million.
	Credit Facility
	On October 15, 2013, the Company entered into a credit facility agreement with a global financial institution. The credit facility provides up to $100.0 million to finance first mortgage loans and senior loan participations secured by commercial real estate. The interest rate and advance rate depend upon asset type and characteristics.  The initial maturity date of the credit facility is October 15, 2016, with a one-year extension at the Company's option, which may be exercised upon the satisfaction of certain conditions set forth in the governing documents.
	During the initial term, the credit facility acts as a revolving credit facility that can be paid down as assets payoff and re-drawn upon for new investments.
	The Company agreed to guarantee certain obligations of the credit facility if the Company or any of its affiliates engages in certain customary bad acts. The credit facility contains representations, warranties, covenants, conditions precedent to funding, events of default and indemnities that are customary for agreements of these types. More specifically, the Company must maintain at least $3.75 million and a maximum of $15.0 million in unrestricted cash, depending on the amount drawn, at all times during the term of the credit facility. As of November 13, 2013, the Company had no borrowings outstanding under the credit facility.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Basis of Quarterly Presentation	'
	Basis of Quarterly Presentation
	The accompanying unaudited consolidated financial statements and related notes of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and note disclosures normally included in the consolidated financial statements prepared under U.S. GAAP have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company's financial position, results of operations and cash flows have been included and are of a normal and recurring nature.
Principles of Consolidation	'
	Principles of Consolidation
	The consolidated financial statements include the accounts of the Company, the Operating Partnership and their consolidated subsidiaries which are generally majority owned or otherwise controlled by the Company.
Estimates	'
	Estimates
	The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that could affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates and assumptions.
Real Estate Debt Investments	'
	Real Estate Debt Investments
	CRE debt investments are generally intended to be held to maturity and, accordingly, are carried at cost, net of unamortized loan fees, premium, discount and unfunded commitments. CRE debt investments that are deemed to be impaired are carried at amortized cost less a loan loss reserve, if deemed appropriate, which approximates fair value.
Real Estate Securities	'
	Real Estate Securities
	The Company classifies its CRE securities investments as available for sale on the acquisition date, which are carried at fair value. Unrealized gains (losses) are recorded as a component of accumulated other comprehensive income (loss) ("OCI") in the consolidated statements of equity. However, the Company may elect the fair value option for certain of its available for sale securities, and as a result, any unrealized gains (losses) on such securities are recorded in unrealized gain (loss) on investments and other in the consolidated statements of operations.
Revenue Recognition	'
	Revenue Recognition
	Real Estate Debt Investments
	Interest income is recognized on an accrual basis and any related premium, discount, origination costs and fees are amortized over the life of the investment using the effective interest method. The amortization is reflected as an adjustment to interest income in the consolidated statements of operations. The amortization of a premium or accretion of a discount is discontinued if such loan is reclassified to held for sale.
	Real Estate Securities
	Interest income is recognized using the effective interest method with any premium or discount amortized or accreted through earnings based on expected cash flow through the expected maturity date of the security. Changes to expected cash flow may result in a change to the yield which is then applied retrospectively for high-credit quality securities that cannot be prepaid or otherwise settled in such a way that the holder would not recover substantially all of the investment or prospectively for all other securities to recognize interest income.
Credit Losses and Impairment on Investments	'
	Credit Losses and Impairment on Investments
	Real Estate Debt Investments
	Loans are considered impaired when, based on current information and events, it is probable that the Company will not be able to collect principal and interest amounts due according to the contractual terms. The Company assesses the credit quality of the portfolio and adequacy of loan loss reserves on a quarterly basis, or more frequently as necessary. Significant judgment of the Company is required in this analysis. The Company considers the estimated net recoverable value of the loan as well as other factors, including but not limited to the fair value of any collateral, the amount and the status of any senior debt, the quality and financial condition of the borrower and the competitive situation of the area where the underlying collateral is located. Because this determination is based on projections of future economic events, which are inherently subjective, the amount ultimately realized may differ materially from the carrying value as of the balance sheet date. If upon completion of the assessment, the estimated fair value of the underlying collateral is less than the net carrying value of the loan, a loan loss reserve is recorded with a corresponding charge to provision for loan losses. The loan loss reserve for each loan is maintained at a level that is determined to be adequate by management to absorb probable losses. As of September 30, 2013, the Company did not have any impaired CRE debt investments.
	Income recognition is suspended for a loan at the earlier of the date at which payments become 90-days past due or when, in the opinion of the Company, a full recovery of income and principal becomes doubtful. When the ultimate collectability of the principal of an impaired loan is in doubt, all payments are applied to principal under the cost recovery method. When the ultimate collectability of the principal of an impaired loan is not in doubt, contractual interest is recorded as interest income when received, under the cash basis method until an accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. A loan is written off when it is no longer realizable and/or legally discharged.
	Real Estate Securities
	CRE securities for which the fair value option is elected are not evaluated for other-than-temporary impairment ("OTTI") as any change in fair value is recorded in the consolidated statements of operations. Realized losses on such securities are reclassified to realized gain (loss) on investments and other as losses occur.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	In February 2013, the Financial Accounting Standards Board issued an accounting update to present the reclassification adjustments to OCI by component on the face of the statement of operations or in the notes to the consolidated financial statements. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety into earnings, an entity is required to cross-reference to other disclosures required under U.S. GAAP to provide additional detail about those amounts. The Company adopted the provisions of the update and it did not have a material impact on the consolidated financial statements.

