Document And Entity Information
Document And Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 16, 2018 | Jun. 30, 2017 | |
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Carter Validus Mission Critical REIT II, Inc. | ||
Entity Central Index Key | 1,567,925 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Class A shares [Member] | |||
Entity Public Float | $ 756,760 | ||
Entity Common Stock, Shares Outstanding | 81,988,000 | ||
Class I shares [Member] | |||
Entity Public Float | 15,506 | ||
Entity Common Stock, Shares Outstanding | 8,146,000 | ||
Class T shares [Member] | |||
Entity Public Float | $ 209,012 | ||
Entity Common Stock, Shares Outstanding | 37,365,000 | ||
Class T2 shares [Member] | |||
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Real estate: | ||
Land | $ 223,277 | $ 154,385 |
Buildings and improvements, less accumulated depreciation of $45,789 and $18,521, respectively | 1,250,794 | 722,492 |
Construction in progress | 31,334 | 20,123 |
Total real estate, net | 1,505,405 | 897,000 |
Cash and cash equivalents | 74,803 | 50,446 |
Acquired intangible assets, less accumulated amortization of $22,162 and $7,995, respectively | 150,554 | 98,053 |
Other assets, net | 47,182 | 24,539 |
Total assets | 1,777,944 | 1,070,038 |
Liabilities: | ||
Notes payable, net of deferred financing costs of $4,393 and $1,945, respectively | 463,742 | 151,045 |
Credit facility, net of deferred financing costs of $601 and $876, respectively | 219,399 | 219,124 |
Accounts payable due to affiliates | 15,249 | 7,384 |
Accounts payable and other liabilities | 27,709 | 17,184 |
Intangible lease liabilities, less accumulated amortization of $2,760 and $634, respectively | 61,294 | 6,873 |
Total liabilities | 787,393 | 401,610 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value per share, 100,000,000 shares authorized; none issued and outstanding | ||
Common stock, $0.01 par value per share, 500,000,000 shares authorized; 126,559,834 and 83,109,025 shares issued, respectively; 124,327,777 and 82,744,288 shares outstanding, respectively | 1,243 | 827 |
Additional paid-in capital | 1,084,905 | 723,859 |
Accumulated distributions in excess of earnings | (99,309) | (57,100) |
Accumulated other comprehensive income | 3,710 | 840 |
Total stockholders’ equity | 990,549 | 668,426 |
Noncontrolling interests | 2 | 2 |
Total equity | 990,551 | 668,428 |
Total liabilities and stockholders’ equity | $ 1,777,944 | $ 1,070,038 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Buildings and improvements, accumulated depreciation | $ 45,789 | $ 18,521 |
Acquired intangible assets, accumulated amortization | 22,162 | 7,995 |
Notes payable, deferred financing costs | 4,393 | 1,945 |
Credit facility, deferred financing costs | 601 | 876 |
Intangible lease liabilities, accumulated amortization | $ 2,760 | $ 634 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares outstanding (in shares) | 124,327,777 | 82,744,288 |
Common stock, shares issued (in shares) | 126,559,834 | 83,109,025 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||
Rental and parking revenue | $ 106,048 | $ 49,699 | $ 19,000 |
Tenant reimbursement revenue | 19,047 | 6,732 | 2,286 |
Total revenue | 125,095 | 56,431 | 21,286 |
Expenses: | |||
Rental and parking expenses | 26,096 | 8,164 | 2,836 |
General and administrative expenses | 4,069 | 3,105 | 2,133 |
Acquisition related expenses | 0 | 5,339 | 10,250 |
Asset management fees | 9,963 | 4,925 | 1,895 |
Depreciation and amortization | 41,133 | 19,211 | 7,053 |
Total expenses | 81,261 | 40,744 | 24,167 |
Income (loss) from operations | 43,834 | 15,687 | (2,881) |
Interest expense, net | 22,555 | 4,390 | 1,886 |
Net income (loss) attributable to common stockholders | 21,279 | 11,297 | (4,767) |
Other comprehensive income: | |||
Unrealized income on interest rate swaps, net | 2,870 | 840 | 0 |
Other comprehensive income attributable to common stockholders | 2,870 | 840 | 0 |
Comprehensive income (loss) attributable to common stockholders | $ 24,149 | $ 12,137 | $ (4,767) |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 101,714,148 | 66,991,294 | 28,658,495 |
Diluted (in shares) | 101,731,944 | 67,007,124 | 28,658,495 |
Net income (loss) per common share attributable to common stockholders: | |||
Basic (in dollars per share) | $ 0.21 | $ 0.17 | $ (0.17) |
Diluted (in dollars per share) | $ 0.21 | $ 0.17 | $ (0.17) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Distributions in Excess of Earnings | Accumulated Other Comprehensive Income | Total Stockholders’ Equity | Noncontrolling Interests |
Balance, (in shares) at Dec. 31, 2014 | 7,110,501 | ||||||
Balance, at Dec. 31, 2014 | $ 57,105 | $ 71 | $ 60,081 | $ (3,049) | $ 0 | $ 57,103 | $ 2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 40,361,130 | ||||||
Issuance of common stock | 401,411 | $ 404 | 401,007 | 401,411 | 0 | ||
Issuance of common stock under the distribution reinvestment plan (in shares) | 1,014,853 | ||||||
Issuance of common stock under the distribution reinvestment plan | 9,643 | $ 10 | 9,633 | 9,643 | 0 | ||
Vesting of restricted common stock (in shares) | 2,250 | ||||||
Vesting of restricted common stock | 34 | 34 | 34 | 0 | |||
Commissions on sale of common stock and related dealer manager fees | (38,163) | (38,163) | (38,163) | 0 | |||
Other offering costs | (6,371) | (6,371) | (6,371) | 0 | |||
Repurchase of common stock (in shares) | (31,543) | ||||||
Repurchase of common stock | (311) | $ 0 | (311) | (311) | 0 | ||
Distributions declared to common stockholders | (18,245) | (18,245) | (18,245) | 0 | |||
Net income (loss) | (4,767) | (4,767) | (4,767) | 0 | |||
Balance, (in shares) at Dec. 31, 2015 | 48,457,191 | ||||||
Balance, at Dec. 31, 2015 | 400,336 | $ 485 | 425,910 | (26,061) | 0 | 400,334 | 2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 32,201,892 | ||||||
Issuance of common stock | 314,836 | $ 321 | 314,515 | 314,836 | 0 | ||
Issuance of common stock under the distribution reinvestment plan (in shares) | 2,413,899 | ||||||
Issuance of common stock under the distribution reinvestment plan | 22,889 | $ 24 | 22,865 | 22,889 | 0 | ||
Vesting of restricted common stock (in shares) | 4,500 | ||||||
Vesting of restricted common stock | 58 | 58 | 58 | 0 | |||
Commissions on sale of common stock and related dealer manager fees | (24,546) | (24,546) | (24,546) | 0 | |||
Other offering costs | (5,619) | (5,619) | (5,619) | 0 | |||
Repurchase of common stock (in shares) | (333,194) | ||||||
Repurchase of common stock | (3,114) | $ (3) | (3,111) | (3,114) | 0 | ||
Distributions declared to common stockholders | (42,336) | (42,336) | (42,336) | 0 | |||
Distribution and servicing fees | (6,213) | (6,213) | (6,213) | 0 | |||
Other comprehensive income | 840 | 840 | 840 | 0 | |||
Net income (loss) | $ 11,297 | 11,297 | 11,297 | 0 | |||
Balance, (in shares) at Dec. 31, 2016 | 82,744,288 | 82,744,288 | |||||
Balance, at Dec. 31, 2016 | $ 668,428 | $ 827 | 723,859 | (57,100) | 840 | 668,426 | 2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 39,920,746 | ||||||
Issuance of common stock | 386,091 | $ 399 | 385,692 | 386,091 | 0 | ||
Issuance of common stock under the distribution reinvestment plan (in shares) | 3,536,813 | ||||||
Issuance of common stock under the distribution reinvestment plan | 32,264 | $ 35 | 32,229 | 32,264 | 0 | ||
Vesting of restricted common stock (in shares) | 6,750 | ||||||
Vesting of restricted common stock | 76 | 76 | 76 | 0 | |||
Commissions on sale of common stock and related dealer manager fees | (22,713) | (22,713) | (22,713) | 0 | |||
Other offering costs | (7,480) | (7,480) | (7,480) | 0 | |||
Repurchase of common stock (in shares) | (1,880,820) | ||||||
Repurchase of common stock | (17,159) | $ (18) | (17,141) | (17,159) | 0 | ||
Distributions declared to common stockholders | (63,488) | (63,488) | (63,488) | 0 | |||
Distribution and servicing fees | (9,617) | (9,617) | (9,617) | 0 | |||
Other comprehensive income | 2,870 | 2,870 | 2,870 | 0 | |||
Net income (loss) | $ 21,279 | 21,279 | 21,279 | 0 | |||
Balance, (in shares) at Dec. 31, 2017 | 124,327,777 | 124,327,777 | |||||
Balance, at Dec. 31, 2017 | $ 990,551 | $ 1,243 | $ 1,084,905 | $ (99,309) | $ 3,710 | $ 990,549 | $ 2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 21,279 | $ 11,297 | $ (4,767) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 41,133 | 19,211 | 7,053 |
Amortization of deferred financing costs | 2,612 | 1,061 | 721 |
Amortization of above-market leases | 309 | 36 | 26 |
Amortization of intangible lease liabilities | (2,126) | (536) | (98) |
Straight-line rent | (10,596) | (6,263) | (2,449) |
Stock-based compensation | 76 | 58 | 34 |
Ineffectiveness of interest rate swaps | (58) | (144) | 0 |
Changes in operating assets and liabilities: | |||
Accounts payable and other liabilities | 5,385 | 1,307 | 4,915 |
Accounts payable due to affiliates | 645 | 531 | 389 |
Other assets | (6,832) | (1,583) | (2,534) |
Net cash provided by operating activities | 51,827 | 24,975 | 3,290 |
Cash flows from investing activities: | |||
Investment in real estate | (604,372) | (535,447) | (374,164) |
Acquisition costs capitalized subsequent | (44) | 0 | 0 |
Capital expenditures | (32,467) | (8,253) | (1,289) |
Real estate deposits, net | 190 | 153 | (75) |
Net cash used in investing activities | (636,693) | (543,547) | (375,528) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 386,091 | 314,836 | 401,411 |
Proceeds from notes payable | 309,452 | 152,990 | 0 |
Payments on notes payable | (43) | 0 | 0 |
Proceeds from credit facility | 240,000 | 240,000 | 92,000 |
Payments on credit facility | (240,000) | (110,000) | (39,500) |
Payments of deferred financing costs | (3,564) | (4,133) | (1,799) |
Repurchases of common stock | (17,159) | (3,114) | (311) |
Offering costs on issuance of common stock | (32,079) | (30,628) | (46,611) |
Distributions to stockholders | (28,994) | (17,659) | (6,379) |
Net cash provided by financing activities | 613,704 | 542,292 | 398,811 |
Net change in cash, cash equivalents and restricted cash | 28,838 | 23,720 | 26,573 |
Cash, cash equivalents and restricted cash - Beginning of year | 56,909 | 33,189 | 6,616 |
Cash, cash equivalents and restricted cash - End of year | 85,747 | 56,909 | 33,189 |
Supplemental cash flow disclosure: | |||
Interest paid, net of interest capitalized of $2,137, $524 and $0, respectively | 20,867 | 3,341 | 1,055 |
Supplemental disclosure of non-cash transactions: | |||
Common stock issued through distribution reinvestment plan | 32,264 | 22,889 | 9,643 |
Distribution and servicing fees accrued during the period | 7,626 | 5,750 | 0 |
Liabilities assumed at acquisition | 6,551 | 1,236 | 0 |
Accrued capital expenditures | $ 2,643 | $ 4,221 | $ 0 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | |||
Interest capitalized | $ 2,137 | $ 524 | $ 0 |
Organization and Business Opera
Organization and Business Operations | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Operations | Organization and Business Operations Carter Validus Mission Critical REIT II, Inc., or the Company, is a Maryland corporation that was formed on January 11, 2013. The Company elected to be taxed as a real estate investment trust, or a REIT, under the Internal Revenue Code of 1986, as amended, for federal income tax purposes, on September 11, 2015. Substantially all of the Company’s business is conducted through Carter Validus Operating Partnership II, LP, a Delaware limited partnership, or the Operating Partnership, formed on January 10, 2013. The Company is the sole general partner of the Operating Partnership and Carter Validus Advisors II, LLC, or the Advisor, is the special limited partner of the Operating Partnership. The Company commenced the initial public offering of $2,350,000,000 in shares of common stock, or the maximum offering amount, consisting of up to $2,250,000,000 in shares in its primary offering and up to $100,000,000 in shares of common stock to be made available pursuant to the Company’s distribution reinvestment plan, or the DRIP, on a “best efforts” basis, or the Initial Offering, pursuant to a registration statement on Form S-11, or the Registration Statement, filed with the Securities and Exchange Commission, or the SEC, under the Securities Act of 1933, as amended, or the Securities Act, which was declared effective on May 29, 2014. The Company ceased offering shares of common stock pursuant to the Initial Offering on November 24, 2017. At the completion of the Initial Offering, the Company had accepted investors' subscriptions for and issued approximately 125,095,000 shares of Class A, Class I and Class T common stock, including shares of common stock issues pursuant to the DRIP, resulting in gross proceeds of $1,223,803,000 . On November 27, 2017, the Company commenced its follow-on offering of up to $1,000,000,000 in shares of common stock, or the Offering, and collectively with the Initial Offering and the DRIP Offering, the Offerings. Shares of common stock in the Offering are being publicly offered on a "best efforts" basis pursuant to a registration statement on Form S-11, or the Registration Statement, filed with the SEC under the Securities Act. On October 13, 2017, the Company registered 10,893,246 of shares of common stock under the DRIP pursuant to a registration statement on Form S-3, or the DRIP Registration Statement, for a price of $9.18 per Class A share, Class I share and Class T share for a proposed maximum offering price of $100,000,000 in shares of common stock, or the DRIP Offering. The DRIP Registration Statement became automatically effective with the SEC upon filing and the Company commenced offering shares of common stock pursuant to the DRIP Registration Statement on December 1, 2017. On December 6, 2017, the Company filed a post-effective amendment to the DRIP Registration Statement to register 10,893,246 shares of Class A common stock, Class I common stock, Class T common stock and Class T2 common stock at $9.18 per share. On June 2, 2017, the Company filed Articles Supplementary to the Second Articles of Amendment and Restatement with the State Department of Assessments and Taxation of Maryland reclassifying a portion of its Class A shares, Class I shares and Class T shares as Class T2 shares. On December 6, 2017, the Company filed Post-Effective Amendment No. 1 to the Registration Statement on Form S-11 to register Class T2 shares of common stock, which was declared effective by the SEC on November 27, 2017. As of March 14, 2018, the Company ceased offering shares of Class T common stock in the Offering. Commencing March 15, 2018, the Company was offering, in any combination with a dollar value up to the maximum offering amount, Class A shares of common stock at a price of $10.200 per share, Class I shares of common stock at a price of $9.273 per share, and Class T2 shares of common stock at a price of $9.714 per share. The offering prices are based on the most recent estimated per share net asset value of each of the Class A common stock, Class I common stock and Class T common stock, and any applicable per share upfront selling commissions and dealer manager fees. As of December 31, 2017, the Company had issued approximately 126,560,000 shares of Class A, Class I and Class T common stock in the Offerings, resulting in receipt of gross proceeds of approximately $1,237,638,000 , before share repurchases of $20,584,000 , selling commissions and dealer manager fees of approximately $91,898,000 and other offering costs of approximately $23,357,000 . Substantially all of the Company’s business is managed by the Advisor. Carter Validus Real Estate Management Services II, LLC, or the Property Manager, an affiliate of the Advisor, serves as the Company’s property manager. The Advisor and the Property Manager have received, and will continue to receive, fees for services related to the acquisition and operational stages. The Advisor will also be eligible to receive fees during the liquidation stage. SC Distributors, LLC, an affiliate of the Advisor, or the Dealer Manager, serves as the dealer manager of the Offering. The Dealer Manager has received, and will continue to receive, fees for services related to the Offering. The Company was formed to invest primarily in quality income-producing commercial real estate, with a focus on data centers and healthcare properties, preferably with long-term net leases to creditworthy tenants, as well as to make other real estate-related investments that relate to such property types, which may include equity or debt interests, including securities, in other real estate entities. The Company also may originate or invest in real estate-related notes receivable. The Company expects real estate-related notes receivable originations and investments to be focused on first mortgage loans, but also may include real estate-related bridge loans, mezzanine loans and securitized notes receivable. As of December 31, 2017 , the Company owned 53 real estate investments, consisting of 70 properties. Except as the context otherwise requires, “we,” “our,” “us,” and the “Company” refer to Carter Validus Mission Critical REIT II, Inc., the Operating Partnership and all wholly-owned subsidiaries. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The summary of significant accounting policies presented below is designed to assist in understanding the Company’s consolidated financial statements. Such consolidated financial statements and the accompanying notes thereto are the representation of management. These accounting policies conform to accounting principles generally accepted in the United States of America, or GAAP, in all material respects, and have been consistently applied in preparing the consolidated financial statements. Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, the Operating Partnership, and all wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements and accompanying notes in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Short-term investments are stated at cost, which approximates fair value. Restricted Cash Restricted cash consists of restricted cash held in escrow and restricted bank deposits. Restricted cash held in escrow includes cash held in escrow accounts for capital improvements for certain properties as well as cash held by lenders in escrow accounts for tenant and capital improvements, repairs and maintenance and other lender reserves for certain properties, in accordance with the respective lender’s loan agreement. Restricted cash held in escrow is reported in other assets, net in the accompanying consolidated balance sheets . Restricted bank deposits consist of tenant receipts for certain properties which are required to be deposited into lender-controlled accounts in accordance with the respective lender's loan agreement. Restricted bank deposits are reported in other assets, net in the accompanying consolidated balance sheets . See Note 6—"Other Assets, Net" . On April 1, 2017, the Company adopted Accounting Standards Update, or ASU, 2016-18, Restricted Cash , or ASU 2016-18. ASU 2016-18 requires that a statement of cash flows explain the change during a reporting period in the total of cash, cash equivalents and restricted cash. This ASU states that transfers between cash, cash equivalents and restricted cash are not part of the Company’s operating, investing and financing activities. Therefore, restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. As required, the Company retrospectively applied the guidance in ASU 2016-18 to the prior periods presented, which resulted in a decrease of $2,491,000 in net cash used in investing activities and an increase of $2,040,000 in net cash provided by financing activities for the year ended December 31, 2016 and an increase of $995,000 in net cash used in investing activities for the year ended December 31, 2015 on the consolidated statements of cash flows . The following table presents a reconciliation of the beginning of year and end of year cash, cash equivalents and restricted cash reported within the consolidated balance sheets to the totals shown in the consolidated statements of cash flows : For the Year Ended Beginning of year: 2017 2016 2015 Cash and cash equivalents 50,446 31,262 3,694 Restricted cash 6,463 1,927 2,922 Cash, cash equivalents and restricted cash $ 56,909 $ 33,189 $ 6,616 End of year: Cash and cash equivalents 74,803 50,446 31,262 Restricted cash 10,944 6,463 1,927 Cash, cash equivalents and restricted cash $ 85,747 $ 56,909 $ 33,189 Deferred Financing Costs Deferred financing costs are loan fees, legal fees and other third-party costs associated with obtaining financing. These costs are amortized over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity unless specific rules are met that would allow for the carryover of such costs to the refinanced debt. Costs incurred in seeking financing transactions that do not close are expensed in the period in which it is determined that the financing will not close. Deferred financing costs are recorded as a reduction of the related debt on the accompanying consolidated balance sheets. Investment in Real Estate Real estate costs related to the acquisition, development, construction and improvement of properties are capitalized. Repair and maintenance costs are expensed as incurred and significant replacements and betterments are capitalized. Repair and maintenance costs include all costs that do not extend the useful life of the real estate asset. The Company considers the period of future benefit of an asset in determining the appropriate useful life. Real estate assets, other than land, are depreciated or amortized on a straight-line basis over each asset’s useful life. The Company anticipates the estimated useful lives of its assets by class as follows: Buildings and improvements 15 – 40 years Tenant improvements Shorter of lease term or expected useful life Furniture, fixtures, and equipment 3 – 10 years Allocation of Purchase Price of Real Estate Upon the acquisition of real properties, the Company evaluates whether the acquisition is a business combination or an asset acquisition. For both business combinations and asset acquisitions we allocate the purchase price of properties to acquired tangible assets, consisting of land, buildings and improvements, and acquired intangible assets and liabilities, consisting of the value of above-market and below-market leases and the value of in-place leases. For asset acquisitions, the Company capitalizes transaction costs and allocates the purchase price using a relative fair value method allocating all accumulated costs. For business combinations, the Company expenses transaction costs associated as incurred and allocates the purchase price based on the estimated fair value of each separately identifiable asset and liability. The fair values of the tangible assets of an acquired property (which includes land, buildings and improvements) are determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land and buildings and improvements based on management’s determination of the relative fair value of these assets. Management determines the as-if-vacant fair value of a property using methods similar to those used by independent appraisers. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases, including leasing commissions and other related costs. In estimating carrying costs, management includes real estate taxes, insurance, and other operating expenses during the expected lease-up periods based on current market conditions. The fair values of above-market and below-market in-place lease values are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) an estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease including any fixed rate bargain renewal periods, with respect to a below-market lease. The above-market and below-market lease values are capitalized as intangible lease assets or liabilities. Above-market lease values are amortized as an adjustment of rental income over the remaining terms of the respective leases. Below-market leases are amortized as an adjustment of rental income over the remaining terms of the respective leases, including any fixed rate bargain renewal periods. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above-market and below-market in-place lease values related to that lease would be recorded as an adjustment to rental income. The fair values of in-place leases include an estimate of direct costs associated with obtaining a new tenant and opportunity costs associated with lost rentals that are avoided by acquiring an in-place lease. Direct costs associated with obtaining a new tenant include commissions, tenant improvements, and other direct costs and are estimated based on management’s consideration of current market costs to execute a similar lease. The value of opportunity costs is calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. These lease intangibles are amortized to expense over the remaining terms of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed. Acquisition Fees and Expenses Acquisition fees and expenses associated with the acquisition of properties determined to be business combinations are expensed as incurred, including investment transactions that are no longer under consideration, and are included in acquisition related expenses in the accompanying consolidated statements of comprehensive income (loss) . Acquisition fees and expenses associated with transactions determined to be an asset acquisition are capitalized in real estate, net in the accompanying consolidated balance sheets. Impairment of Long Lived Assets The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate and related intangible assets may not be recoverable. When indicators of potential impairment suggest that the carrying value of real estate and related intangible assets may not be recoverable, the Company assesses the recoverability of the assets by estimating whether the Company will recover the carrying value of the asset through its undiscounted future cash flows and its eventual disposition. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of the asset, the Company will record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the asset. No impairment loss has been recorded to date. When developing estimates of expected future cash flows, the Company makes certain assumptions regarding future market rental income amounts subsequent to the expiration of current lease arrangements, property operating expenses, terminal capitalization and discount rates, the number of months it takes to re-lease the property, required tenant improvements and the number of years the property will be held for investment. The use of alternative assumptions in the future cash flow analysis could result in a different determination of the property’s future cash flows and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the carrying value of the real estate and related assets. Fair Value ASC 820, Fair Value Measurements and Disclosures , or ASC 820, defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosures about fair value measurements. ASC 820 emphasizes that fair value is intended to be a market-based measurement, as opposed to a transaction-specific measurement. Fair value is defined by ASC 820 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate the fair value. Assets and liabilities are measured using inputs from three levels of the fair value hierarchy, as follows: Level 1—Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2—Inputs other than quoted prices for similar assets and liabilities in active markets that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs). Level 3—Unobservable inputs, only used to the extent that observable inputs are not available, reflect the Company’s assumptions about the pricing of an asset or liability. The following describes the methods the Company used to estimate the fair value of the Company’s financial assets and liabilities: Cash and cash equivalents, restricted cash, tenant receivables, property escrow deposits, prepaid and other assets, accounts payable and accrued liabilities —The Company considered the carrying values of these financial instruments, assets and liabilities, to approximate fair value because of the short period of time between origination of the instruments and their expected realization. Notes payable—Fixed Rate —The fair value is estimated by discounting the expected cash flows on notes payable at current rates at which management believes similar loans would be made considering the terms and conditions of the loan and prevailing market interest rates. Notes payable—Variable Rate —The carrying value of variable rate notes payable approximates fair value because the interest rates adjust with current market conditions. Secured credit facility—Fixed Rate —The fair value is estimated by discounting the expected cash flows on the fixed rate secured credit facility at current rates at which management believes similar borrowings would be made considering the terms and conditions of the borrowings and prevailing market interest rates. Secured credit facility—Variable Rate —The carrying value of the variable rate secured credit facility approximates fair value as the interest is calculated at the London Interbank Offered Rate, plus an applicable margin. The interest rate resets to market on a monthly basis. The fair value of the Company's variable rate secured credit facility is estimated based on the interest rates currently offered to the Company by financial institutions. Derivative instruments —The Company’s derivative instruments consist of interest rate swaps. These swaps are carried at fair value to comply with the provisions of ASC 820. The fair value of these instruments is determined using interest rate market pricing models. The Company incorporated credit valuation adjustments to appropriately reflect the Company’s nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. Considerable judgment is necessary to develop estimated fair values of financial assets and liabilities. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize, or be liable for on disposition of the financial assets and liabilities. Revenue Recognition, Tenant Receivables and Allowance for Uncollectible Accounts The Company recognizes revenue in accordance with Accounting Standards Codification, or ASC, 605, Revenue Recognition , or ASC 605. ASC 605 requires that all four of the following basic criteria be met before revenue is realized or realizable and earned: (1) there is persuasive evidence that an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the seller’s price to the buyer is fixed and determinable; and (4) collectability is reasonably assured. In accordance with ASC 840, Leases , minimum rental revenue is recognized on a straight-line basis over the term of the related lease (including rent holidays). Differences between rental income recognized and amounts contractually due under the lease agreements are credited or charged to deferred rent receivable or deferred rent liability, as applicable. Tenant reimbursement revenue, which is comprised of additional amounts recoverable from tenants for common area maintenance expenses and certain other recoverable expenses, is recognized as revenue in the period in which the related expenses are incurred. Tenant reimbursements are recognized and presented in accordance with ASC Subtopic 605-45, Revenue Recognition—Principal Agent Consideration, or ASC 605-45. ASC 605-45 requires that these reimbursements be recorded on a gross basis when the Company is the primary obligor with respect to purchasing goods and services from third-party suppliers, and thus, the Company has discretion in selecting the supplier and has credit risk. Tenant receivables and unbilled deferred rent receivables are carried net of the allowances for uncollectible current tenant receivables and unbilled deferred rent. An allowance will be maintained for estimated losses resulting from the inability of certain tenants to meet the contractual obligations under their lease agreements. The Company also maintains an allowance for deferred rent receivables arising from the straight-lining of rents. The Company’s determination of the adequacy of these allowances is based primarily upon evaluations of historical loss experience, the tenant’s financial condition, security deposits, letters of credit, lease guarantees and current economic conditions and other relevant factors. As of December 31, 2017 , the Company did no t have an allowance for uncollectible tenant receivables. Earnings Per Share The Company calculates basic earnings per share by dividing net income (loss) attributable to common stockholders for the period by the weighted average shares of its common stock outstanding for that period. Diluted earnings per share are computed based on the weighted average number of shares outstanding and all potentially dilutive securities. Shares of non-vested restricted common stock give rise to potentially dilutive shares of common stock. For the years ended December 31, 2017 and 2016 , diluted earnings per share reflected the effect of 18,000 and 16,000 shares, respectively, of non-vested shares of restricted common stock that were outstanding as of such period. For the year ended December 31, 2015 , there were 15,750 shares of non-vested restricted common stock outstanding, but such shares were excluded from the computation of diluted earnings per share because such shares were anti-dilutive during this period. Reportable Segments Accounting Standards Codification, or ASC, 280, Segment Reporting , establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. As of December 31, 2017 and 2016 , the Company operated through two reportable business segments—commercial real estate investments in data centers and healthcare. With the continued expansion of the Company’s portfolio, segregation of the Company’s operations into two reporting segments is useful in assessing the performance of the Company’s business in the same way that management reviews performance and makes operating decisions. See Note 11—"Segment Reporting" for further discussion on the reportable segments of the Company. Derivative Instruments and Hedging Activities As required by ASC 815, Derivatives and Hedging , or ASC 815, the Company records all derivative instruments as assets and liabilities in the statement of financial position at fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. For derivative instruments not designated as hedging instruments, the income or loss is recognized in the consolidated statements of comprehensive income (loss) during the current period. The Company is exposed to variability in expected future cash flows that are attributable to interest rate changes in the normal course of business. The Company’s primary strategy in entering into derivative contracts is to add stability to future cash flows by managing its exposure to interest rate movements. The Company utilizes derivative instruments, including interest rate swaps, to effectively convert some its variable rate debt to fixed rate debt. The Company does not enter into derivative instruments for speculative purposes. In accordance with ASC 815, the Company designates interest rate swap contracts as cash flow hedges of floating-rate borrowings. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the income or loss on the derivative instrument is reported as a component of other comprehensive income (loss) in the consolidated statements of comprehensive income (loss) and reclassified into earnings in the same line item associated with the forecasted transaction and the same period during which the hedged transaction affects earnings. The ineffective portion of the income or loss on the derivative instrument is recognized in the consolidated statements of comprehensive income (loss) during the current period. In accordance with the fair value measurement guidance ASU 2011-04, Fair Value Measurement , the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Concentration of Credit Risk and Significant Leases As of December 31, 2017 , the Company had cash on deposit, including restricted cash, in certain financial institutions that had deposits in excess of current federally insured levels; however, the Company has not experienced any losses in such accounts. The Company limits its cash investments to financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk on its cash deposits. To date, the Company has experienced no loss or lack of access to cash in its accounts. As of December 31, 2017 , the Company owned real estate investments in 37 MSAs, two of which accounted for 10.0% or more of contractual rental revenue. Real estate investments located in the Atlanta-Sandy Springs-Roswell, Georgia MSA and the Oklahoma City, Oklahoma MSA accounted for 12.1% and 10.0% , respectively, of contractual rental revenue for the year ended December 31, 2017 . As of December 31, 2017 , the Company had no exposure to tenant concentration that accounted for 10.0% or more of contractual rental revenue for the year ended December 31, 2017 . Stockholders’ Equity The Company’s charter authorizes the issuance of up to 600,000,000 shares of stock, consisting of 175,000,000 shares of Class A common stock, 75,000,000 shares of Class I common stock, 175,000,000 shares of Class T common stock and 75,000,000 shares of Class T2 common stock, $0.01 par value per share, and 100,000,000 shares of preferred stock, $0.01 par value per share. As of December 31, 2017, the Company was not offering Class T2 shares. Other than the different fees with respect to each class and the payment of a distribution and servicing fee out of amounts otherwise distributable to Class T stockholders, Class A shares, Class I and Class T shares have identical rights and privileges, such as identical voting rights. The net proceeds from the sale of the three classes of shares will be commingled for investment purposes and all earnings from all of the investments will proportionally accrue to each share regardless of the class. As of December 31, 2017 , the Company had 126,559,834 shares of Class A, Class I and Class T common stock issued and 124,327,777 shares of Class A, Class I and Class T common stock outstanding, and no shares of preferred stock issued and outstanding. As of December 31, 2016 , the Company had 83,109,025 shares of Class A and Class T common stock issued and 82,744,288 shares of Class A and Class T common stock outstanding, and no shares of preferred stock issued and outstanding. The charter authorizes the Company’s board of directors, without stockholder approval, to designate and issue one or more classes or series of preferred stock and to set or change the voting, conversion or other rights, preferences, restrictions, limitations as to dividends or other distributions and qualification or terms or conditions of repurchase of each class of stock so issued. Share Repurchase Program The Company’s share repurchase program allows for repurchases of shares of the Company’s common stock when certain criteria are met. The share repurchase program provides that all repurchases during any calendar year, including those redeemable upon death or a Qualifying Disability of a stockholder, are limited to those that can be funded with equivalent proceeds raised from the DRIP Offering during the prior calendar year and other operating funds, if any, as the board of directors, in its sole discretion, may reserve for this purpose. Repurchases of shares of the Company’s common stock are at the sole discretion of the Company’s board of directors. The Company will limit the number of shares repurchased pursuant to the share repurchase program as follows: during any calendar year, the Company will not repurchase in excess of 5.0% of the number of shares of common stock outstanding on December 31 st of the previous calendar year. In addition, the Company’s board of directors, in its sole discretion, may amend, suspend, reduce, terminate or otherwise change the share repurchase program upon 30 days' prior notice to the Company’s stockholders for any reason it deems appropriate. During the year ended December 31, 2017 , the Company received valid repurchase requests related to 1,880,820 Class A shares, Class T shares and Class I shares of common stock ( 1,793,424 Class A shares, 81,939 Class T shares and 5,457 Class I shares), or 2.27% of shares outstanding as of December 31, 2016 , all of which were redeemed in full for an aggregate purchase price of approximately $17,159,000 (an average of $9.12 per share). During the year ended December 31, 2016 , the Company received valid repurchase requests related to 333,194 Class A shares of common stock, or 0.69% of shares outstanding as of December 31, 2015 , all of which were redeemed in full for an aggregate purchase price of approximately $3,114,000 (an average of $9.35 per share). No shares of Class T common stock were requested to be, or were, repurchased during the year ended December 31, 2016 . No shares of Class I common stock were requested to be, or were, repurchased during the year ended December 31, 2016 . Distribution Policy and Distributions Payable In order to maintain its status as a REIT, the Company is required to make distributions each taxable year equal to at least 90% of its REIT taxable income, computed without regard to the dividends paid deduction and excluding capital gains. To the extent funds are available, the Company intends to continue to pay regular distributions to stockholders. Distributions are paid to stockholders of record as of the applicable record dates. As of December 31, 2017 , the Company paid aggregate distributions, since inception, of approximately $118,258,000 ( $53,192,000 in cash and $65,066,000 of which were reinvested in shares of common stock pursuant to the DRIP). Distributions are payable to stockholders from legally available funds therefor. The Company declared distributions per share of common stock in the amounts of $0.62 and $0.63 for the years ended December 31, 2017 and 2016 , respectively. As of December 31, 2017 , the Company had distributions payable of approximately $6,566,000 . Of these distributions payable, approximately $3,164,000 was paid in cash and approximately $3,402,000 was reinvested in shares of common stock pursuant to the DRIP on January 2, 2018. Distributions to stockholders are determined by the board of directors of the Company and are dependent upon a number of factors relating to the Company, including funds available for the payment of distributions, financial condition, the timing of property acquisitions, capital expenditure requirements, and annual distribution requirements in order to maintain the Company’s status as a REIT under the Code. Income Taxes The Company currently qualifies and is taxed as a REIT under Sections 856 through 860 of the Code. Accordingly, it will generally not be subject to corporate U.S. federal or state income tax to the extent that it makes qualifying distributions to stockholders, and provided it satisfies, on a continuing basis, through actual investment and operating results, the REIT requirements, including certain asset, income, distribution and stock ownership tests. If the Company fails to qualify as a REIT, and does not qualify for certain statutory relief provisions, it will be subject to U.S. federal, state and local income taxes and may be precluded from qualifying as a REIT for the subsequent four taxable years following the year in which it lost its REIT qualification, unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Accordingly, failure to qualify as a REIT could have a material adverse impact on the results of operations and amounts available for distribution to stockholders. The dividends paid deduction of a REIT for qualifying dividends paid to its stockholders is computed using the Company’s taxable income as opposed to net income reported in the consolidated financial statements. Taxable income, generally, will differ from net income reported in the consolidated financial statements because the determination of taxable income is based on tax provisions and not financial accounting principles. The Company has concluded that there was no impact related to uncertain tax provisions from results of operations of the Company for the years ended December 31, 2017 , 2016 and 2015 . The United States of America is the jurisdiction for the Company, and the earliest tax year subject to examination will be 2015 . Recently Issued Accounting Pronouncements On May 28, 2014, the Financial Accounting Standards Board, or the FASB, issued ASU 2014-09, Revenue from Contracts with Customers , or ASU 2014-09. The objective of ASU 2014-09 is to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods and 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. ASU 2014-09 defines a five-step process to achieve this core principle, which may require more judgment and estimates within the revenue recognition process than are required under existing GAAP. The Company has preliminarily determined the revenue stream that could be most significantly impacted by this ASU relates to parking revenue. The Company determined that the revenue recognition from parking revenue will be generally consistent with current recognition methods, and therefore will not have material changes to the consolidated financial statements as a result of adoption. For the year ended December 31, 2017, parking revenue was less than 10% of consolidated revenue. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date , or ASU 2015-14. ASU 2015-14 defers the effective date of ASU 2014-09 by one year to fiscal years and interim periods beginning after December 15, 2017. Ear |
Real Estate Investments
Real Estate Investments | 12 Months Ended |
Dec. 31, 2017 | |
Real Estate [Abstract] | |
Real Estate Investments | Real Estate Investments During the year ended December 31, 2017 , the Company purchased 19 real estate properties, all of which were determined to be asset acquisitions. The following table summarizes the consideration transferred for the properties acquired during the year ended December 31, 2017 : Property Description Date Acquired Ownership Percentage Purchase Price (amounts in thousands) Tempe Data Center 01/26/2017 100% $ 16,224 Norwalk Data Center 03/30/2017 100% 58,835 Aurora Healthcare Facility 03/30/2017 100% 11,531 Texas Rehab - Austin 03/31/2017 100% 36,945 Texas Rehab - Allen 03/31/2017 100% 23,691 Texas Rehab - Beaumont 03/31/2017 100% 9,649 Charlotte Data Center II 05/15/2017 100% 16,646 250 Williams Atlanta Data Center 06/15/2017 100% 168,588 Sunnyvale Data Center 06/28/2017 100% 38,105 Texas Rehab - San Antonio 06/29/2017 100% 14,853 Cincinnati Data Center 06/30/2017 100% 10,503 Silverdale Healthcare Facility 08/25/2017 100% 9,856 Silverdale Healthcare Facility II 09/20/2017 100% 7,144 King of Prussia Data Center 09/28/2017 100% 19,885 Tempe Data Center II 09/29/2017 100% 15,568 Houston Data Center 11/16/2017 100% 76,388 Saginaw Healthcare Facility 12/21/2017 100% 18,462 Elgin Data Center 12/22/2017 100% 2,771 Oklahoma City Data Center 12/27/2017 100% 48,728 Total $ 604,372 The following table summarizes management's allocation of the acquisitions during the year ended December 31, 2017 , (amounts in thousands): Total Land $ 68,535 Buildings and improvements 533,011 In-place leases 64,476 Above market leases 1,448 Total assets acquired 667,470 Below market leases (56,547 ) Liabilities assumed at acquisition (6,551 ) (1) Total liabilities acquired (63,098 ) Net assets acquired $ 604,372 (1) Of this amount, the Company assumed a note payable collateralized by a real estate asset in the principal amount of $5,736,000 at the acquisition date and tenant improvements on two properties in the amount of $815,000 . Acquisition fees and costs associated with transactions determined to be asset acquisitions are capitalized. The Company capitalized acquisition fees and costs of approximately $15,674,000 and $9,982,000 related to properties acquired during the years ended December 31, 2017 and 2016 , respectively. The total amount of all acquisition fees and costs is limited to 6.0% of the contract purchase price of a property. The contract purchase price is the amount actually paid or allocated in respect of the purchase, development, construction or improvement of a property exclusive of acquisition fees and costs. For the years ended December 31, 2017 and 2016 , acquisition fees and costs did not exceed 6.0% of the contract purchase price of the Company's acquisitions during such periods. |
Acquired Intangible Assets, Net
Acquired Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2017 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Acquired Intangible Assets, Net | Acquired Intangible Assets, Net Acquired intangible assets, net consisted of the following as of December 31, 2017 and 2016 (amounts in thousands, except weighted average life amounts): December 31, 2017 December 31, 2016 In-place leases, net of accumulated amortization of $21,776 and $7,918, respectively (with a weighted average remaining life of 11.0 years and 12.8 years, respectively) $ 148,594 $ 97,232 Above-market leases, net of accumulated amortization of $358 and $58, respectively (with a weighted average remaining life of 2.8 years and 7.4 years, respectively) 1,344 196 Ground lease interest, net of accumulated amortization of $28 and $19, respectively (with a weighted average remaining life of 65.8 years and 66.8 years, respectively) 616 625 $ 150,554 $ 98,053 The aggregate weighted average remaining life of the acquired intangible assets was 11.2 years and 13.1 years as of December 31, 2017 and December 31, 2016 , respectively. Amortization of the acquired intangible assets for the years ended December 31, 2017 , 2016 and 2015 was $14,167,000 , $5,987,000 and $1,950,000 , respectively. Amortization of the above-market leases is recorded as an adjustment to rental and parking revenue, amortization expense for the in-place leases is included in depreciation and amortization and amortization expense for the ground lease interest is included in rental and parking expenses in the accompanying consolidated statements of comprehensive income (loss) . Estimated amortization expense on the acquired intangible assets as of December 31, 2017 and for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount 2018 $ 18,547 2019 17,933 2020 15,861 2021 15,064 2022 12,658 Thereafter 70,491 $ 150,554 |
Intangible Lease Liabilities, N
Intangible Lease Liabilities, Net | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Lease Liabilities, Net [Abstract] | |
Intangible Lease Liabilities, Net | Intangible Lease Liabilities, Net Intangible lease liabilities, net, consisted of the following as of December 31, 2017 and December 31, 2016 (amounts in thousands, except weighted average life amounts): December 31, 2017 December 31, 2016 Below-market leases, net of accumulated amortization of $2,760 and $634, respectively (with a weighted average remaining life of 18.7 years and 13.6 years, respectively) $ 61,294 $ 6,873 $ 61,294 $ 6,873 Amortization of below-market leases for the years ended December 31, 2017 , 2016 and 2015 was $2,126,000 , $536,000 and $98,000 , respectively. Amortization of below-market leases is recorded as an adjustment to rental and parking revenue in the accompanying consolidated statements of comprehensive income (loss). Estimated amortization of the below-market leases as of December 31, 2017 and for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount 2018 $ 4,883 2019 4,883 2020 4,827 2021 4,799 2022 3,708 Thereafter 38,194 $ 61,294 |
Other Assets, Net
Other Assets, Net | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets [Abstract] | |
Other Assets, Net | Other Assets, Net Other assets, net consisted of the following as of December 31, 2017 and 2016 (amounts in thousands): December 31, 2017 December 31, 2016 Deferred financing costs, related to the revolver portion of the secured credit facility, net of accumulated amortization of $3,426 and $1,789, respectively $ 1,850 $ 3,071 Real estate escrow deposits 100 290 Restricted cash 10,944 6,463 Tenant receivables 4,916 3,126 Straight-line rent receivable 19,321 8,725 Prepaid and other assets 6,117 1,082 Derivative assets 3,934 1,782 $ 47,182 $ 24,539 Amortization of deferred financing costs related to the revolver portion of the secured credit facility for the years ended December 31, 2017 , 2016 and 2015 was $1,637,000 , $987,000 and $719,000 , respectively, which was recorded as interest expense in the accompanying consolidated statements of comprehensive income (loss). |
Accounts Payable and Other Liab
Accounts Payable and Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Liabilities | Accounts Payable and Other Liabilities Accounts payable and other liabilities, as of December 31, 2017 and December 31, 2016 , were comprised of the following (amounts in thousands): December 31, 2017 December 31, 2016 Accounts payable and accrued expenses $ 13,220 $ 7,657 Accrued interest expense 2,410 945 Accrued property taxes 1,532 1,164 Distributions payable to stockholders 6,566 4,336 Tenant deposits 682 1,551 Deferred rental income 3,277 733 Derivative liabilities 22 798 $ 27,709 $ 17,184 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2017 | |
Notes Payable [Abstract] | |
Notes Payable | Notes Payable The Company had $468,135,000 principal outstanding in notes payable collateralized by real estate assets as of December 31, 2017 . As of December 31, 2017 , the notes payable weighted average interest rate was 4.42% . The following table summarizes the notes payable balances as of December 31, 2017 and 2016 (amounts in thousands): Interest Rates (1) Notes payable: December 31, 2017 December 31, 2016 Range Weighted Maturity Date Fixed rate notes payable $ 220,436 $ 51,000 4.0% - 4.8% 4.3% 12/11/2021 - 07/01/2027 Variable rate notes payable fixed through interest rate swaps 247,699 71,540 3.7% - 5.1% 4.6% 10/28/2021 - 11/16/2022 Variable rate notes payable — 30,450 Total notes payable, principal amount outstanding $ 468,135 $ 152,990 Unamortized deferred financing costs related to notes payable (4,393 ) (1,945 ) Total notes payable, net of deferred financing costs $ 463,742 $ 151,045 (1) Range of interest rates and weighted average interest rates are as of December 31, 2017 . Significant debt activity during the year ended December 31, 2017 , excluding scheduled principal payments, includes: • During the year ended December 31, 2017 , the Company entered into seven notes payable collateralized by real estate assets in the principal amount of $309,452,000 at initiation of the respective loans and assumed a note payable collateralized by a real estate asset in the principal amount of $5,736,000 at the acquisition date. • During the year ended December 31, 2017 , the Company entered into four interest rate swap agreements of variable rate notes payable in the aggregate amount of $145,752,000 . The principal payments due on the notes payable as of December 31, 2017 and for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands): Year Total Amount 2018 $ 413 2019 1,971 2020 4,536 2021 155,119 2022 164,972 Thereafter 141,124 $ 468,135 |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2017 | |
Line of Credit Facility [Abstract] | |
Credit Facility | Credit Facility The Company's outstanding secured credit facility as of December 31, 2017 and December 31, 2016 consisted of the following (amounts in thousands): December 31, 2017 December 31, 2016 Secured credit facility: Revolving line of credit $ 120,000 $ 120,000 Term loan 100,000 100,000 Total secured credit facility, principal amount outstanding 220,000 220,000 Unamortized deferred financing costs related to the term loan secured credit facility (601 ) (876 ) Total secured credit facility, net of deferred financing costs $ 219,399 $ 219,124 Significant activities regarding the secured credit facility during the year ended December 31, 2017 include: • During the year ended December 31, 2017 , the Company drew $240,000,000 and repaid $240,000,000 on its secured credit facility. • During the year ended December 31, 2017 , the Company increased the borrowing base availability under the secured credit facility by $116,431,000 by adding 12 properties to the aggregate pool availability and removed a property from the collateralized pool, which decreased the aggregate pool availability by $18,645,000 . This resulted in the net increase of the borrowing base availability of $97,786,000 . • During the year ended December 31, 2017 , the Company entered into four interest rate swap agreements to effectively fix the London Interbank Offered Rate, or LIBOR, on $75,000,000 of the term loan of the secured credit facility. • As of December 31, 2017 , the Company had an aggregate pool availability under the secured credit facility of $397,842,000 and an aggregate outstanding principal balance of $220,000,000 . As of December 31, 2017 , $177,842,000 remained to be drawn on the secured credit facility. The principal payments due on the secured credit facility as of December 31, 2017 and for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount 2018 $ 120,000 2019 100,000 $ 220,000 The proceeds of loans made under the secured credit facility may be used to finance the acquisitions of real estate investments, for tenant improvements and leasing commissions with respect to real estate, for repayment of indebtedness, for capital expenditures with respect to real estate, and for general corporate and working capital purposes. As of December 31, 2017 , the maximum commitments available under the secured credit facility were $425,000,000 , consisting of a $325,000,000 revolving line of credit, with a maturity date of December 22, 2018 , subject to the Company's right to two , 12 -month extension periods, and a $100,000,000 term loan, with a maturity date of December 22, 2019 , subject to the Company's right to one , 12 -month extension period. The secured credit facility can be increased to $550,000,000 , subject to certain conditions. The annual interest rate payable under the secured credit facility was, at the Operating Partnership's option, either: (a) LIBOR, plus an applicable margin ranging from 2.00% to 2.65% , which is determined based on the overall leverage of the Operating Partnership or (b) a base rate, which means, for any day, a fluctuating rate per annum equal to the prime rate for such day plus an applicable margin ranging from 1.00% to 1.65% , which is determined based on the overall leverage of the Operating Partnership. In addition to interest, the Operating Partnership is required to pay a fee on the unused portion of the lenders’ commitments under the secured credit facility at a per annum rate equal to 0.30% if the average daily amount outstanding under the secured credit facility is less than 50% of the lenders’ commitments or 0.20% if the average daily amount outstanding under the secured credit facility is greater than 50% of the lenders’ commitments, and the unused fee is payable quarterly in arrears. As of December 31, 2017 , the interest rate on the variable rate portion of the credit facility was 3.70% and the interest rate on the variable rate fixed through interest rate swap on the credit facility was 3.71% . The actual amount of credit available under the secured credit facility is a function of certain loan-to-cost, loan-to-value and debt service coverage ratios contained in the secured credit facility agreement. The amount of credit available under the secured credit facility will be a maximum principal amount of the value of the assets that are included in the pool availability. The obligations of the Operating Partnership with respect to the secured credit facility agreement are guaranteed by the Company, including but not limited to, the payment of any outstanding indebtedness under the secured credit facility agreement and all terms, conditions and covenants of the secured credit facility agreement, as further discussed below. The secured credit facility agreement contains various affirmative and negative covenants that are customary for credit facilities and transactions of this type, including limitations on the incurrence of debt by the Operating Partnership and its subsidiaries that own properties that serve as collateral for the secured credit facility, limitations on the nature of the Operating Partnership’s business, and limitations on distributions by the Company, the Operating Partnership and its subsidiaries. The secured credit facility agreement imposes the following financial covenants, which are specifically defined in the secured credit facility agreement, on the Operating Partnership: (a) maximum ratio of indebtedness to gross asset value; (b) minimum ratio of adjusted consolidated earnings before interest, taxes, depreciation and amortization to consolidated fixed charges; (c) minimum tangible net worth; (d) minimum liquidity thresholds; (e) minimum quarterly equity raise; (f) minimum weighted average remaining lease term of properties in the collateral pool; and (g) minimum number of properties in the collateral pool. The Company was in compliance with all financial covenant requirements at December 31, 2017 . |
Related-Party Transactions and
Related-Party Transactions and Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions and Arrangements | Related-Party Transactions and Arrangements The Company reimburses the Advisor and its affiliates for organization and offering expenses it incurs on the Company’s behalf, but only to the extent the reimbursement would not cause the selling commissions, dealer manager fees, distribution and servicing fees and other organization and offering expenses to exceed 15.0% of the gross proceeds of the Initial Offering and the Offering. Organization and offering expenses associated with the Initial Offering (other than selling commissions, dealer manager fees and distribution and servicing fees) were approximately 2.0% of the gross proceeds. The Company expects that organization and offering expenses associated with the Offering (other than selling commissions, dealer manager fees and distribution and servicing fees) will be approximately 1.5% of the gross proceeds. As of December 31, 2017 , since inception, the Advisor and its affiliates incurred approximately $17,669,000 on the Company’s behalf in offering costs, the majority of which was incurred by the Dealer Manager. Of this amount, approximately $167,000 of other organization and offering costs remained accrued as of December 31, 2017 . As of December 31, 2017, since inception, the Advisor paid approximately $453,000 to an affiliate of the Dealer Manager in other offering costs on the Company's behalf. Other organization expenses are expensed as incurred and offering costs are charged to stockholders’ equity as incurred. The Company pays to the Advisor 2.0% of the contract purchase price of each property or asset acquired. For the years ended December 31, 2017 , 2016 and 2015 , the Company incurred approximately $11,936,000 , $11,515,000 and $7,486,000 , respectively, in acquisition fees to the Advisor or its affiliates. In addition, the Company reimburses the Advisor for acquisition expenses incurred in connection with the selection and acquisition of properties or real estate-related investments (including expenses relating to potential investments that the Company does not close), such as legal fees and expenses, costs of real estate due diligence, appraisals, non-refundable option payments on properties not acquired, travel and communications expenses, accounting fees and expenses and title insurance premiums, whether or not the property was acquired. The Company expects these expenses will be approximately 0.75% of the purchase price of each property or real estate-related investment. The Company pays to the Advisor an asset management fee calculated on a monthly basis in an amount equal to 1/12t h of 0.75% of gross assets (including amounts borrowed), which is payable monthly in arrears. For the years ended December 31, 2017 , 2016 and 2015 , the Company incurred approximately $9,963,000 , $4,925,000 and $1,895,000 , respectively, in asset management fees. In connection with the rental, leasing, operation and management of the Company’s properties, the Company pays the Property Manager and its affiliates aggregate fees equal to 3.0% of gross revenues from the properties managed, or property management fees. The Company will reimburse the Property Manager and its affiliates for property-level expenses that any of them pay or incur on the Company’s behalf, including salaries, bonuses and benefits of persons employed by the Property Manager and its affiliates except for the salaries, bonuses and benefits of persons who also serve as one of its executive officers. The Property Manager and its affiliates may subcontract the performance of their duties to third parties and pay all or a portion of the property management fee to the third parties with whom they contract for these services. If the Company contracts directly with third parties for such services, it will pay them customary market fees and may pay the Property Manager an oversight fee equal to 1.0% of the gross revenues of the properties managed. In no event will the Company pay the Property Manager or any affiliate both a property management fee and an oversight fee with respect to any particular property. The Company also will pay the Property Manager a separate fee for the one-time initial rent-up, leasing-up of newly constructed properties or re-leasing to existing tenants. For the years ended December 31, 2017 , 2016 and 2015 , the Company incurred approximately $3,249,000 , $1,473,000 and $538,000 , respectively, in property management fees to the Property Manager, which are recorded in rental and parking expenses in the accompanying consolidated statements of comprehensive income (loss). For the years ended December 31, 2017 , 2016 and 2015 the Company incurred $907,000 , $0 and $0 , respectively, in leasing commissions to the Property Manager. Leasing commission fees are capitalized in other assets, net in the accompanying consolidated balance sheets. For acting as general contractor and/or construction manager to supervise or coordinate projects or to provide major repairs or rehabilitation on our properties, the Company may pay the Property Manager up to 5.0% of the cost of the projects, repairs and/or rehabilitation, as applicable, or construction management fees. For the years ended December 31, 2017 , 2016 and 2015 , the Company incurred approximately $719,000 , $754,000 and $0 , respectively, in construction management fees to the Property Manager. Construction management fees are capitalized in real estate, net in the accompanying consolidated balance sheets. The Company reimburses the Advisor for all expenses it paid or incurred in connection with the services provided to the Company, subject to certain limitations. Expenses in excess of the operating expenses in the four immediately preceding quarters that exceeds the greater of (a) 2.0% of average invested assets or (b) 25% of net income, subject to certain adjustments, will not be reimbursed unless the independent directors determine such excess expenses are justified. The Company will not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives an acquisition fee or a disposition fee. For the years ended December 31, 2017 , 2016 and 2015 , the Advisor allocated approximately $1,543,000 , $1,257,000 and $830,000 , respectively, in operating expenses to the Company, which are recorded in general and administrative expenses in the accompanying consolidated statements of comprehensive income (loss). On May 15, 2017, the Advisor employed Gael Ragone, who is the daughter of John E. Carter, our chief executive officer and chairman of our board of directors, as Vice President of Product Management of Carter Validus Advisors II, LLC. The Company directly reimburses the Advisor any amounts of Ms. Ragone's salary that are allocated to the Company. For the year ended December 31, 2017 , the Advisor allocated approximately $98,000 , which is included in general and administrative expenses in the Company's consolidated statements of comprehensive income (loss). The Company will pay its Advisor, or its affiliates, if it provides a substantial amount of services (as determined by a majority of the Company’s independent directors) in connection with the sale of properties, a disposition fee, equal to up to the lesser of 1.0% of the contract sales price and one-half of the total brokerage commission paid if a third party broker is also involved, without exceeding the lesser of 6.0% of the contract sales price or a reasonable, customary and competitive real estate commission. As of December 31, 2017 , the Company has not incurred any disposition fees to the Advisor or its affiliates. Upon the sale of the Company, the Advisor will receive 15% of the remaining net sale proceeds after return of capital contributions plus payment to investors of a 6.0% annual cumulative, non-compounded return on the capital contributed by investors, or the subordinated participation in net sale proceeds. As of December 31, 2017 , the Company has not incurred any subordinated participation in net sale proceeds to the Advisor or its affiliates. Upon the listing of the Company’s shares on a national securities exchange, the Advisor will receive 15.0% of the amount by which the sum of the Company’s adjusted market value plus distributions exceeds the sum of the aggregate capital contributed by investors plus an amount equal to a 6.0% annual cumulative, non-compounded return to investors, or the subordinated