Real_Estate_Debt_Investments_T

Real Estate Debt Investments (Tables)

9 Months Ended

Sep. 30, 2013

Mortgage Loans on Real Estate [Abstract]

'

Schedule of Mortgage Loans on Real Estate

'

The following table presents CRE investments, all of which have been originated by the Sponsor on behalf of the Company, as of September 30, 2013:

Asset Type:

Number of Investments

Maturity Date

Extended Maturity Date

Principal Amount

Carrying Amount

Spread over

Unleveraged Current Yield

LIBOR(1,2)

First mortgage loan

1

16-Sep

18-Sep

$

2,000,000

$

2,000,000

6.3

%

6.62

%

__________________________

-1

Represents a pari passu participation interest in a $25.5 million first mortgage loan.

-2

Subject to a fixed minimum LIBOR rate of 0.25%.

Related_Party_Arrangements_Tab

Related Party Arrangements (Tables)	9 Months Ended
	Sep. 30, 2013
Related Party Transactions [Abstract]	'
Schedule of Related Party Transactions	'
	The following table presents the fees and reimbursements incurred to the Advisor for the three and nine months ended September 30, 2013 and the due to related party as of September 30, 2013:
				30-Sep-13				Due to related party as of
	Type of Fee or Reimbursement		Financial Statement Location	Three Months Ended		Nine Months Ended		30-Sep-13
	Organization and offering costs
	Organization (1)		General and administrative expenses	$	1,650	$	1,650	$	1,650
	Offering (1)		Cost of capital (2)	31,350		31,350		31,350
	Operating costs (3)		General and administrative expenses	2,430		2,430		2,430
	Advisory fees
	Asset management		Advisory fees-related party	903		903		903
	Acquisition (4)		Real estate debt investments, net	20,000		20,000		20,000
	Disposition (4)		Real estate debt investments, net	—		—		—
	Selling commissions / Dealer manager fees		Cost of capital (2)	—		—		—
	Total							$	56,333
	___________________________
	-1	As of September 30, 2013, the Advisor incurred unreimbursed organization and offering costs on behalf of the Company and $2.0 million is still allocable.
	-2	Cost of capital is included in net proceeds from issuance of common stock in the consolidated statements of equity.
	-3	As of September 30, 2013, the Advisor incurred unreimbursed operating costs on behalf of the Company and $0.8 million is still allocable.
	-4	Acquisition/disposition fees incurred to the Advisor related to debt investments are generally offset by origination/exit fees paid to the Company by borrowers if such fees are required from the borrower. The Advisor may determine to defer fees or seek reimbursement.