incentive listing fee. As of December 31, 2017 , the Company has not incurred any subordinated incentive listing fees to the Advisor or its affiliates. Upon termination or non-renewal of the advisory agreement, with or without cause, the Advisor will be entitled to receive subordinated termination fees from the Operating Partnership equal to 15% of the amount by which the sum of the Company’s adjusted market value plus distributions exceeds the sum of the aggregate capital contributed by investors plus an amount equal to an annual 6.0% cumulative, non-compounded return to investors. In addition, the Advisor may elect to defer its right to receive a subordinated termination fee upon termination until either shares of the Company’s common stock are listed and traded on a national securities exchange or another liquidity event occurs. As of December 31, 2017 , the Company has not incurred any subordinated termination fees to the Advisor or its affiliates. The Company pays the Dealer Manager selling commissions of up to 7.0% of the gross offering proceeds per Class A share and up to 3.0% of gross offering proceeds per Class T share. All selling commissions are expected to be re-allowed to participating broker-dealers. The Company does not pay selling commissions with respect to Class I shares and shares of any class sold pursuant to the DRIP. In addition, the Company pays the Dealer Manager a dealer manager fee of up to 3.0% of gross offering proceeds from the sale of Class A and Class T shares. The Dealer Manager may receive up to 2.0% of the gross offering proceeds from the sale of Class I shares as a dealer manager fee, of which 1.0% will be funded by our Advisor without reimbursement from us. The 1.0% of the dealer manager fee paid from offering proceeds will be waived in the event an investor purchases Class I shares through a registered investment advisor that is not affiliated with a broker dealer. The dealer manager fee may be partially re-allowed to participating broker-dealers. No dealer manager fees will be paid in connection with purchases of shares of any class made pursuant to the DRIP. For the years ended December 31, 2017 , 2016 and 2015 , the Company incurred approximately $22,713,000 , $24,546,000 and $38,163,000 , respectively, for selling commissions and dealer manager fees in connection with the Offerings to the Dealer Manager. The Company pays the Dealer Manager a distribution and servicing fee with respect to its Class T shares that are sold in the primary offering of the Offerings that accrues daily in an amount equal to 1/365th of 1.0% of the most recent offering price per Class T share sold in the primary offering on a continuous basis from year to year; provided, however, that upon the termination of the primary offering of the Offerings, the distribution and servicing fee will accrue daily in an amount equal to 1/365th of 1.0% of the most recent estimated NAV per Class T share on a continuous basis from year to year. The Dealer Manager will reallow all of the distribution and servicing fees with respect to Class T shares sold in the Offerings to participating broker-dealers; provided, however, effective June 1, 2017, a participating broker-dealer may give written notice to the Dealer Manager that it waives all or a portion of the reallowance of the distribution and servicing fee, which waiver shall be irrevocable and will not retroactively apply to Class T shares that were previously sold through such participating broker-dealer. Termination of such payment will commence on the earliest to occur of the following: (i) a listing of the Class T shares on a national securities exchange, (ii) following the completion of the Offerings, the date on which total underwriting compensation in the Offerings equals (a) 10% of the gross proceeds from our Offerings less (b) the total amount of distribution and servicing fees waived by participating broker-dealers; (iii) the date on which there are no longer any Class T shares outstanding; (iv) December 31, 2021, which is the fourth anniversary of the last day of the fiscal quarter in which the Company's primary offering of the Initial Offering terminates; or (v) the date on which the holder of such Class T share or its agent notifies the Company or its agent that he or she is represented by a new participating broker-dealer; provided that the Company will continue paying the distribution and servicing fee, which shall be re-allowed to the new participating broker-dealer; if the new participating broker-dealer enters into a participating broker-dealer agreement with the Dealer Manager or otherwise agrees to provide the services set forth in the dealer manager agreement. The distribution and servicing fee is paid monthly in arrears. The distribution and servicing fee will not be payable with respect to Class T shares issued under the DRIP or in connection with Class A shares and Class I shares. For the years ended December 31, 2017 , 2016 and 2015 , the Company incurred approximately $9,617,000 , $6,213,000 and $0 , respectively, in distribution and servicing fees to the Dealer Manager in connection with the Offerings. Accounts Payable Due to Affiliates The following amounts were due to affiliates as of December 31, 2017 and December 31, 2016 (amounts in thousands): Entity Fee December 31, 2017 December 31, 2016 Carter Validus Advisors II, LLC and its affiliates Asset management fees $ 1,017 $ 627 Carter Validus Real Estate Management Services II, LLC Property management fees 463 252 Carter Validus Real Estate Management Services II, LLC Construction management fees 39 323 Carter Validus Advisors II, LLC and its affiliates General and administrative costs 182 138 Carter Validus Advisors II, LLC and its affiliates Offering costs 167 289 SC Distributors, LLC Distribution and servicing fees 13,376 5,750 Carter Validus Advisors II, LLC and its affiliates Acquisition expenses and fees 5 5 $ 15,249 $ 7,384 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Management reviews the performance of individual properties and aggregates individual properties based on operating criteria into two reportable segments—commercial real estate investments in data centers and healthcare, and makes operating decisions based on these two reportable segments. The Company’s commercial real estate investments in data centers and healthcare are based on certain underwriting assumptions and operating criteria, which are different for data centers and healthcare. There were no intersegment sales or transfers during the years ended December 31, 2017 , 2016 and 2015 . The Company evaluates performance based on net operating income of the individual properties in each segment. Net operating income, a non-GAAP financial measure, is defined as total revenues, less rental and parking expenses, which excludes depreciation and amortization, general and administrative expenses, acquisition related expenses, asset management fees and interest expense, net. The Company believes that segment net operating income serves as a useful supplement to net income (loss) because it allows investors and management to measure unlevered property-level operating results and to compare operating results to the operating results of other real estate companies between periods on a consistent basis. Segment net operating income should not be considered as an alternative to net income (loss) determined in accordance with GAAP as an indicator of financial performance, and accordingly, the Company believes that in order to facilitate a clear understanding of the consolidated historical operating results, segment net operating income should be examined in conjunction with net income (loss) as presented in the accompanying consolidated financial statements and data included elsewhere in this Annual Report on Form 10-K . General and administrative expenses, acquisition related expenses, asset management fees, depreciation and amortization and interest expense, net are not allocated to individual segments for purposes of assessing segment performance. Non-segment assets primarily consist of corporate assets, including cash and cash equivalents, real estate and escrow deposits, deferred financing costs attributable to the revolving line of credit portion of the Company's secured credit facility and other assets not attributable to individual properties. Summary information for the reportable segments during the years ended December 31, 2017 , 2016 and 2015 , is as follows (amounts in thousands): Data Centers Healthcare For the Year Ended Revenue: Rental, parking and tenant reimbursement revenue $ 62,377 $ 62,718 $ 125,095 Expenses: Rental and parking expenses (17,571 ) (8,525 ) (26,096 ) Segment net operating income $ 44,806 $ 54,193 98,999 Expenses: General and administrative expenses (4,069 ) Asset management fees (9,963 ) Depreciation and amortization (41,133 ) Income from operations 43,834 Interest expense, net (22,555 ) Net income attributable to common stockholders $ 21,279 Data Centers Healthcare For the Year Ended Revenue: Rental, parking and tenant reimbursement revenue $ 12,929 $ 43,502 $ 56,431 Expenses: Rental and parking expenses (2,509 ) (5,655 ) (8,164 ) Segment net operating income $ 10,420 $ 37,847 48,267 Expenses: General and administrative expenses (3,105 ) Acquisition related expenses (5,339 ) Asset management fees (4,925 ) Depreciation and amortization (19,211 ) Income from operations 15,687 Interest expense, net (4,390 ) Net income attributable to common stockholders $ 11,297 Data Centers Healthcare For the Year Ended Revenue: Rental, parking and tenant reimbursement revenue $ 1,618 $ 19,668 $ 21,286 Expenses: Rental and parking expenses (301 ) (2,535 ) (2,836 ) Segment net operating income $ 1,317 $ 17,133 18,450 Expenses: General and administrative expenses (2,133 ) Acquisition related expenses (10,250 ) Asset management fees (1,895 ) Depreciation and amortization (7,053 ) Loss from operations (2,881 ) Interest expense, net (1,886 ) Net loss attributable to common stockholders $ (4,767 ) Assets by each reportable segment as of December 31, 2017 and December 31, 2016 are as follows (amounts in thousands): December 31, 2017 December 31, 2016 Assets by segment: Data centers $ 909,477 $ 362,969 Healthcare 813,742 653,416 All other 54,725 53,653 Total assets $ 1,777,944 $ 1,070,038 Capital additions and acquisitions by reportable segments for the years ended December 31, 2017 , 2016 and 2015 are as follows (amounts in thousands): For the Year Ended 2017 2016 2015 Capital additions and acquisitions by segment: Data centers $ 472,438 $ 314,030 $ 43,815 Healthcare 164,445 229,670 331,853 Total capital additions and acquisitions $ 636,883 $ 543,700 $ 375,668 |
Future Minimum Rent
Future Minimum Rent | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Future Minimum Rent | Future Minimum Rent Rental Income The Company’s real estate assets are leased to tenants under operating leases with varying terms. The leases frequently have provisions to extend the terms of the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. The future minimum rent to be received from the Company’s investment in real estate assets under non-cancelable operating leases, including optional renewal periods for which exercise is reasonably assured, as of December 31, 2017 and for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount 2018 $ 121,222 2019 123,235 2020 122,834 2021 124,652 2022 119,775 Thereafter 986,532 $ 1,598,250 Rental Expense The Company has ground lease obligations that generally require fixed annual rental payments and may also include escalation clauses and renewal options. The future minimum rent obligations under non-cancelable ground leases as of December 31, 2017 and for each of the next five years ended December 31 and thereafter, are as follows (amounts in thousands): Year Amount 2018 $ 38 2019 38 2020 38 2021 37 2022 37 Thereafter 2,444 $ 2,632 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Notes payable—Fixed Rate —The estimated fair value of notes payable — fixed rate measured using observable inputs from similar liabilities (Level 2) was approximately $211,011,000 and $49,930,000 as of December 31, 2017 and December 31, 2016 , respectively, as compared to the outstanding principal of $220,436,000 and $51,000,000 as of December 31, 2017 and December 31, 2016 , respectively. The estimated fair value of notes payable — variable rate fixed through interest rate swap agreements (Level 2) was approximately $243,812,000 and $69,247,000 as of December 31, 2017 and December 31, 2016 , respectively, as compared to the outstanding principal of $247,699,000 and $71,540,000 as of December 31, 2017 and December 31, 2016 , respectively. Notes payable—Variable —The outstanding principal of the notes payable — variable was $0 and $30,450,000 as of December 31, 2017 and December 31, 2016 , respectively, which approximated its fair value. The fair value of the Company's variable rate notes payable is estimated based on the interest rates currently offered to the Company by financial institutions. Secured credit facility —The outstanding principal of the secured credit facility—variable was $120,000,000 and $195,000,000 , which approximated its fair value as of December 31, 2017 and December 31, 2016 , respectively. The fair value of the Company's variable rate secured credit facility is estimated based on the interest rates currently offered to the Company by financial institutions. The estimated fair value of the secured credit facility—variable rate fixed through interest rate swap agreements (Level 2) was approximately $98,593,000 and $24,195,000 as of December 31, 2017 and December 31, 2016 , respectively, as compared to the outstanding principal of $100,000,000 and $25,000,000 as of December 31, 2017 and December 31, 2016 , respectively. Derivative instruments —Considerable judgment is necessary to develop estimated fair values of financial instruments. Accordingly, the estimates presented herein are not necessarily indicative of the amount the Company could realize, or be liable for, on disposition of the financial instruments. The Company has determined that the majority of the inputs used to value its interest rate swaps fall within Level 2 of the fair value hierarchy. The credit valuation adjustments associated with these instruments utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and the respective counterparty. However, as of December 31, 2017 , the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions, and has determined that the credit valuation adjustments are not significant to the overall valuation of its interest rate swaps. As a result, the Company determined that its interest rate swaps valuation is classified in Level 2 of the fair value hierarchy. The following table shows the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of December 31, 2017 and December 31, 2016 (amounts in thousands): December 31, 2017 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 3,934 $ — $ 3,934 Total assets at fair value $ — $ 3,934 $ — $ 3,934 Liabilities: Derivative liabilities $ — $ 22 $ — $ 22 Total liabilities at fair value $ — $ 22 $ — $ 22 December 31, 2016 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 1,782 $ — $ 1,782 Total assets at fair value $ — $ 1,782 $ — $ 1,782 Liabilities: Derivative liabilities $ — $ 798 $ — $ 798 Total liabilities at fair value $ — $ 798 $ — $ 798 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated, and that qualify, as cash flow hedges is recorded in accumulated other comprehensive income in the accompanying consolidated statements of stockholders' equity and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the years ended December 31, 2017 and 2016 , the Company's derivative instruments were used to hedge the variable cash flows associated with variable rate debt. The ineffective portion of changes in fair value of the derivatives are recognized directly in earnings. During the years ended December 31, 2017 and 2016 , the Company recognized income of $58,000 and $144,000 , respectively, due to ineffectiveness of its hedges of interest rate risk, which was recorded in interest expense, net in the accompanying consolidated statements of comprehensive income (loss) . Amounts reported in accumulated other comprehensive income related to the derivative will be reclassified to interest expense, net as interest payments are made on the Company’s variable rate debt. During the next twelve months, the Company estimates that an additional $70,000 will be reclassified from accumulated other comprehensive income as a decrease to interest expense, net. See Note 13—"Fair Value" for a further discussion of the fair value of the Company’s derivative instruments. The following table summarizes the notional amount and fair value of the Company’s derivative instruments (amounts in thousands): Derivatives Balance Effective Maturity December 31, 2017 December 31, 2016 Outstanding Fair Value of Outstanding Fair Value of Asset (Liability) Asset (Liability) Interest rate swaps Other assets, net/Accounts 07/01/2016 to 12/22/2020 to $ 347,699 $ 3,934 $ (22 ) $ 96,540 $ 1,782 $ (798 ) The notional amount under the agreements is an indication of the extent of the Company’s involvement in the instruments at the time, but does not represent exposure to credit, interest rate or market risks. Accounting for changes in the fair value of a derivative instrument depends on the intended use and designation of the derivative instrument. The Company designated the interest rate swaps as cash flow hedges to hedge the variability of the anticipated cash flows on its variable rate secured credit facility and notes payable. The change in fair value of the effective portion of the derivative instruments that are designated as hedges is recorded in other comprehensive income (loss), or OCI, in the accompanying consolidated statements of comprehensive income (loss) . The table below summarizes the amount of income recognized on the interest rate derivatives designated as cash flow hedges for the years ended December 31, 2017 and 2016 (amounts in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain Recognized Location of (Loss) Amount of (Loss) For the Year Ended December 31, 2017 Interest rate swaps $ 1,484 Interest expense, net $ (1,386 ) Total $ 1,484 $ (1,386 ) For the Year Ended December 31, 2016 Interest rate swaps $ 744 Interest expense, net $ (96 ) Total $ 744 $ (96 ) The Company did not have derivative instruments as of December 31, 2015. Credit Risk-Related Contingent Features T he Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. The Company records credit risk valuation adjustments on its interest rate swaps based on the respective credit quality of the Company and the counterparty. The Company believes it mitigates its credit risk by entering into agreements with creditworthy counterparties. As of December 31, 2017 , the fair value of derivatives in a net liability position, including accrued interest but excluding any adjustment for nonperformance risk related to the agreement, was $46,000 . As of December 31, 2017 , there were no termination events or events of default related to the interest rate swaps. Tabular Disclosure Offsetting Derivatives The Company has elected not to offset derivative positions in its consolidated financial statements. The following tables present the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of December 31, 2017 and 2016 (amounts in thousands): Offsetting of Derivative Assets Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net December 31, 2017 $ 3,934 $ — $ 3,934 $ — $ — $ 3,934 December 31, 2016 $ 1,782 $ — $ 1,782 $ — $ — $ 1,782 Offsetting of Derivative Liabilities Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net December 31, 2017 $ 22 $ — $ 22 $ — $ — $ 22 December 31, 2016 $ 798 $ — $ 798 $ — $ — $ 798 The Company did no t have any financial instruments hedged through interest rate swaps as of December 31, 2015 . The Company reports derivatives in the accompanying consolidated balance sheets as other assets, net and accounts payable and other liabilities. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table presents a rollforward of amounts recognized in accumulated other comprehensive income by component for the year ended December 31, 2017 and 2016 (amounts in thousands): Unrealized Income on Derivative Accumulated Other Balance as of December 31, 2015 $ — $ — Other comprehensive income before reclassification 744 744 Amount of loss reclassified from accumulated other comprehensive income to net income (effective portion) 96 96 Other comprehensive income 840 840 Balance as of December 31, 2016 $ 840 $ 840 Other comprehensive income before reclassification 1,484 1,484 Amount of loss reclassified from accumulated other comprehensive income to net income (effective portion) 1,386 1,386 Other comprehensive income 2,870 2,870 Balance as of December 31, 2017 $ 3,710 $ 3,710 The following table presents reclassifications out of accumulated other comprehensive income for the years ended December 31, 2017 and 2016 (amounts in thousands): Details about Accumulated Other Amounts Reclassified from Affected Line Items in the Consolidated Statements of Comprehensive Income (Loss) For the Year Ended 2017 2016 Interest rate swap contracts $ 1,386 $ 96 Interest expense, net |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation On May 6, 2014, the Company adopted the Carter Validus Mission Critical REIT II, Inc. 2014 Restricted Share Plan, or the Incentive Plan, pursuant to which the Company has the power and authority to grant restricted or deferred stock awards to persons eligible under the Incentive Plan. The Company authorized and reserved 300,000 shares of its Class A shares for issuance under the Incentive Plan, subject to certain adjustments. Subject to certain limited exceptions, restricted stock may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of and is subject to forfeiture within the vesting period. Restricted stock awards generally vest ratably over four years. The Company uses the straight-line method to recognize expenses for service awards with graded vesting. Restricted stock awards are entitled to receive dividends during the vesting period. In addition to the ratable amortization of fair value over the vesting period, dividends paid on unvested shares of restricted stock which are not expected to vest are charged to compensation expense in the period paid. On August 18, 2017, the Company granted 3,000 restricted shares of Class A common stock to each of its independent directors, which were awarded in connection with their re-election to the Company’s board of directors. The fair value of each share of restricted common stock was estimated at the date of grant at $9.07 per share. The restricted stock awards vest over a period of four years. The awards are amortized using the straight-line method over four years. As of December 31, 2017 and 2016 , there was $173,000 and $167,000 , respectively, of total unrecognized compensation expense related to nonvested shares of the Company’s restricted Class A common stock. This expense is expected to be recognized over a remaining weighted average period of 1.60 years . This expected expense does not include the impact of any future stock-based compensation awards. As of December 31, 2017 and 2016 , the fair value of the nonvested shares of restricted Class A common stock was $206,550 and $183,668 , respectively. A summary of the status of the nonvested shares of restricted Class A common stock as of December 31, 2016 and the changes for the year ended December 31, 2017 is presented below: Restricted Stock Shares December 31, 2016 20,250 Vested (6,750 ) Granted 9,000 December 31, 2017 22,500 Stock-based compensation expense for the years ended December 31, 2017 , 2016 and 2015 was $76,000 , $58,000 and $34,000 , respectively, which is reported in general and administrative costs in the accompanying consolidated statements of comprehensive income (loss) . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes As a REIT, the Company generally will not be subject to U.S. federal income tax on taxable income that it distributes to the stockholders. For U.S. federal income tax purposes, distributions to stockholders are characterized as either ordinary dividends, capital gain distributions, or nontaxable distributions. Nontaxable distributions will reduce U.S. stockholders’ respective bases in their shares. The following table shows the character of distributions the Company paid on a percentage basis during the years ended December 31, 2017 , 2016 and 2015 : For the Year Ended December 31, Character of Class A Distributions: 2017 2016 2015 Ordinary dividends 36.49 % 34.23 % 33.81 % Nontaxable distributions 63.51 % 65.77 % 66.19 % Total 100.00 % 100.00 % 100.00 % For the Year Ended December 31, Character of Class I Distributions: 2017 2016 2015 Ordinary dividends 36.49 % — % — % Nontaxable distributions 63.51 % — % — % Total 100.00 % — % — % For the Year Ended December 31, Character of Class T Distributions: 2017 2016 2015 Ordinary dividends 25.93 % 23.07 % — % Nontaxable distributions 74.07 % 76.93 % — % Total 100.00 % 100.00 % — % The Company is subject to certain state and local income taxes on income, property or net worth in some jurisdictions, and in certain circumstances may also be subject to federal excise tax on undistributed income. Texas, Tennessee and Massachusetts are the major state and local tax jurisdictions for the Company. The Company applies the rules under ASC 740-10, Accounting for Uncertainty in Income Taxes , for uncertain tax positions using a “more likely than not” recognition threshold for tax positions. Pursuant to these rules, the financial statement effects of a tax position are initially recognized when it is more likely than not, based on the technical merits of the tax position, that such a position will be sustained upon examination by the relevant tax authorities. If the tax benefit meets the “more likely than not” threshold, the measurement of the tax benefit will be based on the Company's estimate of the ultimate tax benefit to be sustained if audited by the taxing authority. The Company concluded there was no impact related to uncertain tax positions from the results of the operations of the Company for the years ended December 31, 2017 , 2016 and 2015 . The earliest tax year subject to examination is 2015 . The Company’s policy is to recognize accrued interest related to unrecognized tax benefits as a component of interest expense and penalties related to unrecognized tax benefits as a component of general and administrative expenses. From inception through December 31, 2017 , the Company has not recognized any interest expense or penalties related to unrecognized tax benefits. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation In the ordinary course of business, the Company may become subject to litigation or claims. As of December 31, 2017 , there were, and currently there are, no material pending legal proceedings to which the Company is a party. |
Economic Dependency
Economic Dependency | 12 Months Ended |
Dec. 31, 2017 | |
Economic Dependency [Abstract] | |
Economic Dependency | Economic Dependency The Company is dependent on the Advisor and its affiliates for certain services that are essential to the Company, including the sale of the Company’s shares of common and preferred stock available for issuance; the identification, evaluation, negotiation, purchase and disposition of real estate investments and other investments; the management of the daily operations of the Company’s real estate portfolio; and other general and administrative responsibilities. In the event that the Advisor and its affiliates are unable to provide the respective services, the Company will be required to obtain such services from other sources. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) Presented in the following table is a summary of the unaudited quarterly financial information for the years ended December 31, 2017 and 2016 . The Company believes that all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts stated below to present fairly, and in accordance with GAAP, the selected quarterly information (amounts in thousands, except shares and per share data): 2017 Fourth Third Second First Total revenue $ 37,266 $ 36,205 $ 27,602 $ 24,022 Total expenses (23,926 ) (23,980 ) (17,888 ) (15,467 ) Income from operations 13,340 12,225 9,714 8,555 Interest expense, net (6,932 ) (6,786 ) (5,073 ) (3,764 ) Net income attributable to common stockholders $ 6,408 $ 5,439 $ 4,641 $ 4,791 Net income per common share attributable to common stockholders: Basic $ 0.05 $ 0.05 $ 0.05 $ 0.06 Diluted $ 0.05 $ 0.05 $ 0.05 $ 0.06 Weighted average number of common shares outstanding: Basic 119,651,271 105,388,118 94,910,818 86,482,927 Diluted 119,666,234 105,405,297 94,925,665 86,499,543 2016 Fourth Third Second First Total revenue $ 19,210 $ 13,594 $ 12,203 $ 11,424 Total expenses (11,711 ) (10,460 ) (9,638 ) (8,935 ) Income from operations 7,499 3,134 2,565 2,489 Interest expense, net (2,153 ) (626 ) (732 ) (879 ) Net income attributable to common stockholders $ 5,346 $ 2,508 $ 1,833 $ 1,610 Net income per common share attributable to common stockholders: Basic $ 0.07 $ 0.03 $ 0.03 $ 0.03 Diluted $ 0.07 $ 0.03 $ 0.03 $ 0.03 Weighted average number of common shares outstanding: Basic 78,728,400 71,852,230 63,514,780 53,666,785 Diluted 78,742,067 71,866,949 63,530,999 53,679,723 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Distributions to Stockholders Paid On January 2, 2018, the Company paid aggregate distributions of approximately $4,503,000 to Class A stockholders ( $2,272,000 in cash and $2,231,000 in shares of the Company’s Class A common stock pursuant to the DRIP), which related to distributions declared for each day in the period from December 1, 2017 through December 31, 2017. On February 1, 2018, the Company paid aggregate distributions of approximately $4,523,000 to Class A stockholders ( $2,291,000 in cash and $2,232,000 in shares of the Company’s Class A common stock pursuant to the DRIP), which related to distributions declared for each day in the period from January 1, 2018 through January 31, 2018. On March 1, 2018, the Company paid aggregate distributions of approximately $4,103,000 to Class A stockholders ( $2,084,000 in cash and $2,019,000 in shares of the Company’s Class A common stock pursuant to the DRIP), which related to distributions declared for each day in the period from February 1, 2018 through February 28, 2018. On January 2, 2018, the Company paid aggregate distributions of approximately $364,000 to Class I stockholders ( $193,000 in cash and $171,000 in shares of the Company’s Class I common stock pursuant to the DRIP), which related to distributions declared for each day in the period from December 1, 2017 through December 31, 2017. On February 1, 2018, the Company paid aggregate distributions of approximately $392,000 to Class I stockholders ( $211,000 in cash and $181,000 in shares of the Company’s Class I common stock pursuant to the DRIP), which related to distributions declared for each day in the period from January 1, 2018 through January 31, 2018. On March 1, 2018, the Company paid aggregate distributions of approximately $384,000 to Class I stockholders ( $210,000 in cash and $174,000 in shares of the Company’s Class I common stock pursuant to the DRIP), which related to distributions declared for each day in the period from February 1, 2018 through February 28, 2018. On January 2, 2018, the Company paid aggregate distributions of approximately $1,699,000 to Class T stockholders ( $699,000 in cash and $1,000,000 in shares of the Company's Class T common stock pursuant to the DRIP), which related to distributions declared for each day in the period from December 1, 2017 through December 31, 2017. On February 1, 2018, the Company paid aggregate distributions of approximately $1,717,000 to Class T stockholders ( $717,000 in cash and $1,000,000 in shares of the Company's Class T common stock pursuant to the DRIP), which related to distributions declared for each day in the period from January 1, 2018 through January 31, 2018. On March 1, 2018, the Company paid aggregate distributions of approximately $1,568,000 to Class T stockholders ( $655,000 in cash and $913,000 in shares of the Company's Class T common stock pursuant to the DRIP), which related to distributions declared for each day in the period from February 1, 2018 through February 28, 2018. Distributions Declared Class A Shares On January 31, 2018, the board of directors of the Company approved and declared a daily distribution to the Company’s Class A stockholders of record as of the close of business on each day of the period commencing on March 1, 2018 and ending on May 31, 2018. The distribution will be calculated based on 365 days in the calendar year and will be equal to $0.001788493 per share of Class A common stock, which will be equal to an annualized distribution rate of 6.40% , assuming a purchase price of $10.200 per share of Class A common stock. The distributions declared for each record date in March 2018, April 2018 and May 2018 will be paid in April 2018, May 2018 and June 2018, respectively. The distributions will be payable to stockholders from legally available funds therefor. Class I Shares On January 31, 2018, the board of directors of the Company approved and declared a daily distribution to the Company’s Class I stockholders of record as of the close of business on each day of the period commencing on March 1, 2018 and ending on and ending May 31, 2018. The distribution will be calculated based on 365 days in the calendar year and will be equal to $0.001788493 per share of Class I common stock, which will be equal to an annualized distribution rate of 7.04% , assuming a purchase price of $9.273 per share. The distributions declared for each record date in March 2018, April 2018 and May 2018 will be paid in April 2018, May 2018 and June 2018, respectively. The distributions will be payable to stockholders from legally available funds therefor. Class T Shares On January 31, 2018, the board of directors of the Company approved and declared a daily distribution to the Company’s Class T stockholders of record as of the close of business on each day of the period commencing on March 1, 2018 and ending May 31, 2018. The distribution will be calculated based on 365 days in the calendar year and will be equal to $0.001519750 per share of Class T common stock, which will be equal to an annualized distribution rate of 5.68% , assuming a purchase price of $9.766 per share. The distributions declared for each record date in March 2018, April 2018 and May 2018 will be paid in April 2018, May 2018 and June 2018, respectively. The distributions will be payable to stockholders from legally available funds therefor. Class T2 Shares On January 31, 2018, the board of directors of the Company approved and declared a daily distribution to the Company’s Class T2 stockholders of record as of the close of business on each day of the period commencing on the day following the date on which the first Class T2 Share is purchased and ending May 31, 2018. The distribution will be calculated based on 365 days in the calendar year and will be equal to $0.001522356 per share of Class T2 common stock, which will be equal to an annualized distribution rate of 5.72% , assuming a purchase price of $9.714 per share. The distributions declared for each record date in March 2018, April 2018 and May 2018 will be paid in April 2018, May 2018 and June 2018, respectively. The distributions will be payable to stockholders from legally available funds therefor. Amendments to Dealer Manager Agreement On February 21, 2018, the Company entered into the Eighth Amendment to the Amended and Restated Dealer Manager Agreement, by and among the Company, Advisor, and Dealer Manager in order to incorporate the terms of Class T2 shares into the Dealer Manager Agreement, including terms related to fees associated with the sale of Class T2 shares. On March 12, 2018, the Company entered into the Ninth Amendment to the Amended and Restated Dealer Manager Agreement, by and among the Company, Advisor and Dealer Manager to clarify the selling commissions payable in connection with Class T2 shares. Third Amendment to Operating Partnership Agreement On February 21, 2018, the Company entered into the Third Amendment to the Amended and Restated Agreement of Limited Partnership of Carter Validus Operating Partnership II, LP with the Operating Partnership and Advisor in order to add Class T2 OP Units as a result of the Company’s addition of Class T2 shares in the Offering. Status of the Offering As of March 16, 2018 , the Company had accepted investors’ subscriptions for and issued approximately 84,975,000 shares of Class A common stock, 8,152,000 shares of Class I common stock, 37,521,000 shares of Class T common stock and no shares of Class T2 common stock in the Offerings, resulting in receipt of gross proceeds of approximately $841,384,000 , $74,555,000 , $360,650,000 and $0 , respectively. As of March 16, 2018 , the Company had approximately $960,271,000 in Class A shares, Class I shares and Class T2 shares of common stock remaining in the Offering and approximately $86,872,000 in Class A shares, Class I shares, Class T shares and Class T2 shares of common stock remaining in the DRIP Offering. Acquisitions The following table summarizes properties acquired subsequent to December 31, 2017 and through March 21, 2018: Property Date Acquired Purchase Price (3) Ownership Rancho Cordova Data Center I (1) 03/14/2018 $36,800,000 100% Rancho Cordova Data Center II (2) 03/14/2018 $14,160,000 100% (1) The property is leased to a single tenant. (2) The property is leased to two tenants. (3) The property acquisition was funded using net proceeds from the Initial Offering and the Offering and the secured credit facility. |
Schedule III - Real Estate Asse
Schedule III - Real Estate Assets and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2017 | |
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III - Real Estate Assets and Accumulated Depreciation | CARTER VALIDUS MISSION CRITICAL REIT II, INC. SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION December 31, 2017 (in thousands) Initial Cost Cost Gross Amount Property Description Location Encumbrances Land Buildings and Land Buildings and Total Accumulated Year Date Cy Fair Surgical Center Houston, TX $ — (a) $ 762 $ 2,970 $ 106 $ 762 $ 3,076 $ 3,838 $ 346 1993 07/31/2014 Mercy Healthcare Facility Cincinnati, OH — (a) 356 3,167 40 356 3,207 3,563 307 2001 10/29/2014 Winston-Salem, NC IMF Winston-Salem, NC — (a) 684 4,903 — 684 4,903 5,587 444 2004 12/17/2014 New England Sinai Medical Center Stoughton, MA — (a) 4,049 19,991 1,870 4,049 21,861 25,910 1,700 1967/1973 (d) 12/23/2014 Baylor Surgical Hospital at Fort Worth Fort Worth, TX — (a) 8,297 35,615 — 8,297 35,615 43,912 2,840 2014 12/31/2014 Baylor Surgical Hospital Integrated Medical Facility Fort Worth, TX — (a) 367 1,587 164 367 1,751 2,118 236 2014 12/31/2014 Winter Haven Healthcare Facility Winter Haven, FL — — 2,805 — — 2,805 2,805 230 2009 01/27/2015 Heartland Rehabilitation Hospital Overland Park, KS — (a) 1,558 20,549 — 1,558 20,549 22,107 1,553 2014 02/17/2015 Indianapolis Data Center Indianapolis, IN — (a) 524 6,422 37 524 6,459 6,983 444 2000 (e) 04/01/2015 Clarion IMF Clarion, PA — (a) 462 5,377 — 462 5,377 5,839 462 2012 06/01/2015 Post Acute Webster Rehabilitation Hospital Webster, TX — (a) 1,858 20,140 — 1,858 20,140 21,998 1,342 2015 06/05/2015 Eagan Data Center Eagan, MN — (a) 768 5,037 — 768 5,037 5,805 395 1998 (f) 06/29/2015 Houston Surgical Hospital and LTACH Houston, TX — (a) 8,329 36,297 — 8,329 36,297 44,626 2,582 1950 (g) 06/30/2015 KMO IMF - Cincinnati I Cincinnati, OH — (a) 1,812 24,382 — 1,812 24,382 26,194 1,769 1959 (h) 07/22/2015 KMO IMF - Cincinnati II Cincinnati, OH — (a) 446 10,239 4 446 10,243 10,689 669 2014 07/22/2015 KMO IMF - Florence Florence, KY — (a) 650 9,919 1 650 9,920 10,570 646 2014 07/22/2015 KMO IMF - Augusta Augusta, ME — (a) 556 14,401 — 556 14,401 14,957 1,001 2010 07/22/2015 KMO IMF - Oakland Oakland, ME — (a) 229 5,416 — 229 5,416 5,645 407 2003 07/22/2015 Reading Surgical Hospital Wyomissing, PA — (a) 1,504 20,193 — 1,504 20,193 21,697 1,341 2007 07/24/2015 Post Acute Warm Springs Specialty Hospital of Luling Luling, TX — (a) 824 7,530 — 824 7,530 8,354 497 2002 07/30/2015 Minnetonka Data Center Minnetonka, MN — (a) 2,085 15,099 25 2,085 15,124 17,209 1,261 1985 08/28/2015 Nebraska Healthcare Facility Omaha, NE — (a) 1,259 9,796 — 1,259 9,796 11,055 568 2014 10/14/2015 Heritage Park - Sherman I Sherman, TX — (a) 1,679 23,926 — 1,679 23,926 25,605 1,321 2005 (i) 11/20/2015 Heritage Park - Sherman II Sherman, TX — (a) 214 3,209 — 214 3,209 3,423 179 2005 11/20/2015 Baylor Surgery Center at Fort Worth Fort Worth, TX — (a) 3,120 9,312 — 3,120 9,312 12,432 500 1998 (j) 12/23/2015 HPI - Oklahoma City I Oklahoma City, OK 22,500 4,626 30,509 — 4,626 30,509 35,135 1,691 1985 (k) 12/29/2015 HPI - Oklahoma City II Oklahoma City, OK — (a) 991 8,366 — 991 8,366 9,357 493 1994 (l) 12/29/2015 Waco Data Center Waco, TX — (a) 873 8,233 — 873 8,233 9,106 425 1956 (m) 12/30/2015 HPI - Edmond Edmond, OK — (a) 796 3,199 — 796 3,199 3,995 184 2002 01/20/2016 HPI - Oklahoma City III Oklahoma City, OK — (a) 368 2,344 — 368 2,344 2,712 135 2007 01/27/2016 Initial Cost Cost Gross Amount Property Description Location Encumbrances Land Buildings and Land Buildings and Total Accumulated Year Date HPI - Oklahoma City IV Oklahoma City, OK — (a) 452 1,081 — 452 1,081 1,533 64 2006 01/27/2016 Alpharetta Data Center III Alpharetta, GA — 3,395 11,081 25 3,395 11,106 14,501 576 1999 02/02/2016 Flint Data Center Flint, MI — (a) 111 7,001 — 111 7,001 7,112 356 1987 02/02/2016 HPI - Newcastle Newcastle, OK — (a) 412 1,173 — 412 1,173 1,585 67 1995 (n) 02/03/2016 HPI - Oklahoma City V Oklahoma City, OK — (a) 541 12,445 — 541 12,445 12,986 688 2008 02/11/2016 Vibra Rehabilitation Hospital Rancho Mirage, CA — 2,724 7,626 23,707 2,724 31,333 34,057 (o) (o) 03/01/2016 HPI - Oklahoma City VI Oklahoma City, OK — (a) 896 3,684 — 896 3,684 4,580 201 2007 03/07/2016 Tennessee Data Center Franklin, TN — (a) 6,624 10,971 149 6,624 11,120 17,744 525 2015 03/31/2016 HPI - Oklahoma City VII Oklahoma City, OK 25,000 3,203 32,380 — 3,203 32,380 35,583 1,310 2016 06/22/2016 Post Acute Las Vegas Rehabilitation Hospital Las Vegas, NV — 2,614 639 22,529 2,894 22,888 25,782 25 2017 (p) 06/24/2016 Somerset Data Center Somerset, NJ — (a) 906 10,466 — 906 10,466 11,372 466 1973 (q) 06/29/2016 Integris Lakeside Women's Hospital Oklahoma City, OK — (a) 2,002 15,384 — 2,002 15,384 17,386 614 1997 (r) 06/30/2016 AT&T Hawthorne Data Center Hawthorne, CA 39,749 16,498 57,312 — 16,498 57,312 73,810 1,882 1963 (s) 09/27/2016 McLean I McLean, VA 23,460 31,554 4,930 7 31,554 4,937 36,491 165 1966 (t) 10/17/2016 McLean II McLean, VA 27,540 20,392 22,727 6 20,392 22,733 43,125 706 1991 (u) 10/17/2016 Select Medical Rehabilitation Facility Marlton, NJ 31,790 — 57,154 5 — 57,159 57,159 1,608 1995 11/01/2016 Andover Data Center II Andover, MA — (a) 6,566 28,072 1 6,566 28,073 34,639 897 2000 11/08/2016 Grand Rapids Healthcare Facility Grand Rapids, MI 30,450 2,533 39,487 43 2,533 39,530 42,063 1,345 2008 12/07/2016 Corpus Christi Surgery Center Corpus Christi, TX — 975 4,963 58 1,002 4,994 5,996 141 1992 12/22/2016 Chicago Data Center II Downers Grove, IL — (a) 1,329 29,940 (545 ) 1,358 29,366 30,724 779 1987 (v) 12/28/2016 Blythewood Data Center Blythewood, SC — (a) 612 17,714 (234 ) 634 17,458 18,092 463 1983 12/29/2016 Tempe Data Center Tempe, AZ — (a) 2,997 11,991 — 2,997 11,991 14,988 294 1977 (w) 01/26/2017 Aurora Healthcare Facility Aurora, IL — (a) 973 9,632 — 973 9,632 10,605 206 2002 03/30/2017 Norwalk Data Center Norwalk, CT 34,200 10,125 43,360 — 10,125 43,360 53,485 878 2013 03/30/2017 Texas Rehab - Austin Austin, TX 20,881 1,368 32,039 — 1,368 32,039 33,407 683 2012 03/31/2017 Texas Rehab - Allen Allen, TX 13,150 857 20,582 — 857 20,582 21,439 439 2007 03/31/2017 Texas Rehab - Beaumont Beaumont, TX 5,869 946 8,372 — 946 8,372 9,318 179 1991 03/31/2017 Texas Rehab - San Antonio San Antonio, TX 10,500 1,813 11,706 — 1,813 11,706 13,519 173 1985/1992 06/29/2017 Charlotte Data Center II Charlotte, NC — (a) 372 17,131 — 372 17,131 17,503 272 1989 (x) 05/15/2017 250 Williams Atlanta Data Center Atlanta, GA 116,200 19,159 129,778 102 19,159 129,880 149,039 2,549 1989 (y) 06/15/2017 Sunnyvale Data Center Sunnyvale, CA — (a) 10,013 24,709 — 10,013 24,709 34,722 344 1992 (z) 06/28/2017 Cincinnati Data Center Cincinnati, OH — (a) 1,556 8,966 — 1,556 8,966 10,522 136 1985 (aa) 06/30/2017 Silverdale Healthcare Facility Silverdale, WA — (a) 1,530 7,506 — 1,530 7,506 9,036 85 2005 08/25/2017 Silverdale Healthcare Facility II Silverdale, WA — (a) 1,542 4,981 — 1,542 4,981 6,523 49 2007 09/20/2017 King of Prussia Data Center King of Prussia, PA 12,503 1,015 17,413 — 1,015 17,413 18,428 131 1960 (ab) 09/28/2017 Tempe Data Center II Tempe, AZ — (a) — 15,803 — — 15,803 15,803 122 1998 09/29/2017 Houston Data Center Houston, TX 48,607 10,082 101,051 — 10,082 101,051 111,133 321 2013 11/16/2017 Saginaw Healthcare Facility Saginaw, MI — (a) 1,251 15,878 — 1,251 15,878 17,129 24 2002 12/21/2017 Initial Cost Cost Gross Amount Property Description Location Encumbrances Land Buildings and Land Buildings and Total Accumulated Year Date Elgin Data Center Elgin, IL 5,736 1,067 7,861 — 1,067 7,861 8,928 10 2000 12/22/2017 Oklahoma City Data Center Oklahoma City, OK — 1,868 44,253 — 1,868 44,253 46,121 48 2008/2016 12/27/2017 $ 468,135 $ 222,919 $ 1,280,175 $ 48,100 $ 223,277 $ 1,327,917 $ 1,551,194 $ 45,789 (a) Property collateralized under the secured credit facility. As of December 31, 2017 , 48 commercial properties were collateralized under the secured credit facility and the Company had $220,000,000 aggregate principal amount outstanding thereunder. (b) The aggregated cost for federal income tax purposes is approximately $1,409,721,000 (unaudited). (c) The Company’s assets are depreciated or amortized using the straight-line method over the useful lives of the assets by class. Generally, buildings and improvements are depreciated over 15 - 40 years. (d) The New England Sinai Medical Center consists of two buildings and was renovated beginning in 1997 . (e) The Indianapolis Data Center was renovated in 2014 . (f) The Eagan Data Center was renovated in 2015 . (g) The Houston Surgical Hospital and LTACH was renovated in 2005 and 2008 . (h) The KMO IMF - Cincinnati I was renovated in 1970 and 2013 . (i) The Heritage Park - Sherman I was renovated in 2010 . (j) The Baylor Surgery Center at Fort Worth was renovated in 2007 and 2015 . (k) The HPI - Oklahoma City I was renovated in 1998 and 2003 . (l) The HPI - Oklahoma City II was renovated in 1999 . (m) The Waco Data Center was renovated in 2009 . (n) The HPI - Newcastle was renovated in 1999 . (o) As of December 31, 2017 , the Vibra Rehabilitation Hospital was under construction; therefore, depreciation is not applicable. (p) The Post Acute Las Vegas Rehabilitation Hospital was redeveloped into a healthcare facility in 2017 . (q) The Somerset Data Center was renovated in 2006 . (r) The Integris Lakeside Women's Hospital was renovated in 2008 . (s) The AT&T Hawthorne Data Center was renovated in 1983 and 2001 . (t) The McLean I was renovated in 1998 . (u) The McLean II was renovated in 1998 . (v) The Chicago Data Center II was renovated in 2016 . (w) The Tempe Data Center was renovated in 1983 , 2008 and 2011 . (x) The Charlotte Data Center II was renovated in 2016 . (y) 250 Williams Atlanta Data Center was renovated in 2007 . (z) The Sunnyvale Data Center was renovated in 1998 . (aa) The Cincinnati Data Center was renovated in 2001 . (ab) The King of Prussia Data Center was renovated in 1997 . CARTER VALIDUS MISSION CRITICAL REIT II, INC. SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION (CONTINUED) December 31, 2017 (in thousands) 2017 2016 2015 Real Estate Balance at beginning of year $ 915,521 $ 415,776 $ 82,748 Additions: Acquisitions 601,546 487,276 331,524 Improvements 34,127 12,469 1,504 Balance at end of year $ 1,551,194 $ 915,521 $ 415,776 Accumulated Depreciation Balance at beginning of year $ (18,521 ) $ (5,262 ) $ (133 ) Depreciation (27,268 ) (13,259 ) (5,129 ) Balance at end of year $ (45,789 ) $ (18,521 ) $ (5,262 ) |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, the Operating Partnership, and all wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements and accompanying notes in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Short-term investments are stated at cost, which approximates fair value. |
Restricted Cash | Restricted Cash Restricted cash consists of restricted cash held in escrow and restricted bank deposits. Restricted cash held in escrow includes cash held in escrow accounts for capital improvements for certain properties as well as cash held by lenders in escrow accounts for tenant and capital improvements, repairs and maintenance and other lender reserves for certain properties, in accordance with the respective lender’s loan agreement. Restricted cash held in escrow is reported in other assets, net in the accompanying consolidated balance sheets . Restricted bank deposits consist of tenant receipts for certain properties which are required to be deposited into lender-controlled accounts in accordance with the respective lender's loan agreement. Restricted bank deposits are reported in other assets, net in the accompanying consolidated balance sheets . See Note 6—"Other Assets, Net" . On April 1, 2017, the Company adopted Accounting Standards Update, or ASU, 2016-18, Restricted Cash , or ASU 2016-18. ASU 2016-18 requires that a statement of cash flows explain the change during a reporting period in the total of cash, cash equivalents and restricted cash. This ASU states that transfers between cash, cash equivalents and restricted cash are not part of the Company’s operating, investing and financing activities. Therefore, restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. As required, the Company retrospectively applied the guidance in ASU 2016-18 to the prior periods presented, which resulted in a decrease of $2,491,000 in net cash used in investing activities and an increase of $2,040,000 in net cash provided by financing activities for the year ended December 31, 2016 and an increase of $995,000 in net cash used in investing activities for the year ended December 31, 2015 on the consolidated statements of cash flows . The following table presents a reconciliation of the beginning of year and end of year cash, cash equivalents and restricted cash reported within the consolidated balance sheets to the totals shown in the consolidated statements of cash flows : For the Year Ended Beginning of year: 2017 2016 2015 Cash and cash equivalents 50,446 31,262 3,694 Restricted cash 6,463 1,927 2,922 Cash, cash equivalents and restricted cash $ 56,909 $ 33,189 $ 6,616 End of year: Cash and cash equivalents 74,803 50,446 31,262 Restricted cash 10,944 6,463 1,927 Cash, cash equivalents and restricted cash $ 85,747 $ 56,909 $ 33,189 |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs are loan fees, legal fees and other third-party costs associated with obtaining financing. These costs are amortized over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity unless specific rules are met that would allow for the carryover of such costs to the refinanced debt. Costs incurred in seeking financing transactions that do not close are expensed in the period in which it is determined that the financing will not close. Deferred financing costs are recorded as a reduction of the related debt on the accompanying consolidated balance sheets. |
Investment in Real Estate | Investment in Real Estate Real estate costs related to the acquisition, development, construction and improvement of properties are capitalized. Repair and maintenance costs are expensed as incurred and significant replacements and betterments are capitalized. Repair and maintenance costs include all costs that do not extend the useful life of the real estate asset. The Company considers the period of future benefit of an asset in determining the appropriate useful life. Real estate assets, other than land, are depreciated or amortized on a straight-line basis over each asset’s useful life. The Company anticipates the estimated useful lives of its assets by class as follows: Buildings and improvements 15 – 40 years Tenant improvements Shorter of lease term or expected useful life Furniture, fixtures, and equipment 3 – 10 years |
Allocation of Purchase Price of Real Estate | Allocation of Purchase Price of Real Estate Upon the acquisition of real properties, the Company evaluates whether the acquisition is a business combination or an asset acquisition. For both business combinations and asset acquisitions we allocate the purchase price of properties to acquired tangible assets, consisting of land, buildings and improvements, and acquired intangible assets and liabilities, consisting of the value of above-market and below-market leases and the value of in-place leases. For asset acquisitions, the Company capitalizes transaction costs and allocates the purchase price using a relative fair value method allocating all accumulated costs. For business combinations, the Company expenses transaction costs associated as incurred and allocates the purchase price based on the estimated fair value of each separately identifiable asset and liability. The fair values of the tangible assets of an acquired property (which includes land, buildings and improvements) are determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land and buildings and improvements based on management’s determination of the relative fair value of these assets. Management determines the as-if-vacant fair value of a property using methods similar to those used by independent appraisers. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases, including leasing commissions and other related costs. In estimating carrying costs, management includes real estate taxes, insurance, and other operating expenses during the expected lease-up periods based on current market conditions. The fair values of above-market and below-market in-place lease values are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) an estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease including any fixed rate bargain renewal periods, with respect to a below-market lease. The above-market and below-market lease values are capitalized as intangible lease assets or liabilities. Above-market lease values are amortized as an adjustment of rental income over the remaining terms of the respective leases. Below-market leases are amortized as an adjustment of rental income over the remaining terms of the respective leases, including any fixed rate bargain renewal periods. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above-market and below-market in-place lease values related to that lease would be recorded as an adjustment to rental income. The fair values of in-place leases include an estimate of direct costs associated with obtaining a new tenant and opportunity costs associated with lost rentals that are avoided by acquiring an in-place lease. Direct costs associated with obtaining a new tenant include commissions, tenant improvements, and other direct costs and are estimated based on management’s consideration of current market costs to execute a similar lease. The value of opportunity costs is calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. These lease intangibles are amortized to expense over the remaining terms of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed. |
Acquisition Fees and Expenses | Acquisition Fees and Expenses Acquisition fees and expenses associated with the acquisition of properties determined to be business combinations are expensed as incurred, including investment transactions that are no longer under consideration, and are included in acquisition related expenses in the accompanying consolidated statements of comprehensive income (loss) . Acquisition fees and expenses associated with transactions determined to be an asset acquisition are capitalized in real estate, net in the accompanying consolidated balance sheets. |
Impairment of Long Lived Assets | Impairment of Long Lived Assets The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate and related intangible assets may not be recoverable. When indicators of potential impairment suggest that the carrying value of real estate and related intangible assets may not be recoverable, the Company assesses the recoverability of the assets by estimating whether the Company will recover the carrying value of the asset through its undiscounted future cash flows and its eventual disposition. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of the asset, the Company will record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the asset. No impairment loss has been recorded to date. When developing estimates of expected future cash flows, the Company makes certain assumptions regarding future market rental income amounts subsequent to the expiration of current lease arrangements, property operating expenses, terminal capitalization and discount rates, the number of months it takes to re-lease the property, required tenant improvements and the number of years the property will be held for investment. The use of alternative assumptions in the future cash flow analysis could result in a different determination of the property’s future cash flows and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the carrying value of the real estate and related assets. |
Fair Value | Fair Value ASC 820, Fair Value Measurements and Disclosures , or ASC 820, defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosures about fair value measurements. ASC 820 emphasizes that fair value is intended to be a market-based measurement, as opposed to a transaction-specific measurement. Fair value is defined by ASC 820 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate the fair value. Assets and liabilities are measured using inputs from three levels of the fair value hierarchy, as follows: Level 1—Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2—Inputs other than quoted prices for similar assets and liabilities in active markets that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs). Level 3—Unobservable inputs, only used to the extent that observable inputs are not available, reflect the Company’s assumptions about the pricing of an asset or liability. The following describes the methods the Company used to estimate the fair value of the Company’s financial assets and liabilities: Cash and cash equivalents, restricted cash, tenant receivables, property escrow deposits, prepaid and other assets, accounts payable and accrued liabilities —The Company considered the carrying values of these financial instruments, assets and liabilities, to approximate fair value because of the short period of time between origination of the instruments and their expected realization. Notes payable—Fixed Rate —The fair value is estimated by discounting the expected cash flows on notes payable at current rates at which management believes similar loans would be made considering the terms and conditions of the loan and prevailing market interest rates. Notes payable—Variable Rate —The carrying value of variable rate notes payable approximates fair value because the interest rates adjust with current market conditions. Secured credit facility—Fixed Rate —The fair value is estimated by discounting the expected cash flows on the fixed rate secured credit facility at current rates at which management believes similar borrowings would be made considering the terms and conditions of the borrowings and prevailing market interest rates. Secured credit facility—Variable Rate —The carrying value of the variable rate secured credit facility approximates fair value as the interest is calculated at the London Interbank Offered Rate, plus an applicable margin. The interest rate resets to market on a monthly basis. The fair value of the Company's variable rate secured credit facility is estimated based on the interest rates currently offered to the Company by financial institutions. Derivative instruments —The Company’s derivative instruments consist of interest rate swaps. These swaps are carried at fair value to comply with the provisions of ASC 820. The fair value of these instruments is determined using interest rate market pricing models. The Company incorporated credit valuation adjustments to appropriately reflect the Company’s nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. Considerable judgment is necessary to develop estimated fair values of financial assets and liabilities. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize, or be liable for on disposition of the financial assets and liabilities. |
Revenue Recognition, Tenant Receivables and Allowance for Uncollectible Accounts | Revenue Recognition, Tenant Receivables and Allowance for Uncollectible Accounts The Company recognizes revenue in accordance with Accounting Standards Codification, or ASC, 605, Revenue Recognition , or ASC 605. ASC 605 requires that all four of the following basic criteria be met before revenue is realized or realizable and earned: (1) there is persuasive evidence that an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the seller’s price to the buyer is fixed and determinable; and (4) collectability is reasonably assured. In accordance with ASC 840, Leases , minimum rental revenue is recognized on a straight-line basis over the term of the related lease (including rent holidays). Differences between rental income recognized and amounts contractually due under the lease agreements are credited or charged to deferred rent receivable or deferred rent liability, as applicable. Tenant reimbursement revenue, which is comprised of additional amounts recoverable from tenants for common area maintenance expenses and certain other recoverable expenses, is recognized as revenue in the period in which the related expenses are incurred. Tenant reimbursements are recognized and presented in accordance with ASC Subtopic 605-45, Revenue Recognition—Principal Agent Consideration, or ASC 605-45. ASC 605-45 requires that these reimbursements be recorded on a gross basis when the Company is the primary obligor with respect to purchasing goods and services from third-party suppliers, and thus, the Company has discretion in selecting the supplier and has credit risk. Tenant receivables and unbilled deferred rent receivables are carried net of the allowances for uncollectible current tenant receivables and unbilled deferred rent. An allowance will be maintained for estimated losses resulting from the inability of certain tenants to meet the contractual obligations under their lease agreements. The Company also maintains an allowance for deferred rent receivables arising from the straight-lining of rents. The Company’s determination of the adequacy of these allowances is based primarily upon evaluations of historical loss experience, the tenant’s financial condition, security deposits, letters of credit, lease guarantees and current economic conditions and other relevant factors. As of December 31, 2017 , the Company did no t have an allowance for uncollectible tenant receivables. |
Earnings Per Share | Earnings Per Share The Company calculates basic earnings per share by dividing net income (loss) attributable to common stockholders for the period by the weighted average shares of its common stock outstanding for that period. Diluted earnings per share are computed based on the weighted average number of shares outstanding and all potentially dilutive securities. Shares of non-vested restricted common stock give rise to potentially dilutive shares of common stock. For the years ended December 31, 2017 and 2016 , diluted earnings per share reflected the effect of 18,000 and 16,000 shares, respectively, of non-vested shares of restricted common stock that were outstanding as of such period. For the year ended December 31, 2015 , there were 15,750 shares of non-vested restricted common stock outstanding, but such shares were excluded from the computation of diluted earnings per share because such shares were anti-dilutive during this period. |
Reportable Segments | Reportable Segments Accounting Standards Codification, or ASC, 280, Segment Reporting , establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. As of December 31, 2017 and 2016 , the Company operated through two reportable business segments—commercial real estate investments in data centers and healthcare. With the continued expansion of the Company’s portfolio, segregation of the Company’s operations into two reporting segments is useful in assessing the performance of the Company’s business in the same way that management reviews performance and makes operating decisions. See Note 11—"Segment Reporting" for further discussion on the reportable segments of the Company. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities As required by ASC 815, Derivatives and Hedging , or ASC 815, the Company records all derivative instruments as assets and liabilities in the statement of financial position at fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. For derivative instruments not designated as hedging instruments, the income or loss is recognized in the consolidated statements of comprehensive income (loss) during the current period. The Company is exposed to variability in expected future cash flows that are attributable to interest rate changes in the normal course of business. The Company’s primary strategy in entering into derivative contracts is to add stability to future cash flows by managing its exposure to interest rate movements. The Company utilizes derivative instruments, including interest rate swaps, to effectively convert some its variable rate debt to fixed rate debt. The Company does not enter into derivative instruments for speculative purposes. In accordance with ASC 815, the Company designates interest rate swap contracts as cash flow hedges of floating-rate borrowings. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the income or loss on the derivative instrument is reported as a component of other comprehensive income (loss) in the consolidated statements of comprehensive income (loss) and reclassified into earnings in the same line item associated with the forecasted transaction and the same period during which the hedged transaction affects earnings. The ineffective portion of the income or loss on the derivative instrument is recognized in the consolidated statements of comprehensive income (loss) during the current period. In accordance with the fair value measurement guidance ASU 2011-04, Fair Value Measurement , the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. |
Concentration of Credit Risk and Significant Leases | Concentration of Credit Risk and Significant Leases As of December 31, 2017 , the Company had cash on deposit, including restricted cash, in certain financial institutions that had deposits in excess of current federally insured levels; however, the Company has not experienced any losses in such accounts. The Company limits its cash investments to financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk on its cash deposits. To date, the Company has experienced no loss or lack of access to cash in its accounts. As of December 31, 2017 , the Company owned real estate investments in 37 MSAs, two of which accounted for 10.0% or more of contractual rental revenue. Real estate investments located in the Atlanta-Sandy Springs-Roswell, Georgia MSA and the Oklahoma City, Oklahoma MSA accounted for 12.1% and 10.0% , respectively, of contractual rental revenue for the year ended December 31, 2017 . As of December 31, 2017 , the Company had no exposure to tenant concentration that accounted for 10.0% or more of contractual rental revenue for the year ended December 31, 2017 . |
Stockholders' Equity | Stockholders’ Equity The Company’s charter authorizes the issuance of up to 600,000,000 shares of stock, consisting of 175,000,000 shares of Class A common stock, 75,000,000 shares of Class I common stock, 175,000,000 shares of Class T common stock and 75,000,000 shares of Class T2 common stock, $0.01 par value per share, and 100,000,000 shares of preferred stock, $0.01 par value per share. As of December 31, 2017, the Company was not offering Class T2 shares. Other than the different fees with respect to each class and the payment of a distribution and servicing fee out of amounts otherwise distributable to Class T stockholders, Class A shares, Class I and Class T shares have identical rights and privileges, such as identical voting rights. The net proceeds from the sale of the three classes of shares will be commingled for investment purposes and all earnings from all of the investments will proportionally accrue to each share regardless of the class. As of December 31, 2017 , the Company had 126,559,834 shares of Class A, Class I and Class T common stock issued and 124,327,777 shares of Class A, Class I and Class T common stock outstanding, and no shares of preferred stock issued and outstanding. As of December 31, 2016 , the Company had 83,109,025 shares of Class A and Class T common stock issued and 82,744,288 shares of Class A and Class T common stock outstanding, and no shares of preferred stock issued and outstanding. The charter authorizes the Company’s board of directors, without stockholder approval, to designate and issue one or more classes or series of preferred stock and to set or change the voting, conversion or other rights, preferences, restrictions, limitations as to dividends or other distributions and qualification or terms or conditions of repurchase of each class of stock so issued. |