Fair_Value_Tables

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Schedule of the principal amount, carrying value and fair value of certain financial assets	'
	The following table presents the principal amount, carrying value and fair value of certain financial assets as of September 30, 2013:
		Principal	Carrying	Fair
		Amount	Value	Value
	Financial assets: (1)
	Real estate debt investments, net	2,000,000	2,000,000	2,000,000
	__________________________________________
	-1	The fair value of other financial instruments not included in this table is estimated to approximate their carrying value.

Business_and_Organization_Deta

Business and Organization (Details) (USD $)	0 Months Ended	1 Months Ended	9 Months Ended			0 Months Ended	9 Months Ended	12 Months Ended	9 Months Ended	12 Months Ended	2 Months Ended
	6-May-13	Dec. 18, 2012	Sep. 30, 2013	Dec. 31, 2012	6-May-13	Sep. 18, 2013	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Dec. 31, 2012	Nov. 11, 2013
			Employee		Maximum	Sponsor	Advisor	Advisor	Special Unit Holder	Special Unit Holder	Subsequent Event
Business and Organization	'	'	'	'	'	'	'	'	'	'	'
Number of employees	'	'	0	'	'	'	'	'	'	'	'
Non-controlling interest investment in operating partnership	'	'	'	'	'	'	$1,000	$1,000	$1,000	$1,000	'
Limited partnership interest in the operating partnership	'	'	92.05%	'	'	'	'	'	'	'	'
Common stock, shares authorized	'	'	400,000,000	200,000	'	'	'	'	'	'	'
Common stock, par value (in dollars per share)	'	'	$0.01	$0.01	'	'	'	'	'	'	'
Preferred stock, shares authorized	'	'	50,000,000	0	'	'	'	'	'	'	'
Preferred stock, par value (in dollars per share)	'	'	$0.01	$0.01	'	'	'	'	'	'	'
Number of shares of common stock issued	'	22,223	'	'	'	222,223	'	'	'	'	'
Net proceeds from issuance of common stock (refer to Note 4)	'	$200,000	$2,148,657	'	'	$2,000,000	'	'	'	'	$7,400,000
Common stock filed in a registration statement with SEC, for issuance pursuant to offering	'	'	'	'	165,789,474	'	'	'	'	'	'
Common stock filed in a registration statement with SEC, for issuance pursuant to the primary offering	150,000,000	'	'	'	'	'	'	'	'	'	'
Common stock filed in a registration statement with SEC, for issuance pursuant to DRP	15,789,474	'	'	'	'	'	'	'	'	'	'

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Details) (USD $)	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Consolidation	'	'
Intercompany balances	$0	$0
Credit Losses and Impairment on Investments	'	'
Period past due for suspension of income recognition	'90 days	'

Real_Estate_Debt_Investments_D

Real Estate Debt Investments (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2013
			Registrant and Sponsor	Sponsor
			First mortgage loan	First mortgage loan
				loan
Mortgage Loans on Real Estate	'	'	'	'
Number of Investments	'	'	'	1
Principal Amount	'	'	'	$2,000,000
Carrying Amount	2,000,000	'	'	2,000,000
Spread over LIBOR	'	'	'	6.30%
Unleveraged Current Yield	'	'	'	6.62%
Mortgage loan	'	'	$25,500,000	'
Interest Rate Basis Floor	'	'	'	0.25%

Related_Party_Arrangements_Det

Related Party Arrangements (Details) (USD $)

1 Months Ended

9 Months Ended

9 Months Ended

0 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

Dec. 18, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 18, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Dealer Manager

Maximum

Advisor

Advisor

Advisor

Advisor

Advisor

Advisor

Advisor

Sponsor

Sponsor

Sponsor

Real estate debt investments, net

Real estate debt investments, net

Real estate debt investments, net

Real estate debt investments, net

General and administrative expenses

General and administrative expenses

General and administrative expenses

General and administrative expenses

Advisory fees-related party

Advisory fees-related party

Cost of capital

Cost of capital

Cost of capital

Cost of capital

First mortgage loan

First mortgage loan

Dealer Manager

Operating Costs

Asset Management Fee

Acquisition Fee

Disposition Fee

Maximum

Maximum

Maximum

Advisor

Advisor

Advisor

Advisor

Advisor

Advisor

Advisor

Advisor

Advisor

Advisor

Advisor

Advisor

Dealer Manager

Dealer Manager

Sponsor

Sponsor

Quarter

Organization and Offering Costs

Operating Costs

Acquisition Fee

Acquisition Fee

Disposition Fee

Disposition Fee

Organization Costs

Organization Costs

Operating Costs

Operating Costs

Asset Management Fee

Asset Management Fee

Offering Costs

Offering Costs

Related Party Transaction [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Allocable Unreimbursed organization and offering costs