Share Repurchase Program | Share Repurchase Program The Company’s share repurchase program allows for repurchases of shares of the Company’s common stock when certain criteria are met. The share repurchase program provides that all repurchases during any calendar year, including those redeemable upon death or a Qualifying Disability of a stockholder, are limited to those that can be funded with equivalent proceeds raised from the DRIP Offering during the prior calendar year and other operating funds, if any, as the board of directors, in its sole discretion, may reserve for this purpose. Repurchases of shares of the Company’s common stock are at the sole discretion of the Company’s board of directors. The Company will limit the number of shares repurchased pursuant to the share repurchase program as follows: during any calendar year, the Company will not repurchase in excess of 5.0% of the number of shares of common stock outstanding on December 31 st of the previous calendar year. In addition, the Company’s board of directors, in its sole discretion, may amend, suspend, reduce, terminate or otherwise change the share repurchase program upon 30 days' prior notice to the Company’s stockholders for any reason it deems appropriate. During the year ended December 31, 2017 , the Company received valid repurchase requests related to 1,880,820 Class A shares, Class T shares and Class I shares of common stock ( 1,793,424 Class A shares, 81,939 Class T shares and 5,457 Class I shares), or 2.27% of shares outstanding as of December 31, 2016 , all of which were redeemed in full for an aggregate purchase price of approximately $17,159,000 (an average of $9.12 per share). During the year ended December 31, 2016 , the Company received valid repurchase requests related to 333,194 Class A shares of common stock, or 0.69% of shares outstanding as of December 31, 2015 , all of which were redeemed in full for an aggregate purchase price of approximately $3,114,000 (an average of $9.35 per share). No shares of Class T common stock were requested to be, or were, repurchased during the year ended December 31, 2016 . No shares of Class I common stock were requested to be, or were, repurchased during the year ended December 31, 2016 . |
Distribution Policy and Distributions Payable | Distribution Policy and Distributions Payable In order to maintain its status as a REIT, the Company is required to make distributions each taxable year equal to at least 90% of its REIT taxable income, computed without regard to the dividends paid deduction and excluding capital gains. To the extent funds are available, the Company intends to continue to pay regular distributions to stockholders. Distributions are paid to stockholders of record as of the applicable record dates. As of December 31, 2017 , the Company paid aggregate distributions, since inception, of approximately $118,258,000 ( $53,192,000 in cash and $65,066,000 of which were reinvested in shares of common stock pursuant to the DRIP). Distributions are payable to stockholders from legally available funds therefor. The Company declared distributions per share of common stock in the amounts of $0.62 and $0.63 for the years ended December 31, 2017 and 2016 , respectively. As of December 31, 2017 , the Company had distributions payable of approximately $6,566,000 . Of these distributions payable, approximately $3,164,000 was paid in cash and approximately $3,402,000 was reinvested in shares of common stock pursuant to the DRIP on January 2, 2018. Distributions to stockholders are determined by the board of directors of the Company and are dependent upon a number of factors relating to the Company, including funds available for the payment of distributions, financial condition, the timing of property acquisitions, capital expenditure requirements, and annual distribution requirements in order to maintain the Company’s status as a REIT under the Code. |
Income Taxes | Income Taxes The Company currently qualifies and is taxed as a REIT under Sections 856 through 860 of the Code. Accordingly, it will generally not be subject to corporate U.S. federal or state income tax to the extent that it makes qualifying distributions to stockholders, and provided it satisfies, on a continuing basis, through actual investment and operating results, the REIT requirements, including certain asset, income, distribution and stock ownership tests. If the Company fails to qualify as a REIT, and does not qualify for certain statutory relief provisions, it will be subject to U.S. federal, state and local income taxes and may be precluded from qualifying as a REIT for the subsequent four taxable years following the year in which it lost its REIT qualification, unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Accordingly, failure to qualify as a REIT could have a material adverse impact on the results of operations and amounts available for distribution to stockholders. The dividends paid deduction of a REIT for qualifying dividends paid to its stockholders is computed using the Company’s taxable income as opposed to net income reported in the consolidated financial statements. Taxable income, generally, will differ from net income reported in the consolidated financial statements because the determination of taxable income is based on tax provisions and not financial accounting principles. The Company has concluded that there was no impact related to uncertain tax provisions from results of operations of the Company for the years ended December 31, 2017 , 2016 and 2015 . The United States of America is the jurisdiction for the Company, and the earliest tax year subject to examination will be 2015 . |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements On May 28, 2014, the Financial Accounting Standards Board, or the FASB, issued ASU 2014-09, Revenue from Contracts with Customers , or ASU 2014-09. The objective of ASU 2014-09 is to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods and 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. ASU 2014-09 defines a five-step process to achieve this core principle, which may require more judgment and estimates within the revenue recognition process than are required under existing GAAP. The Company has preliminarily determined the revenue stream that could be most significantly impacted by this ASU relates to parking revenue. The Company determined that the revenue recognition from parking revenue will be generally consistent with current recognition methods, and therefore will not have material changes to the consolidated financial statements as a result of adoption. For the year ended December 31, 2017, parking revenue was less than 10% of consolidated revenue. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date , or ASU 2015-14. ASU 2015-14 defers the effective date of ASU 2014-09 by one year to fiscal years and interim periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date, which was annual reporting periods beginning after December 15, 2016, and the interim periods within that year. On March 17, 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Principal versus Agent Considerations), or ASU 2016-08, which improves the implementation guidance on principal versus agent considerations. ASU 2016-08 clarifies that an entity is a principal when it controls the specified good or service before that good or service is transferred to the customer, and is an agent when it does not control the specified good or service before it is transferred to the customer. The effective date of this update is the same as the effective date of ASU 2015-14. As the majority of the Company's revenue is derived from real estate lease contracts, as discussed in relation to ASU 2016-02, Leases , the Company does not expect that the adoption of ASU 2014-09 or related amendments and modifications will have a material impact on the consolidated financial statements. Recoveries from tenants to be impacted by ASU 2014-09 will not be addressed until the Company's adoption of ASU 2016-02, Leases, considering its revisions to accounting for common area maintenance described below. The Company also continues to evaluate the scope of revenue-related disclosures it expects to provide pursuant to the new requirements. The standard permits the use of either a retrospective or cumulative effect transition method and permits the use of certain practical expedients. The Company currently anticipates using the modified retrospective method, however, this determination is subject to change. The Company will adopt the standard on its effective date beginning with the first quarter of 2018. On February 25, 2016, the FASB issued ASU 2016-02 , Leases , or ASU 2016-02. ASU 2016-02 establishes the principles to increase the transparency about the assets and liabilities arising from leases. ASU 2016-02 results in a more faithful representation of the rights and obligations arising from leases by requiring lessees to recognize the lease assets and lease liabilities that arise from leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions and aligns lessor accounting and sale leaseback transactions guidance more closely to comparable guidance in Topic 606, Revenue from Contracts with Customers , and Topic 610, Other Income . Under ASU 2016-02, a lessee is required to record a right of use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. The Company is a lessee on a limited number of ground leases, which will result in the recognition of a right of use asset and lease liability upon the adoption of ASU 2016-02. Lessor accounting remains largely unchanged, apart from the narrower scope of initial direct costs that can be capitalized. The new standard will result in certain costs, such as legal costs related to lease negotiations, being expensed rather than capitalized. In addition, ASU 2016-02 requires lessors to identify the lease and non-lease components, such as the reimbursement of common area maintenance, contained within each lease. The non-lease components would have to be evaluated under the revenue recognition guidance of ASU 2014-09. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. In January 2018, the FASB proposed an amendment to ASU 2016-02 to simplify the guidance by allowing lessors to elect a practical expedient to allow lessors to not separate non-lease components from a lease, which would provide the Company with the option of not bifurcating certain common area maintenance recoveries as a non-lease component. The Company will evaluate the impact of this amendment to the ASU when it is final. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses, or ASU 2016-13. ASU 2016-13 requires more timely recording of credit losses on loans and other financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other such commitments. ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 require the Company to measure all expected credit losses based upon historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the financial assets and eliminates the “incurred loss” methodology in current GAAP. ASU 2016-13 is effective for fiscal years, and interim periods within, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within, beginning after December 15, 2018. The Company is in the process of evaluating the impact ASU 2016-13 will have on the Company’s consolidated financial statements. The Company believes that certain financial statements' accounts will be impacted by the adoption of ASU 2016-13, including allowances for doubtful accounts with respect to accounts receivable and straight-line rents receivable. On August 26, 2016, the FASB issued ASU 2016-15, Statement of Cash Flows , or ASU 2016-15. ASU 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 addresses eight classification issues related to the statement of cash flows: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon bonds; 3) contingent consideration payments made after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6) distributions received from equity method investees; 7) beneficial interests in securitization transactions; and 8) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. Entities should apply this ASU using a retrospective transition method to each period presented. The Company adopted ASU 2016-15 effective October 1, 2017. The adoption of ASU 2016-15 had no impact on the Company's consolidated statements of cash flows. On February 23, 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, or ASU 2017-05. ASU 2017-05 clarifies the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets. Partial sales of nonfinancial assets are common in the real estate industry and include transactions in which the seller retains an equity interest in the entity that owns the assets or has an equity interest in the buyer. ASU 2017-05 is effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those fiscal years. Early adoption is permitted. The Company is in process of evaluating the impact ASU 2017-05 will have on the Company’s consolidated financial statements. T he Company does not expect that the adoption of ASU 2017-05 will have a material impact on the consolidated financial statements. On August 28, 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , or ASU 2017-12. The objectives of ASU 2017-12 are to (i) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (ii) reduce the complexity of and simplify the application of hedge accounting by preparers. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. The Company is in process of evaluating the impact of ASU 2017-12 will have on the Company’s consolidated financial statements. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table presents a reconciliation of the beginning of year and end of year cash, cash equivalents and restricted cash reported within the consolidated balance sheets to the totals shown in the consolidated statements of cash flows : For the Year Ended Beginning of year: 2017 2016 2015 Cash and cash equivalents 50,446 31,262 3,694 Restricted cash 6,463 1,927 2,922 Cash, cash equivalents and restricted cash $ 56,909 $ 33,189 $ 6,616 End of year: Cash and cash equivalents 74,803 50,446 31,262 Restricted cash 10,944 6,463 1,927 Cash, cash equivalents and restricted cash $ 85,747 $ 56,909 $ 33,189 |
Schedule of Estimated Useful Lives of Assets by Class | The Company anticipates the estimated useful lives of its assets by class as follows: Buildings and improvements 15 – 40 years Tenant improvements Shorter of lease term or expected useful life Furniture, fixtures, and equipment 3 – 10 years |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Real Estate [Abstract] | |
Schedule of Consideration Transferred for Properties Acquired | The following table summarizes the consideration transferred for the properties acquired during the year ended December 31, 2017 : Property Description Date Acquired Ownership Percentage Purchase Price (amounts in thousands) Tempe Data Center 01/26/2017 100% $ 16,224 Norwalk Data Center 03/30/2017 100% 58,835 Aurora Healthcare Facility 03/30/2017 100% 11,531 Texas Rehab - Austin 03/31/2017 100% 36,945 Texas Rehab - Allen 03/31/2017 100% 23,691 Texas Rehab - Beaumont 03/31/2017 100% 9,649 Charlotte Data Center II 05/15/2017 100% 16,646 250 Williams Atlanta Data Center 06/15/2017 100% 168,588 Sunnyvale Data Center 06/28/2017 100% 38,105 Texas Rehab - San Antonio 06/29/2017 100% 14,853 Cincinnati Data Center 06/30/2017 100% 10,503 Silverdale Healthcare Facility 08/25/2017 100% 9,856 Silverdale Healthcare Facility II 09/20/2017 100% 7,144 King of Prussia Data Center 09/28/2017 100% 19,885 Tempe Data Center II 09/29/2017 100% 15,568 Houston Data Center 11/16/2017 100% 76,388 Saginaw Healthcare Facility 12/21/2017 100% 18,462 Elgin Data Center 12/22/2017 100% 2,771 Oklahoma City Data Center 12/27/2017 100% 48,728 Total $ 604,372 |
Schedule of Allocation of Acquisitions | The following table summarizes management's allocation of the acquisitions during the year ended December 31, 2017 , (amounts in thousands): Total Land $ 68,535 Buildings and improvements 533,011 In-place leases 64,476 Above market leases 1,448 Total assets acquired 667,470 Below market leases (56,547 ) Liabilities assumed at acquisition (6,551 ) (1) Total liabilities acquired (63,098 ) Net assets acquired $ 604,372 (1) Of this amount, the Company assumed a note payable collateralized by a real estate asset in the principal amount of $5,736,000 at the acquisition date and tenant improvements on two properties in the amount of $815,000 . |
Acquired Intangible Assets, N33
Acquired Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Schedule of Acquired Intangible Assets, Net | Acquired intangible assets, net consisted of the following as of December 31, 2017 and 2016 (amounts in thousands, except weighted average life amounts): December 31, 2017 December 31, 2016 In-place leases, net of accumulated amortization of $21,776 and $7,918, respectively (with a weighted average remaining life of 11.0 years and 12.8 years, respectively) $ 148,594 $ 97,232 Above-market leases, net of accumulated amortization of $358 and $58, respectively (with a weighted average remaining life of 2.8 years and 7.4 years, respectively) 1,344 196 Ground lease interest, net of accumulated amortization of $28 and $19, respectively (with a weighted average remaining life of 65.8 years and 66.8 years, respectively) 616 625 $ 150,554 $ 98,053 |
Schedule of Estimated Future Amortization Expense of Acquired Intangible Assets | Estimated amortization expense on the acquired intangible assets as of December 31, 2017 and for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount 2018 $ 18,547 2019 17,933 2020 15,861 2021 15,064 2022 12,658 Thereafter 70,491 $ 150,554 |
Intangible Lease Liabilities,34
Intangible Lease Liabilities, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Lease Liabilities, Net [Abstract] | |
Schedule of Intangible Lease Liabilities, Net | Intangible lease liabilities, net, consisted of the following as of December 31, 2017 and December 31, 2016 (amounts in thousands, except weighted average life amounts): December 31, 2017 December 31, 2016 Below-market leases, net of accumulated amortization of $2,760 and $634, respectively (with a weighted average remaining life of 18.7 years and 13.6 years, respectively) $ 61,294 $ 6,873 $ 61,294 $ 6,873 |
Schedule of Estimated Future Amortization Income of Below-Market Leases | Estimated amortization of the below-market leases as of December 31, 2017 and for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount 2018 $ 4,883 2019 4,883 2020 4,827 2021 4,799 2022 3,708 Thereafter 38,194 $ 61,294 |
Other Assets, Net (Tables)
Other Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets [Abstract] | |
Schedule of Other Assets, Net | Other assets, net consisted of the following as of December 31, 2017 and 2016 (amounts in thousands): December 31, 2017 December 31, 2016 Deferred financing costs, related to the revolver portion of the secured credit facility, net of accumulated amortization of $3,426 and $1,789, respectively $ 1,850 $ 3,071 Real estate escrow deposits 100 290 Restricted cash 10,944 6,463 Tenant receivables 4,916 3,126 Straight-line rent receivable 19,321 8,725 Prepaid and other assets 6,117 1,082 Derivative assets 3,934 1,782 $ 47,182 $ 24,539 |
Accounts Payable and Other Li36
Accounts Payable and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other Liabilities | Accounts payable and other liabilities, as of December 31, 2017 and December 31, 2016 , were comprised of the following (amounts in thousands): December 31, 2017 December 31, 2016 Accounts payable and accrued expenses $ 13,220 $ 7,657 Accrued interest expense 2,410 945 Accrued property taxes 1,532 1,164 Distributions payable to stockholders 6,566 4,336 Tenant deposits 682 1,551 Deferred rental income 3,277 733 Derivative liabilities 22 798 $ 27,709 $ 17,184 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Instrument [Line Items] | |
Schedule of Notes Payable | The following table summarizes the notes payable balances as of December 31, 2017 and 2016 (amounts in thousands): Interest Rates (1) Notes payable: December 31, 2017 December 31, 2016 Range Weighted Maturity Date Fixed rate notes payable $ 220,436 $ 51,000 4.0% - 4.8% 4.3% 12/11/2021 - 07/01/2027 Variable rate notes payable fixed through interest rate swaps 247,699 71,540 3.7% - 5.1% 4.6% 10/28/2021 - 11/16/2022 Variable rate notes payable — 30,450 Total notes payable, principal amount outstanding $ 468,135 $ 152,990 Unamortized deferred financing costs related to notes payable (4,393 ) (1,945 ) Total notes payable, net of deferred financing costs $ 463,742 $ 151,045 (1) Range of interest rates and weighted average interest rates are as of December 31, 2017 . |
Notes Payable [Member] | |
Debt Instrument [Line Items] | |
Schedule of Future Principal Payments Due on Notes Payable | The principal payments due on the notes payable as of December 31, 2017 and for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands): Year Total Amount 2018 $ 413 2019 1,971 2020 4,536 2021 155,119 2022 164,972 Thereafter 141,124 $ 468,135 |
Credit Facility (Tables)
Credit Facility (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Instrument [Line Items] | |
Schedule of Secured Credit Facility | The Company's outstanding secured credit facility as of December 31, 2017 and December 31, 2016 consisted of the following (amounts in thousands): December 31, 2017 December 31, 2016 Secured credit facility: Revolving line of credit $ 120,000 $ 120,000 Term loan 100,000 100,000 Total secured credit facility, principal amount outstanding 220,000 220,000 Unamortized deferred financing costs related to the term loan secured credit facility (601 ) (876 ) Total secured credit facility, net of deferred financing costs $ 219,399 $ 219,124 |
Secured Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Schedule of Future Principal Payments Due on Secured Credit Facility | The principal payments due on the secured credit facility as of December 31, 2017 and for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount 2018 $ 120,000 2019 100,000 $ 220,000 |
Related-Party Transactions an39
Related-Party Transactions and Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Accounts Payable Due to Affiliates | The following amounts were due to affiliates as of December 31, 2017 and December 31, 2016 (amounts in thousands): Entity Fee December 31, 2017 December 31, 2016 Carter Validus Advisors II, LLC and its affiliates Asset management fees $ 1,017 $ 627 Carter Validus Real Estate Management Services II, LLC Property management fees 463 252 Carter Validus Real Estate Management Services II, LLC Construction management fees 39 323 Carter Validus Advisors II, LLC and its affiliates General and administrative costs 182 138 Carter Validus Advisors II, LLC and its affiliates Offering costs 167 289 SC Distributors, LLC Distribution and servicing fees 13,376 5,750 Carter Validus Advisors II, LLC and its affiliates Acquisition expenses and fees 5 5 $ 15,249 $ 7,384 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Information for Reportable Segments | Summary information for the reportable segments during the years ended December 31, 2017 , 2016 and 2015 , is as follows (amounts in thousands): Data Centers Healthcare For the Year Ended Revenue: Rental, parking and tenant reimbursement revenue $ 62,377 $ 62,718 $ 125,095 Expenses: Rental and parking expenses (17,571 ) (8,525 ) (26,096 ) Segment net operating income $ 44,806 $ 54,193 98,999 Expenses: General and administrative expenses (4,069 ) Asset management fees (9,963 ) Depreciation and amortization (41,133 ) Income from operations 43,834 Interest expense, net (22,555 ) Net income attributable to common stockholders $ 21,279 Data Centers Healthcare For the Year Ended Revenue: Rental, parking and tenant reimbursement revenue $ 12,929 $ 43,502 $ 56,431 Expenses: Rental and parking expenses (2,509 ) (5,655 ) (8,164 ) Segment net operating income $ 10,420 $ 37,847 48,267 Expenses: General and administrative expenses (3,105 ) Acquisition related expenses (5,339 ) Asset management fees (4,925 ) Depreciation and amortization (19,211 ) Income from operations 15,687 Interest expense, net (4,390 ) Net income attributable to common stockholders $ 11,297 Data Centers Healthcare For the Year Ended Revenue: Rental, parking and tenant reimbursement revenue $ 1,618 $ 19,668 $ 21,286 Expenses: Rental and parking expenses (301 ) (2,535 ) (2,836 ) Segment net operating income $ 1,317 $ 17,133 18,450 Expenses: General and administrative expenses (2,133 ) Acquisition related expenses (10,250 ) Asset management fees (1,895 ) Depreciation and amortization (7,053 ) Loss from operations (2,881 ) Interest expense, net (1,886 ) Net loss attributable to common stockholders $ (4,767 ) |
Schedule of Assets by Reportable Segments | Assets by each reportable segment as of December 31, 2017 and December 31, 2016 are as follows (amounts in thousands): December 31, 2017 December 31, 2016 Assets by segment: Data centers $ 909,477 $ 362,969 Healthcare 813,742 653,416 All other 54,725 53,653 Total assets $ 1,777,944 $ 1,070,038 |
Schedule of Capital Additions and Acquisitions by Reportable Segments | Capital additions and acquisitions by reportable segments for the years ended December 31, 2017 , 2016 and 2015 are as follows (amounts in thousands): For the Year Ended 2017 2016 2015 Capital additions and acquisitions by segment: Data centers $ 472,438 $ 314,030 $ 43,815 Healthcare 164,445 229,670 331,853 Total capital additions and acquisitions $ 636,883 $ 543,700 $ 375,668 |
Future Minimum Rent (Tables)
Future Minimum Rent (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Income from Non-Cancelable Operating Leases | The future minimum rent to be received from the Company’s investment in real estate assets under non-cancelable operating leases, including optional renewal periods for which exercise is reasonably assured, as of December 31, 2017 and for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands): Year Amount 2018 $ 121,222 2019 123,235 2020 122,834 2021 124,652 2022 119,775 Thereafter 986,532 $ 1,598,250 |
Schedule of Future Minimum Rental Payments Under Non-Cancelable Ground Leases | The future minimum rent obligations under non-cancelable ground leases as of December 31, 2017 and for each of the next five years ended December 31 and thereafter, are as follows (amounts in thousands): Year Amount 2018 $ 38 2019 38 2020 38 2021 37 2022 37 Thereafter 2,444 $ 2,632 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table shows the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of December 31, 2017 and December 31, 2016 (amounts in thousands): December 31, 2017 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 3,934 $ — $ 3,934 Total assets at fair value $ — $ 3,934 $ — $ 3,934 Liabilities: Derivative liabilities $ — $ 22 $ — $ 22 Total liabilities at fair value $ — $ 22 $ — $ 22 December 31, 2016 Fair Value Hierarchy Quoted Prices in Active Significant Other Significant Total Fair Assets: Derivative assets $ — $ 1,782 $ — $ 1,782 Total assets at fair value $ — $ 1,782 $ — $ 1,782 Liabilities: Derivative liabilities $ — $ 798 $ — $ 798 Total liabilities at fair value $ — $ 798 $ — $ 798 |
Derivative Instruments and He43
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of the Notional Amount and Fair Value of Derivative Instruments | The following table summarizes the notional amount and fair value of the Company’s derivative instruments (amounts in thousands): Derivatives Balance Effective Maturity December 31, 2017 December 31, 2016 Outstanding Fair Value of Outstanding Fair Value of Asset (Liability) Asset (Liability) Interest rate swaps Other assets, net/Accounts 07/01/2016 to 12/22/2020 to $ 347,699 $ 3,934 $ (22 ) $ 96,540 $ 1,782 $ (798 ) |
Schedule of Income and Losses Recognized on Derivative Instruments | The table below summarizes the amount of income recognized on the interest rate derivatives designated as cash flow hedges for the years ended December 31, 2017 and 2016 (amounts in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain Recognized Location of (Loss) Amount of (Loss) For the Year Ended December 31, 2017 Interest rate swaps $ 1,484 Interest expense, net $ (1,386 ) Total $ 1,484 $ (1,386 ) For the Year Ended December 31, 2016 Interest rate swaps $ 744 Interest expense, net $ (96 ) Total $ 744 $ (96 ) |
Schedule of Offsetting of Derivative Assets | The following tables present the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of December 31, 2017 and 2016 (amounts in thousands): Offsetting of Derivative Assets Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net December 31, 2017 $ 3,934 $ — $ 3,934 $ — $ — $ 3,934 December 31, 2016 $ 1,782 $ — $ 1,782 $ — $ — $ 1,782 |
Schedule of Offsetting of Derivative Liabilities | Offsetting of Derivative Liabilities Gross Amounts Not Offset in the Balance Sheet Gross Gross Amounts Net Amounts of Financial Instruments Cash Collateral Net December 31, 2017 $ 22 $ — $ 22 $ — $ — $ 22 December 31, 2016 $ 798 $ — $ 798 $ — $ — $ 798 |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income | The following table presents a rollforward of amounts recognized in accumulated other comprehensive income by component for the year ended December 31, 2017 and 2016 (amounts in thousands): Unrealized Income on Derivative Accumulated Other Balance as of December 31, 2015 $ — $ — Other comprehensive income before reclassification 744 744 Amount of loss reclassified from accumulated other comprehensive income to net income (effective portion) 96 96 Other comprehensive income 840 840 Balance as of December 31, 2016 $ 840 $ 840 Other comprehensive income before reclassification 1,484 1,484 Amount of loss reclassified from accumulated other comprehensive income to net income (effective portion) 1,386 1,386 Other comprehensive income 2,870 2,870 Balance as of December 31, 2017 $ 3,710 $ 3,710 |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income | The following table presents reclassifications out of accumulated other comprehensive income for the years ended December 31, 2017 and 2016 (amounts in thousands): Details about Accumulated Other Amounts Reclassified from Affected Line Items in the Consolidated Statements of Comprehensive Income (Loss) For the Year Ended 2017 2016 Interest rate swap contracts $ 1,386 $ 96 Interest expense, net |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Shares of Restricted Common Stock Activity | A summary of the status of the nonvested shares of restricted Class A common stock as of December 31, 2016 and the changes for the year ended December 31, 2017 is presented below: Restricted Stock Shares December 31, 2016 20,250 Vested (6,750 ) Granted 9,000 December 31, 2017 22,500 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Characterization of Distributions Paid to Stockholders | The following table shows the character of distributions the Company paid on a percentage basis during the years ended December 31, 2017 , 2016 and 2015 : For the Year Ended December 31, Character of Class A Distributions: 2017 2016 2015 Ordinary dividends 36.49 % 34.23 % 33.81 % Nontaxable distributions 63.51 % 65.77 % 66.19 % Total 100.00 % 100.00 % 100.00 % For the Year Ended December 31, Character of Class I Distributions: 2017 2016 2015 Ordinary dividends 36.49 % — % — % Nontaxable distributions 63.51 % — % — % Total 100.00 % — % — % For the Year Ended December 31, Character of Class T Distributions: 2017 2016 2015 Ordinary dividends 25.93 % 23.07 % — % Nontaxable distributions 74.07 % 76.93 % — % Total 100.00 % 100.00 % — % |
Selected Quarterly Financial 47
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Data (Unaudited) | The Company believes that all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts stated below to present fairly, and in accordance with GAAP, the selected quarterly information (amounts in thousands, except shares and per share data): 2017 Fourth Third Second First Total revenue $ 37,266 $ 36,205 $ 27,602 $ 24,022 Total expenses (23,926 ) (23,980 ) (17,888 ) (15,467 ) Income from operations 13,340 12,225 9,714 8,555 Interest expense, net (6,932 ) (6,786 ) (5,073 ) (3,764 ) Net income attributable to common stockholders $ 6,408 $ 5,439 $ 4,641 $ 4,791 Net income per common share attributable to common stockholders: Basic $ 0.05 $ 0.05 $ 0.05 $ 0.06 Diluted $ 0.05 $ 0.05 $ 0.05 $ 0.06 Weighted average number of common shares outstanding: Basic 119,651,271 105,388,118 94,910,818 86,482,927 Diluted 119,666,234 105,405,297 94,925,665 86,499,543 2016 Fourth Third Second First Total revenue $ 19,210 $ 13,594 $ 12,203 $ 11,424 Total expenses (11,711 ) (10,460 ) (9,638 ) (8,935 ) Income from operations 7,499 3,134 2,565 2,489 Interest expense, net (2,153 ) (626 ) (732 ) (879 ) Net income attributable to common stockholders $ 5,346 $ 2,508 $ 1,833 $ 1,610 Net income per common share attributable to common stockholders: Basic $ 0.07 $ 0.03 $ 0.03 $ 0.03 Diluted $ 0.07 $ 0.03 $ 0.03 $ 0.03 Weighted average number of common shares outstanding: Basic 78,728,400 71,852,230 63,514,780 53,666,785 Diluted 78,742,067 71,866,949 63,530,999 53,679,723 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Schedule of Subsequent Acquisitions | The following table summarizes properties acquired subsequent to December 31, 2017 and through March 21, 2018: Property Date Acquired Purchase Price (3) Ownership Rancho Cordova Data Center I (1) 03/14/2018 $36,800,000 100% Rancho Cordova Data Center II (2) 03/14/2018 $14,160,000 100% (1) The property is leased to a single tenant. (2) The property is leased to two tenants. (3) The property acquisition was funded using net proceeds from the Initial Offering and the Offering and the secured credit facility. |
Organization and Business Ope49
Organization and Business Operations (Details) | Mar. 16, 2018USD ($)shares | Dec. 31, 2017USD ($)real_estate_investmentpropertyshares | Dec. 06, 2017$ / sharesshares | Oct. 13, 2017USD ($)$ / sharesshares | Dec. 31, 2017USD ($)real_estate_investmentproperty | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 24, 2017USD ($)shares | Mar. 15, 2018$ / shares | Nov. 27, 2017USD ($) | May 29, 2014USD ($) |
Organization and Business Operations [Line Items] | |||||||||||
Repurchase of common stock | $ 17,159,000 | $ 3,114,000 | $ 311,000 | ||||||||
Selling commissions and dealer manager fees | 22,713,000 | 24,546,000 | 38,163,000 | ||||||||
Other offering costs | $ 7,480,000 | 5,619,000 | 6,371,000 | ||||||||
Number of Company owned real estate investments | real_estate_investment | 53 | 53 | |||||||||
Number of Company owned properties | property | 70 | 70 | |||||||||
Common Stock | |||||||||||
Organization and Business Operations [Line Items] | |||||||||||
Repurchase of common stock | $ 18,000 | 3,000 | $ 0 | ||||||||
Class A, I and T shares [Member] | Common Stock | |||||||||||
Organization and Business Operations [Line Items] | |||||||||||
Repurchase of common stock | $ 17,159,000 | ||||||||||
Class A shares [Member] | Common Stock | |||||||||||
Organization and Business Operations [Line Items] | |||||||||||
Repurchase of common stock | $ 3,114,000 | ||||||||||
Initial Offering [Member] | |||||||||||
Organization and Business Operations [Line Items] | |||||||||||
Common stock offering including DRIP, value | $ 2,350,000,000 | ||||||||||
Common stock offering, value | 2,250,000,000 | ||||||||||
Common stock offering pursuant to DRIP, value | $ 100,000,000 | ||||||||||
Initial Offering [Member] | Class A, I and T shares [Member] | |||||||||||
Organization and Business Operations [Line Items] | |||||||||||
Common stock offering including DRIP, shares issued | shares | 125,095,000 | ||||||||||
Common stock offering including DRIP, gross proceeds raised | $ 1,223,803,000 | ||||||||||
Follow-On Offering [Member] | |||||||||||
Organization and Business Operations [Line Items] | |||||||||||
Common stock offering, value | $ 1,000,000,000 | ||||||||||
Follow-On Offering [Member] | Class A shares [Member] | Subsequent Event [Member] | |||||||||||
Organization and Business Operations [Line Items] | |||||||||||
Common stock offering, price per share (in dollars per share) | $ / shares | $ 10.200 | ||||||||||
Follow-On Offering [Member] | Class I shares [Member] | Subsequent Event [Member] | |||||||||||
Organization and Business Operations [Line Items] | |||||||||||
Common stock offering, price per share (in dollars per share) | $ / shares | 9.273 | ||||||||||
Follow-On Offering [Member] | Class T2 shares [Member] | Subsequent Event [Member] | |||||||||||
Organization and Business Operations [Line Items] | |||||||||||
Common stock offering, price per share (in dollars per share) | $ / shares | $ 9.714 | ||||||||||
DRIP Offering [Member] | |||||||||||
Organization and Business Operations [Line Items] | |||||||||||
Common stock offering pursuant to DRIP, value | $ 100,000,000 | ||||||||||
DRIP Offering [Member] | Class A, I and T shares [Member] | |||||||||||
Organization and Business Operations [Line Items] | |||||||||||
Common stock offering pursuant to DRIP, shares registered | shares | 10,893,246 | ||||||||||
Common stock offering, price per share (in dollars per share) | $ / shares | $ 9.18 | ||||||||||
DRIP Offering [Member] | Class A, I, T and T2 shares [Member] | |||||||||||
Organization and Business Operations [Line Items] | |||||||||||
Common stock offering pursuant to DRIP, shares registered | shares | 10,893,246 | ||||||||||
Common stock offering, price per share (in dollars per share) | $ / shares | $ 9.18 | ||||||||||
the Offerings [Member] | |||||||||||
Organization and Business Operations [Line Items] | |||||||||||
Repurchase of common stock | $ 20,584,000 | ||||||||||
Selling commissions and dealer manager fees | 91,898,000 | ||||||||||
Other offering costs | $ 23,357,000 | ||||||||||
the Offerings [Member] | Class A, I and T shares [Member] | Common Stock | |||||||||||
Organization and Business Operations [Line Items] | |||||||||||
Common stock offering including DRIP, shares issued | shares | 126,560,000 | ||||||||||
Common stock offering including DRIP, gross proceeds raised | $ 1,237,638,000 | ||||||||||
the Offerings [Member] | Class A shares [Member] | Common Stock | Subsequent Event [Member] | |||||||||||
Organization and Business Operations [Line Items] | |||||||||||
Common stock offering including DRIP, shares issued | shares | 84,975,000 | ||||||||||
Common stock offering including DRIP, gross proceeds raised | $ 841,384,000 | ||||||||||
the Offerings [Member] | Class I shares [Member] | Common Stock | Subsequent Event [Member] | |||||||||||
Organization and Business Operations [Line Items] | |||||||||||
Common stock offering including DRIP, shares issued | shares | 8,152,000 | ||||||||||
Common stock offering including DRIP, gross proceeds raised | $ 74,555,000 | ||||||||||
the Offerings [Member] | Class T2 shares [Member] | Common Stock | Subsequent Event [Member] | |||||||||||
Organization and Business Operations [Line Items] | |||||||||||
Common stock offering including DRIP, shares issued | shares | 0 | ||||||||||
Common stock offering including DRIP, gross proceeds raised | $ 0 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Narrative) (Details) | Jan. 02, 2018USD ($) | Dec. 31, 2017USD ($)metropolitanclasstenant$ / sharesshares | Dec. 31, 2017USD ($)metropolitanclasssegmenttenant$ / sharesshares | Dec. 31, 2016USD ($)segment$ / sharesshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014shares |
Summary of Significant Accounting Policies [Line Items] | ||||||
Net cash used in investing activities | $ (636,693,000) | $ (543,547,000) | $ (375,528,000) | |||
Net cash provided by financing activities | 613,704,000 | $ 542,292,000 | $ 398,811,000 | |||
Impairment losses on real estate and related intangible assets | $ 0 | |||||
Allowance for uncollectible tenant receivables | $ 0 | $ 0 | ||||
Diluted earnings per share outstanding adjustment (in shares) | shares | 18,000 | 16,000 | ||||
Anti-dilutive shares excluded from computation of diluted earnings per share (in shares) | shares | 15,750 | |||||
Number of reportable business segments | segment | 2 | 2 | ||||
Number of metropolitan statistical areas in which Company owns rental property | metropolitan | 37 | 37 | ||||
Shares authorized | shares | 600,000,000 | 600,000,000 | ||||
Common stock, shares authorized (in shares) | shares | 500,000,000 | 500,000,000 | 500,000,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||
Preferred stock, shares authorized (in shares) | shares | 100,000,000 | 100,000,000 | 100,000,000 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||
Number of classes of common stock | class | 3 | 3 | ||||
Common stock, shares issued (in shares) | shares | 126,559,834 | 126,559,834 | 83,109,025 | |||
Common stock, shares outstanding (in shares) | shares | 124,327,777 | 124,327,777 | 82,744,288 | |||
Preferred stock, shares issued (in shares) | shares | 0 | 0 | 0 | |||
Preferred stock, shares outstanding (in shares) | shares | 0 | 0 | 0 | |||
Minimum number of classes or series of preferred stock the board of directors can issue without stockholder approval | class | 1 | |||||
Maximum number of shares available for repurchase during any calendar year, as percentage of common stock outstanding at end of prior year | 5.00% | |||||
Period of notice required for changes to share repurchase program | 30 days | |||||
Repurchase of common stock, percentage | 2.27% | 0.69% | ||||
Repurchase of common stock | $ 17,159,000 | $ 3,114,000 | $ 311,000 | |||
Aggregate distributions paid | $ 118,258,000 | |||||
Distributions paid in cash | 53,192,000 | 28,994,000 | 17,659,000 | 6,379,000 | ||
Common stock issued through distribution reinvestment plan | 65,066,000 | $ 32,264,000 | $ 22,889,000 | 9,643,000 | ||
Distributions declared per common share (in dollars per share) | $ / shares | $ 0.62 | $ 0.63 | ||||
Distributions payable | $ 6,566,000 | $ 6,566,000 | $ 4,336,000 | |||
Impact related to uncertain tax positions from the results of operations | $ 0 | $ 0 | $ 0 | |||
December 1, 2017 To December 31, 2017 [Member] | Subsequent Event [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Distributions paid in cash | $ 3,164,000 | |||||
Common stock issued through distribution reinvestment plan | 3,402,000 | |||||
Common Stock | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Common stock, shares outstanding (in shares) | shares | 124,327,777 | 124,327,777 | 82,744,288 | 48,457,191 | 7,110,501 | |
Repurchase of common stock (in shares) | shares | 1,880,820 | 333,194 | 31,543 | |||
Repurchase of common stock | $ 18,000 | $ 3,000 | $ 0 | |||
Common stock issued through distribution reinvestment plan | $ 35,000 | $ 24,000 | 10,000 | |||
Class A shares [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Common stock, shares authorized (in shares) | shares | 175,000,000 | 175,000,000 | ||||
Class A shares [Member] | December 1, 2017 To December 31, 2017 [Member] | Subsequent Event [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Aggregate distributions paid | 4,503,000 | |||||
Distributions paid in cash | 2,272,000 | |||||
Common stock issued through distribution reinvestment plan | 2,231,000 | |||||
Class A shares [Member] | Common Stock | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Repurchase of common stock (in shares) | shares | 1,793,424 | 333,194 | ||||
Repurchase of common stock | $ 3,114,000 | |||||
Repurchase of common stock, average price per share (in dollars per share) | $ / shares | $ 9.35 | |||||
Class I shares [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Common stock, shares authorized (in shares) | shares | 75,000,000 | 75,000,000 | ||||
Class I shares [Member] | December 1, 2017 To December 31, 2017 [Member] | Subsequent Event [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Aggregate distributions paid | 364,000 | |||||
Distributions paid in cash | 193,000 | |||||
Common stock issued through distribution reinvestment plan | 171,000 | |||||
Class I shares [Member] | Common Stock | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Repurchase of common stock (in shares) | shares | 5,457 | 0 | ||||
Class T shares [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Common stock, shares authorized (in shares) | shares | 175,000,000 | 175,000,000 | ||||
Class T shares [Member] | December 1, 2017 To December 31, 2017 [Member] | Subsequent Event [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Aggregate distributions paid | 1,699,000 | |||||
Distributions paid in cash | 699,000 | |||||
Common stock issued through distribution reinvestment plan | $ 1,000,000 | |||||
Class T shares [Member] | Common Stock | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Repurchase of common stock (in shares) | shares | 81,939 | 0 | ||||
Class T2 shares [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Common stock, shares authorized (in shares) | shares | 75,000,000 | 75,000,000 | ||||
Class A, I, T and T2 shares [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||
Class A, I and T shares [Member] | Common Stock | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Repurchase of common stock (in shares) | shares | 1,880,820 | |||||
Repurchase of common stock | $ 17,159,000 | |||||
Repurchase of common stock, average price per share (in dollars per share) | $ / shares | $ 9.12 | |||||
Rental Revenue [Member] | Geographic Concentration Risk [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Number of metropolitan statistical areas in which Company owns rental property | metropolitan | 2 | 2 | ||||
Rental Revenue [Member] | Geographic Concentration Risk [Member] | Atlanta-Sandy Springs-Roswell, Georgia MSA [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Concentration risk, percentage | 12.10% | |||||
Rental Revenue [Member] | Geographic Concentration Risk [Member] | Oklahoma City, Oklahoma MSA [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Concentration risk, percentage | 10.00% | |||||
Rental Revenue [Member] | Customer Concentration Risk [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Number of tenants | tenant | 0 | 0 | ||||
ASU 2016-18 [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Net cash used in investing activities | $ 2,491,000 | $ (995,000) | ||||
Net cash provided by financing activities | $ 2,040,000 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Reconciliation of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 74,803 | $ 50,446 | $ 31,262 | $ 3,694 |
Restricted cash | 10,944 | 6,463 | 1,927 | 2,922 |
Cash, cash equivalents and restricted cash | $ 85,747 | $ 56,909 | $ 33,189 | $ 6,616 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (Schedule of Estimated Useful Lives of Assets by Class) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Building and improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 years |
Building and improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Furniture, fixtures, and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Furniture, fixtures, and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Real Estate Investments (Narrat
Real Estate Investments (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)real_estate_investment | Dec. 31, 2016USD ($) | |
Real Estate Properties [Line Items] | ||
Number of real estate properties purchased | real_estate_investment | 19 | |
Acquisition fees and expenses capitalized | $ | $ 15,674 | $ 9,982 |
Maximum [Member] | ||
Real Estate Properties [Line Items] | ||
Acquisition fee and expense reimbursement, as percentage of purchase price of properties | 6.00% | 6.00% |
Real Estate Investments (Schedu
Real Estate Investments (Schedule of Consideration Transferred for Properties Acquired) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Asset Acquisitions [Line Items] | |||
Purchase Price | $ 604,372 | $ 535,447 | $ 374,164 |
Tempe Data Center | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | Jan. 26, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 16,224 | ||
Norwalk Data Center | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | Mar. 30, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 58,835 | ||
Aurora Healthcare Facility | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | Mar. 30, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 11,531 | ||
Texas Rehab - Austin | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | Mar. 31, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 36,945 | ||
Texas Rehab - Allen | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | Mar. 31, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 23,691 | ||
Texas Rehab - Beaumont | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | Mar. 31, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 9,649 | ||
Charlotte Data Center II | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | May 15, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 16,646 | ||
250 Williams Atlanta Data Center | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | Jun. 15, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 168,588 | ||
Sunnyvale Data Center | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | Jun. 28, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 38,105 | ||
Texas Rehab - San Antonio | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | Jun. 29, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 14,853 | ||
Cincinnati Data Center | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | Jun. 30, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 10,503 | ||
Silverdale Healthcare Facility | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | Aug. 25, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 9,856 | ||
Silverdale Healthcare Facility II | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | Sep. 20, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 7,144 | ||
King of Prussia Data Center | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | Sep. 28, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 19,885 | ||
Tempe Data Center II | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | Sep. 29, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 15,568 | ||
Houston Data Center | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | Nov. 16, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 76,388 | ||
Saginaw Healthcare Facility | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | Dec. 21, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 18,462 | ||
Elgin Data Center | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | Dec. 22, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 2,771 | ||
Oklahoma City Data Center | |||
Asset Acquisitions [Line Items] | |||
Date Acquired | Dec. 27, 2017 | ||
Ownership Percentage | 100.00% | ||
Purchase Price | $ 48,728 |
Real Estate Investments (Sche55
Real Estate Investments (Schedule of Allocation of Acquisitions) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)property | ||
Real Estate [Abstract] | ||
Land | $ 68,535 | |
Buildings and improvements | 533,011 | |
In-place leases | 64,476 | |
Above market leases | 1,448 | |
Total assets acquired | 667,470 | |
Below market leases | (56,547) | |
Liabilities assumed at acquisition | (6,551) | [1] |
Total liabilities acquired | (63,098) | |
Net assets acquired | 604,372 | |
Liabilities assumed at acquisition, note payable | $ 5,736 | |
Number of real estate properties purchased with assumed tenant improvement liabilities | property | 2 | |
Liabilities assumed at acquisition, tenant improvements | $ 815 | |
[1] | Of this amount, the Company assumed a note payable collateralized by a real estate asset in the principal amount of $5,736,000 at the acquisition date and tenant improvements on two properties in the amount of $815,000. |
Acquired Intangible Assets, N56
Acquired Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Depreciation and amortization | $ 41,133 | $ 19,211 | $ 7,053 |
In-place leases, Above-market leases and Ground lease interest | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Depreciation and amortization | $ 14,167 | $ 5,987 | $ 1,950 |
Acquired Intangible Assets, N57
Acquired Intangible Assets, Net (Schedule of Acquired Intangible Assets, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible asset, net of accumulated amortization | $ 150,554 | $ 98,053 |
Acquired intangible asset, accumulated amortization | $ 22,162 | $ 7,995 |
Acquired intangible asset, weighted average remaining life | 11 years 2 months 12 days | 13 years 1 month 6 days |
In-place leases [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible asset, net of accumulated amortization | $ 148,594 | $ 97,232 |
Acquired intangible asset, accumulated amortization | $ 21,776 | $ 7,918 |
Acquired intangible asset, weighted average remaining life | 11 years | 12 years 9 months 18 days |
Above-market leases [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible asset, net of accumulated amortization | $ 1,344 | $ 196 |
Acquired intangible asset, accumulated amortization | $ 358 | $ 58 |
Acquired intangible asset, weighted average remaining life | 2 years 9 months 18 days | 7 years 4 months 24 days |
Ground lease interest [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible asset, net of accumulated amortization | $ 616 | $ 625 |
Acquired intangible asset, accumulated amortization | $ 28 | $ 19 |
Acquired intangible asset, weighted average remaining life | 65 years 9 months 18 days | 66 years 9 months 18 days |
Acquired Intangible Assets, N58
Acquired Intangible Assets, Net (Schedule of Estimated Future Amortization Expense of Acquired Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,018 | $ 18,547 | |
2,019 | 17,933 | |
2,020 | 15,861 | |
2,021 | 15,064 | |
2,022 | 12,658 | |
Thereafter | 70,491 | |
Total | $ 150,554 | $ 98,053 |
Intangible Lease Liabilities,59
Intangible Lease Liabilities, Net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible Lease Liabilities, Net [Abstract] | |||
Amortization of below-market leases | $ 2,126 | $ 536 | $ 98 |
Intangible Lease Liabilities,60
Intangible Lease Liabilities, Net (Schedule of Intangible Lease Liabilities, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Intangible Lease Liabilities, Net [Abstract] | ||
Below-market leases, net of accumulated amortization of $2,760 and $634, respectively (with a weighted average remaining life of 18.7 years and 13.6 years, respectively) | $ 61,294 | $ 6,873 |
Below-market leases, accumulated amortization | $ 2,760 | $ 634 |
Below market leases, weighted average remaining life | 18 years 8 months 12 days | 13 years 7 months 6 days |
Intangible Lease Liabilities,61
Intangible Lease Liabilities, Net (Schedule of Future Amortization Income of Below-Market Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Below Market Lease, Net, Amortization Income, Fiscal Year Maturity [Abstract] | ||
2,018 | $ 4,883 | |
2,019 | 4,883 | |
2,020 | 4,827 | |
2,021 | 4,799 | |
2,022 | 3,708 | |
Thereafter | 38,194 | |
Below-market leases, net | $ 61,294 | $ 6,873 |
Other Assets, Net (Narrative) (
Other Assets, Net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Assets [Abstract] | |||
Amortization of deferred financing costs related to the revolver portion of the secured credit facility | $ 1,637 | $ 987 | $ 719 |
Other Assets, Net (Schedule of
Other Assets, Net (Schedule of Other Assets, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Other Assets [Abstract] | ||||
Deferred financing costs, related to the revolver portion of the secured credit facility, net of accumulated amortization of $3,426 and $1,789, respectively | $ 1,850 | $ 3,071 | ||
Real estate escrow deposits | 100 | 290 | ||
Restricted cash | 10,944 | 6,463 | $ 1,927 | $ 2,922 |
Tenant receivables | 4,916 | 3,126 | ||
Straight-line rent receivable | 19,321 | 8,725 | ||
Prepaid and other assets | 6,117 | 1,082 | ||
Derivative assets | 3,934 | 1,782 | ||
Total other assets, net | 47,182 | 24,539 | ||
Deferred financing costs, related to the revolver portion of the secured credit facility, accumulated amortization | $ 3,426 | $ 1,789 |
Accounts Payable and Other Li64
Accounts Payable and Other Liabilities (Schedule of Accounts Payable and Other Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accounts payable and accrued expenses | $ 13,220 | $ 7,657 |
Accrued interest expense | 2,410 | 945 |
Accrued property taxes | 1,532 | 1,164 |
Distributions payable to stockholders | 6,566 | 4,336 |
Tenant deposits | 682 | 1,551 |
Deferred rental income | 3,277 | 733 |
Derivative liabilities | 22 | 798 |
Total accounts payable and other liabilities | $ 27,709 | $ 17,184 |
Notes Payable (Narrative) (Deta
Notes Payable (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)interest_rate_swap_agreementloan | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Notes payable, principal amount outstanding | $ 468,135 | $ 152,990 | |
Number of notes payable entered into during period | loan | 7 | ||
Proceeds from notes payable entered into during period | $ 309,452 | 152,990 | $ 0 |
Number of notes payable assumed during period | loan | 1 | ||
Notes payable assumed during period, principal amount at acquisition | $ 5,736 | ||
Variable Rate [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable, principal amount outstanding | $ 0 | $ 30,450 | |
Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 4.42% | ||
Notes Payable [Member] | Variable Rate [Member] | |||
Debt Instrument [Line Items] | |||
Number of interest rate swap agreements entered into during the period | interest_rate_swap_agreement | 4 | ||
Amount of interest rate swap agreements | $ 145,752 |
Notes Payable (Schedule of Note
Notes Payable (Schedule of Notes Payable) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Debt Instrument [Line Items] | |||
Notes payable, principal amount outstanding | $ 468,135 | $ 152,990 | |
Unamortized deferred financing costs related to notes payable | (4,393) | (1,945) | |
Notes payable, net of deferred financing costs | 463,742 | 151,045 | |
Fixed Rate [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable, principal amount outstanding | $ 220,436 | 51,000 | |
Weighted Average Interest Rate | [1] | 4.30% | |
Fixed Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 4.00% | |
Maturity Date | Dec. 11, 2021 | ||
Fixed Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 4.80% | |
Maturity Date | Jul. 1, 2027 | ||
Variable Rate, Subject To Interest Rate Swap [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable, principal amount outstanding | $ 247,699 | 71,540 | |
Weighted Average Interest Rate | [1] | 4.60% | |
Variable Rate, Subject To Interest Rate Swap [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 3.70% | |
Maturity Date | Oct. 28, 2021 | ||
Variable Rate, Subject To Interest Rate Swap [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 5.10% | |
Maturity Date | Nov. 16, 2022 | ||
Variable Rate [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable, principal amount outstanding | $ 0 | $ 30,450 | |
[1] | Range of interest rates and weighted average interest rates are as of December 31, 2017. |
Notes Payable (Schedule of Futu
Notes Payable (Schedule of Future Principal Payments Due on Notes Payable) (Details) - Notes Payable [Member] $ in Thousands | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |
2,018 | $ 413 |
2,019 | 1,971 |
2,020 | 4,536 |
2,021 | 155,119 |
2,022 | 164,972 |
Thereafter | 141,124 |
Total | $ 468,135 |
Credit Facility (Narrative) (De
Credit Facility (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($)extensioninterest_rate_swap_agreementproperty | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
Line of Credit Facility [Line Items] | ||||
Proceeds from credit facility | $ 240,000,000 | $ 240,000,000 | $ 92,000,000 | |
Payments on credit facility | 240,000,000 | 110,000,000 | $ 39,500,000 | |
Credit facility, increase in borrowing base availability | $ 116,431,000 | |||
Credit facility, number of properties added to aggregate pool availability | property | 12 | |||
Credit facility, number of properties removed from aggregate pool availability | property | 1 | |||
Credit facility, decrease in borrowing base availability | $ 18,645,000 | |||
Credit facility, net increase in borrowing base availability | 97,786,000 | |||
Credit facility, aggregate pool availability | 397,842,000 | |||
Credit facility, outstanding principal balance | 220,000,000 | 220,000,000 | ||
Credit facility, amount remaining to be drawn | 177,842,000 | |||
Credit facility, maximum commitments available after available increase | $ 550,000,000 | |||
Credit facility, threshold percentage for unused portion of lenders' commitments | 50.00% | |||
Variable Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, outstanding principal balance | $ 120,000,000 | 195,000,000 | ||
Variable Rate, Subject To Interest Rate Swap [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, outstanding principal balance | $ 100,000,000 | 25,000,000 | ||
Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, unused portion, commitment fee percentage | 0.20% | |||
Minimum [Member] | Variable Rate, Subject To Interest Rate Swap [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, interest rate | [1] | 3.70% | ||
Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, unused portion, commitment fee percentage | 0.30% | |||
Maximum [Member] | Variable Rate, Subject To Interest Rate Swap [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, interest rate | [1] | 5.10% | ||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, basis spread on variable rate | 2.00% | |||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, basis spread on variable rate | 2.65% | |||
Base Rate [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, basis spread on variable rate | 1.00% | |||
Base Rate [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, basis spread on variable rate | 1.65% | |||
Revolving Line of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, outstanding principal balance | $ 120,000,000 | 120,000,000 | ||
Term Loan [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, outstanding principal balance | 100,000,000 | $ 100,000,000 | ||
Secured Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, maximum commitments available | $ 425,000,000 | |||
Secured Credit Facility [Member] | Variable Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, interest rate | 3.70% | |||
Secured Credit Facility [Member] | Variable Rate, Subject To Interest Rate Swap [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, interest rate | 3.71% | |||
Secured Credit Facility [Member] | Revolving Line of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, maximum commitments available | $ 325,000,000 | |||
Credit facility, maturity date | Dec. 22, 2018 | |||
Credit facility, number of extension periods | extension | 2 | |||
Credit facility, extension period | 12 months | |||
Secured Credit Facility [Member] | Term Loan [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Number of interest rate swap agreements entered into during the period | interest_rate_swap_agreement | 4 | |||
Amount of interest rate swap agreements | $ 75,000,000 | |||
Credit facility, maximum commitments available | $ 100,000,000 | |||
Credit facility, maturity date | Dec. 22, 2019 | |||
Credit facility, number of extension periods | extension | 1 | |||
Credit facility, extension period | 12 months | |||
[1] | Range of interest rates and weighted average interest rates are as of December 31, 2017. |
Credit Facility (Schedule of Se
Credit Facility (Schedule of Secured Credit Facility) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | ||
Secured credit facility, principal amount outstanding | $ 220,000 | $ 220,000 |
Unamortized deferred financing costs related to the term loan secured credit facility | (601) | (876) |
Secured credit facility, net of deferred financing costs | 219,399 | 219,124 |
Revolving Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Secured credit facility, principal amount outstanding | 120,000 | 120,000 |
Term Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Secured credit facility, principal amount outstanding | $ 100,000 | $ 100,000 |
Credit Facility (Schedule of Fu
Credit Facility (Schedule of Future Principal Payments Due on Secured Credit Facility) (Details) - Secured Credit Facility [Member] $ in Thousands | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |
2,018 | $ 120,000 |
2,019 | 100,000 |
Total | $ 220,000 |
Related-Party Transactions an71
Related-Party Transactions and Arrangements (Narrative) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||||
Accounts payable due to affiliates | $ 15,249,000 | $ 15,249,000 | $ 7,384,000 | |
Asset management fees | $ 9,963,000 | 4,925,000 | $ 1,895,000 | |
Cumulative, pretax, non-compounded annual return rate to investors | 6.00% | |||
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Offering costs incurred by Advisor on Company's behalf | 17,669,000 | $ 17,669,000 | ||
Acquisition fees incurred | $ 11,936,000 | 11,515,000 | 7,486,000 | |
Maximum brokerage fees paid by Company, as percentage of contract sales price | 6.00% | |||
Disposition fees incurred | 0 | |||
Percentage of remaining net sales proceeds Advisor will receive after investors receive return | 15.00% | |||
Subordinated participation in net sale proceeds | 0 | |||
Listing fee, percentage | 15.00% | |||
Subordinated incentive listing fees | 0 | |||
Distribution percentage upon termination of Advisory agreement | 15.00% | |||
Subordinated termination fee | 0 | |||
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Disposition fee, as percentage of contract sales price | 1.00% | |||
Percentage of brokerage commission paid by Company for properties sold that required a substantial amount of services | 50.00% | |||
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | Offering Costs [Member] | ||||
Related Party Transaction [Line Items] | ||||
Accounts payable due to affiliates | 167,000 | $ 167,000 | 289,000 | |
Affiliate of Dealer Manager [Member] | ||||
Related Party Transaction [Line Items] | ||||
Offering costs incurred by Advisor on Company's behalf | $ 453,000 | $ 453,000 | ||
Carter Validus Real Estate Management Services II, LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Property management and leasing fees, as percentage of gross revenues from properties managed | 3.00% | |||
Oversight fee, as percentage of gross revenues from properties managed | 1.00% | |||
Property management fees incurred | $ 3,249,000 | 1,473,000 | 538,000 | |
Leasing commissions incurred | $ 907,000 | 0 | 0 | |
Construction management fee, as percentage of project costs | 5.00% | |||
Construction management fees | $ 719,000 | 754,000 | 0 | |
Carter Validus Advisors II, LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Acquisition fee, as percentage of contract purchase price of each property or asset acquired | 2.00% | |||
Estimated acquisition expense reimbursement, as percentage of purchase price of property and real estate-related investments | 0.75% | |||
Monthly asset management fee, as percentage of gross assets | 0.0625% | |||
Asset management fees | $ 9,963,000 | 4,925,000 | 1,895,000 | |
Operating expenses allocated to the Company by the advisor | $ 1,543,000 | 1,257,000 | 830,000 | |
Carter Validus Advisors II, LLC [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating expense reimbursement, percentage of average invested assets | 2.00% | |||
Operating expense reimbursement, percentage of net income | 25.00% | |||
Vice President of Product Management of Carter Validus Advisors II, LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating expenses allocated to the Company by the advisor | $ 98,000 | |||
SC Distributors, LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Selling commissions and dealer manager fees | $ 22,713,000 | 24,546,000 | 38,163,000 | |
Total underwriting compensation percentage that will terminate distribution fees, as percentage of gross proceeds from primary portion of offering | 10.00% | |||
Distribution and servicing fees incurred | $ 9,617,000 | $ 6,213,000 | $ 0 | |
SC Distributors, LLC [Member] | Class A shares [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Selling commission, as percentage of gross offering proceeds | 7.00% | |||
SC Distributors, LLC [Member] | Class T shares [Member] | ||||
Related Party Transaction [Line Items] | ||||
Daily distribution and servicing fee accrued, as percentage of purchase price per share | 0.00274% | |||
SC Distributors, LLC [Member] | Class T shares [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Selling commission, as percentage of gross offering proceeds | 3.00% | |||
SC Distributors, LLC [Member] | Class A and T shares [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Dealer manager fee, as percentage of gross offering proceeds | 3.00% | |||
SC Distributors, LLC [Member] | Class I shares [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Dealer manager fee, as percentage of gross offering proceeds | 2.00% | |||
Dealer manager fee funded by advisor, as percentage of gross offering proceeds | 1.00% | |||
the Offerings [Member] | Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Reimbursable organization and offering costs, as percentage of gross offering proceeds | 15.00% | |||