'

'

'

'

'

$2,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Allocable unreimbursed operating costs

'

'

'

'

'

800,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of shares of common stock issued

22,223

'

'

'

'

'

'

'

'

'

'

'

222,223

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Proceeds from issuance of common stock

200,000

2,148,657

'

'

'

'

'

'

'

'

'

'

2,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Value of shares of common stock committed to be purchased

'

'

'

'

'

'

'

'

'

'

'

'

'

'

10,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Share Price

'

'

'

'

'

'

'

'

'

'

'

'

'

$9

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Due to related party

'

56,333

'

'

'

'

'

'

'

'

'

'

'

'

'

20,000

[1]

20,000

[1]

0

[1]

0

[1]

1,650

[2]

1,650

[2]

2,430

[3]

2,430

[3]

903

903

31,350

[2],[4]

31,350

[2],[4]

0

[4]

0

[4]

'

'

Fees and Reimbursements

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

20,000

[1]

20,000

[1]

0

[1]

0

[1]

1,650

[2]

1,650

[2]

2,430

[3]

2,430

[3]

903

903

31,350

[2],[4]

31,350

[2],[4]

0

[4]

0

[4]

'

'

Organization and Offering Costs

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Percentage of gross offering proceeds from primary offering, reimbursable as organization and offering costs

'

'

'

'

'

'

'

'

'

'

15.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Expected reimbursable organization and offering costs, excluding selling commissions and dealer manager fee

'

'

'

'

'

'

'

'

'

'

24,800,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Expected reimbursable organization and offering costs, excluding selling commissions and dealer manager fee, as a percentage of total proceeds available to be raised from the primary offering

'

'

'

'

'

'

'

'

'

'

1.50%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Operating Costs

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Reimbursement of personnel costs related to executive officers and other personnel involved in activities for which the Advisor receives an acquisition fee, asset management fee or disposition fee

'

'

'

'

'

'

0

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of preceding fiscal quarters used in calculating quarterly reimbursement of operating costs including the asset management fee

'

'

'

'

'

'

4

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Percentage of average invested assets reimbursable as operating costs

'

'

'

'

'

'

'

'

'

'

'

2.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Percentage of net income, without reduction for any additions to reserves for depreciation, loan losses or other similar non-cash reserves and excluding any gain from the sale of the company's assets, considered for reimbursement of operating costs

'

'

'

'

'

'

'

'

'

'

'

25.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Period for calculation of expense reimbursement

'

'

'

'

'

'

'12 months

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Asset Management Fee

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Asset Management Fee Monthly Factor

'

'

'

'

'

'

'

0.0833

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Annual Asset Management Fee Rate

'

'

'

'

'

'

'

1.25%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Monthly Asset Management Fee Rate

'

'

'

'

'

'

'

0.10%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Acquisition Fee

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Maximum acquisition fee as a percentage of principal amount funded to originate investments, including acquisition expenses and any financing attributable to the investment

'

'

'

'

'

'

'

'

1.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

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'

'

'

'

Disposition Fee

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'

'

'

'

'

'

Maximum disposition fee as a percentage of contract sales price of CRE investment sold

'

'

'

'

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'

1.00%

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'

'

'

'

'

'

'

'

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'

'

'

'

'

'

'

'

Disposition fee as a percentage of the principal amount of the loan or CRE debt investment prior to the specified transaction

'

'

'

'

'

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'

1.00%

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'

'

'

'

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'

Selling Commissions and Dealer Manager Fees

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'

'

Selling commissions as a percentage of gross offering proceeds from the primary offering

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'

7.00%

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'

Dealer manager fee as a percentage of gross offering proceeds from the primary offering

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'

3.00%

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Principal Amount

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$2,000,000

$2,000,000

[1]

Acquisition/disposition fees incurred to the Advisor related to debt investments are generally offset by origination/exit fees paid to the Company by borrowers if such fees are required from the borrower. The Advisor may determine to defer fees or seek reimbursement.

[2]

As of September 30, 2013, the Advisor incurred unreimbursed organization and offering costs on behalf of the Company and $2.0 million is still allocable.

[3]

As of September 30, 2013, the Advisor incurred unreimbursed operating costs on behalf of the Company and $0.8 million is still allocable.

[4]

Cost of capital is included in net proceeds from issuance of common stock in the consolidated statements of equity.

EquityBased_Compensation_Detai

Equity-Based Compensation (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013
	director	Restricted stock	General and administrative expenses	General and administrative expenses
Equity-based compensation	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	'	5,000	'	'
Number of independent directors	3	'	'	'
Equity-based compensation expense	'	'	$1,202	$1,202

Stockholders_Equity_Details

Stockholders' Equity (Details) (USD $)	1 Months Ended	9 Months Ended
	Dec. 18, 2012	Sep. 30, 2013
Common Stock	'	'
Number of shares of common stock issued	22,223	'
Proceeds from issuance of common stock	$200,000	$2,148,657
Distributions	'	'
Common Stock Dividend Declared Based On Daily Amount Per Share	'	$0.00
Share Repurchase Program	'	'
Holding period of shares required for repurchase	'	'1 year
Dividend Reinvestment Plan	'	'
Distribution Reinvestment Plan	'	'
Initial purchase price per share under the DRP (in dollars per share)	'	$9.50
Percentage of estimated value per share of common stock	'	95.00%
Period within which the company expects to establish an estimated value per share	'	'18 months
Notice Period Served By Board Of Directors To Amend Or Terminate Distribution Reinvestment Plan	'	'10 days
Common Stock	'	'
Common Stock	'	'
Number of shares of common stock issued	'	242,223
Proceeds from issuance of common stock	'	2,422
Common Stock | Offering Proceeds	'	'
Common Stock	'	'
Number of shares of common stock issued	'	242,223
Proceeds from issuance of common stock	'	$2,200,000

Fair_Value_Details

Fair Value (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Carrying Value	$2,000,000	'
Real estate debt investments, net	'	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Principal Amount	2,000,000	'
Carrying Value	2,000,000	'
Fair Value	$2,000,000	'

Subsequent_Events_Details

Subsequent Events (Details) (USD $)	1 Months Ended	9 Months Ended	0 Months Ended					1 Months Ended	0 Months Ended	2 Months Ended
	Dec. 18, 2012	Sep. 30, 2013	Sep. 18, 2013	Nov. 12, 2013	Oct. 15, 2013	Oct. 15, 2013	Oct. 15, 2013	Nov. 11, 2013	Nov. 12, 2013	Nov. 12, 2013
			Sponsor	Subsequent Event	Subsequent Event	Subsequent Event	Subsequent Event	Subsequent Event	Subsequent Event	Subsequent Event
						Minimum	Maximum	Total Third Party Equity Issuances Proceeds	Distribution Support Agreement	Distribution Support Agreement
									Sponsor	Sponsor
Distributions	'	'	'	'	'	'	'	'	'	'
Common Stock Dividend Declared Based On Daily Amount Per Share	'	$0.00	'	$0.00	'	'	'	'	'	'
Offering Proceeds and Sponsor Purchase of Common Stock	'	'	'	'	'	'	'	'	'	'
Number of shares of common stock issued	22,223	'	222,223	'	'	'	'	500,099	663	222,886
Gross proceeds of common stock issued	'	'	'	'	'	'	'	$5,000,000	'	$2,000,000
Credit Facility	'	'	'	'	'	'	'	'	'	'
Line of Credit Facility, Maximum Borrowing Capacity	'	'	'	'	100,000,000	'	'	'	'	'
Period of time after which credit facility can be extended.	'	'	'	'	'1 year	'	'	'	'	'
Line of Credit Facility, Financial Covenant, Unrestricted Cash or Cash Equivalents Amount	'	'	'	'	'	$3,750,000	$15,000,000	'	'	'