Initial Offering [Member] | Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Other organization and offering costs reimbursement, as percentage of gross offering proceeds | 2.00% | |||
Follow-On Offering [Member] | Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Estimated organization and offering costs reimbursement, as percentage of gross offering proceeds | 1.50% |
Related-Party Transactions an72
Related-Party Transactions and Arrangements (Schedule of Accounts Payable Due to Affiliates) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | $ 15,249 | $ 7,384 |
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | Asset Management Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 1,017 | 627 |
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | General And Administrative Costs [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 182 | 138 |
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | Offering Costs [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 167 | 289 |
Carter Validus Advisors II, LLC And/Or Its Affiliates [Member] | Acquisition Expenses and Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 5 | 5 |
Carter Validus Real Estate Management Services II, LLC [Member] | Property Management Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 463 | 252 |
Carter Validus Real Estate Management Services II, LLC [Member] | Construction Management Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | 39 | 323 |
SC Distributors, LLC [Member] | Distribution and Servicing Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable due to affiliates | $ 13,376 | $ 5,750 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable business segments | segment | 2 | 2 | |||||||||
Revenues | $ 37,266,000 | $ 36,205,000 | $ 27,602,000 | $ 24,022,000 | $ 19,210,000 | $ 13,594,000 | $ 12,203,000 | $ 11,424,000 | $ 125,095,000 | $ 56,431,000 | $ 21,286,000 |
Intersegment Elimination [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 0 | $ 0 | $ 0 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Information for Reportable Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Rental and parking expenses | $ (26,096) | $ (8,164) | $ (2,836) | ||||||||
Income (loss) from operations | $ 13,340 | $ 12,225 | $ 9,714 | $ 8,555 | $ 7,499 | $ 3,134 | $ 2,565 | $ 2,489 | 43,834 | 15,687 | (2,881) |
General and administrative expenses | (4,069) | (3,105) | (2,133) | ||||||||
Acquisition related expenses | 0 | (5,339) | (10,250) | ||||||||
Asset management fees | (9,963) | (4,925) | (1,895) | ||||||||
Depreciation and amortization | (41,133) | (19,211) | (7,053) | ||||||||
Interest expense, net | (6,932) | (6,786) | (5,073) | (3,764) | (2,153) | (626) | (732) | (879) | (22,555) | (4,390) | (1,886) |
Net income (loss) attributable to common stockholders | $ 6,408 | $ 5,439 | $ 4,641 | $ 4,791 | $ 5,346 | $ 2,508 | $ 1,833 | $ 1,610 | 21,279 | 11,297 | (4,767) |
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Rental, parking and tenant reimbursement revenue | 125,095 | 56,431 | 21,286 | ||||||||
Rental and parking expenses | (26,096) | (8,164) | (2,836) | ||||||||
Income (loss) from operations | 98,999 | 48,267 | 18,450 | ||||||||
Operating Segments [Member] | Data Centers [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Rental, parking and tenant reimbursement revenue | 62,377 | 12,929 | 1,618 | ||||||||
Rental and parking expenses | (17,571) | (2,509) | (301) | ||||||||
Income (loss) from operations | 44,806 | 10,420 | 1,317 | ||||||||
Operating Segments [Member] | Healthcare [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Rental, parking and tenant reimbursement revenue | 62,718 | 43,502 | 19,668 | ||||||||
Rental and parking expenses | (8,525) | (5,655) | (2,535) | ||||||||
Income (loss) from operations | $ 54,193 | $ 37,847 | $ 17,133 |
Segment Reporting (Schedule o75
Segment Reporting (Schedule of Assets by Reportable Segments) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets by segment [Line Items] | ||
Total assets | $ 1,777,944 | $ 1,070,038 |
Operating Segments [Member] | Data Centers [Member] | ||
Assets by segment [Line Items] | ||
Total assets | 909,477 | 362,969 |
Operating Segments [Member] | Healthcare [Member] | ||
Assets by segment [Line Items] | ||
Total assets | 813,742 | 653,416 |
All Other [Member] | ||
Assets by segment [Line Items] | ||
Total assets | $ 54,725 | $ 53,653 |
Segment Reporting (Schedule o76
Segment Reporting (Schedule of Capital Additions and Acquisitions by Reportable Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Capital additions and acquisitions by segment [Line Items] | |||
Total capital additions and acquisitions | $ 636,883 | $ 543,700 | $ 375,668 |
Operating Segments [Member] | Data Centers [Member] | |||
Capital additions and acquisitions by segment [Line Items] | |||
Total capital additions and acquisitions | 472,438 | 314,030 | 43,815 |
Operating Segments [Member] | Healthcare [Member] | |||
Capital additions and acquisitions by segment [Line Items] | |||
Total capital additions and acquisitions | $ 164,445 | $ 229,670 | $ 331,853 |
Future Minimum Rent (Schedule o
Future Minimum Rent (Schedule of Future Minimum Rental Income from Non-Cancelable Operating Leases) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 121,222 |
2,019 | 123,235 |
2,020 | 122,834 |
2,021 | 124,652 |
2,022 | 119,775 |
Thereafter | 986,532 |
Total | $ 1,598,250 |
Future Minimum Rent (Schedule78
Future Minimum Rent (Schedule of Future Minimum Rental Payments Under Non-Cancelable Ground Leases) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 38 |
2,019 | 38 |
2,020 | 38 |
2,021 | 37 |
2,022 | 37 |
Thereafter | 2,444 |
Total | $ 2,632 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value [Line Items] | ||
Notes payable, principal amount outstanding | $ 468,135 | $ 152,990 |
Secured credit facility, principal amount outstanding | 220,000 | 220,000 |
Fixed Rate [Member] | ||
Fair Value [Line Items] | ||
Notes payable, principal amount outstanding | 220,436 | 51,000 |
Variable Rate, Subject To Interest Rate Swap [Member] | ||
Fair Value [Line Items] | ||
Notes payable, principal amount outstanding | 247,699 | 71,540 |
Secured credit facility, principal amount outstanding | 100,000 | 25,000 |
Variable Rate [Member] | ||
Fair Value [Line Items] | ||
Notes payable, principal amount outstanding | 0 | 30,450 |
Secured credit facility, principal amount outstanding | 120,000 | 195,000 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fixed Rate [Member] | ||
Fair Value [Line Items] | ||
Notes payable, fair value disclosure | 211,011 | 49,930 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Variable Rate, Subject To Interest Rate Swap [Member] | ||
Fair Value [Line Items] | ||
Notes payable, fair value disclosure | 243,812 | 69,247 |
Secured credit facility, fair value disclosure | $ 98,593 | $ 24,195 |
Fair Value (Schedule of Fair Va
Fair Value (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Derivative assets | $ 3,934 | $ 1,782 |
Liabilities: | ||
Derivative liabilities | 22 | 798 |
Recurring basis [Member] | ||
Assets: | ||
Derivative assets | 3,934 | 1,782 |
Total assets at fair value | 3,934 | 1,782 |
Liabilities: | ||
Derivative liabilities | 22 | 798 |
Total liabilities at fair value | 22 | 798 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring basis [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring basis [Member] | ||
Assets: | ||
Derivative assets | 3,934 | 1,782 |
Total assets at fair value | 3,934 | 1,782 |
Liabilities: | ||
Derivative liabilities | 22 | 798 |
Total liabilities at fair value | 22 | 798 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring basis [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Total liabilities at fair value | $ 0 | $ 0 |
Derivative Instruments and He81
Derivative Instruments and Hedging Activities (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)instrument | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Income (loss) recognized due to ineffectiveness of hedges of interest rate risk | $ 58 | $ 144 | $ 0 |
Additional amount expected to be reclassified from AOCI into earnings during next twelve months | 70 | ||
Fair value of derivatives in a net liability position | $ 46 | ||
Number of derivative instruments | instrument | 0 |
Derivative Instruments and He82
Derivative Instruments and Hedging Activities (Schedule of the Notional Amount and Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivatives, Fair Value [Line Items] | ||
Fair Value of Asset | $ 3,934 | $ 1,782 |
Fair Value of (Liability) | (22) | (798) |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional Amount | $ 347,699 | 96,540 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Minimum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Effective Date | Jul. 1, 2016 | |
Maturity Date | Dec. 22, 2020 | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Maximum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Effective Date | Nov. 16, 2017 | |
Maturity Date | Nov. 16, 2022 | |
Other Assets [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Asset | $ 3,934 | 1,782 |
Accounts Payable and Other Liabilities [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of (Liability) | $ (22) | $ (798) |
Derivative Instruments and He83
Derivative Instruments and Hedging Activities (Schedule of Income and Losses Recognized on Derivative Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain Recognized in OCI on Derivative (Effective Portion) | $ 1,484 | $ 744 |
Amount of (Loss) Reclassified From Accumulated Other Comprehensive Income to Net Income (Effective Portion) | (1,386) | (96) |
Interest Rate Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain Recognized in OCI on Derivative (Effective Portion) | 1,484 | 744 |
Interest Rate Swap [Member] | Interest Expense, Net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Loss) Reclassified From Accumulated Other Comprehensive Income to Net Income (Effective Portion) | $ (1,386) | $ (96) |
Derivative Instruments and He84
Derivative Instruments and Hedging Activities (Schedule of Offsetting of Derivative Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Amounts of Recognized Assets | $ 3,934 | $ 1,782 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 3,934 | 1,782 |
Gross Amounts Not Offset in the Balance Sheet, Financial Instruments Collateral | 0 | 0 |
Gross Amounts Not Offset in the Balance Sheet, Cash Collateral | 0 | 0 |
Net Amount | $ 3,934 | $ 1,782 |
Derivative Instruments and He85
Derivative Instruments and Hedging Activities (Schedule of Offsetting of Derivative Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Amounts of Recognized Liabilities | $ 22 | $ 798 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Balance Sheet | 22 | 798 |
Gross Amounts Not Offset in the Balance Sheet, Financial Instruments Collateral | 0 | 0 |
Gross Amounts Not Offset in the Balance Sheet, Cash Collateral | 0 | 0 |
Net Amount | $ 22 | $ 798 |
Accumulated Other Comprehensi86
Accumulated Other Comprehensive Income (Schedule of Amounts Recognized in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 668,426 | ||
Other comprehensive income attributable to common stockholders | 2,870 | $ 840 | $ 0 |
Ending Balance | 990,549 | 668,426 | |
Unrealized Income on Derivative Instruments [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 840 | 0 | |
Other comprehensive income before reclassification | 1,484 | 744 | |
Amount of loss reclassified from accumulated other comprehensive income to net income (effective portion) | 1,386 | 96 | |
Other comprehensive income attributable to common stockholders | 2,870 | 840 | |
Ending Balance | 3,710 | 840 | 0 |
Accumulated Other Comprehensive Income | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 840 | 0 | |
Other comprehensive income before reclassification | 1,484 | 744 | |
Amount of loss reclassified from accumulated other comprehensive income to net income (effective portion) | 1,386 | 96 | |
Other comprehensive income attributable to common stockholders | 2,870 | 840 | |
Ending Balance | $ 3,710 | $ 840 | $ 0 |
Accumulated Other Comprehensi87
Accumulated Other Comprehensive Income (Schedule of Reclassifications Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense, net | $ 6,932 | $ 6,786 | $ 5,073 | $ 3,764 | $ 2,153 | $ 626 | $ 732 | $ 879 | $ 22,555 | $ 4,390 | $ 1,886 |
Interest Rate Swap [Member] | Unrealized Income on Derivative Instruments [Member] | Amounts Reclassified from Accumulated Other Comprehensive Income to Net Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense, net | $ 1,386 | $ 96 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) - Class A shares [Member] - 2014 Restricted Share Plan [Member] - Restricted Stock [Member] - USD ($) | Aug. 18, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of authorized and reserved shares of common stock under plan | 300,000 | |||
Award vesting period under plan | 4 years | |||
Number of shares awarded to independent board members upon re-election | 3,000 | 9,000 | ||
Grant date fair value, per share (in dollars per share) | $ 9.07 | |||
Unrecognized compensation expense | $ 173,000 | $ 167,000 | ||
Unrecognized compensation expense, weighted average period of recognition | 1 year 7 months 6 days | |||
Fair value of nonvested shares of restricted common stock | $ 206,550 | 183,668 | ||
Stock-based compensation expense | $ 76,000 | $ 58,000 | $ 34,000 |
Stock-based Compensation (Sched
Stock-based Compensation (Schedule of Nonvested Shares of Restricted Common Stock Activity) (Details) - Class A shares [Member] - 2014 Restricted Share Plan [Member] - Restricted Stock [Member] - shares | Aug. 18, 2017 | Dec. 31, 2017 |
Summary of Restricted Common Stock Activity, Nonvested, Number of Shares [Roll Forward] | ||
Beginning balance (in shares) | 20,250 | |
Vested (in shares) | (6,750) | |
Granted (in shares) | 3,000 | 9,000 |
Ending balance (in shares) | 22,500 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||||
Impact related to uncertain tax positions from the results of operations | $ 0 | $ 0 | $ 0 | |
Interest expense or penalties related to unrecognized tax benefits | $ 0 |
Income Taxes (Schedule of Chara
Income Taxes (Schedule of Characterization of Distributions Paid to Stockholders) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class A shares [Member] | |||
Income Taxes [Line Items] | |||
Ordinary dividends (as a percent) | 36.49% | 34.23% | 33.81% |
Nontaxable distributions (as a percent) | 63.51% | 65.77% | 66.19% |
Total (as a percent) | 100.00% | 100.00% | 100.00% |
Class I shares [Member] | |||
Income Taxes [Line Items] | |||
Ordinary dividends (as a percent) | 36.49% | 0.00% | 0.00% |
Nontaxable distributions (as a percent) | 63.51% | 0.00% | 0.00% |
Total (as a percent) | 100.00% | 0.00% | 0.00% |
Class T shares [Member] | |||
Income Taxes [Line Items] | |||
Ordinary dividends (as a percent) | 25.93% | 23.07% | 0.00% |
Nontaxable distributions (as a percent) | 74.07% | 76.93% | 0.00% |
Total (as a percent) | 100.00% | 100.00% | 0.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Dec. 31, 2017case |
Commitments and Contingencies Disclosure [Abstract] | |
Number of pending legal proceedings to which the Company is a party | 0 |
Selected Quarterly Financial 93
Selected Quarterly Financial Data (Unaudited) (Schedule of Selected Quarterly Financial Data (Unaudited)) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Total revenue | $ 37,266 | $ 36,205 | $ 27,602 | $ 24,022 | $ 19,210 | $ 13,594 | $ 12,203 | $ 11,424 | $ 125,095 | $ 56,431 | $ 21,286 |
Total expenses | (23,926) | (23,980) | (17,888) | (15,467) | (11,711) | (10,460) | (9,638) | (8,935) | (81,261) | (40,744) | (24,167) |
Income (loss) from operations | 13,340 | 12,225 | 9,714 | 8,555 | 7,499 | 3,134 | 2,565 | 2,489 | 43,834 | 15,687 | (2,881) |
Interest expense, net | (6,932) | (6,786) | (5,073) | (3,764) | (2,153) | (626) | (732) | (879) | (22,555) | (4,390) | (1,886) |
Net income (loss) attributable to common stockholders | $ 6,408 | $ 5,439 | $ 4,641 | $ 4,791 | $ 5,346 | $ 2,508 | $ 1,833 | $ 1,610 | $ 21,279 | $ 11,297 | $ (4,767) |
Net income per common share attributable to common stockholders: | |||||||||||
Basic (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.06 | $ 0.07 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.21 | $ 0.17 | $ (0.17) |
Diluted (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.06 | $ 0.07 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.21 | $ 0.17 | $ (0.17) |
Weighted average number of common shares outstanding: | |||||||||||
Basic (in shares) | 119,651,271 | 105,388,118 | 94,910,818 | 86,482,927 | 78,728,400 | 71,852,230 | 63,514,780 | 53,666,785 | 101,714,148 | 66,991,294 | 28,658,495 |
Diluted (in shares) | 119,666,234 | 105,405,297 | 94,925,665 | 86,499,543 | 78,742,067 | 71,866,949 | 63,530,999 | 53,679,723 | 101,731,944 | 67,007,124 | 28,658,495 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) | Mar. 16, 2018 | Mar. 01, 2018 | Feb. 01, 2018 | Jan. 31, 2018 | Jan. 02, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 15, 2018 | Dec. 06, 2017 |
Subsequent Event [Line Items] | |||||||||||
Aggregate distributions paid | $ 118,258,000 | ||||||||||
Distributions paid in cash | 53,192,000 | $ 28,994,000 | $ 17,659,000 | $ 6,379,000 | |||||||
Common stock issued through distribution reinvestment plan | $ 65,066,000 | $ 32,264,000 | $ 22,889,000 | 9,643,000 | |||||||
Distributions declared per common share (in dollars per share) | $ 0.62 | $ 0.63 | |||||||||
Common Stock | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock issued through distribution reinvestment plan | $ 35,000 | $ 24,000 | $ 10,000 | ||||||||
Class A, I, T and T2 shares [Member] | DRIP Offering [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering, price per share (in dollars per share) | $ 9.18 | ||||||||||
Subsequent Event [Member] | Class A shares [Member] | Follow-On Offering [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering, price per share (in dollars per share) | $ 10.200 | ||||||||||
Subsequent Event [Member] | Class A shares [Member] | Common Stock | the Offerings [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering including DRIP, shares issued | 84,975,000 | ||||||||||
Common stock offering including DRIP, gross proceeds raised | $ 841,384,000 | ||||||||||
Subsequent Event [Member] | Class I shares [Member] | Follow-On Offering [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering, price per share (in dollars per share) | 9.273 | ||||||||||
Subsequent Event [Member] | Class I shares [Member] | Common Stock | the Offerings [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering including DRIP, shares issued | 8,152,000 | ||||||||||
Common stock offering including DRIP, gross proceeds raised | $ 74,555,000 | ||||||||||
Subsequent Event [Member] | Class T shares [Member] | Common Stock | the Offerings [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering including DRIP, shares issued | 37,521,000 | ||||||||||
Common stock offering including DRIP, gross proceeds raised | $ 360,650,000 | ||||||||||
Subsequent Event [Member] | Class T2 shares [Member] | Follow-On Offering [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering, price per share (in dollars per share) | $ 9.714 | ||||||||||
Subsequent Event [Member] | Class T2 shares [Member] | Common Stock | the Offerings [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering including DRIP, shares issued | 0 | ||||||||||
Common stock offering including DRIP, gross proceeds raised | $ 0 | ||||||||||
Subsequent Event [Member] | Common Class A, I and T2 Shares [Member] | Common Stock | Follow-On Offering [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering, value remaining | 960,271,000 | ||||||||||
Subsequent Event [Member] | Class A, I, T and T2 shares [Member] | Common Stock | DRIP Offering [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock offering, value remaining | $ 86,872,000 | ||||||||||
Subsequent Event [Member] | December 1, 2017 To December 31, 2017 [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Distributions paid in cash | $ 3,164,000 | ||||||||||
Common stock issued through distribution reinvestment plan | 3,402,000 | ||||||||||
Subsequent Event [Member] | December 1, 2017 To December 31, 2017 [Member] | Class A shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate distributions paid | 4,503,000 | ||||||||||
Distributions paid in cash | 2,272,000 | ||||||||||
Common stock issued through distribution reinvestment plan | 2,231,000 | ||||||||||
Subsequent Event [Member] | December 1, 2017 To December 31, 2017 [Member] | Class I shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate distributions paid | 364,000 | ||||||||||
Distributions paid in cash | 193,000 | ||||||||||
Common stock issued through distribution reinvestment plan | 171,000 | ||||||||||
Subsequent Event [Member] | December 1, 2017 To December 31, 2017 [Member] | Class T shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate distributions paid | 1,699,000 | ||||||||||
Distributions paid in cash | 699,000 | ||||||||||
Common stock issued through distribution reinvestment plan | $ 1,000,000 | ||||||||||
Subsequent Event [Member] | January 1, 2018 To January 31, 2018 [Member] | Class A shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate distributions paid | $ 4,523,000 | ||||||||||
Distributions paid in cash | 2,291,000 | ||||||||||
Common stock issued through distribution reinvestment plan | 2,232,000 | ||||||||||
Subsequent Event [Member] | January 1, 2018 To January 31, 2018 [Member] | Class I shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate distributions paid | 392,000 | ||||||||||
Distributions paid in cash | 211,000 | ||||||||||
Common stock issued through distribution reinvestment plan | 181,000 | ||||||||||
Subsequent Event [Member] | January 1, 2018 To January 31, 2018 [Member] | Class T shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate distributions paid | 1,717,000 | ||||||||||
Distributions paid in cash | 717,000 | ||||||||||
Common stock issued through distribution reinvestment plan | $ 1,000,000 | ||||||||||
Subsequent Event [Member] | February 1, 2018 To February 28, 2018 [Member] | Class A shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate distributions paid | $ 4,103,000 | ||||||||||
Distributions paid in cash | 2,084,000 | ||||||||||
Common stock issued through distribution reinvestment plan | 2,019,000 | ||||||||||
Subsequent Event [Member] | February 1, 2018 To February 28, 2018 [Member] | Class I shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate distributions paid | 384,000 | ||||||||||
Distributions paid in cash | 210,000 | ||||||||||
Common stock issued through distribution reinvestment plan | 174,000 | ||||||||||
Subsequent Event [Member] | February 1, 2018 To February 28, 2018 [Member] | Class T shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Aggregate distributions paid | 1,568,000 | ||||||||||
Distributions paid in cash | 655,000 | ||||||||||
Common stock issued through distribution reinvestment plan | $ 913,000 | ||||||||||
Subsequent Event [Member] | March 1, 2018 To May 31, 2018 [Member] | Class A shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of days, distribution calculation | 365 days | ||||||||||
Distributions declared per common share (in dollars per share) | $ 0.001788493 | ||||||||||
Annualized distribution rate | 6.40% | ||||||||||
Common stock offering, price per share (in dollars per share) | $ 10.200 | ||||||||||
Subsequent Event [Member] | March 1, 2018 To May 31, 2018 [Member] | Class I shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of days, distribution calculation | 365 days | ||||||||||
Distributions declared per common share (in dollars per share) | $ 0.001788493 | ||||||||||
Annualized distribution rate | 7.04% | ||||||||||
Common stock offering, price per share (in dollars per share) | $ 9.273 | ||||||||||
Subsequent Event [Member] | March 1, 2018 To May 31, 2018 [Member] | Class T shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of days, distribution calculation | 365 days | ||||||||||
Distributions declared per common share (in dollars per share) | $ 0.001519750 | ||||||||||
Annualized distribution rate | 5.68% | ||||||||||
Common stock offering, price per share (in dollars per share) | $ 9.766 | ||||||||||
Subsequent Event [Member] | March 1, 2018 To May 31, 2018 [Member] | Class T2 shares [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of days, distribution calculation | 365 days | ||||||||||
Distributions declared per common share (in dollars per share) | $ 0.001522356 | ||||||||||
Annualized distribution rate | 5.72% | ||||||||||
Common stock offering, price per share (in dollars per share) | $ 9.714 |
Subsequent Events (Schedule of
Subsequent Events (Schedule of Subsequent Acquisitions) (Details) | Mar. 14, 2018USD ($)tenant | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Subsequent Event [Line Items] | |||||
Total purchase price of assets acquired | $ 604,372,000 | $ 535,447,000 | $ 374,164,000 | ||
Subsequent Event [Member] | Rancho Cordova Data Center I [Member] | |||||
Subsequent Event [Line Items] | |||||
Date Acquired | [1] | Mar. 14, 2018 | |||
Total purchase price of assets acquired | [1],[2] | $ 36,800,000 | |||
Ownership Percentage | [1] | 100.00% | |||
Number of tenants | tenant | 1 | ||||
Subsequent Event [Member] | Rancho Cordova Data Center II [Member] | |||||
Subsequent Event [Line Items] | |||||
Date Acquired | [3] | Mar. 14, 2018 | |||
Total purchase price of assets acquired | [2],[3] | $ 14,160,000 | |||
Ownership Percentage | [3] | 100.00% | |||
Number of tenants | tenant | 2 | ||||
[1] | The property is leased to a single tenant. | ||||
[2] | The property acquisition was funded using net proceeds from the Initial Offering and the Offering and the secured credit facility. | ||||
[3] | The property is leased to two tenants. |
Schedule III - Real Estate As96
Schedule III - Real Estate Assets and Accumulated Depreciation (Schedule of Real Estate Assets and Accumulated Depreciation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 468,135 | |||||
Initial Cost, Land | 222,919 | |||||
Initial Cost, Buildings and Improvements | 1,280,175 | |||||
Cost Capitalized Subsequent to Acquisition | 48,100 | |||||
Gross Amount Carried at Close of Period, Land | [1] | 223,277 | ||||
Gross Amount Carried at Close of Period, Buildings and Improvements | [1] | 1,327,917 | ||||
Gross Amount Carried at Close of Period, Total | 1,551,194 | [1] | $ 915,521 | $ 415,776 | $ 82,748 | |
Accumulated Depreciation | 45,789 | [2] | $ 18,521 | $ 5,262 | $ 133 | |
Cy Fair Surgical Center [Member] | Houston, TX [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | 0 | ||||
Initial Cost, Land | 762 | |||||
Initial Cost, Buildings and Improvements | 2,970 | |||||
Cost Capitalized Subsequent to Acquisition | 106 | |||||
Gross Amount Carried at Close of Period, Land | 762 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 3,076 | |||||
Gross Amount Carried at Close of Period, Total | 3,838 | |||||
Accumulated Depreciation | $ 346 | |||||
Year Constructed | 1,993 | |||||
Date Acquired | Jul. 31, 2014 | |||||
Mercy Healthcare Facility [Member] | Cincinnati, OH [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 356 | |||||
Initial Cost, Buildings and Improvements | 3,167 | |||||
Cost Capitalized Subsequent to Acquisition | 40 | |||||
Gross Amount Carried at Close of Period, Land | 356 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 3,207 | |||||
Gross Amount Carried at Close of Period, Total | 3,563 | |||||
Accumulated Depreciation | $ 307 | |||||
Year Constructed | 2,001 | |||||
Date Acquired | Oct. 29, 2014 | |||||
Winston-Salem, NC IMF [Member] | Winston-Salem, NC [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 684 | |||||
Initial Cost, Buildings and Improvements | 4,903 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 684 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 4,903 | |||||
Gross Amount Carried at Close of Period, Total | 5,587 | |||||
Accumulated Depreciation | $ 444 | |||||
Year Constructed | 2,004 | |||||
Date Acquired | Dec. 17, 2014 | |||||
New England Sinai Medical Center [Member] | Stoughton, MA [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 4,049 | |||||
Initial Cost, Buildings and Improvements | 19,991 | |||||
Cost Capitalized Subsequent to Acquisition | 1,870 | |||||
Gross Amount Carried at Close of Period, Land | 4,049 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 21,861 | |||||
Gross Amount Carried at Close of Period, Total | 25,910 | |||||
Accumulated Depreciation | $ 1,700 | |||||
Date Acquired | Dec. 23, 2014 | |||||
New England Sinai Medical Center [Member] | Stoughton, MA [Member] | Minimum [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Year Constructed | [4] | 1,967 | ||||
New England Sinai Medical Center [Member] | Stoughton, MA [Member] | Maximum [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Year Constructed | [4] | 1,973 | ||||
Baylor Surgical Hospital at Fort Worth [Member] | Fort Worth, TX [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 8,297 | |||||
Initial Cost, Buildings and Improvements | 35,615 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 8,297 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 35,615 | |||||
Gross Amount Carried at Close of Period, Total | 43,912 | |||||
Accumulated Depreciation | $ 2,840 | |||||
Year Constructed | 2,014 | |||||
Date Acquired | Dec. 31, 2014 | |||||
Baylor Surgical Hospital Integrated Medical Facility [Member] | Fort Worth, TX [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 367 | |||||
Initial Cost, Buildings and Improvements | 1,587 | |||||
Cost Capitalized Subsequent to Acquisition | 164 | |||||
Gross Amount Carried at Close of Period, Land | 367 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 1,751 | |||||
Gross Amount Carried at Close of Period, Total | 2,118 | |||||
Accumulated Depreciation | $ 236 | |||||
Year Constructed | 2,014 | |||||
Date Acquired | Dec. 31, 2014 | |||||
Winter Haven Healthcare Facility [Member] | Winter Haven, FL [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 0 | |||||
Initial Cost, Land | 0 | |||||
Initial Cost, Buildings and Improvements | 2,805 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 0 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 2,805 | |||||
Gross Amount Carried at Close of Period, Total | 2,805 | |||||
Accumulated Depreciation | $ 230 | |||||
Year Constructed | 2,009 | |||||
Date Acquired | Jan. 27, 2015 | |||||
Heartland Rehabilitation Hospital [Member] | Overland Park, KS [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 1,558 | |||||
Initial Cost, Buildings and Improvements | 20,549 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 1,558 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 20,549 | |||||
Gross Amount Carried at Close of Period, Total | 22,107 | |||||
Accumulated Depreciation | $ 1,553 | |||||
Year Constructed | 2,014 | |||||
Date Acquired | Feb. 17, 2015 | |||||
Indianapolis Data Center [Member] | Indianapolis, IN [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 524 | |||||
Initial Cost, Buildings and Improvements | 6,422 | |||||
Cost Capitalized Subsequent to Acquisition | 37 | |||||
Gross Amount Carried at Close of Period, Land | 524 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 6,459 | |||||
Gross Amount Carried at Close of Period, Total | 6,983 | |||||
Accumulated Depreciation | $ 444 | |||||
Year Constructed | [5] | 2,000 | ||||
Date Acquired | Apr. 1, 2015 | |||||
Clarion IMF [Member] | Clarion, PA [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 462 | |||||
Initial Cost, Buildings and Improvements | 5,377 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 462 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 5,377 | |||||
Gross Amount Carried at Close of Period, Total | 5,839 | |||||
Accumulated Depreciation | $ 462 | |||||
Year Constructed | 2,012 | |||||
Date Acquired | Jun. 1, 2015 | |||||
Post Acute Webster Rehabilitation Hospital [Member] | Webster, TX [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 1,858 | |||||
Initial Cost, Buildings and Improvements | 20,140 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 1,858 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 20,140 | |||||
Gross Amount Carried at Close of Period, Total | 21,998 | |||||
Accumulated Depreciation | $ 1,342 | |||||
Year Constructed | 2,015 | |||||
Date Acquired | Jun. 5, 2015 | |||||
Eagan Data Center [Member] | Eagan, MN [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 768 | |||||
Initial Cost, Buildings and Improvements | 5,037 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 768 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 5,037 | |||||
Gross Amount Carried at Close of Period, Total | 5,805 | |||||
Accumulated Depreciation | $ 395 | |||||
Year Constructed | [6] | 1,998 | ||||
Date Acquired | Jun. 29, 2015 | |||||
Houston Surgical Hospital and LTACH [Member] | Houston, TX [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 8,329 | |||||
Initial Cost, Buildings and Improvements | 36,297 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 8,329 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 36,297 | |||||
Gross Amount Carried at Close of Period, Total | 44,626 | |||||
Accumulated Depreciation | $ 2,582 | |||||
Year Constructed | [7] | 1,950 | ||||
Date Acquired | Jun. 30, 2015 | |||||
KMO IMF - Cincinnati I [Member] | Cincinnati, OH [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 1,812 | |||||
Initial Cost, Buildings and Improvements | 24,382 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 1,812 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 24,382 | |||||
Gross Amount Carried at Close of Period, Total | 26,194 | |||||
Accumulated Depreciation | $ 1,769 | |||||
Year Constructed | [8] | 1,959 | ||||
Date Acquired | Jul. 22, 2015 | |||||
KMO IMF - Cincinnati II [Member] | Cincinnati, OH [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 446 | |||||
Initial Cost, Buildings and Improvements | 10,239 | |||||
Cost Capitalized Subsequent to Acquisition | 4 | |||||
Gross Amount Carried at Close of Period, Land | 446 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 10,243 | |||||
Gross Amount Carried at Close of Period, Total | 10,689 | |||||
Accumulated Depreciation | $ 669 | |||||
Year Constructed | 2,014 | |||||
Date Acquired | Jul. 22, 2015 | |||||
KMO IMF - Florence [Member] | Florence, KY [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 650 | |||||
Initial Cost, Buildings and Improvements | 9,919 | |||||
Cost Capitalized Subsequent to Acquisition | 1 | |||||
Gross Amount Carried at Close of Period, Land | 650 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 9,920 | |||||
Gross Amount Carried at Close of Period, Total | 10,570 | |||||
Accumulated Depreciation | $ 646 | |||||
Year Constructed | 2,014 | |||||
Date Acquired | Jul. 22, 2015 | |||||
KMO IMF - Augusta [Member] | Augusta, ME [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 556 | |||||
Initial Cost, Buildings and Improvements | 14,401 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 556 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 14,401 | |||||
Gross Amount Carried at Close of Period, Total | 14,957 | |||||
Accumulated Depreciation | $ 1,001 | |||||
Year Constructed | 2,010 | |||||
Date Acquired | Jul. 22, 2015 | |||||
KMO IMF - Oakland [Member] | Oakland, ME [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 229 | |||||
Initial Cost, Buildings and Improvements | 5,416 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 229 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 5,416 | |||||
Gross Amount Carried at Close of Period, Total | 5,645 | |||||
Accumulated Depreciation | $ 407 | |||||
Year Constructed | 2,003 | |||||
Date Acquired | Jul. 22, 2015 | |||||
Reading Surgical Hospital [Member] | Wyomissing, PA [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 1,504 | |||||
Initial Cost, Buildings and Improvements | 20,193 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 1,504 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 20,193 | |||||
Gross Amount Carried at Close of Period, Total | 21,697 | |||||
Accumulated Depreciation | $ 1,341 | |||||
Year Constructed | 2,007 | |||||
Date Acquired | Jul. 24, 2015 | |||||
Post Acute Warm Springs Specialty Hospital of Luling [Member] | Luling, TX [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 824 | |||||
Initial Cost, Buildings and Improvements | 7,530 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 824 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 7,530 | |||||
Gross Amount Carried at Close of Period, Total | 8,354 | |||||
Accumulated Depreciation | $ 497 | |||||
Year Constructed | 2,002 | |||||
Date Acquired | Jul. 30, 2015 | |||||
Minnetonka Data Center [Member] | Minnetonka, MN [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 2,085 | |||||
Initial Cost, Buildings and Improvements | 15,099 | |||||
Cost Capitalized Subsequent to Acquisition | 25 | |||||
Gross Amount Carried at Close of Period, Land | 2,085 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 15,124 | |||||
Gross Amount Carried at Close of Period, Total | 17,209 | |||||
Accumulated Depreciation | $ 1,261 | |||||
Year Constructed | 1,985 | |||||
Date Acquired | Aug. 28, 2015 | |||||
Nebraska Healthcare Facility [Member] | Omaha, NE [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 1,259 | |||||
Initial Cost, Buildings and Improvements | 9,796 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 1,259 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 9,796 | |||||
Gross Amount Carried at Close of Period, Total | 11,055 | |||||
Accumulated Depreciation | $ 568 | |||||
Year Constructed | 2,014 | |||||
Date Acquired | Oct. 14, 2015 | |||||
Heritage Park - Sherman I [Member] | Sherman, TX [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 1,679 | |||||
Initial Cost, Buildings and Improvements | 23,926 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 1,679 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 23,926 | |||||
Gross Amount Carried at Close of Period, Total | 25,605 | |||||
Accumulated Depreciation | $ 1,321 | |||||
Year Constructed | [9] | 2,005 | ||||
Date Acquired | Nov. 20, 2015 | |||||
Heritage Park - Sherman II [Member] | Sherman, TX [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 214 | |||||
Initial Cost, Buildings and Improvements | 3,209 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 214 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 3,209 | |||||
Gross Amount Carried at Close of Period, Total | 3,423 | |||||
Accumulated Depreciation | $ 179 | |||||
Year Constructed | 2,005 | |||||
Date Acquired | Nov. 20, 2015 | |||||
Baylor Surgery Center at Fort Worth [Member] | Fort Worth, TX [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 3,120 | |||||
Initial Cost, Buildings and Improvements | 9,312 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 3,120 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 9,312 | |||||
Gross Amount Carried at Close of Period, Total | 12,432 | |||||
Accumulated Depreciation | $ 500 | |||||
Year Constructed | [10] | 1,998 | ||||
Date Acquired | Dec. 23, 2015 | |||||
HPI - Oklahoma City I [Member] | Oklahoma City, OK [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 22,500 | |||||
Initial Cost, Land | 4,626 | |||||
Initial Cost, Buildings and Improvements | 30,509 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 4,626 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 30,509 | |||||
Gross Amount Carried at Close of Period, Total | 35,135 | |||||
Accumulated Depreciation | $ 1,691 | |||||
Year Constructed | [11] | 1,985 | ||||
Date Acquired | Dec. 29, 2015 | |||||
HPI - Oklahoma City II [Member] | Oklahoma City, OK [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 991 | |||||
Initial Cost, Buildings and Improvements | 8,366 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 991 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 8,366 | |||||
Gross Amount Carried at Close of Period, Total | 9,357 | |||||
Accumulated Depreciation | $ 493 | |||||
Year Constructed | [12] | 1,994 | ||||
Date Acquired | Dec. 29, 2015 | |||||
Waco Data Center [Member] | Waco, TX [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 873 | |||||
Initial Cost, Buildings and Improvements | 8,233 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 873 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 8,233 | |||||
Gross Amount Carried at Close of Period, Total | 9,106 | |||||
Accumulated Depreciation | $ 425 | |||||
Year Constructed | [13] | 1,956 | ||||
Date Acquired | Dec. 30, 2015 | |||||
HPI - Edmond [Member] | Edmond, OK [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 796 | |||||
Initial Cost, Buildings and Improvements | 3,199 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 796 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 3,199 | |||||
Gross Amount Carried at Close of Period, Total | 3,995 | |||||
Accumulated Depreciation | $ 184 | |||||
Year Constructed | 2,002 | |||||
Date Acquired | Jan. 20, 2016 | |||||
HPI - Oklahoma City III [Member] | Oklahoma City, OK [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 368 | |||||
Initial Cost, Buildings and Improvements | 2,344 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 368 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 2,344 | |||||
Gross Amount Carried at Close of Period, Total | 2,712 | |||||
Accumulated Depreciation | $ 135 | |||||
Year Constructed | 2,007 | |||||
Date Acquired | Jan. 27, 2016 | |||||
HPI - Oklahoma City IV [Member] | Oklahoma City, OK [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 452 | |||||
Initial Cost, Buildings and Improvements | 1,081 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 452 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 1,081 | |||||
Gross Amount Carried at Close of Period, Total | 1,533 | |||||
Accumulated Depreciation | $ 64 | |||||
Year Constructed | 2,006 | |||||
Date Acquired | Jan. 27, 2016 | |||||
Alpharetta Data Center III [Member] | Alpharetta, GA [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 0 | |||||
Initial Cost, Land | 3,395 | |||||
Initial Cost, Buildings and Improvements | 11,081 | |||||
Cost Capitalized Subsequent to Acquisition | 25 | |||||
Gross Amount Carried at Close of Period, Land | 3,395 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 11,106 | |||||
Gross Amount Carried at Close of Period, Total | 14,501 | |||||
Accumulated Depreciation | $ 576 | |||||
Year Constructed | 1,999 | |||||
Date Acquired | Feb. 2, 2016 | |||||
Flint Data Center [Member] | Flint, MI [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 111 | |||||
Initial Cost, Buildings and Improvements | 7,001 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 111 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 7,001 | |||||
Gross Amount Carried at Close of Period, Total | 7,112 | |||||
Accumulated Depreciation | $ 356 | |||||
Year Constructed | 1,987 | |||||
Date Acquired | Feb. 2, 2016 | |||||
HPI - Newcastle [Member] | Newcastle, OK [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 412 | |||||
Initial Cost, Buildings and Improvements | 1,173 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 412 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 1,173 | |||||
Gross Amount Carried at Close of Period, Total | 1,585 | |||||
Accumulated Depreciation | $ 67 | |||||
Year Constructed | [14] | 1,995 | ||||
Date Acquired | Feb. 3, 2016 | |||||
HPI - Oklahoma City V [Member] | Oklahoma City, OK [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 541 | |||||
Initial Cost, Buildings and Improvements | 12,445 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 541 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 12,445 | |||||
Gross Amount Carried at Close of Period, Total | 12,986 | |||||
Accumulated Depreciation | $ 688 | |||||
Year Constructed | 2,008 | |||||
Date Acquired | Feb. 11, 2016 | |||||
Vibra Rehabilitation Hospital [Member] | Rancho Mirage, CA [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [15] | $ 0 | ||||
Initial Cost, Land | [15] | 2,724 | ||||
Initial Cost, Buildings and Improvements | [15] | 7,626 | ||||
Cost Capitalized Subsequent to Acquisition | [15] | 23,707 | ||||
Gross Amount Carried at Close of Period, Land | [15] | 2,724 | ||||
Gross Amount Carried at Close of Period, Buildings and Improvements | [15] | 31,333 | ||||
Gross Amount Carried at Close of Period, Total | [15] | $ 34,057 | ||||
Date Acquired | [15] | Mar. 1, 2016 | ||||
HPI - Oklahoma City VI [Member] | Oklahoma City, OK [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 896 | |||||
Initial Cost, Buildings and Improvements | 3,684 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 896 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 3,684 | |||||
Gross Amount Carried at Close of Period, Total | 4,580 | |||||
Accumulated Depreciation | $ 201 | |||||
Year Constructed | 2,007 | |||||
Date Acquired | Mar. 7, 2016 | |||||
Tennessee Data Center [Member] | Franklin, TN [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 6,624 | |||||
Initial Cost, Buildings and Improvements | 10,971 | |||||
Cost Capitalized Subsequent to Acquisition | 149 | |||||
Gross Amount Carried at Close of Period, Land | 6,624 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 11,120 | |||||
Gross Amount Carried at Close of Period, Total | 17,744 | |||||
Accumulated Depreciation | $ 525 | |||||
Year Constructed | 2,015 | |||||
Date Acquired | Mar. 31, 2016 | |||||
HPI - Oklahoma City VII [Member] | Oklahoma City, OK [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 25,000 | |||||
Initial Cost, Land | 3,203 | |||||
Initial Cost, Buildings and Improvements | 32,380 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 3,203 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 32,380 | |||||
Gross Amount Carried at Close of Period, Total | 35,583 | |||||
Accumulated Depreciation | $ 1,310 | |||||
Year Constructed | 2,016 | |||||
Date Acquired | Jun. 22, 2016 | |||||
Post Acute Las Vegas Rehabilitation Hospital [Member] | Las Vegas, NV [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 0 | |||||
Initial Cost, Land | 2,614 | |||||
Initial Cost, Buildings and Improvements | 639 | |||||
Cost Capitalized Subsequent to Acquisition | 22,529 | |||||
Gross Amount Carried at Close of Period, Land | 2,894 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 22,888 | |||||
Gross Amount Carried at Close of Period, Total | 25,782 | |||||
Accumulated Depreciation | $ 25 | |||||
Year Constructed | [16] | 2,017 | ||||
Date Acquired | [16] | Jun. 24, 2016 | ||||
Somerset Data Center [Member] | Somerset, NJ [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 906 | |||||
Initial Cost, Buildings and Improvements | 10,466 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 906 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 10,466 | |||||
Gross Amount Carried at Close of Period, Total | 11,372 | |||||
Accumulated Depreciation | $ 466 | |||||
Year Constructed | [17] | 1,973 | ||||
Date Acquired | Jun. 29, 2016 | |||||
Integris Lakeside Women's Hospital [Member] | Oklahoma City, OK [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 2,002 | |||||
Initial Cost, Buildings and Improvements | 15,384 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 2,002 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 15,384 | |||||
Gross Amount Carried at Close of Period, Total | 17,386 | |||||
Accumulated Depreciation | $ 614 | |||||
Year Constructed | [18] | 1,997 | ||||
Date Acquired | Jun. 30, 2016 | |||||
AT&T Hawthorne Data Center [Member] | Hawthorne, CA [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 39,749 | |||||
Initial Cost, Land | 16,498 | |||||
Initial Cost, Buildings and Improvements | 57,312 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 16,498 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 57,312 | |||||
Gross Amount Carried at Close of Period, Total | 73,810 | |||||
Accumulated Depreciation | $ 1,882 | |||||
Year Constructed | [19] | 1,963 | ||||
Date Acquired | Sep. 27, 2016 | |||||
McLean I [Member] | McLean, VA [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 23,460 | |||||
Initial Cost, Land | 31,554 | |||||
Initial Cost, Buildings and Improvements | 4,930 | |||||
Cost Capitalized Subsequent to Acquisition | 7 | |||||
Gross Amount Carried at Close of Period, Land | 31,554 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 4,937 | |||||
Gross Amount Carried at Close of Period, Total | 36,491 | |||||
Accumulated Depreciation | $ 165 | |||||
Year Constructed | [20] | 1,966 | ||||
Date Acquired | Oct. 17, 2016 | |||||
McLean II [Member] | McLean, VA [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 27,540 | |||||
Initial Cost, Land | 20,392 | |||||
Initial Cost, Buildings and Improvements | 22,727 | |||||
Cost Capitalized Subsequent to Acquisition | 6 | |||||
Gross Amount Carried at Close of Period, Land | 20,392 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 22,733 | |||||
Gross Amount Carried at Close of Period, Total | 43,125 | |||||
Accumulated Depreciation | $ 706 | |||||
Year Constructed | [21] | 1,991 | ||||
Date Acquired | Oct. 17, 2016 | |||||
Select Medical Rehabilitation Facility [Member] | Marlton, NJ [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 31,790 | |||||
Initial Cost, Land | 0 | |||||
Initial Cost, Buildings and Improvements | 57,154 | |||||
Cost Capitalized Subsequent to Acquisition | 5 | |||||
Gross Amount Carried at Close of Period, Land | 0 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 57,159 | |||||
Gross Amount Carried at Close of Period, Total | 57,159 | |||||
Accumulated Depreciation | $ 1,608 | |||||
Year Constructed | 1,995 | |||||
Date Acquired | Nov. 1, 2016 | |||||
Andover Data Center II [Member] | Andover, MA [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 6,566 | |||||
Initial Cost, Buildings and Improvements | 28,072 | |||||
Cost Capitalized Subsequent to Acquisition | 1 | |||||
Gross Amount Carried at Close of Period, Land | 6,566 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 28,073 | |||||
Gross Amount Carried at Close of Period, Total | 34,639 | |||||
Accumulated Depreciation | $ 897 | |||||
Year Constructed | 2,000 | |||||
Date Acquired | Nov. 8, 2016 | |||||
Grand Rapids Healthcare Facility [Member] | Grand Rapids, MI [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 30,450 | |||||
Initial Cost, Land | 2,533 | |||||
Initial Cost, Buildings and Improvements | 39,487 | |||||
Cost Capitalized Subsequent to Acquisition | 43 | |||||
Gross Amount Carried at Close of Period, Land | 2,533 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 39,530 | |||||
Gross Amount Carried at Close of Period, Total | 42,063 | |||||
Accumulated Depreciation | $ 1,345 | |||||
Year Constructed | 2,008 | |||||
Date Acquired | Dec. 7, 2016 | |||||
Corpus Christi Surgery Center [Member] | Corpus Christi, TX [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 0 | |||||
Initial Cost, Land | 975 | |||||
Initial Cost, Buildings and Improvements | 4,963 | |||||
Cost Capitalized Subsequent to Acquisition | 58 | |||||
Gross Amount Carried at Close of Period, Land | 1,002 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 4,994 | |||||
Gross Amount Carried at Close of Period, Total | 5,996 | |||||
Accumulated Depreciation | $ 141 | |||||
Year Constructed | 1,992 | |||||
Date Acquired | Dec. 22, 2016 | |||||
Chicago Data Center II [Member] | Downers Grove, IL [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 1,329 | |||||
Initial Cost, Buildings and Improvements | 29,940 | |||||
Cost Capitalized Subsequent to Acquisition | (545) | |||||
Gross Amount Carried at Close of Period, Land | 1,358 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 29,366 | |||||
Gross Amount Carried at Close of Period, Total | 30,724 | |||||
Accumulated Depreciation | $ 779 | |||||
Year Constructed | [22] | 1,987 | ||||
Date Acquired | Dec. 28, 2016 | |||||
Blythewood Data Center [Member] | Blythewood, SC [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 612 | |||||
Initial Cost, Buildings and Improvements | 17,714 | |||||
Cost Capitalized Subsequent to Acquisition | (234) | |||||
Gross Amount Carried at Close of Period, Land | 634 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 17,458 | |||||
Gross Amount Carried at Close of Period, Total | 18,092 | |||||
Accumulated Depreciation | $ 463 | |||||
Year Constructed | 1,983 | |||||
Date Acquired | Dec. 29, 2016 | |||||
Tempe Data Center | Tempe, AZ [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 2,997 | |||||
Initial Cost, Buildings and Improvements | 11,991 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 2,997 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 11,991 | |||||
Gross Amount Carried at Close of Period, Total | 14,988 | |||||
Accumulated Depreciation | $ 294 | |||||
Year Constructed | [23] | 1,977 | ||||
Date Acquired | Jan. 26, 2017 | |||||
Aurora Healthcare Facility | Aurora, IL [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 973 | |||||
Initial Cost, Buildings and Improvements | 9,632 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 973 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 9,632 | |||||
Gross Amount Carried at Close of Period, Total | 10,605 | |||||
Accumulated Depreciation | $ 206 | |||||
Year Constructed | 2,002 | |||||
Date Acquired | Mar. 30, 2017 | |||||
Norwalk Data Center | Norwalk, CT [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 34,200 | |||||
Initial Cost, Land | 10,125 | |||||
Initial Cost, Buildings and Improvements | 43,360 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 10,125 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 43,360 | |||||
Gross Amount Carried at Close of Period, Total | 53,485 | |||||
Accumulated Depreciation | $ 878 | |||||
Year Constructed | 2,013 | |||||
Date Acquired | Mar. 30, 2017 | |||||
Texas Rehab - Austin | Austin, TX [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 20,881 | |||||
Initial Cost, Land | 1,368 | |||||
Initial Cost, Buildings and Improvements | 32,039 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 1,368 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 32,039 | |||||
Gross Amount Carried at Close of Period, Total | 33,407 | |||||
Accumulated Depreciation | $ 683 | |||||
Year Constructed | 2,012 | |||||
Date Acquired | Mar. 31, 2017 | |||||
Texas Rehab - Allen | Allen, TX [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 13,150 | |||||
Initial Cost, Land | 857 | |||||
Initial Cost, Buildings and Improvements | 20,582 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 857 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 20,582 | |||||
Gross Amount Carried at Close of Period, Total | 21,439 | |||||
Accumulated Depreciation | $ 439 | |||||
Year Constructed | 2,007 | |||||
Date Acquired | Mar. 31, 2017 | |||||
Texas Rehab - Beaumont | Beaumont, TX [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 5,869 | |||||
Initial Cost, Land | 946 | |||||
Initial Cost, Buildings and Improvements | 8,372 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 946 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 8,372 | |||||
Gross Amount Carried at Close of Period, Total | 9,318 | |||||
Accumulated Depreciation | $ 179 | |||||
Year Constructed | 1,991 | |||||
Date Acquired | Mar. 31, 2017 | |||||
Texas Rehab - San Antonio | San Antonio, TX [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 10,500 | |||||
Initial Cost, Land | 1,813 | |||||
Initial Cost, Buildings and Improvements | 11,706 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 1,813 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 11,706 | |||||
Gross Amount Carried at Close of Period, Total | 13,519 | |||||
Accumulated Depreciation | $ 173 | |||||
Date Acquired | Jun. 29, 2017 | |||||
Texas Rehab - San Antonio | San Antonio, TX [Member] | Minimum [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Year Constructed | 1,985 | |||||
Texas Rehab - San Antonio | San Antonio, TX [Member] | Maximum [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Year Constructed | 1,992 | |||||
Charlotte Data Center II | Charlotte, NC [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 372 | |||||
Initial Cost, Buildings and Improvements | 17,131 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 372 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 17,131 | |||||
Gross Amount Carried at Close of Period, Total | 17,503 | |||||
Accumulated Depreciation | $ 272 | |||||
Year Constructed | [24] | 1,989 | ||||
Date Acquired | May 15, 2017 | |||||
250 Williams Atlanta Data Center | Atlanta, GA [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 116,200 | |||||
Initial Cost, Land | 19,159 | |||||
Initial Cost, Buildings and Improvements | 129,778 | |||||
Cost Capitalized Subsequent to Acquisition | 102 | |||||
Gross Amount Carried at Close of Period, Land | 19,159 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 129,880 | |||||
Gross Amount Carried at Close of Period, Total | 149,039 | |||||
Accumulated Depreciation | $ 2,549 | |||||
Year Constructed | [25] | 1,989 | ||||
Date Acquired | Jun. 15, 2017 | |||||
Sunnyvale Data Center | Sunnyvale, CA [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 10,013 | |||||
Initial Cost, Buildings and Improvements | 24,709 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 10,013 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 24,709 | |||||
Gross Amount Carried at Close of Period, Total | 34,722 | |||||
Accumulated Depreciation | $ 344 | |||||
Year Constructed | [26] | 1,992 | ||||
Date Acquired | Jun. 28, 2017 | |||||
Cincinnati Data Center | Cincinnati, OH [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 1,556 | |||||
Initial Cost, Buildings and Improvements | 8,966 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 1,556 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 8,966 | |||||
Gross Amount Carried at Close of Period, Total | 10,522 | |||||
Accumulated Depreciation | $ 136 | |||||
Year Constructed | [27] | 1,985 | ||||
Date Acquired | Jun. 30, 2017 | |||||
Silverdale Healthcare Facility | Silverdale, WA [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 1,530 | |||||
Initial Cost, Buildings and Improvements | 7,506 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 1,530 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 7,506 | |||||
Gross Amount Carried at Close of Period, Total | 9,036 | |||||
Accumulated Depreciation | $ 85 | |||||
Year Constructed | 2,005 | |||||
Date Acquired | Aug. 25, 2017 | |||||
Silverdale Healthcare Facility II | Silverdale, WA [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 1,542 | |||||
Initial Cost, Buildings and Improvements | 4,981 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 1,542 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 4,981 | |||||
Gross Amount Carried at Close of Period, Total | 6,523 | |||||
Accumulated Depreciation | $ 49 | |||||
Year Constructed | 2,007 | |||||
Date Acquired | Sep. 20, 2017 | |||||
King of Prussia Data Center | King of Prussia, PA [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 12,503 | |||||
Initial Cost, Land | 1,015 | |||||
Initial Cost, Buildings and Improvements | 17,413 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 1,015 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 17,413 | |||||
Gross Amount Carried at Close of Period, Total | 18,428 | |||||
Accumulated Depreciation | $ 131 | |||||
Year Constructed | [28] | 1,960 | ||||
Date Acquired | Sep. 28, 2017 | |||||
Tempe Data Center II | Tempe, AZ [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 0 | |||||
Initial Cost, Buildings and Improvements | 15,803 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 0 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 15,803 | |||||
Gross Amount Carried at Close of Period, Total | 15,803 | |||||
Accumulated Depreciation | $ 122 | |||||
Year Constructed | 1,998 | |||||
Date Acquired | Sep. 29, 2017 | |||||
Houston Data Center | Houston, TX [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 48,607 | |||||
Initial Cost, Land | 10,082 | |||||
Initial Cost, Buildings and Improvements | 101,051 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 10,082 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 101,051 | |||||
Gross Amount Carried at Close of Period, Total | 111,133 | |||||
Accumulated Depreciation | $ 321 | |||||
Year Constructed | 2,013 | |||||
Date Acquired | Nov. 16, 2017 | |||||
Saginaw Healthcare Facility | Saginaw, MI [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | [3] | $ 0 | ||||
Initial Cost, Land | 1,251 | |||||
Initial Cost, Buildings and Improvements | 15,878 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 1,251 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 15,878 | |||||
Gross Amount Carried at Close of Period, Total | 17,129 | |||||
Accumulated Depreciation | $ 24 | |||||
Year Constructed | 2,002 | |||||
Date Acquired | Dec. 21, 2017 | |||||
Elgin Data Center | Elgin, IL [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 5,736 | |||||
Initial Cost, Land | 1,067 | |||||
Initial Cost, Buildings and Improvements | 7,861 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 1,067 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 7,861 | |||||
Gross Amount Carried at Close of Period, Total | 8,928 | |||||
Accumulated Depreciation | $ 10 | |||||
Year Constructed | 2,000 | |||||
Date Acquired | Dec. 22, 2017 | |||||
Oklahoma City Data Center | Oklahoma City, OK [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 0 | |||||
Initial Cost, Land | 1,868 | |||||
Initial Cost, Buildings and Improvements | 44,253 | |||||
Cost Capitalized Subsequent to Acquisition | 0 | |||||
Gross Amount Carried at Close of Period, Land | 1,868 | |||||
Gross Amount Carried at Close of Period, Buildings and Improvements | 44,253 | |||||
Gross Amount Carried at Close of Period, Total | 46,121 | |||||
Accumulated Depreciation | $ 48 | |||||
Date Acquired | Dec. 27, 2017 | |||||
Oklahoma City Data Center | Oklahoma City, OK [Member] | Minimum [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Year Constructed | 2,008 | |||||
Oklahoma City Data Center | Oklahoma City, OK [Member] | Maximum [Member] | ||||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||||
Year Constructed | 2,016 | |||||
[1] | The aggregated cost for federal income tax purposes is approximately $1,409,721,000 (unaudited). | |||||
[2] | The Company’s assets are depreciated or amortized using the straight-line method over the useful lives of the assets by class. Generally, buildings and improvements are depreciated over 15-40 years. | |||||
[3] | Property collateralized under the secured credit facility. As of December 31, 2017, 48 commercial properties were collateralized under the secured credit facility and the Company had $220,000,000 aggregate principal amount outstanding thereunder. | |||||
[4] | The New England Sinai Medical Center consists of two buildings and was renovated beginning in 1997. | |||||
[5] | The Indianapolis Data Center was renovated in 2014. | |||||
[6] | The Eagan Data Center was renovated in 2015. | |||||
[7] | The Houston Surgical Hospital and LTACH was renovated in 2005 and 2008. | |||||
[8] | The KMO IMF - Cincinnati I was renovated in 1970 and 2013. | |||||
[9] | The Heritage Park - Sherman I was renovated in 2010. | |||||
[10] | The Baylor Surgery Center at Fort Worth was renovated in 2007 and 2015. | |||||
[11] | The HPI - Oklahoma City I was renovated in 1998 and 2003. | |||||
[12] | The HPI - Oklahoma City II was renovated in 1999. | |||||
[13] | The Waco Data Center was renovated in 2009. | |||||
[14] | The HPI - Newcastle was renovated in 1999. | |||||
[15] | As of December 31, 2017, the Vibra Rehabilitation Hospital was under construction; therefore, depreciation is not applicable. | |||||
[16] | The Post Acute Las Vegas Rehabilitation Hospital was redeveloped into a healthcare facility in 2017. | |||||
[17] | The Somerset Data Center was renovated in 2006. | |||||
[18] | The Integris Lakeside Women's Hospital was renovated in 2008. | |||||
[19] | The AT&T Hawthorne Data Center was renovated in 1983 and 2001. | |||||
[20] | The McLean I was renovated in 1998. | |||||
[21] | The McLean II was renovated in 1998. | |||||
[22] | The Chicago Data Center II was renovated in 2016. | |||||
[23] | The Tempe Data Center was renovated in 1983, 2008 and 2011. | |||||
[24] | The Charlotte Data Center II was renovated in 2016. | |||||
[25] | 250 Williams Atlanta Data Center was renovated in 2007. | |||||
[26] | The Sunnyvale Data Center was renovated in 1998. | |||||
[27] | The Cincinnati Data Center was renovated in 2001. | |||||
[28] | The King of Prussia Data Center was renovated in 1997. |
Schedule III - Real Estate As97
Schedule III - Real Estate Assets and Accumulated Depreciation (Schedule of Real Estate Assets and Accumulated Depreciation - Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)propertybuilding | Dec. 31, 2016USD ($) | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Number of properties collateralized under line of credit facility | property | 48 | |
Secured credit facility, principal amount outstanding | $ 220,000 | $ 220,000 |
Aggregated cost for federal income tax purposes | $ 1,409,721 | |
New England Sinai Medical Center [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Number of buildings | building | 2 | |
Year renovated | 1,997 | |
Indianapolis Data Center [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,014 | |
Eagan Data Center [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,015 | |
Heritage Park - Sherman I [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,010 | |
HPI - Oklahoma City II [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 1,999 | |
Waco Data Center [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,009 | |
HPI - Newcastle [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 1,999 | |
Post Acute Las Vegas Rehabilitation Hospital [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,017 | |
Somerset Data Center [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,006 | |
Integris Lakeside Women's Hospital [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,008 | |
McLean I [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 1,998 | |
McLean II [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 1,998 | |
Chicago Data Center II [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,016 | |
Charlotte Data Center II | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,016 | |
250 Williams Atlanta Data Center | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,007 | |
Sunnyvale Data Center | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 1,998 | |
Cincinnati Data Center | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,001 | |
King of Prussia Data Center | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 1,997 | |
Building and improvements [Member] | Minimum [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Life used for depreciation | 15 years | |
Building and improvements [Member] | Maximum [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Life used for depreciation | 40 years | |
Building Renovation One [Member] | Houston Surgical Hospital and LTACH [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,005 | |
Building Renovation One [Member] | KMO IMF - Cincinnati I [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 1,970 | |
Building Renovation One [Member] | Baylor Surgery Center at Fort Worth [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,007 | |
Building Renovation One [Member] | HPI - Oklahoma City I [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 1,998 | |
Building Renovation One [Member] | AT&T Hawthorne Data Center [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 1,983 | |
Building Renovation One [Member] | Tempe Data Center | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 1,983 | |
Building Renovation Two [Member] | Houston Surgical Hospital and LTACH [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,008 | |
Building Renovation Two [Member] | KMO IMF - Cincinnati I [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,013 | |
Building Renovation Two [Member] | Baylor Surgery Center at Fort Worth [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,015 | |
Building Renovation Two [Member] | HPI - Oklahoma City I [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,003 | |
Building Renovation Two [Member] | AT&T Hawthorne Data Center [Member] | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,001 | |
Building Renovation Two [Member] | Tempe Data Center | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,008 | |
Building Renovation Three [Member] | Tempe Data Center | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Year renovated | 2,011 |
Schedule III - Real Estate As98
Schedule III - Real Estate Assets and Accumulated Depreciation (Schedule of Changes in Real Estate Assets and Accumulated Depreciation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | ||||
Balance at beginning of year | $ 915,521 | $ 415,776 | $ 82,748 | |
Acquisitions | 601,546 | 487,276 | 331,524 | |
Improvements | 34,127 | 12,469 | 1,504 | |
Balance at end of year | 1,551,194 | [1] | 915,521 | 415,776 |
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | ||||
Balance at beginning of year | (18,521) | (5,262) | (133) | |
Depreciation | (27,268) | (13,259) | (5,129) | |
Balance at end of year | $ (45,789) | [2] | $ (18,521) | $ (5,262) |
[1] | The aggregated cost for federal income tax purposes is approximately $1,409,721,000 (unaudited). | |||
[2] | The Company’s assets are depreciated or amortized using the straight-line method over the useful lives of the assets by class. Generally, buildings and improvements are depreciated over 15-40 years. |